By Adam Fraser
Twitter is many things to many people but I have long focused on the customer service aspect around Twitter’s functionality.
As previous podcast guest and well known author Joseph Jaffe said:
“It is the greatest customer service tool ever created bar none. And nothing else on Twitter makes sense in my opinion.”
To understand the impact of customer service interactions on customer relationships, Twitter designed a research study in partnership with Applied Marketing Science to figure out the potential revenue benefit to businesses who help their customers via Twitter. The results showed some demonstrable benefits of effective customer service on Twitter.
Some of the key findings were:
- When a customer Tweets at a business and receives a response, they are willing to spend 3–20% more on an average priced item from that business in the future
- Customers are 44% more likely to share their experiences—both online as well as offline—after receiving a response from a business on Twitter
- Customers are 30% more likely to recommend the business, and respond an entire point higher (2.66 vs 3.66) on customer satisfaction surveys
- It pays to reply rapidly. When an airline responded to a customer’s Tweet in less than six minutes, the customer was willing to pay almost $20 more for that airline in the future. Similarly, in the telco industry, customers are willing to pay $17 more per month for a phone plan if they receive a reply within four minutes, but are only willing to pay only $3.52 more if they have to wait over 20 minutes.
- 69% of people who Tweeted negatively say they feel more favorable when a business replies to their concern. (HT to Jay Baer re his book Hug Your Haters)
- Aspect Research found that consumers like coming to Twitter because they perceive it as significantly less frustrating than other customer service channels – even preferring it slightly more than in-person interactions.
Whilst clearly Twitter’s research is self serving, it confirms my fundamental belief on the importance of social listening and social response as foundation aspects of any enterprise social media strategy.