Taking your company on social media to engage customers may have consequences

By: |
August 16, 2015 5:42 PM

Think twice before taking your company to social media to engage with customers, as a new study has revealed that companies which respond to complaints on social media have a risk of triggering new complaints.

Think twice before taking your company to social media to engage with customers, as a new study has revealed that companies which respond to complaints on social media have a risk of triggering new complaints.

In the study, the authors examined the history of compliments and complaints by several hundred consumers of a major telecommunications services provider made on Twitter and the company’s responses.

They examined the history of compliments and complaints by several hundred consumers of a major telecommunications services provider made on Twitter and the company’s responses.

Liye Ma of the University of Maryland said that people complained on Twitter not just to vent their frustration, but also in the hope of getting the company’s attention.

Ma added that once the consumers know that the company was paying attention, they were more ready to complain the next time around.

The study also investigates the influence of friends on social media i.e. hearing more positive words from friends improves a customer’s relationship with the company.

On the other hand, the customer reaction to voices can go either way: in certain cases the customer feels the need to agree with friends and compliment them, while at other times the customer disagrees with friends and complains.

Ma concluded that what people say about a company on social media did reflect their true perceptions, but only to a certain extent, adding that there were other important factors that affect what they say, the company’s past responses to complaints being one of them.

The study is published in the journal Marketing Science.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1‘Many MSMEs are still unaware of digital impact, they fail to build customer loyalty, retention’
2Muthoot Finance ties up with Bajaj Allianz
3Corporates owning banks: S&P, Raghuram Rajan red-flag concerns