Survey: Social Media Raises the Stakes for Customer Service

Americans are growing more frustrated with customer service and businesses are feeling the heat as consumers tell an increasing number of people about both their positive and poor service experiences.  The 2012 American Express® GlobalCustomer Service Barometer also found that consumers who have used social media for service wield the greatest amount of influence.  They tell significantly more people about their service experiences, and say they’d spend 21% more with companies who deliver great service – compared to 13% on average.

The survey, which was conducted in the U.S. and ten other countries, also reveals a sorry state of service in general.  Nine in ten of Americans surveyed (93%) say that companies fail to exceed their service expectations.  What’s more, one out of two respondents (55%) walked away from an intended purchase in the past year because of a poor customer service experience. 

The most popular ways consumers address service inquiries continue to be speaking to a live representative (either on the phone or face-to-face), and through company website or e-mail.  That said, one in five consumers (17%) say they’ve used social media at least once in the last year to obtain a customer service response, and this relatively small group of consumers is extremely engaged and vocal.

People who have used social media for customer service at least once in the last year are willing to spend substantially more (21%) with companies they believe provide great service – in contrast with the general population (13% more) and those who have not used social media for customer service (11% more).  They are also far more vocal about service experiences, both good and bad.  In addition, more than 80% of these consumers say they’ve bailed on a purchase because of a poor service experience, compared to 55% overall.

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