Why Your Reputation Matters

A fascinating piece of research came my way... 70% of consumers are now checking you out online.

What are they checking?

They want to know about your reputation, the way you handle customers, the way you take care of problems, the way you treat your employees, the efforts you are doing to be green.

They are looking before they buy, when they buy, and after they buy.

And you can't stop the chatter. This is the social media world where everyone with an internet connection has a voice.

Here's what you can do:

Listen. (Set up Google alerts).

Respond. Not in a defensive manner. Be polite, be appropriate. Treat the online complaints the same way you would if that person came to you in person.

But most importantly, be proactive. Create the good will among your customers and employees instead of playing clean up.

Here's where I got my 70% figure from:

Monday, May 5, 2008

Customer Care Reputation Studied Online Before Making Purchases

Among the initial findings of a new study, "Exploring the Link Between Customer Care and Brand Reputation in the Age of Social Media," by the Society for New Communications Research, "... there is a growing group of highly desirable consumers using social media to research companies: 25- to 55-years old, college-educated, earning $100,000+..." said Dr. Ganim Nora Barnes, senior fellow, SNCR.

Importance of Social Media in Learning About Customer Care
Frequency of Social Media Use (for purchase decisions)	% of Respondents
Always	6%
Often	29
Sometimes	37
Rarely	19
Never	9
Source: SNCR, April 2008

Importance of Quality of Customer Care Offered in Purchase of Product or Service
Frequency of "Care" investigation before purchase	% of Respondents
Always	10%
Often	45
Sometimes	29
Rarely	13
Never	3
Source: SNCR, April 2008

As social media usage becomes more ubiquitous, says the summary report, affluent consumers are using social media channels to share their personal customer service experiences and learn about others' care experiences when making purchase decisions.

Degree of Agreement That Customer Care Experience Shared Online is Important in Purchase Choice
Degree	% of Respondents
Strongly agree	14%
Agree	60
Neutral	18
Disagree	7
Stongly disagree	1
Source: SNCR, April 2008

More than 300 consumers who are active Internet users participated in a survey focusing on how customer care influences brand reputation given the widespread adoption of social media. Top findings include:

• 59.1% of respondents use social media to "vent" about a customer care experience
• 72.2% of respondents research companies' customer care online prior to purchasing at least sometimes
• 84% of respondents consider the quality of customer care at least sometimes in their decision to do business with a company
• 74% choose companies/brands based on others' customer care experiences shared online
• 81% believe that blogs, online rating systems and discussion forums can give consumers a greater voice regarding customer care
• less than 33% believe that businesses take customers' opinions seriously
• Search engines are felt to be the most valuable online tools for this research

Importance of Information Sources of Customer Care in Making Purchase Decision
Information Source	Average Rating Index (4.0 = Max Value)
Search engines	3.79
Online rating	3.69
Discussion forums	3.52
Blogs	3.24
Company websites	3.11
Advocacy sites	2.88
Social networking sites	2.50
RSS	2.35
YouTube	2.14
MicroBlogging site	2.09
Source: SNCR, April 2008

In terms of industry segments doing the best job in using social media to respond to customer care issues, technology, retail, and travel companies do the best, says the report, while utilities, health care, and insurance were least likely to receive positive endorsements.

Lynda Kate Smith, vice president, Care Business, Nuance Enterprise Division, concludes "With consumers increasingly using social media to share feedback... it has become... difficult for businesses to... hide from bad experiences."

For more information, please visit the Society for New Communications Research here.

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