Were you aware that companies with excellent social media customer care services have up to 92% customer retention?
This is huge!
The latest social media customer service statistics give us tremendous insight into the next best thing a business can do to optimize its social media presence.
At the moment, few companies have a handle on what it means to provide customer care for social media. So, it would benefit them to learn the latest social media customer care statistics and change their marketing strategy accordingly.
But before we delve into the social media usage statistics, here are some eye-opening facts about customer experience (CX):
Remarkable Social Media Customer Service Statistics (Editor’s Choice)
- A 2% increase in retention translates to a cut in marketing costs by 10%.
- With a retention rate increase of 5%, you can increase the profits by 25% to 95%.
- 90% of consumers say online reviews impact their decisions.
- 75% of consumers cite social media as a tool that empowers them to interact with brands.
- Absence of personalization is the reason why 33% of customers who abandoned a business felt the need to do so.
- A $1 billion company can make $823 million in revenue.
- 47% of consumers expect businesses to take a stand on social media.
How Important Is Customer Service and Good Customer Experience for Businesses?
The frontier of the war for market share is shifting from ads to customer experience. Let’s see what the stats have to say.
1. According to social media customer service statistics, 68% of the time, a customer leaves because they think a company doesn’t care.
You’d be surprised how many Customers You Lose Because They Believe You Don’t Care. Closely following this reason, we have dissatisfaction with 14%. It is not hard to crunch the numbers and see where you need focus. Customer retention drives 52% of revenue, and customer acquisition comes in at a close second with 45%. Again, retention and showing you care, drive revenue significantly.
2. For every $1 you spend on customer experience, you can expect a return on investment of $3.
Avanade and Sitecore
Confused? Well, get this:
That number is just the average, based on a study of decision-makers who craft digital experiences for massive corporations. For a small-scale operation, the returns could be significantly higher.
3. A 2% increase in customer retention reduces cost.
Murphy & Murphy
Most companies would benefit tremendously by making the customer experience better. A 2% increase in retention translates to a cut in marketing costs by 10%. The probability of selling to a new customer hovers at around 5-20%. However, for an existing customer, the numbers jumps to an impressive 60-70%.
4. A retention rate increase of 5% can increase profits by 25% to 95%.
Bain and Company
77% of people on social media follow a brand on social media. So, it becomes clear from the customer service statistics that retaining as many of those who engage as you can bring amazing benefits.
Check this out:
Focusing on customer experience drives revenue 4% to 8% higher. Social media customer care benchmark data shows that it is nearly seven times more expensive to attract a new customer.
Retention is the key to more profits. If you ignore all this, what do you lose?
5. 39% of shoppers will avoid you for 2 years at least.
Yeah! A bad experience will push away a customer for good. About 47% of customers switch brands due to bad customer experience. Additionally, 91% of the ones who leave will probably not complain.
6. 90% of consumers say online reviews impact their decisions.
About 30% of shoppers believe that product reviews written by ordinary people show retailers have a good understanding of them. Additionally, 20% highlighted recommending relevant items. Reviews matter, and as they’re based on customer experience, it’s clear where your focus needs to be.
7. 90% of businesses use social media for customer service.
Social Media Today
In 2020, the number is projected to hover above 90%. 60% of the consumers are satisfied with brands’ response time on social media. Timely responses with relevant insight will make sure that you are among the companies that avoid the 88% loss rate of consumers who leave companies that don’t answer complaints.
The Reality of Social Media Customer Service Engagement Rate
Billions of people are on social media. So, you can’t have a good retention rate if you don’t understand the factors impacting the latest customer experience on social media stats. In this section, we get into the details of brand engagement.
8. 66% of people on Facebook follow a brand.
On Instagram, the number climbs to 90%. On Twitter, it’s 79%. Lastly, 77% of weekly Pinners on Pinterest have discovered new brands and products on the platform. The benefits of social media customer care seem to be limitless.
So, how many engage with brands?
9. Instagram leads brand engagement with 4.21%.
Most social media users tend to look and say nothing. However, 4.21% of the over 1 billion monthly active users translates to over 42 million potential customers. Capturing a percentage of these people for your business is relatively easy.
However, retention is the main goal here. On Facebook, which has over 2 billion active users, engagement is 0.07%, and the figure is even lower on Twitter (0.03%).
10. Customer service ranks first.
Among customers, an excellent customer service experience ranked as the first impact point of the level of trust. It makes sense that 34% of companies are currently implementing social media customer care costs to streamline their operations. Given that 56% of people around the world believe companies need to take action on feedback, it makes sense that they respond to increased ROI.
11. 92% of customers will call you out on poor service.
Convince & Convert
People believe this increases accountability. The hunger for better customer care on social media is evident. 75% of consumers cite social media as a tool that empowers them to interact with brands. 47% of the complaining customers use social media to air their grievances, citing dishonesty, lousy customer service, and rudeness, in that order.
Omni Channel Customer Service Stats Indicate CX Drives Loyalty and Retention
69% of American adults say they shop more with businesses that show consistency in customer support across all channels of communication. Phone, in person, online, and social platforms are all methods that need to streamline to fit the expectation of 75% of the consumers who expect them to be smooth.
12. 96% of customers say excellent customer service drives their loyalty.
People like to be treated well. The absence of personalization is the reason why 33% of customers who abandoned a business felt the need to do so. It shouldn’t come as a surprise that customers expect specialized treatment for being good customers. Automation is the tool most companies opt to use to cater to these specific customers.
13. Social media customer service statistics show phone customer support frustrates 33% of customers.
People do not like to be put on hold. Often, when using phones, live chats, and emails, there is a delay, which is usually due to the nature of the medium used. Social media is instant, and communications are clear enough.
With that, you can cater to the 40% of customers who want customer service reps to take care of their needs faster. Curious about what happens when you do this right?
14. Nearly 46.7% of people have strengthened loyalty because of personalized responses.
Need we tell you that this translates to increased retention? Customer advocacy rises by as much as 25% when their questions and complaints on social media are answered. With that increase, you are looking at a total of just over 71% of your customers, recommending the brand to other people, compared to the 19% who do not get a personalized response.
15. Social media user demographics reveal that over 81% of Millennials would use social media to interact with a brand’s customer service.
In comparison, only 63% of Gen Xers and 44% of Baby Boomers do this. Almost 47% of consumers age 18-34 have taken to social media to complain about customer service. 52% of them have used social media to ask service questions. It’s all coming together now.
16. Better CX leads to a 20% increase in employee engagement.
The effects of good CX do not just stop with customers. When a company focuses on improving customer experience, it also encourages employees to engage more. Better employees can be a big part of a change that can lead to massive profits.
Just how massive?
Let’s find out.
Social Media Customer Care ROI Rises Exponentially
Customer care statistics show that investing in small incremental enhancements of customer experience leads to more revenue. But CX is not everything. Sometimes, nuances include things like social consciousness. But first, money…
17. A $1 billion company can make $823 million in revenue.
Remember, we are talking moderate change here. Improving customer experience increases revenue, according to 84% of businesses that have seen this first hand. Considering that 79% of customers want to believe a company cares before they buy anything, even small improvements can generate more revenue.
18. Most global customer service engagements begin online.
To be exact, around 52% of all engagements in the world begin online, and the number rises every year. 72% of consumers expect customer service agents to know who they are, what they have purchased, and to have some information on previous engagements. Omni-channel customer service stats show the platforms for customer service need to be streamlined as well.
19. Social media advertising reached $89 billion in 2019.
So much money is poured into engaging customers to promote or enhance retention, engagement, and satisfaction rates. In 2020, the ad spend could exceed a whopping $102 billion. It is not hard to see why they are spending so much money to reach more people and retain them. Transparency, political opinion, and social participation drive consumers everywhere.
What’s the impact of not doing all this?
20. 47% of Consumers expect companies to take a stand.
Social media usage statistics show that customers like companies that admit mistakes, make apologies when necessary, and conform to a certain level of transparency about ethics and business practices. 67% of consumers consider video posts to be the most transparent type of social media content. 70% of consumers expect social consciousness, preferably when companies take a public stand on social and political issues.
21. Collaborating with causes is good, say 40% of consumers.
In fact, they think it’s the best way for a business to take a public stand on social media. On average, picking a relevant non-profit is the best way to go.
That being said:
It has to seem genuine.
Otherwise, 53% of customers who think that brands take stands as marketing tactics will avoid the business.
What Do People Want? Is Social Media the Key?
Well, that’s easy:
More. They want more. Yeah, that’s a vague answer, but it is the gist you get when reading the social media customer care statistics.
So, let’s narrow it down to things we can point at, shall we?
22. 54% of customers had higher expectations for customer service in 2019.
It is worrying that many companies try not to respond to complaints or feedback, thinking it will open the door for more criticism. The number here jumps to 66% for consumers aged 18-34. According to social media usage statistics, rising expectations will force companies that ignore this aspect to get in on the act.
23. More than 89% of businesses will mainly compete on customer experience.
Gartner also predicted that by 2019, more than half of the organizations trying to reach customers would redirect marketing funds to customer experience innovation and implementation. Globally, 67% of people believe customer service is experiencing improvement.
24. 3.5 billion people use social media.
That’s 45% of the world’s population! Leading the pack of social media juggernauts, we have Facebook as the most popular. 68% of US adults use Facebook. The numbers show where you need to focus the most resources. However, there should be enough left to cover all the bases. Do not bet on one platform alone.
25. Social media statistics show Millennials use social media the most.
In fact, a whopping 90.4% use it daily. 77.5% of Gen Xers do the same, and only 48.2% of Baby Boomers visit social media platforms daily. On average, people spend about three hours on social media.
To Wrap up…
All the gaps you have seen here could be quickly filled with the right tactics.
For instance, influencers help build brand trust. At the moment, 49% of consumers depend on influencer recommendations.
The point here is:
The battlefield for market share is moving away from advertisements to customer experience. So, it’s vital that marketers shift their attention from inundating customers with too many ads and focus on fewer ad campaigns.
The latest social media customer service statistics don’t lie:
Enhancing customer experience, backing an important cause, responding to all customer comments/complaints/questions, and building trust is the way to go.