Sunday, October 4, 2015

How the Internet Has Changed Consumer Interaction

A few decades ago, the only easy way for a customer to spread dissatisfaction with a business was word of mouth. In this case, a customer could only reach a very limited number of people. However, social media and online reviews have fundamentally changed how businesses manage customer dissatisfaction. Businesses can no longer afford to ignore a customer’s dissatisfaction due to the internet’s ability to broadcast that information.

A friend of mine recently purchased a new Subaru from a dealership. After a few weeks, he decided to return to the same dealership for his first check up. He purchased the premium care package, expecting quality service. However, when he came back to pick his car up, he found that the dealership had totally botched the check up. There was oil spilled all over the engine, and numerous points of the package had clearly not been completed. While he immediately complained to the manager, he was told that the best they could do would be to refund the package; the oil on the engine and the missing components would not be fixed unless he purchased another service. Naturally, he was displeased, and certainly made it known on social media. 

When the dealership began promoting a sale on the same package on Facebook, he was quick to write in the comments how their service, and their handling of the situation, was absolutely unacceptable. It took only a few hours for a customer service representative to contact him and ask how they could make it right. After a short back and forth conversation, the dealership agreed to not only fix the issues from the previous check up, but also offer him additional complimentary services for his next visits. In exchange, they asked that he remove his negative review on their Facebook page.

This is a perfect example of how the web has changed these customer service interactions. Traditional methods clearly had little effect. The manager of the dealership offered next to nothing when he was in the wrong. And this is largely expected. It’s a matter of cost; how much damage can the customer do to the business, and is it cost-effective to try to prevent this damage? 

When a customer only relies on word of mouth, the damage that can be done to the business is negligible; the customer will at most effect a dozen or so potential customers. However, when the customer uses social media or online review services, his negative experience is broadcast to thousands. Even one particularly negative review is more than enough to convince a potential customer to stay away from that business’ services. In this case, it is far more cost-effective to appeal to the customer than to lose hundreds or thousands of potential customers.

Because of this, businesses must now be considerably more cautious when dealing with dissatisfied customers. The internet has given the consumer an immensely powerful tool to share their experiences with thousands, if not millions, of a business’ potential customers.

No comments:

Post a Comment