Guest post by Karen Licker, Social Banker & Content Contributor (Independent) at J.D. Power and Associates
Social media, a non-traditional method of customer interaction is clearly becoming increasingly important for banks to understand.
It’s no longer just a vehicle for customers to vent about poor experiences, praise their bank for exceeding expectations, or read about other customers’ positive or negative experiences—it has now become a legitimate service channel!
Social media sites not only allow customers to interact with their bank, but also provide another medium to converse with representatives, get questions answered, and resolve problems. For example, data from our 2012 J.D. Power and Associates US Credit Card Customer Satisfaction Study shows that during the past 12 months, 5% of credit card customers have contacted their issuer through their social media site to ask a question, resolve a problem, or make a request.
Although many questions or problems may need to be handled outside of the social media site that was the initial contact, it is important for banks to show they are listening to their customers’ “pain points” by providing an actual response to the social media posting.
Did you know that only 60% of customers who contacted their credit card issuer via social media received a reply?
Needles to say, the impact of replying to a posting on overall satisfaction is profound, as Interaction satisfaction among customers who have received a reply to their social media contact is notably higher than among those who did not receive a reply (802 vs. 748, respectively). Findings from our recent study also revealed that optimizing customer satisfaction with their social media experience does not end at merely responding to the request, but that issuers should continue to focus on the following:
- Resolving the initial issue at hand
- Offering additional assistance
- Thanking the customer for their business
When each of these best practices are met, Interaction satisfaction increases to 839, which is 91 points higher than when they are not met.
Source: J.D. Power and Associates 2012 US Credit Card Satisfaction StudySM
The Bottom Line:
With the continued advancement of technology shifting the way customers interact with financial institutions, it is vital for banks to proactively respond to the changing demands of their self-service channels and understand the importance of being responsive to feedback posted on social media sites.