Poor Social Media Practices Negatively Impact Brand Image
By Paul Thomson :: 12:59 AM
All-new research released this week by J.D. Power and Associates finds a link between social media and business metrics such as consumers’ likelihood to purchase or interact with companies through social media channels,
The 2013 Social Media Benchmark Study is based on responses from more than 23,200 U.S. online consumers who have interacted with a company via the companies’ social media channel. Run late last year, the study measures the overall consumer experience in engaging with companies through their social platforms for both marketing and servicing needs across more than 100 U.S. brands in six industries: airline, automobile, banking, credit card, telecommunications and utility. The study establishes performance benchmarks and industry best practices that provide insights to companies to help them maximize their social media efforts.
“This is a unique, comprehensive consumer study that defines consumer expectations in the ever-changing social space and measures companies’ performances against those benchmarks,” said Jacqueline Anderson , director of social media and text analytics at J.D. Power and Associates. “This study provides companies with the framework they need to begin effectively integrating social media into their business strategies. It also illustrates the relationship between a positive social media experience and consumer purchase intent.”
The study focuses on two types of social media engagements, marketing and servicing, and provides best practices for each. Marketing engagements include connecting with consumers to build brand awareness and affinity, in addition to promoting coupons and deals. Servicing engagements include answering specific consumer questions or resolving problems.
J.D. Power found that social marketing engagements vary by age group. Nearly one-third of consumers 30-49 years old and 38 percent of those 50 years and older interact with a company in a social marketing engagement context, while only 23 percent of consumers who are 18-29 years old interact with companies. In contrast, 43 percent of consumers who are 18-29 years old use social media for servicing interactions, while 39 percent of consumers who are 30-49 years old use social for servicing needs. Only 18 percent of consumers who are 50 years and older interact with a company via social for a service-related need.
The study finds a correlation between overall satisfaction with a company’s social marketing efforts and consumers’ likelihood to purchase and their overall perception of the company. Among highly-satisfied consumers (satisfaction scores of 951 and higher on a 1,000-point scale), 87 percent indicate that the online social interaction with the company “positively impacted” their likelihood to purchase from that company. Conversely, among consumers who are less satisfied (scores less than 500), one in 10 consumers indicate that the interaction “negatively impacted” their likelihood to purchase from the company.
The study also found that some industries are more successful than others at implementing best practices into their social media engagement strategies than others. When looking across industries, the automobile industry performed particularly well in both marketing and servicing social media interactions, the only industry to do so. Other industries performing well are wireless in social servicing interactions and utility in social marketing interactions.
Listed below are some of the companies that perform particularly well in some of the industries included in the study:
