Customer Service Social Media Ratings and Business Performance

by Helen Whelan

I recently went online to book a vacation in San Francisco. The first thing I did was look at the reviews.   I might have liked the pictures or even the neighborhood but I wasn’t going to trust my gut alone. I wanted to see the reviews. The more reviews that were positive, the more I’d trust my purchasing decision.

I’m not doing anything different from any other consumer that is deciding where to dine, what appliance or car to buy or, basically, where to spend their money. Reviews take a lot of the risk out of the equation. Wouldn’t you rather stay somewhere that has 4 or 5 stars than a 1 star?

Social Media Reviews and Business Performance

Who needs the most customer service help?

So, what impact does shoddy customer service have on a business?  Seems the answer is quantifiable. In fact, Cornell, recently did a study of The Impact of Social Media on Lodging Performance:

First, the percentage of consumers consulting reviews at TripAdvisor prior to booking a hotel room has steadily increased over time, as has the number of reviews they are reading prior to making their hotel choice. Second, transactional data from Travelocity illustrate that if a hotel increases its review scores by 1 point on a 5-point scale (e.g., from 3.3 to 4.3), the hotel can increase its price by 11.2 percent and still maintain the same occupancy or market share.

So, all that effort to train employees and build positive attitude — is it worth it?  Think hospitality, service, retail, health care, you name it! If it can be bought and people can chat, text, take pictures/videos and review it, training in customer service makes a big difference.  What’s the alternative?

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