STATS: Each Negative Social Media Comment Costs 30 Customers

800 days ago by Willis Wee, in Uncategorized

Author's RSS

This RSS

Research by Convergys Corp. has shown that a negative customer review on YouTube, Twitter or Facebook can cost a company about 30 customers.

Here’s the math:

Each remark/comment would be viewed by an average of 45 people and about two-third of them would avoid the brand that was being criticized (45 x 2/3 = 30 customers).

We saw how social media has transformed the way we communicate and consume information. Marketing is no longer in a company’s full control. It is now largely dependent on what people say about it; especially with the rise of social media.

You can lose but you can also gain!

30 customers are lost when a company gets a negative comment on social sites. But would a company gain 30 customers if it earns a positive comment instead?

I would probably think so. It just highlights the importance of tracking the social media buzz surrounding your brand.

Source: Bloomberg, Stock photo powered by pixmac.

Tags: Marketing, Social Media, Stats

About Willis Wee

Co-founder of Penn Olson who is also an entrepreneur since 2005. He has had experience in crafting social media strategies for organizations such as Marriott Vacation Club, James Cook University, Reach Singapore and Unilever. Contact him at willis[at]penn-olson[dot]com

View all posts by Willis Wee →

SHARE THIS POST?
Subscribe to our RSS Feed, or follow us on Twitter
or simply recommend us to friends.

← STATS: B2B Marketers & Social Media Marketing

16 Awesome Twitter Comic Strips →

http://www.penn-olson.com/2009/11/28/statistics-for-marketers/ RECAP: 5 Statistics For Marketers | Penn Olson

[...] #5. Each Negative Social Media Comment Costs 30 Customers [...]
http://twitter.com/catchmikey catchmikey

Hi Willis, Can you please provide the link to these report by Convergys Corp? I'm curious to see what companies they measured with this math equation. Thanks!
http://twitter.com/williswee Willis Wee

I wish i could too mike. Bloomberg didn't provide the link either. You may want to contact the Bloomberg author for advise:

Sarah Shannon in London at sshannon4@bloomberg.net.
http://www.2828.bz/ Stephen

B2B marketers are placing heavier emphasis on social media and looking to spend more resources on it. Social media might not be the top digital marketing channel for them but it certainly got their attention. While most B2C marketers measure ROI through sales revenue, B2B marketers place more emphasis on traffic, engagement and response.
http://www.penn-olson.com/2009/12/07/is-social-media-marketing-worth-the-effort/ Is Social Media Marketing Worth The Effort? | Penn Olson

[...] previously wrote that each negative comment might cost 30 potential customers. With that statistic in mind, let’s assume that each positive review would add 15 potential [...]
hemine

If you don't mind I have posted this on my blog http://shop.chipsilicon.com under articles. Check it out when ever you have a chance.I have also linked back to you.
http://www.penn-olson.com/2010/02/27/dont-f-around-with-social-media-savvy-customers/ Don’t F*** Around With Social Media Savvy Customers | Penn Olson

[...] guess Mr Payne didn’t read our post on how a negative social media comment can cost a company 30 customers. Not to mention a Facebook group of 4000 disgruntled [...]
hemine

The idea of listening before getting into the game is straightforward

Very nice tip. Also offer value and support before you ask for something.

Listening to your customers or readers is such a simple thing to do, yet overlooked so many times.

regards
gadget
http://beesocietal.blogspot.com/ prasant

Yes people will move to a brand cause we trust word of mouth from our frnds and known folks…after all today's social media is nothing bt word of mouth on internet
http://www.equines4us.com Horses For Sale

Social media is very important for all but when it works as a negative way it become much danger for any one. I don't like it.
jackjds1

Perhaps companies should be careful about jumping on to the social media bandwagon
http://www.penn-olson.com/2010/06/07/1-in-4-use-social-media-to-rant-about-brands/ 1 In 4 Use Social Media To Rant About Brands | Penn Olson

[...] negative comment could cause a business to lose 30 potential consumers. But what’re the chances that people would speak badly about [...]
http://www.penn-olson.com/2010/07/02/nothing-can-save-negative-buzz-on-twitter/ Nothing Can Save Negative Buzz On Twitter | Penn Olson

[...] shit, don’t try to sweet talk your way out. Start by addressing the problems that caused the negative buzz, be sincere, and make the effort to change things. Listen to your customers, and show them that you [...]
http://security-wire.com/01/how-to-remove-disk-helper-fake-security-program.html remove Disk Helper

I agree with your points. Negative comments can help you figure out the problem and then solve it.