If a stranger came up to you on a train and told you that the smart phone you’ve just bought is a piece of junk, what would you do?
Would you immediately get off the train, head to the store you got the phone from and demand a refund? Or would you just ignore them and shift to another carriage?
I’d do the latter, of course – what sort of nutter comes up and give me an instant product review on a train?
Yet if I was online researching that same smartphone, and that same person had left a scathing review of the phone, I probably wouldn’t buy it.
Yes, the people who leave product reviews or comment on a product via a social media site are complete strangers. But somehow the fact they have shared their real-life experience online gives them an air of credibility – and a fair bit of power over my buying decision, particularly if they are critical of the product in question.
New research out today again highlights the power of these social media comments, with a survey revealing 23% of Australian consumers have boycotted a company on the strength of a bad review, while nearly one fifth have actually posted a bad review on Facebook.
But there was one bright spot for customers worried about the impact of a negative comment on their business – 60% of respondents said they would welcome contact with a company after posting a negative comment.
If you’re still tossing up whether or not to get involved with social media, this survey should provide your answer.
If you don’t have the time or the inclination to actively promote your business on social media sites, you simply must have a presence on these sites to protect your reputation.
As part of the SmartCompany awards, which we will announce on September 17, we asked about the use of social media.
About 30 of the 50 companies involved (no, I’m not telling you who made the list!) used social media and many have been able to help their business through clever promotions, recruitment and relationship building.
Today’s research says the other 20 firms need to get cracking, or risk losing customers.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
