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E-Tailing

More Indian consumer use social media for feedback than Japanese

By Minjun ParkChina
2 min read
bigstock Facebook on iPhone 60749489 1
bigstock Facebook on iPhone 60749489 1
In this article (5)

Indian consumers are more digital savvy for reporting and resolving customer service experiences over social media than their counterparts in Japan and Hong Kong, says a survey by American Express.

According to the American Express Global Customer Service Barometer (CSB), which did a random online survey of 1,000 respondents each in the three Asian countries this year, 71% Indians use social media to get a customer response, same as last year but significantly up from 54% in 2012. In Japan, only 29% used social media for customer response while in Hong Kong the number stood at 29%.

While 41% Indians said they always receive resolution of their customer service issues through social media, for Japan and Hong Kong the numbers stand at 12% and 18%, respectively.

In selecting a company to do business with, consumers in India and Japan give top priority to ‘good product’ followed by ‘good value for the price’, while the order stood reversed in the case of Hong Kong. All three countries ranked ‘excellent customer service’ third in importance, the survey said.

While most consumers are willing to give a company at least one more chance after receiving poor service before they consider switching, 33% immediately consider switching after initial poor customer service experience.

Indians customers are the most reactive with 73% having dropped an intended purchase or transaction due to poor customer service as compared to 56% and 40%, respectively, for Hong Kong and Japan.

As for sharing their experiences, on an average, consumers tell 39 people about their good experiences (41 in 2014), and 42 people about their bad experiences (48 in 2014), the report said. As much as 98% talk about their good customer service experiences at least some of the time.

Questions & Answers

Q.

How much has the use of social media for customer response increased among Indian consumers since 2012?

A.

The percentage of Indian consumers using social media for customer response has risen significantly. It increased from 54% in 2012 to 71% this year, showing a substantial growth in digital engagement.

Q.

What proportion of consumers consider switching immediately after a poor customer service experience?

A.

33% of consumers immediately consider switching companies after encountering an initial poor customer service experience. This indicates a notable percentage are quick to change their business allegiances.

Q.

Which factors are most important to consumers in India and Japan when choosing a company to do business with?

A.

Consumers in India and Japan prioritise a 'good product' first, followed by 'good value for the price'. Both countries ranked 'excellent customer service' as the third most important factor in their decision-making.

Q.

How do Indian consumers compare to those in Japan and Hong Kong regarding dropping purchases due to poor service?

A.

Indian customers are the most reactive, with 73% having dropped a purchase due to poor service. This compares to 56% in Hong Kong and 40% in Japan, showing a higher impact on Indian consumer behaviour.

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