Relying on Social Media for Price Sensitive Customers
As a child, I was only allowed to purchase things that were on sale. This lead to a lot of wining and a few tantrums. I was convinced my parents were trying to make me the least fashionable person ever.
Turns out they weren't. In a recent survey done by Shop.com, 67% of their respondents indicated price sensitivity in their customers. We're not just talking clothing. It includes home and housewares and electronics.
This is a trend we are also seeing in the service industry. At ServiceMagic.com, many of our pros report a price consciousness among home owners.
With a reported 24% of brand loyalty among consumers, the question becomes how low can you go...with your prices?
There is an upside. And, gasp, shocker, the answer to fighting low brand loyalty with razor sharp bargain hunting is social media. Fifty-nine percent of Shop.com's respondents rely on Facebook and Twitter to advertise sales.
I could have told you that. I have a Facebook account which is just for online bargain hunting.
But, you can't rely on discounts alone to bring in customers, which is evidenced with the 24% brand loyalty findings. It's false loyalty. The second you stop giving, is the second they start forgetting.
This is the beauty, the magic, and the wonder of social media. When multiple online strategies are employed, it can be used to develop strong brand communities. 64% of the survey's respondents also use social media to relay news, 43% use it to facilitate customer discussion, and 34% use it as an add-on to their customer service.
The latter of these strategies is the most effective secondary use for social media and rebuilding brand loyalty. Discounts can rarely overcome negative sentiment, especially online. Point and case is the current explosion of anger on Target’s Facebook page. The internet affords consumers the ability to vent until they can type no more. Building in real time customer service to social media allows for real time dispute resolution. Dear Target, are you listening?
You can prevent ORM nightmares and build online communities with real value to your customer. In the battle against 24% brand loyalty, companies need to start looking to social media for solutions.