J.D. Power and Associates Reports: Poor Social Media Practices can Negatively
Impact a Businesses' Bottom Line and Brand Image
WESTLAKE VILLAGE, Calif., Feb. 14, 2013
WESTLAKE VILLAGE, Calif., Feb. 14,2013 /PRNewswire/ -- Businesses can no
longer adopt a trial-and-error approach to social media as all-new research
finds a link between social media and business metrics such as consumers'
likelihood to purchase or interact with companies through leading social
channels, according to the J.D. Power and Associates 2013 Social Media
Benchmark Study,^SM released today.
The inaugural study is based on responses from more than 23,200 U.S. online
consumers who have interacted with a company via the companies' social media
channel. Fielded from November to December 2012, the study measures the
overall consumer experience in engaging with companies through their social
platforms for both marketing and servicing needs across more than 100 U.S.
brands in six industries: airline, auto, banking, credit card, telecom and
utility. The study establishes performance benchmarks and industry best
practices that provide insights to companies to help them maximize their
social media efforts.
"This isa unique,comprehensive consumer study that defines consumer
expectations in the ever-changing social space and measures companies'
performances against those benchmarks," said Jacqueline Anderson, director of
social media and text analytics at J.D. Power and Associates. "This study
provides companies with the framework they need to begin effectively
integrating social media into their business strategies. It also illustrates
the relationship between a positive social media experience and consumer
Social Media Servicing vs. Social Media Marketing
The study focuses on two types of social media engagements, marketing and
servicing, and provides best practices for each. Marketing engagements include
connecting with consumers to build brand awareness and affinity, in addition
to promoting coupons and deals. Servicing engagements include answering
specific consumer questions or resolving problems.
The study finds that social marketing engagements vary by age group. Nearly
one-third (39%) of consumers 30-49 years old and 38 percent of those 50 years
and older interact with a company in a social marketing engagement context,
while only 23 percent of consumers who are 18-29 years old interact with
companies. In contrast, 43 percent of consumers who are 18-29 years old use
social media for servicing interactions, while 39 percent of consumers who are
30-49 years old use social for servicing needs. Only 18 percent of consumers
who are 50 years and older interact with a company via social for a
"While there are vast differences among age groups in the frequency of
servicing and marketing engagements, there is a consistency in the impact on
brand perception and purchase intent through both types of engagement," said
Anderson. "Companies that are focused only on promoting their brand and deals,
or only servicing existing customers, are excluding major groups of their
online community, negatively impacting their satisfaction and influencing
their future purchasing decision. A one-pronged approach to social is no
longer an option."
Companies need to understand how their consumers use social media and then
develop a strategy that addresses their usage patterns.
"If your customers want service and you're pushing discount coupons out to
them while ignoring their attempts to connect with you, you're going to end up
with dissatisfied customers," added Anderson.
The study finds a correlation between overall satisfaction with a company's
social marketing efforts and consumers' likelihood to purchase and their
overall perception of the company. Among highly-satisfied consumers
(satisfaction scores of 951 and higher on a 1,000-point scale), 87 percent
indicate that the online social interaction with the company "positively
impacted" their likelihood to purchase from that company. Conversely, among
consumers who are less satisfied (scores less than 500), one in 10 consumers
indicate that the interaction "negatively impacted" their likelihood to
purchase from the company.
The study also finds that some industries are more successful than others at
implementing best practices into their social media engagement strategies than
others. When looking across industries, the auto industry performs
particularly well in both marketing and servicing social media interactions,
the only industry to do so. Other industries performing well are wireless in
social servicing interactions and utility in social marketing interactions.
Listed below are the companies that perform particularly well in each of the
industries included in the study. Companies are listed in alphabetical order.
Social Media Servicing Social Media Marketing
JetBlue Airways Delta Airlines
Southwest Airlines Southwest Airlines
Virgin America Virgin America
Capital One/Chevy Chase Lexus
Fifth Third Bank Toyota
SunTrust Bank Banking
Capital One/Chevy Chase
Credit Card Chase
Chase Huntington National Bank
Citi Cards Regions Bank
Wells Fargo Credit Card
Sprint Nextel Telecom
U.S. Cellular AT&T
Utility Straight Talk Wireless
Florida Power & Light T-Mobile
Georgia Power Virgin Mobile
Pacific Gas and Electric
Florida Power & Light
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company providing forecasting,
performance improvement, social media and customer satisfaction insights and
solutions. The company's quality and satisfaction measurements are based on
responses from millions of consumers annually. For more information on car
reviews and ratings, car insurance, health insurance, cell phone ratings, and
more, please visit JDPower.com. J.D. Power and Associates is a business unit
of The McGraw-Hill Companies.
About The McGraw-Hill Companies
The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education
company, signed an agreement to sell its McGraw-Hill Education business to
investment funds affiliated with Apollo Global Management, LLC in November
2012. Following the sale closing, expected in early 2013, the Company will be
renamed McGraw Hill Financial (subject to shareholder approval) and will be a
powerhouse in benchmarks, content and analytics for the global capital and
commodity markets. The Company's leading brands will include: Standard &
Poor's, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, J.D. Power and
Associates, McGraw-Hill Construction and Aviation Week. The Company will have
approximately 17,000 employees in more than 30 countries. Additional
information is available at www.mcgraw-hill.com.
Media Relations Contacts:
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818)
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103;
No advertising or other promotional use can be made of the information in this
release without the express prior written consent of J.D. Power and
SOURCE J.D. Power and Associates
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