While consumer adoption of social media and mobile messaging apps have unequivocally increased over the last few years, companies have yet to catch up to their customers. Many companies understand the importance of engaging in these social, mobile channels, but find it difficult to quantify and demonstrate its benefits in monetary terms.
We want to make it easier for companies to demonstrate the return on investment (ROI) of their social customer service efforts. If you’ve ever found yourself spending hours searching for statistics on the value of social customer care, look no further.
The ROI of Conversocial
Conversocial commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study examining the quantitative impact that our clients achieve by implementing Conversocial. As an industry first, we are excited to share relevant and up-to-date insights for cost to serve on social, and specific ROI data you might see from using the Conversocial solution. Forrester measured the total economic impact over a period of three years for five of our clients in industries including telecommunications, airline, retail and utilities. They then aggregated client data to create a representative composite organization on which to base the development of a Total Economic Impact model.
- 272% social customer service ROI: Conversocial helped to generate a risk-adjusted amount of $2.4 million in benefits, outweighing the total cost of $661,503 over a three year period.
- Social customer service is almost 63% less expensive than phone support: , supporting many businesses’ decisions to migrate support traffic from more costly channels to social.
- $940,000 incremental value: Improved customer retention, increased lifetime customer value and reduced churn were analyzed to find customers would be willing to pay more for goods or services after being satisfied on a social channel.
The composite organization created in the study to represent aggregated client data is a global telecommunications company that had primarily responded to to social customer care requests natively and subsequently used a marketing-focused social media management platform. After experiencing issues scaling, this company implemented Conversocial with the objectives of improving the efficiency of its social customer service operation, improving overall brand value, and impacting customer lifetime value. The analysis showed that this composite organization would greatly reduce customer care costs and increase sales and customer retention in the course of three years.
1These figures represent Year 3. Year 1: $2.79 (social), $6.34 (voice). Year 2: $3.25 (social), $6.02 (voice)