Firms 'should take advantage of social networks'

29th April 2008

Companies should not be afraid of the consumer tendency to share customer experiences with other users on the web, it has been claimed.

Jeffrey Frau, eMarketer senior analyst, says that comments and reviews can be used to companies' advantage.

"Web retailers that offer ratings and reviews report a number of benefits, including more traffic, higher conversion rates and increased spending per transaction," he comments.

Mr Grau cites a survey conducted by the Society for New Communications and commissioned by Nuance Communications, showing that 70 per cent of US consumers surveyed in February and March claimed to use social media at least occasionally for peer reviews of customer care.

Of those polled, three-quarters reported having chosen brands and providers based on information read on the web about consumer experience.

In related news, a recent report from Forrester Research asserted that the next five years is to see increased investment in web 2.0 technologies among businesses.