Growing Influence of Media on Consumer Purchasing Decisions

New RightNow Research Signals Growing Influence of Social Media on Consumer Purchasing Decisions in New Zealand

RightNow's Annual Customer Experience Survey Identifies Social Media and Mobility Tools as Key to Delivering a Great Customer Experience

Auckland, 28 July 2011 – According to the 2011 RightNow New Zealand Customer Experience report, New Zealanders are rapidly adopting social media and it is influencing their purchasing decisions.

The 2011 study found that the overall number of New Zealand consumers who actively use social media (sites such as Facebook, Twitter and YouTube) has grown from just 63 percent twelve months ago to 70 percent today. Of those consumers who use social media sites, almost one in four (23 percent) report having made a purchase because of a social web discussion.

Brett Waters, vice president Asia Pacific – South, RightNow, said, “It’s been amazing to watch not only the rapid adoption of social media in New Zealand, but also the consumer’s desire to engage more directly with organisations on the social web. While good in-person service will always be important, the experiences that customers receive on the web or when conversing on social media are just as critical. Even more imperative are the interactions customers have with other customers.”

Other key findings regarding consumer expectations and social media include:
• More than two thirds (70 percent) of New Zealand's consumers say they would be happy for organisations to contact them via social media with special offers and discounts
• 41 percent welcome responses to positive comments made on social web sites
• 36 percent are happy to be contacted directly by a company after making a negative post
• Direct sales pitches or services issues are supported by over one-third of consumers (39 percent)

Mobilising the communication channel
The survey uncovered another emerging trend among New Zealanders: they are actively using mobile devices as a tool to research and make purchases.
• 36 percent of New Zealanders use a mobile device to access the Internet
• 37 percent use their devices to search for information on the companies they do business with
• 24 percent of mobile users report using their devices to make purchases (not including iTunes)

Waters added, “With the use of mobile devices on the rise, the study suggests that companies need to begin planning to mobilise their customer support efforts or risk being left behind. New Zealand organisations today are facing a difficult challenge: maintain quality service across traditional communication channels and at the same time implement strategies that embrace the strengths and flexibility of emerging channels such as mobile devices and social media.”

Service standards improve
Regardless of the communication channel and across all industry sectors, an average of 59 percent of New Zealanders ceased doing business with a company due to poor service or poor customer experiences. This was down slightly from 61 percent in 2010 and may be an indication that in these tighter economic times, organisations are trying harder to deliver good service and retain their existing customers. This idea is supported by a dramatic increase in the number of organisations attempting to win back disaffected customers. In 2010, 26 percent of consumers said companies had tried to win back their lost business. In 2011 this jumped to 42 percent.

About the survey
The 2011 RightNow Customer Experience survey was conducted in April 2011 by StollzNow Research and involved more than 300 New Zealand consumers aged between 18 and 65 years. The survey gauged consumer attitudes and experiences across the retail sector and six service industries, including telecommunications, ISPs, insurance, financial services, travel and hospitality, and utilities.

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