Viewing negative word-of-mouth (NWOM) decreased future spending, but posting NWOM increased it, if given a chance to experience the value of the brand. In this case when we say “experience the value of the brand,” we mean redeeming Air Miles loyalty points for travel, gift cards, or merchandise.
Those who viewed NWOM decreased spending (point accumulation) by 12 percent and purchase frequency by 5 percent.
Those who posted NWOM and then experienced the value of the brand (i.e. redeemed loyalty points) increased spending (point accumulation) by 58 percent and purchase frequency by 16 percent.
- Invite customers to post all comments including negative ones or reviews of your product. (And monitor those who were negative).
- Respond publicly especially if issue was uncommon.
- Create opportunities for NWOM posters and viewers to re-experience the value of your brand.
Posters who shared strong negative emotions decrease spending, but posters who posted less intense emotions increased spending.
Those who posted NWOM that had expression of anger, decreased spending (point accumulation) by 5 percent, and they decreased purchase frequency by 3 percent.
Those who expressed concern increased spending (point accumulation) by 183 percent and purchase frequency by 65 percent.
Allow customers to vent about a bad experience on social media to air minor grievances. Know that customers who express that they are extremely upset on social media will likely spend less unless other interventions are taken (i.e. Your customer service department responds to the comment directly and takes the conversation offline to resolve it).