The act of "ghosting" online customers, or silent snubbing, is costing the U.S. retail industry $2.4 billion each year.
That's a prime finding from a SOCi Inc. 2023 Local Visiblity Index report that audited 588 retailers across 39 industry categories.
The audit revealed the average brand ignored 54% of online customer feedback, reviews and questions posted across social sites including Facebook, Instagram and Yelp, according to a press release on the findings.
The snubbing of customers is undermining brand equity, revenue growth and customer discoverability.
"Retailer 'ghosting' is an alarming phenomenon with serious implications for brand reputation, customer loyalty and online visibility," Monica Ho, CMO of SOCi, said in the release. "When retailers ignore their customers online, they inadvertently send a message that the customer experience isn't a priority. It's akin to retail employees ignoring shoppers in-store, and this type of behavior has a significant impact on revenue and sales."
The data revealed that failing to address complaints or questions, or not thanking consumers for their feedback, results in digital "invisibility" across search engines. Search engines like Google consider engagement factors, such as query, feedback and review responses, when ranking online listings. According to SOCi's analysis, this neglect comes at a steep price, costing multi-location retailers $58,000 in sales per location.
"Addressing online customer feedback — ranging from questions to reviews — should be an integral component of a retailer's overall omnichannel digital marketing strategy," said Ho in the release. "Thankfully, AI and automation present a game-changing opportunity for retailers and marketers to tackle the issue of ghosting customers online. By implementing these technologies, they can deliver timely and personalized responses to feedback, reviews or questions at scale while enhancing customer satisfaction and fostering a more positive online experience."