Aussie consumers are a vengeful lot, with a new study finding that 32 per cent take revenge online following inadequate customer service, spreading the complaint across their network and beyond.

A study by NewVoiceMedia of 2004 adult Australians this figure soars to 53 per cent among 16 to 24 year olds, demonstrating the generational importance of a channel that’s likely to explode in relevance as Gen Y consumers’ spending power increases.

Thanks to social media, internet forums and review channels, the modern consumer has a convenient public platform at their fingertips and will spread negative sentiment about a business without thinking twice.

While 89 per cent of those surveyed stated that traditional forms of communication such as email and phone are their preferred means of complaining for a fast response, 25 per cent of Gen Y believe social media is the most effective means of issue resolution – five times that of the over 55s.

Facebook is nation’s favourite social network for interacting with businesses. As one respondent explained, “the company will realise the public is watching that mistake and try to improve it”. Another commented that “naming and shaming can be the fastest way of getting a response”.

The significance consumers place on excellent service presents opportunities as well as threats, as organisations can boost their business by getting it right, turning complainants into advocates by prioritising the service they receive through other channels.

Around $8 billion is lost by businesses in Australia each year as customers switch following poor experiences, with 77 per cent of respondents saying that good service has a considerable influence on their loyalty.

Seventy six 76 per cent would recommend the company to others, half would use the business more frequently, and 35 per cent are prepared to spend more money with them.

Jonathan Gale, CEO at NewVoiceMedia, said that not long ago, customers would tell friends and family if they were dissatisfied with service they’d received.

“While this is damaging to a brand, it’s not nearly as powerful and immediate as customers who take their complaints online; particularly as consumers are increasingly turning online to read about others’ experiences before choosing a product or supplier. Over the next few years we expect to see these statistics soar as the younger generation matures,” said Gale.

“Customers want personalised and engaging experiences every time, through every channel. Great customer experience is the critical differentiator, and by doing it well, organisations can drive the customer acquisition, retention and efficiency that make leading companies successful.”