As a small business owner, encountering a disgruntled customer or having to deal with complaints is an unfortunate inevitability. In the past, brands could easily get away with ignoring negative feedback, but in the digital age, this is simply not feasible and carries a variety of reputational risks.
Review sites like hellopeter.com, user-generated content platforms and in-app reviewing functionality on social media give customers free rein in terms of what they say about your business and how it is seen by others.
Opinions left in comments sections, testimonials and referral programmes are the latest evolution of word-of-mouth marketing. Also referred to as “social proof” – the shared experiences and recommendations made person to person, remains one of the most prominent contributing factors to how customers make buying decisions.
In fact, 94% of South Africans surveyed deem their experiences with companies to be as important as the effectiveness or quality of their products or services.
This was one of the key findings from the most recent State of the Connected Customer report, published by Salesforce EMEA, which showed a distinct correlation between customer service and profitability.
Negative customer interactions may seem inconsequential in the moment, but their negative impact can be far-reaching. Dissatisfied customers are more likely to switch to competitors or air their views on public forums, such as community groups on social media or on review sites.
Bad customer service also erodes customer loyalty and diminishes the opportunity to optimise customer retention. In the long-term, the reputational damage of consistently receiving negative feedback can result in substantial losses in revenue and stand in the way of your future growth prospects.
However, by taking strategic action, negative customer interactions can be turned into key learnings, enabling you to further improve on your service or product offering.
Three tips that can pave the way for you to turn those negative experiences into opportunities for business growth:
1. Practice active listening
While it may be tempting to dismiss a customer complaint as unwarranted or short-sighted, your position as a business owner should be to use these kinds of experiences as opportunities to learn. The only way you can do that is by being an active listener.
Pay close attention to the customer’s concerns and frustrations and allow them to express themselves without interruption. In-person, you can use body language to demonstrate your attentiveness, and over the phone or via email, you can show empathy by asking clarifying questions. Once you’ve gained a full understanding of what went wrong, you’ll be able to go about formulating a solution. It’s essential to avoid providing sarcastic responses, or ignoring your customer altogether, as these approaches could have a negative reputational impact on your business.
2. Follow up promptly (and publicly, if necessary)
It’s never pleasant to read a negative customer review online or via social media – it may feel as if your business or team is being targeted or exposed, and that all of your hard work is going unnoticed. No matter how you feel, steering clear of responding defensively is your best route. Instead, ensure that your response is made promptly, directly and via the channel that the complaint was made.
Apologising for an oversight or openly admitting that changes need to be made in the way you do business is not a sign of weakness, but it is rather a show of transparency. Remember, negative reviews are made visible to the public, but so are your responses. By responding openly, you’ll allow the customer to feel understood and valued and you’ll also be building trust and rapport with the rest of your online audience too.
3. Enable an open channel of feedback
It is far more cost-effective to focus on customer retention than to spend money on acquiring new customers. You can do this by demonstrating your ongoing commitment to customer service, by following up with dissatisfied customers a month or two after the issue has been resolved.
You could go back to them with an exclusive discount, special offer or ask them to update their review. You could also use the opportunity to ask whether there are any further issues they would like to point out, approaching them before they take any further detrimental action is the best way to sidestep reputational damage and keep customers coming back.
Ben Bierman is the managing director of Business Partners.
BUSINESS REPORT