People may not always share a positive experience but they will definitely share a negative experience all over the internet. As a marketer, you need to handle negative feedback from customers every now and then. Don’t take it personally. We will guide you to manage negative customer reviews professionally.
How Does Negative Customer Feedback Affect Your Business?
Let us discuss the downsides of not-so-positive feedback from customers and how it can impact your business.
1. Increase instances of churn rates
Ever seen 1 star reviews on ecommerce websites? It influenced the perception of prospective customers. Even if the product is good, potential buyers might just be influenced to skip it. Unhappy customers will make sure they leave negative feedback everywhere.
If you neglect unhappy customers for a long time, it might leave them bitter. Continued neglect might cause massive churn rates. It is advisable to close the feedback loop with them at the earliest and win their trust again.
2. Higher acquisition cost
Due to popularity bias among consumers,people are more likely to purchase a popular product even if other products have a similar or better quality and service. If brands do not focus on their current customer experience, they might jeopardize the existing user base. Bringing more footfalls into your website will cost more in terms of marketing expenditure across multiple virtual touchpoints. This translates to high marketing cost with lower ROI. It is imperative to focus on the upkeep of your brand reputation irrespective of the size of the user base.
3. Decreased consumer trust
Negative customer feedback (and heavily neglected) will hamper your chances of being in the forefront. This will create a dent when it comes to trust among your user base. Search engines want to promote businesses that have positive reviews and are usually well received. Poor reviews will sabotage your chances of being seen.
4. Dip in revenues levels
Paying customers and revenue rates are directly related. It is also directly related to the “trust levels” of a potential consumer. When customers leave or if brands lack the recurring revenue source, it can spell trouble. One way to avoid this is to attend to customers (even happy customers) and personalize your communications with them. Focus on product upgrades and service refinement.
5. Negative word-of-mouth impact
Word of mouth impact can happen online and offline. It is not possible to control the narrative in the offline world. This will show up during conversations. Negative word of mouth conversations will put off potential customers. If you want to qualify this impact, you can look towards your net promoter score results to view detractors. When people see negative feedback, they will relay the information to people who will not reconsider engaging with your brand.
7 Steps To Handle Negative Customer Feedback
Step 1: Immediate response: timing is critical
Time is of the essence when managing negative feedback on customer experience. The longer a negative review or complaint remains unaddressed, the more frustrated the customer becomes. Offer a prompt response—preferably within 24 to 48 hours. Something as simple as an email reply within 24 hours can make a world of difference to a dissatisfied customer. On social media platforms, people expect an instant response. Staying active across brand accounts is critical.
Step 2: Acknowledge the feedback
When a customer takes the time to provide feedback—whether positive or negative—it is vital to acknowledge their effort. A simple acknowledgment can go a long way in mitigating customer frustration. A simple response can also be automated initially. However, make sure that you involve a human representative to acknowledge people, personally. This adds a human touch and shows that you are taking the feedback seriously. Ensure your team is trained to handle these communications delicately, focusing on empathy and a strong commitment to finding a resolution.
Step 3: Investigate the issue
The next step is to investigate why the issue occurred. This phase determines how well you can address the customer’s concern and prevent similar instances of pain points. Without a comprehensive investigation, your responses may come off as generic or poorly informed.
Gather all relevant information that points to the issue. Collaborate with your team, check past communications or review transaction details. Use the customer relationship management (CRM) system to gather all historical data on the customer.
Interview team members who were directly involved in the customer’s experience. This helps marketers detect any gaps that might have contributed to the problem. Document your findings meticulously to address the grieved customer effectively.
Moreover, consider the perspective of the customer. Try to understand the issue from their viewpoint and assess how the problem impacted their experience. This empathetic approach can guide you in formulating a resolution that genuinely meets the customer’s needs.
Step 4: Respond professionally but with empathy
This is a critical step to turn a negative experience into a potentially positive outcome. The tone, language, and content of your response can either mollify the customer or exacerbate the situation. If you are on a telephonic call with your customer, be mindful of the tone and offer feasible solutions. Thank them for bringing the issue to your attention. This personal touch sets shows that you are not treating their complaint as just another ticket number
Step 5: Offer a solution or compensation
The goal is to rectify the issue not just to satisfy the customer’s immediate concerns. Outline exactly what you are offering and how it will be implemented. For instance, if a delayed shipment caused inconvenience, state when the replacement will be shipped and whether any expedited service will be used to ensure quicker delivery. For this instance, Zappos, a shoe brand assisted a customer for 10 hours on call.
Consider the following examples of solutions/ compensations:
a. If FMCG goods have been damaged during transportation, the immediate solution can be to offer a discount coupon or a refund, as deemed fit.
b. If certain issues cannot be solved with compensation, be quick to acknowledge the issue. Assure the customer that the brand will take care of their next transaction/interaction with the customer. Keep the dialog open to solicit future responses and feedback from the customer.
Document the offered solution and the customer’s response to it. This information can be invaluable for future reference, helping you refine your strategies for dealing with negative feedback.
Step 6: Seek post-resolution feedback
Follow up with every respondent after resolving their issues. There will be two outcomes of this- they will either be satisfied or leave with an escalation request. You can launch a customer effort score metric to gauge the effort to go through the resolution process. Use tools from Merren to create an instant CES survey and launch it via WhatsApp surveys for an in-moment response.
Step 7: Analyze feedback for continuous improvement
Analyzing feedback is essential for identifying patterns, understanding root causes, and implementing changes that prevent similar issues in the future.
Start by compiling all the negative feedback your business has received over a specific period. Use analytical tools from platforms to sort and categorize this feedback. Look for common themes or recurring issues that need to be addressed. This could be anything from product defects to gaps in customer service. For example, if multiple complaints highlight delays in shipping, investigate your logistics processes thoroughly.
Keep your team informed and involved. Regular training sessions and briefings based on feedback analysis can equip your team with the skills needed to handle negative feedback more effectively.
Want to know how Apple Inc handled negative feedback? They converted detractors into active customers.
Conclusion
Negative feedback from customers is a part and parcel of every business. Don’t miss any feedback from your customers. Capture their responses from every critical touchpoint. Use channels that are hassle free for best results. Sign up with Merren for a 14 day free trial and capture responses on our dynamic CX dashboard.