In the age of online reviews and social media, customer feedback has become an ever-present force for businesses of all sizes. A recent study revealed that a staggering nine in 10 British consumers now check online reviews before making a purchase.
This presents a double-edged sword for companies. Positive testimonials can be a powerful marketing tool, while negative feedback left unaddressed can damage reputations and hinder growth. However, for those willing to listen, even the most critical comments can be a valuable source of insight and a springboard for improvement to improve customer lifetime value.
There’s a few things I learned managing customer service teams for American Express and running operations for ecommerce brands. Firstly, feedback is a gift; it tells you how you can improve and highlights problems you did not know existed. Secondly, customers are more likely to report negative experiences than positive ones, so they need kid gloves. Finally, how you handle the feedback or complaint is the difference to a lost or repeat customer.
So, how can a small or medium-sized enterprise (SME) effectively navigate the minefield of customer feedback, particularly the negative kind? Well my advice is always to think about good interactions with companies that you have had, and the bad. This is a useful yardstick and should guide you.
So, here is my quickfire five-point plan to transform frustration into fuel for growth, and leverage customer feedback and testimonials to drive revenue through informed decisions.
Acknowledge Fast
In today’s fast-paced digital world, a prompt response is paramount. Research suggests 11% of British consumers expect a response to their online feedback within 24 hours. Ignoring customer concerns, especially on a public platform, sends a clear message that you don’t care. This erodes trust and fuels resentment. Taking the time to acknowledge all feedback, positive or negative, demonstrates that you value customer input.
This approach for me should be for everything related to the customer. Emails, calls, waiting at a shop counter, no-one should be left waiting and feeling unimportant. And this is of course harder, with multiple channels and the growing McInstant expectation culture meaning weekends and evenings are no longer outside hours.
There are affordable tools like Freshdesk or Zendesk that can help here though, that connect to all channels and pull them together in platforms with ticketing systems to ensure nothing is missed and can easily be picked up by any available staff. Most have automated replies for ease of working, and of course AI based chat bots are available. But you have to accept this is the modern day equivalent of Voice Response that can be very annoying for some customers and another excuse for vitriol.
One thing that is worth doing is setting up a google alert for your brand. This emails you whenever your chosen words are mentioned and can be a useful tool for finding unanswered feedback avenues. You might find reviews on platforms like Google My Business, Yelp, Trustpilot, or industry-specific review sites. And of course, googling your brand also gives a list of sites your customers will also look at.
And if you are not getting any feedback, ask for it! You can send follow-up emails post-purchase or post-service asking for feedback using email marketing tools like Mailchimp or Constant Contact. Or use tools like SurveyMonkey or Google Forms to create and distribute customer satisfaction surveys. Ensure you include a mix of multiple-choice, rating scales, and open-ended questions for comprehensive insights on their customer experience or user journey.
Listen to Understand, Not React
The natural human response to criticism is often defensive. However, for SMEs, succumbing to this urge can be disastrous. Instead, practice active listening. My favourite VP at Amex used to say “there’s a reason we have two of these, and just one of these”. I get that misses the mark without a visual pointing to ears and mouth, but it basically meant you need to listen more than you talk.
For me, the biggest frustration I have with poor customer service, is when I repeatedly have to try and explain the issue to someone who can’t grasp what my problem is. It’s clear they will never solve what they can’t understand. And without doubt they need to be an expert, if I know more about how their business runs than they do, then my faith is instantly lost in a company. Copy and pasting outdated FAQ pages for the customer to read is not the answer either, they’ve probably exhausted those already!
Most customer service queries should be solved in 5 minutes, some companies have me on the phone/chat for over an hour to resolve very simple things. That is not cost-effective for a company, so train and empower your representatives to deliver good service to avoid dissatisfaction. And I am mentioning customer services here often because these usually come before negative reviews, and your opportunity to turn a bad review into a positive one. You can’t control mistakes from happening, only how you handle them. And doing that right restores customer loyalty.
Regardless of the communication channel, thank the customer for their feedback and paraphrase their concerns to show you understand the problem. This not only validates their feelings but also helps in pinpointing the exact issue. And you should accept responsible and apologise where required, including (where appropriate) a very brief explanation of what went wrong so they know you have identified it to stop it happening again. On online reviews, this is essential for any potential customers who may expect the same issues of failure.
As a practical example, a fashion brand with reviews for poor quality clothing and orders not dispatched would put off anyone looking at the reviews. If you have responded that you have changed manufacturers and resolved some warehouse issues, then potential shoppers will be more willing to give you a chance.
Digging for the Root Cause
Jumping to solutions without understanding the “why” behind the feedback can lead to band-aid fixes that don’t address the real problem. Root cause analysis is the process of investigating the root causes of problems in order to identify appropriate solutions to stop it repeating. It’s the difference between being reactive and proactive, which fundamentally is the key to success.
Consider the recent case of a British high-street bakery chain that received numerous complaints about slow service. Their initial response was to hire more staff. However, upon further investigation, they discovered the bottleneck was a cumbersome online ordering system. By focusing on the root cause, they were able to implement a streamlined system, leading to faster service and happier customers.
This isn’t always instantly obvious, but if there is a trend of negative feedback there is usually something that needs to be fixed or improved to stop it happening again. Solving these improves brand reputation, and reduces strain on your customer service team too.
This proactive approach means potentially stopping other customers unable to raise their problems, resulting in yet more avoidable negative reviews. Because again, angry customers are more likely to be driven to share their experiences. And the quicker you get to them, the less likely they will resort to leaving reviews through exasperation.
And remember, on-line reviews are just the public visible tip of the iceberg. Word-of-mouth recommendations to friends and neighbours, or shares in Facebook groups can be vital to brand growth. Peer to peer recommendations carry more weight than on-line reviews.
A Clear Path to Resolution
Empty promises or vague timelines do little to appease a frustrated customer, when ideally they want an instant answer but at minimum a satisfactory resolution. Develop a solution that directly addresses their specific concern. Be transparent about the timeframe for implementation, ideally over-delivering on your promise. This demonstrates a commitment to resolving the issue and rebuilding trust.
If a complete fix isn’t possible, offer a reasonable compensation or alternative. Most people know the difference between someone paying lip service and genuinely trying to help. Take accountability, apologise, and take the feedback on board.
In instances of delayed or missing deliveries for ecommerce (which is the biggest problem), you are failing in your side of the sales contract. You are required to deliver the item to the customer who has paid you for the goods. The contract is with you, not a third party. So deal with it and don’t send them to the delivery company directly. Better still, consider using a specialist courier service who can do the job with minimal problems and efficiency, with clear tracking and notifications for each stage of the process.
And remember, pain points for staff with systems that don’t enable them to solve customer issues is counterproductive. Give them the tools to do their job effectively. Share best practices, information and knowledge to enhance your customer experience.
And listen to your employees who are the advocates for your business. Run Annual Employee Survey, host open forums, encourage ideas for innovation and opportunities to make them more time effective. If you rightly demand excellence, iterate from onboarding training and regular refreshers the skills and values they need to deliver the performance you want through continuous improvement. Keep them motivated and engaged, and the quality of their work stays at a high standard.
Learn, Adapt, and Share
Failing to learn from feedback data is a missed opportunity that ultimately creates brand damage, negatively impacts your business growth, and hogs staff resources. Use the insights gleaned to improve your product, service, or process and reap the benefits. Value and invest in both your customers and staff to promote a positive mindset, and adjust to being customer-centric. Leveraging customer feedback
You can also turn an initially negative experience into a positive branding exercise by sharing how you have solved the issue. Sharing these improvements publicly shows your customers that you take their feedback seriously and value their business. It can also show potential customers that you are a trustworthy brand. At Amex, we once did an advertising campaign based on all the things we did for our customers like finding a lost wedding dress from a plane journey booked with us. Going above and beyond is dream marketing material that gets potential customers remembering your name.
There are several key metrics that will show the fruits of your hard work; your average review scores will increase, and your customer retention or repeat purchase rate will improve. If you haven’t already, introduce a First Contact Resolution rate and call quality reviews for customer services KPIs.
Further Reading
