The Role of Customer Reviews in Decision-Making
Critical Customer Feedback Transformation: Leveraging Obstacles into Advantages
In the customer journey, reviews and ratings play a significant part, with 98% of consumers relying on them to guide their purchasing decisions [1]. When businesses offer high-quality products and services, an overwhelming majority of customer reviews should reflect this positively. However, negative reviews are not something to be feared but viewed as opportunities to demonstrate commitment to customer satisfaction and service improvement.
Dealing with Negative Feedback
Entrepreneurs face challenges when dealing with poor reviews, a situation that Matt Little, founder of Festoon House, a lighting company, has encountered repeatedly. The key, Little says, is to address negative feedback with a calm, constructive mindset and be proactive in finding a resolution. A customer once claimed that the outdoor lighting solutions provided by Festoon House weren't as bright as expected, which could be impacted by installation setups. Rather than taking the criticism personally, Little contacted the customer, listened to their concerns, and offered to send a technician to reassess their setup, ensuring a better solution [2].
When dealing with negative reviews, prompt action is essential. Offer a clear explanation or an alternative solution, and maintain a respectful tone. Admitting fault when necessary and responding factually can build trust and turn dissatisfied customers into loyal ones [3].
Feedback as Opportunity
Adrian Iorga, founder of Stairhopper Movers, a Boston-based company, has dealt with tough reviews following numerous moves. One customer mentioned that the company rushed through a small apartment move and didn't explain the charges. After calling the customer and discussing the situation, Iorga clarified everything, apologized, and made a small gesture. The customer edited the review and referred three friends [4].
Tracking and sharing reviews that have been turned around helps new employees understand the importance of following up after a job, leading to an increase in review scores. Ignoring negative reviews can harm a business, while addressing them constructively builds trust [5].
Dealing with Fake Reviews
False or fake reviews that mislead potential customers are a growing concern in the online review space. Dealing with disingenuous reviews is challenging. While some business owners may offer apologies and freebies in exchange for removing the offending review, others, like Tim Roberts of No. Twenty9, take a different approach. Roberts challenges false negative reviews, using internal CCTV footage to refute claims and restore the bar and restaurant's reputation [6].
Leveraging Customer Reviews
As COO of Bates Electric, Andrew Bates has overseen numerous projects and treats every negative review as a field report, providing free insight into customer expectations and areas for improvement [7]. By adopting a proactive approach to addressing negative reviews, entrepreneurs can harness this valuable feedback to enhance customer satisfaction and business growth.
Over-delivering on Resolutions
Serial entrepreneur Nigel Botterill advises over-delivering on fixing mistakes promptly and creatively when they occur. This grand gesture can make the initial issue a talking point, leading to positive word-of-mouth and strengthening customer relationships [8]. When responding to non-genuine reviews or oversimplified complaints, Botterill suggests ensuring the public is aware of the incorrect nature of the review through an assertive but respectful response [9].
#### Sources
[1] (Sprout Social, 2018) Sprout Social’s 2018 Q1 Index
[2] (Festoon House, n.d) Festoon House founder Matt Little
[3] (Dimensional Research, 2018) Happy Customers Lead to Loyal Customers: How Even One Negative Experience Can Derail the Relationship [Infographic]
[4] (Boston Business Journal, 2018) How one bad review turned into work for three Stairhopper Movers employees
[5] (Inc.com, 2019) 6 Ways to Turn a Negative Review into a Good One
[6] (Evening Standard, 2018) Burnham Market's restaurateur fights back against 'anonymous' TripAdvisor reviewers with evidence
[7] Andrew Bates, COO of Bates Electric
[8] (Entrepreneur, 2019) How to Turn Your Customers into Salespeople
[9] (Entrepreneur, 2019) Are Your Customers Really as Honest as You Think They Are?
In the context of business, entrepreneurs should view negative customer reviews as opportunities to demonstrate their commitment to customer satisfaction and service improvement. For instance, when Matt Little, founder of Festoon House, encountered a customer complaint about outdoor lighting solutions not being bright enough, he proactively contacted the customer, listened to their concerns, and offered a resolution.
Adrian Iorga, founder of Stairhopper Movers, transformed a negative review into a positive experience by addressing the customer's concerns, clarifying their charges, apologizing, and making a small gesture. This constructive approach not only turned the dissatisfied customer into a loyal one but also served as an educational tool for new employees.
