3 reasons to embrace negative customer feedback

3 reasons why you

should embrace

(negative) customer

feedback@canhoto

www.anacanhoto.com

© Ana Isabel Canhoto 2015

My name is Ana Canhoto.

I am a marketing

academic, teaching and

researching the role of

digital technology and

digital information on

customer management –

for instance, to develop

better customer insight, or

to improve customer

service.© Ana Isabel Canhoto 2015

You wish customers had only good things to

say about your company.




But, instead, you only seem to hear from

the disgruntled customers.





the disgruntled customers. They talk about

you on their social media updates.






you on their social media updates. They

write blog posts.







write blog posts. Some even make videos.







write blog posts. Some even make videos.

And the worst part is that these comments

will stay online, influencing future

customers, long after the initial problem has

been solved.


So… You have been thinking: What’s

the point?



the point?

I don’t blame you. It is human to

dislike criticism.



the point?

I don’t blame you. It is human to

dislike criticism.

But…© Ana Isabel Canhoto 2015

I am going to show you 3 reasons why you should embrace

customer feedback.


I am going to show you 3 reasons why you should embrace

customer feedback.

Yes, even negative feedback.


READY?


INSIGHT

Problems happen.


INSIGHT

Problems happen.

Sometimes it is not even a fault, but rather an

issue of unrealistic customer expectations.


INSIGHT

Problems happen.

Sometimes it is not even a fault, but rather an

issue of unrealistic customer expectations.

Whatever, the case, wouldn’t you rather know

what makes your customers unhappy?


Only a minority of unhappy customers

complain directly to firms. Most will simply

switch to another service provider, or share

stories about their negative experiences with

their social connections.


Not hearing from unhappy

customers may give you a

false sense of security.


Not hearing from unhappy

customers may give you a

false sense of security.

Comfortable, maybe; but not

very helpful.


(Negative) customer feedback

gives you a chance to join the

conversation.


(Negative) customer feedback

gives you a chance to join the

conversation.

It also gives you a….


RECOVERY OPPORTUNITY

Once you hear that a customer is

unhappy, you can intervene.

You can:





You can:

- Apologise





You can:

- Apologise

- Redress the situation, and





You can:

- Apologise

- Redress the situation, and

- Solve the problem


You can improve

customer satisfaction.


Research shows that


Research shows that

the majority of dissatisfied

customers whose complaints

are handled in a timely and

effective manner


Research shows that

the majority of dissatisfied

customers whose complaints

are handled in a timely and

effective manner

go on to repurchase from the

business.


And, that’s not all.


Retained customers are more

profitable because:



profitable because:

- they ask fewer questions



profitable because:


- have more realistic expectations



profitable because:



- are more familiar with the company,

the employees and the products



profitable because:



- are more familiar with the company,

the employees and the products

- and have lower price sensitivity

than new customers


And, now, the third reason.


It is counter-intuitive.

But…


No news, is not good

news

Negative comments may

actually increase your sales



news



- For a mass product



news



- For a mass product

- In the early stages of the

product life cycle


Why?


Why?

Because, in a world where

consumers increasingly seek out

other customers’ reviews and

recommendations prior to

purchase,


Why?

Because, in a world where

consumers increasingly seek out

other customers’ reviews and

recommendations prior to

purchase, wide adoption provides

social proof.


Research shows that the positive

impact of wide product adoption

is amplified by the volume of

customer feedback


Research shows that the positive

impact of wide product adoption

is amplified by the volume of

customer feedback

And it is not affected by whether

the messages are positive or

negative


Let’s recall what we

discussed.


These are the 3 reasons why

you should embrace customer

feedback:

1. Gives you customer insight

2. Offers you an opportunity for

recovery

3. Provides social proof


Want to know more?

Join the discussion at:

• www.anacanhoto.com

• @canhoto


3 reasons to embrace negative customer feedback

Marketing