3 reasons to embrace negative customer feedback
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Transcript of 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.
© 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. They talk about
you on their social media updates.
© 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. They talk about
you on their social media updates. They
write blog posts.
© 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. They talk about
you on their social media updates. They
write blog posts. Some even make videos.
© 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. They talk about
you on their social media updates. They
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.
© Ana Isabel Canhoto 2015
So… You have been thinking: What’s
the point?
I don’t blame you. It is human to
dislike criticism.
© Ana Isabel Canhoto 2015
So… You have been thinking: What’s
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.
© Ana Isabel Canhoto 2015
I am going to show you 3 reasons why you should embrace
customer feedback.
Yes, even negative feedback.
© Ana Isabel Canhoto 2015
INSIGHT
Problems happen.
Sometimes it is not even a fault, but rather an
issue of unrealistic customer expectations.
© Ana Isabel Canhoto 2015
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?
© Ana Isabel Canhoto 2015
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.
© Ana Isabel Canhoto 2015
Not hearing from unhappy
customers may give you a
false sense of security.
© Ana Isabel Canhoto 2015
Not hearing from unhappy
customers may give you a
false sense of security.
Comfortable, maybe; but not
very helpful.
© Ana Isabel Canhoto 2015
(Negative) customer feedback
gives you a chance to join the
conversation.
It also gives you a….
© Ana Isabel Canhoto 2015
RECOVERY OPPORTUNITY
Once you hear that a customer is
unhappy, you can intervene.
You can:
© Ana Isabel Canhoto 2015
RECOVERY OPPORTUNITY
Once you hear that a customer is
unhappy, you can intervene.
You can:
- Apologise
© Ana Isabel Canhoto 2015
RECOVERY OPPORTUNITY
Once you hear that a customer is
unhappy, you can intervene.
You can:
- Apologise
- Redress the situation, and
© Ana Isabel Canhoto 2015
RECOVERY OPPORTUNITY
Once you hear that a customer is
unhappy, you can intervene.
You can:
- Apologise
- Redress the situation, and
- Solve the problem
© Ana Isabel Canhoto 2015
Research shows that
the majority of dissatisfied
customers whose complaints
are handled in a timely and
effective manner
© Ana Isabel Canhoto 2015
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.
© Ana Isabel Canhoto 2015
Retained customers are more
profitable because:
- they ask fewer questions
© Ana Isabel Canhoto 2015
Retained customers are more
profitable because:
- they ask fewer questions
- have more realistic expectations
© Ana Isabel Canhoto 2015
Retained customers are more
profitable because:
- they ask fewer questions
- have more realistic expectations
- are more familiar with the company,
the employees and the products
© Ana Isabel Canhoto 2015
Retained customers are more
profitable because:
- they ask fewer questions
- have more realistic expectations
- are more familiar with the company,
the employees and the products
- and have lower price sensitivity
than new customers
© Ana Isabel Canhoto 2015
No news, is not good
news
Negative comments may
actually increase your sales
© Ana Isabel Canhoto 2015
No news, is not good
news
Negative comments may
actually increase your sales
- For a mass product
© Ana Isabel Canhoto 2015
No news, is not good
news
Negative comments may
actually increase your sales
- For a mass product
- In the early stages of the
product life cycle
© Ana Isabel Canhoto 2015
Why?
Because, in a world where
consumers increasingly seek out
other customers’ reviews and
recommendations prior to
purchase,
© Ana Isabel Canhoto 2015
Why?
Because, in a world where
consumers increasingly seek out
other customers’ reviews and
recommendations prior to
purchase, wide adoption provides
social proof.
© Ana Isabel Canhoto 2015
Research shows that the positive
impact of wide product adoption
is amplified by the volume of
customer feedback
© Ana Isabel Canhoto 2015
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
© Ana Isabel Canhoto 2015
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
© Ana Isabel Canhoto 2015