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.

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…

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

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