In a recent blog post I mentioned an article by Matt McGee in Small Business Search Marketing that negative reviews are GOOD for your business. Matt reports that amongst other things they build credibility and trust, and provide you an opportunity to address legitimate issues.
I elaborated on the credibility angle already - let's talk about using negative feedback as an opportunity to address issues. American Express reports that 70% of consumers expect an apology for bad service or support. An example I often use at conferences is a twitter conversation that happened in early 2011 about TurboTax. A professional user was frustrated that his installed browser wasn't supported by the version of TurboTax he was using, and took to the twittosphere to vent. Luckily Intuit chooses to listen (they care about their brand), AND they choose to intervene (they care about their perception in the market and customer service). A conversation ensued, the fault was recognized, and a solution was suggested in a live forum open for anyone interested to see. Not long after the original poster complained, he tweeted that "My experience today with @Turbotax has reminded me that some companies continue to have excellent customer service even when they grow large." You can't pay for that type of exchange and endorsement - it happens when you have a customer experience organization that has knocked down internal silos to focus on issues that matter.
Many consumers use Yelp to review and research local small businesses whether they be markets, restaurants, or landscaping firms. Like many of you, I have had firsthand experience with bad dining and usually report my experience on Yelp (I also post good experiences!). I was amazed earlier this year when I was contacted by the owner of the restaurant I wrote a bad review about. She didn't contact me to argue or contradict me, but to understand where they fell short, and more importantly to ask if they could have another chance. To me it was the hallmark of a true professional, and someone who cares about customer service rather than caring about ego. I did give them another chance and things were MUCH better. I wrote an amendment to my review and turned into a raving fan. As a result, I now look for edited reviews when researching on Yelp - it shows me more than a data point - it shows me a culture of caring about the customer.
In both cases above, the consumer had a problem - they wanted to share their negative experience with peers to save them time and money, and ultimately were surprised by a vendor that used a teachable moment to turn them into a fan and an advocate.
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