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How thoroughly and frequently does your company track comments left by clients? Knowing what to do when a negative review or complaint appears online about your company is important since it may significantly impact your business’s reputation.
Consider the situation from the customer’s point of view. How frequently have you had a negative interaction with a company and you felt your voice was not heard? How did you feel when you received a personalized response from the business? Studies show that over half of customers expect businesses to respond to negative reviews within a week, while a third expect a response in 3 days.
Here are a few reasons why your business should prioritize tracking and responding to customer reviews and complaints:
Resolving complaints protects your BBB rating
Responding to all customer complaints is good practice for many reasons. Submitting a response indicates a willingness to work with customers to make things right. How a business responds to customer complaints is one of the most significant components of the BBB Business Rating.
BBB Ratings and how they're derived are sometimes the subject of discussion. For example, how do businesses with thousands of complaints often have an A+ BBB rating? At BBB, we recognize that misunderstandings occur and that the causes of dissatisfaction are not always within everyone's control. For us, it’s not about how the mix-up occurred but how a business reconciles with its customers.
Businesses that react quickly to customer concerns and work with clients to restore the connection can maintain an A+ Rating. Larger companies with a more extensive network are more likely to have a higher volume of complaints. Rather than focusing on the number of complaints, consider how frequently and effectively those complaints are resolved.
It’s a chance to share your side of the story and manage your reputation
Customer reviews are powerful. BrightLocal says 81% of consumers use Google to research local businesses. When consumers see unfavorable reviews online, especially those without responses, it may lead a customer to spend their money somewhere else.
However, reviews may only sometimes tell the complete story. Customers might embellish information in their reviews because they’re seeking compensation. They assume the escalation will encourage your business to react negatively. These circumstances, if left unattended, can harm your business’ reputation.
Responding to a customer’s review allows you to explain what happened and promote transparent communication with not only the customer but a larger audience. The steps begin with recognizing the customer’s dissatisfaction, providing insight into what caused the misunderstanding (even if it’s exaggerated), and allowing further reconciliation. Having a well-handled and thought-out response can demonstrate your business’s professionalism and promote your image.
You could save a customer
Studies show that customer churn, the rate at which customers stop doing business with a company over a designated time frame, can increase by 15% if businesses do not respond to reviews. Even unhappy customers may return to a business if they feel their complaints are heard and responded to.
As stated above, customers may be frustrated, but sometimes unfavorable reviews include inflated opinions. Acknowledging the customer’s concerns, working with them, and coming up with a solution is a great way to repair the relationship and save a paying customer.
However, your answer may save more than just the first customer. You may also keep additional customers who observe how you respond to a challenging situation. Seeing a company professionally work with a dissatisfied client shows future consumers that your company cares about their needs. Taking the time to acknowledge a complaint, even if you cannot provide compensation, can show prospective customers that you care.
It can help improve your business and employee culture
Reading customer reviews and complaints can help you learn about your business’s operations and identify areas for improvement and opportunity. While it may be hard at first to read negative reviews with an open mind, try to shift your mindset to not take the reviews personally and to appreciate receiving any constructive criticism and feedback.
For example, if you find that you are receiving a pattern of negative complaints and reviews about employee interactions with customers, you can address this with your team and provide further customer service training. On the flip side, you can also help motivate your employees by sharing positive reviews and feedback that you receive from customers. These positive reviews can reiterate to your staff what they're doing well and, as a result, help to build a healthy culture at your business.
Take these reviews and complaints as learning opportunities that can help your business and your employees grow and improve.
For more information
Check out more business articles and tips at BBB’s BizHQ.
Read our tips on how to handle customer complaints and learn more about enhancing your customer relationships.
Better Business Bureau Serving the Pacific Southwest contributed this article.