How to Handle Negative Customer Feedback the Right Way

Feedback is usually a good thing. Whether positive or negative, feedback shows your customers want to talk to you. It can be a goldmine of information where you can dig deeper to discover what you're doing right or wrong. When it comes to optimizing your business, your customers' insight can be very valuable.

Everyone loves positive feedback, but handling comments from the disgruntled is the true test of grace and grit. Brushing negative feedback under the carpet is a massive mistake. Those are the comments that should be put under the microscope. Some customers just may be in a bad mood, but other comments should make you think. Negative feedback can test your accountability and push you to improve.

While handling negative customer reviews is tricky, there are ways to please the customer and make your business look good. Here are five tips that can help you convert a setback into an opportunity to make your business stronger.

1. Create a Customer Satisfaction Process

Requesting feedback, receiving feedback, and responding to feedback are all equally important phases of customer relation management. Staff responsible for these tasks should be trained in handling unhappy customers professionally. If you've already offered a customer free shipping, for example, you'll need to find another way to make up for a late delivery.

Having a streamlined process is essential to ensure customers receive helpful and timely responses. As the business owner or manager, make customer satisfaction a key performance indicator. Pay attention to patterns of negative feedback. Highlight which products or services receive the most complaints, and figure out whether there are particular times when more people have issues. Gather qualitative and quantitative data for such questions so you can begin identifying remedies.

2. Get the Facts — and Act on Them

As noted, you'll want to get all the facts before jumping to conclusions. Often negative reviews stem from misunderstandings. Customers may buy an item only to complain that it's smaller than they expected it to be. You can contact the customer privately and politely explain where your website displays the precise product dimensions.

While that's a great start, don't forgo the opportunity to make changes for the better. Perhaps the product photo is misleading and should include a common object alongside the product to demonstrate scale. Making this change will show your customer that you take their feedback seriously and work toward finding solutions. It will also prevent future customers from experiencing similar disappointment.

3. Offer Win-Win Solutions

Remember, a satisfied customer may tell two people, but a dissatisfied one may tell 10. So whether it's a refund, replacement, or some form of compensation, be willing to make amends. This helps resolve the issue and also showcases your commitment to customer satisfaction. Consider offering customers store credit if their money can't be refunded. If the homeowner is unhappy with a carpet cleaning, reschedule the service and offer to clean area rugs, too.

Don't look at the refund as a loss to your business. Think of it as an investment in developing long-term relations with your customers. Teach employees that negative feedback is a valuable opportunity for improvement. Even if you think a customer's demand is unjustified, reply to their request politely and professionally.

4. Mean What You Say

A little bit of empathy can defuse a lot of tension. Emotions can run high, especially when someone criticizes your business, so focus on remaining calm and objective. Although it's crucial to respond promptly, always think before you reply. Train your staff to acknowledge the complaint. Let them know what types of compensation they can offer before needing to discuss the issue with management.

Customers can see through generic, copy-pasted responses. Craft personalized responses addressing their specific concerns, using the customer's name and referencing their complaint. This shows that you genuinely care about their feedback and are willing to go the extra mile to fix things. Start your response with an apology and end with a commitment to future improvement.

5. Learn From Mistakes

Negative reviews aren't the end of the world, but don't just chalk them up to human error and close the case. Identify the root cause and leverage this information to improve your product or service. Furthermore, addressing the issue publicly demonstrates transparency and shows potential customers that you are proactive in resolving problems. If customers complain online about being served cold pizza, for example, invite them back for dinner on the house.

Continually monitor review sites and social media for customer feedback. Use tools and software that can help you keep track of mentions of your brand. By staying informed, you can respond quicker and take action to prevent similar issues in the future.

Encourage All Forms of Feedback

To counterbalance negative reviews, actively encourage satisfied customers to leave positive feedback online. You can do this by sending follow-up emails or providing incentives to customers who share their experiences on review sites and your social channels. A consistent flow of positive reviews dilutes the impact of negative ones. Additionally, customer feedback provides data based on real experiences that can drive future business strategies.

In today's digital age, getting zero feedback could be more worrisome than getting negative feedback. No matter how dismissive a customer is, maintain a professional demeanor and look for mutually beneficial solutions. While it may initially sting, negative feedback can provide valuable opportunities for growth.

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This article was written by Larry Alton from Small Business Trends and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.