We all know how important having high customer retention is! Especially today when customer loyalty is so low. On the other hand, negative reviews are often unavoidable. What do the two have to do with each other though? Read below to find out:
1. Negative reviews
No company can please all its customers. In reality, negative reviews are a part of doing business. However, the benefits of collecting feedback outweigh the drawbacks of getting the occasional negative review. In fact, by asking your customers for feedback you actually give them the outlet they need in case they actually have had a bad experience.
The way you handle your negative reviews will be a clear indication to your other customers that you actually care about what they think. Reply to your customer by apologizing for their bad experience, figure out what the problem was and work hard on fixing it so that other customers don’t experience it. A negative review is a great opportunity to learn and you should value it as such!
2. Customer retention
By collecting customer feedback, you make your clients feel appreciated and heard and therefore you increase their retention levels. You can do this in several ways:
- Customer survey requests per email: this is probably the most common way to ask for feedback. Create short (up to 10 questions max), easy-to-follow surveys with a clear goal and a good design. Thus, you increase your chances of having lower dropout rates, while also showing your customers that you have put the time and effort into this.
- Exit surveys: this is a survey you send to your customer when they have displayed an intent to leave (either your website or your company altogether). You can ask them why they are leaving and what they would change. By asking the right questions, you show that you care about your customer and you are striving to improve. In some cases, this might be enough to change their minds and to increase your retention rates. In others, it will give you valuable insights about how to fix the issues.
3. Why negative reviews increase customer retention?
Negative reviews increasing customer retention might sound very counterintuitive. However, the truth is that by giving your customers an outlet to express their frustration and handling their complaint professionally and with compassion, you indicate what kind of a company you are. Namely, a company which doesn’t see its customers as numbers, but appreciate each individual customer. Thus, negative reviews will ultimately result in higher customer retention levels and more customer loyalty!