Customer feedback will make or break your business, so its importance cannot be understated. According to the Small Business Association, 68% of customers say they leave a company because of the treatment they received. Dissatisfied customers will also tell between 9 and 15 people about their experience, so it is essential that you manage – and take action upon – feedback. Below, we’ll explain how both positive and negative feedback present you with valuable opportunities.
Valuable Marketing Opportunities of Positive Feedback
Receiving positive feedback means that you’re doing something right, but it’s certainly not a reason to become lackadaisical.
Referrals blossom from positive feedback, and 82% of small business owners say that their main source of business is referrals. This said, word-of-mouth marketing is very effective, and all you need to do to succeed at it is consistently impress your customers. If you receive positive feedback, encourage your fans to spread the word about your business in person, via email and on the web. Online review websites such as Google+ are a good avenue for pursuing feedback. Encourage a customer to submit a Google+ review that expresses their satisfaction, or create a promotion that incentivizes reviews. A positive Google+ review can go a long way, as small businesses have found that highly positive reviews lead to a 10% increase in sales.
Customers who leave positive feedback are also likely to become repeat customers, so it is beyond important that you nurture these customers. Focus your loyalty marketing efforts on customers who have left positive feedback, as businesses that increase loyalty marketing spending by 5% increase profits by 25%. It’s also estimated that bringing back an existing customer is 8x more effective than getting a new customer. Returning customers require less effort and costs than new customers, and since you’ve already won their favoritism, all you have to do is maintain and build upon your relationship.
Valuable Marketing Opportunities of Negative Feedback
Negative feedback illustrates how and where you need to improve. Rectifying a customer’s negative experience can allow you to quickly convert a critic into a loyal fan. Aside from online reviews, you can get feedback in person, via email, or on the phone. In all of these cases, you’ll want to ensure that the issue is resolved before they spread the word. If a customer leaves a negative review online, it is best to reply directly to that user. In this way, you can win the customer over by showing them that you genuinely care about their experience. It is estimated that the average value of each lost business relationship is $289, so combined with the fact that dissatisfied customers tell others about their experience, managing feedback and negative reviews can go a long way.
Make Sure You Get And Manage Customer Feedback
Given the role that feedback plays in the success or failure of your business, encourage customers to give their feedback. Learn from their experiences and strive for positive reviews. Ultimately, the quality of your product and service determines the vast majority of feedback that you receive, but once you’ve already received feedback, managing it properly can make a world of difference.