Reputation management: How to respond to feedback.

Communication is key to keeping customer relationships strong and customer satisfaction rates high. 

Word has always gotten around about businesses. People tell their friends when they find a good deal — or, on the contrary, when products or services fall short of their expectations. However, what used to be talk over a coffee table or when waiting to pick up kids at school can now take the form of online reviews and comments on social media.

As a result, reputation management has become more challenging for businesses. It’s not enough to restore a relationship with one customer with an apology, exchange, or refund. Now, businesses need to address comments on the internet that any consumer can read. 

Positive online reviews are an asset. In fact, 93% of consumers say they’ve made buying decisions based on online reviews. When a customer shares a positive experience, it can attract new customers (and new revenues). It can also attract skilled job applicants looking for a great place to work — a real advantage during a labor shortage.

At the same time, negative reviews can hurt businesses. For example, one study showed that if Millennial consumers have a negative experience or discover something about a company that they don’t like, they’ll boycott the business and urge other people to join them. The study found that 28% of Millennials were boycotting businesses in 2022. 

Communication is key to effective reputation management.

Because there is no way to erase negative reviews, and it’s unwise to ignore them, the only option is to address them. But how a merchant responds is critical to a business’s reputation. Characteristics of a response that can change a disgruntled customer’s mind about a business — and show other people reading the review that your business is committed to customer satisfaction. Here are some things to include in negative feedback responses.

• An apology. Apologizing at the beginning of a response demonstrates that the merchant isn’t going to argue with the customer. Instead, the merchant empathizes because the customer had a negative experience. Merchants don’t need to take all the blame. In fact, sometimes the issue isn’t the merchant’s fault, such as a product that wasn’t quality controlled or utility outages that disrupted service. But saying, “I’m sorry,” can set the stage for an interaction that preserves customer loyalty. 

• A solution. Effective responses to negative reviews include assurance that the merchant has the issue under control and that, if at all possible, it won’t happen again. A merchant that explains plans to correct a problem, change an ineffective process, deal with an employee matter, or make other changes sends a message that the merchant will let their actions speak to their commitment to improving customer experiences. 

• Restitution. If warranted, a refund, an exchange, additional services, or a small gift can demonstrate the merchant’s commitment to customer satisfaction. It may cost the merchant something. However, it may save the customer lifetime value (CLTV) of a good customer and change prospective consumers’ minds that might otherwise decide to choose a competitor. 

• Personal interaction. Public reviews need a public response. People reading the review will want to know how the merchant reacted. But it’s not necessary to hash out all of the details of the situation publicly. A merchant can invite the customer to reach out or initiate the conversation if the merchant can message the customer privately. 

Remind your clients that it’s also good practice to respond to positive reviews as well as negative ones. Merchants who thank customers for their kind words and assure them that they’ll continue to try to provide great experiences can also make a strong impact on consumers reading reviews. 

How merchants can know what consumers are saying about them.

Before a merchant can respond, they need to know what consumers are saying about the business. With all of the places where customers can share their opinions, from ecommerce and online review sites to social media and online communities, proper reputation management can be a monumental task.

Fortunately, North Sales Partners can help their clients overcome this challenge by providing them with a solution that automates the process. That way merchants can see what customers are saying about them and where they’re saying it so they can respond. 

Communicate with your clients.

As important as it is for merchants to communicate with their customers, it’s equally important for you to communicate with yours. You’ll be a more valuable partner if you can help them find ways to manage their businesses more successfully, including providing them with a practical reputation management solution. 

Be more than a payment/tech provider. Be an advisor with a commitment to your customers’ success. Contact North to learn how.