Dealing with angry customers – the key to high retention rates
from Adam | December 28, 2020
The trend from shopping in physical stores to e-commerce has increased steadily in recent years. During the COVID pandemic of store closures and social distancing, those who hadn't previously shopped online made the transition to digital grocery shopping. These new habits have staying power and are here to stay.
With the growth of e-commerce, competition has become fierce. Scrambling for new customers is a strenuous task, so increasing retention rates is a high priority. At a time when reviews are ubiquitous and even a slight criticism of social media platforms can hurt a business, dealing with disgruntled customers can be a challenge. However, companies that handle customer complaints well can drive customer loyalty.
How does Amazon maintain its 91% retention rate?
Amazon, the ultimate retail giant, has had incredible success with customer loyalty. While few businesses can grow as big as Amazon, smaller businesses can learn from the Amazon example. A respectable retention rate for many companies is 35%. However, Amazon has a near-perfect retention rate of 91%. How does Amazon do it?
Aside from the fact that Amazon is retaining customers at a rate nearly 60 points higher than a reasonable rate for a smaller business, there are tons of reviews on the website, some of which criticize Amazon's services. Additionally, Amazon has received widespread criticism on social media and yet Amazon is still thriving.
Everyone has seen some negative reviews on Amazon. Often times, these reviews relate to products sold on the ecommerce website rather than Amazon itself, but sometimes the reviews deal with delivery issues or customer service. In addition, users on Facebook and Instagram often complain about Amazon. How does the top retailer have a 91% retention rate when there are customers who openly criticize their service? How can this provide guidance on how to deal with angry customers?
Negative ratings and critical comments on social media cannot be ignored
It may be tempting to focus on what works in a company and assume that the "haters" will only hate, but this is not how Amazon and other successful ecommerce companies go with negative reviews and social criticism. Media posts around.
Don't leave negative reviews unanswered. As the eye moves down the page deciding whether or not to choose an item, there is a tendency to speed up the positive reviews and notice the negative. It may be an unfortunate irony, but one five or four star rating at a time may not be noteworthy, but the one star rating will grab attention.
Also, advanced tools can find brand mentions on social media. Noticing negative mentions on Facebook, Twitter, and Instagram, and engaging with critical people can show that a brand cares about consumer opinion and is proactive in dealing with issues.
When people are angry, they tend to be more persuasive, especially when listing their complaints. It can be more difficult to give a one-of-a-kind compliment, but there is a strong human tendency to vent. This means that a negative review or social media post is a fire that needs to be addressed before it gets out of hand.
It is not possible or ethical to extinguish the fire completely. The negative review will likely stay there. The angry customer must not remove their critical Facebook post. However, notice how Amazon and other successful companies come in direct contact with the person, asking them to share their problem, and providing ways to resolve the problem.
A company's handling of negative reviews and social media posts can be more impressive than a popular advertising campaign. It's an opportunity to demonstrate excellent customer service in action and in public.
Using data to convert negatives to positives
In addition to contacting dissatisfied customers directly, tracking a customer's data path can also provide clues as to what went wrong. On the company website it is possible to follow the customer journey by clicking on an item, other products in a shopping cart when they made the purchase, what happened to the delivery and other details to give a complete picture.
When you deal with dissatisfied customers with information about their trip, you will be impressed by the fact that you pay attention to their entire story and take care of their complaint. This will likely turn an angry customer into a loyal customer.
Using data to address a specific customer is useful. However, the data can also be used to make necessary changes to products, customer services, order processing or other areas that need improvement. Using sentiment analysis for customer reviews can also show what proportion of the reviews are negative or positive. Looking at the context of certain comments can also lead to improvements in product development and business strategies.
Grow out of criticism
Negative feedback is useful for businesses, although it can be difficult to manage. Sometimes complaints can be an alarm clock that indicates it's time to fix things that have been postponed. Interacting with dissatisfied customers directly in a review thread can also demonstrate attentive customer service.
Customer data provides information about where problems might arise and where corrections can be made. In addition, the sentiment analysis of social media posts and reviews gives an overall picture of how customers rate certain features and products, as well as the brand in general.