Transform a bad customer experience into a customer for life

Receiving a negative review or refund request can feel disheartening. For small business owners who put time into curating the perfect product or service and work closely with every customer to earn their loyalty, it can be challenging to know the best response; Elise Balsillie, Head of Thryv Australia, shares some tips.

Research shows that it’s over five times more expensive to find a new client than to retain an existing one.

This can add an extra layer of stress for business owners, considering the potential impact on revenue and reputation that dealing with a negative customer experience can have.

But it’s not all doom and gloom.

Any bad customer experience is an opportunity for businesses to win a customer for life. Some of the most memorable brand experiences come from interactions where a negative experience has been handled promptly with empathy and care. After all, customers are 2.4 times more likely to stay when an issue is solved quickly.

If a customer or client has made an effort to tell you about their experience, we know three things for certain:

1. They’re invested in your product or service
2. They have already spent money on your brand
3. They’re open to allowing you to rectify the issue

These factors add up to one of the most qualified leads a business can acquire.

Here are some common negative customer experience scenarios and how to turn them into positive outcomes.

Responding to a bad review

Customers are more likely to leave a review if they have had a negative experience, so it’s likely that at some point in your business journey, you’ll need to respond to a negative review.

The key is to understand that you’re not just responding to one disgruntled customer, you’re speaking to a wider audience of potential customers who are in the consideration stage of the buyer’s journey and reading your reviews.

With that in mind, it’s important to:

• Listen to what the customer is saying and consider their complaint
• Draft an authentic response that gives insight into the level of care your business offers, acknowledges the issue and takes steps to resolve the problem
• Offer a point of contact in a non-public forum and request the customer contacts you directly

Avoid responding negatively or making excuses, and focus on making it right – even if you feel the customer may be wrong.

Processing a refund

Customers will request a refund for your product or services if they are unsatisfied with what they have received.

A clear refund or returns policy is a good place to start to turn refunds into a positive experience. Refund policies should outline how many days a customer has to request a refund, the method of refund, and any non-refundable terms. This will give you a useful framework to lean on in difficult conversations.

Similar to responding to reviews, listen to the problem with empathy, ask any questions for clarity, and then respond sincerely and with a genuine outlook to help and rectify the issue. This should shift the customer’s mindset from frustration to problem-solving.

Where possible, always go above and beyond. Quickly action the refund and make the process as simple as possible for the customer.

It can also be helpful to have a ‘win-back’ strategy in place, such as offering a discount voucher or scheduling time to chat about ways you can better assist them next time if your business is a service.

Be memorable for the right reasons

 Managing brand perception and reputation can come with challenges. No matter how negative the customer experience at hand was, there is always an opportunity to make it right on the other side.

Approach every follow-up with an understanding and solutions-focused mindset, and you’ll have a great chance of winning over any tough customers.

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