Shep Hyken's Blog, page 179

5 Top Customer Service Articles For the Week of November 14, 2016

Each week I read a number of customer service articles from various online resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.

ROI’s on the Prize: Twitter Links Social Customer Care and Willingness to Pay by Lia Winograd

(Conversocial) Let’s review Twitter’s five core findings and why they’re important.

My Comment: This is an important stat. When a customer tweets to a company and receives a response, the customer is willing to spend 3-20% more. That stat probably applies to other social channels as well. Check out this article that expand on this information and more.

Where Customer Service is Failing: Top Priorities For Your Contact Center [Research] by Sharpen

(Sharpen) Customer service research: people are less patient; need their omni channel inquiries solved quickly.

My Comment: Here is some interesting info on customer support. The bottom line is that customers don’t like to wait, they want quicker response, and while the phone is still the most popular way to get support, customers are going to go online before they turn to the phones. Be sure to read through the entire article as there are some good suggestions to focus on in 2017.

8 Realistic Customer Service Trends for 2017 by Sven Ri

(Userlike) Predictions of customer service trends are best based on trends in consumer behavior: What platforms and technology are they adopting? Where customers go, service follows.

My Comment: It’s hard to believe that we are just six weeks away from 2017. Here are some trends to consider as we turn the corner on the year. I especially like number four, which discusses the end of Omni-Channel. Matt Dixon, co-author of The Effortless Experience suggests that companies came up with the concept of channel choice. Customers don’t want channel choice. They want channel guidance.

Consistent CX is the road to Customer Success by Sofia Sapojnikova

(HappyOrNot) All employees, including C-Level executives and management in any company, agree on the simple notion that having customers is vital to business survival. That same agreement, however, is often lacking when it comes to company’s vision of customer experience. Each department within an organization develops a set of customer strategies that is independent and solely based on the objectives set forth in that department.

My Comment: One of the best ways to create customer confidence is by creating a consistent customer experience. A predictable and consistent experience that is above average can garner customer trust and potentially win a customer’s repeat business.

Customer Experience Moments of Wow by Elizabeth Glagowski

(1to1 Media) What makes experiences stand out as wow moments for consumers and employees?

My Comment: I’m a big fan of a great customer experience. Who isn’t? Many “wow” experiences come as a result of resolving a problem or complaint or a special need, and this article does an excellent job of covering this, which makes it worth the time to read. That said, my belief is that a typical, every day interaction is not always an opportunity to “wow.” So, what to do? Just try and be a little above average – all of the time. That’s what the best companies do. And, that’s why customers say, “Wow! I love doing business with them.

Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken

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Guest Blog: Create Amazing Impacts with 15 Minutes and 15 Dollars or Less

This week on our Friends on Friday guest blog post my colleague, Andy Masters, shares a story that demonstrates the importance of doing a little something extra for someone with very little effort and time. I love this story and I think you will too! – Shep Hyken    

There is a principle I want to share from my keynote program: “Kiss Your Customer: Why Sales & Service Are Just Like Dating & Relationships.” It’s a concept called “15 MINUTES OR LESS/15 DOLLARS OR LESS.” This principle illustrates that each of us can make an amazing impact on someone’s life today, using just 15 minutes or less of our time, and 15 dollars or less of our money.

I once presented at an event hosted by one of the University of Michigan campuses, and enjoyed dinner with my client after the program. During casual conversation while deciding what to order, Marilyn mentioned she “goes hog-wild” for A&W Root Beer. Good thing she didn’t say Dom Perignon, since dinner was on me.

I made a mental note of her affinity for A&W Root Beer, and pondered a few alternatives on my flight back. When I arrived home, I jumped online for less than 15 minutes and ordered a case of A&W Root Beer for less than $15.00, which was delivered to Marilyn’s home address within three days. Pretty cool. The moral of the story?

I was re-booked there the following year, right?

Ehhhhh…..no.

I was referred to a colleague who booked me the following year, right?

Ehhhhh…..no.

In fact, over three years went by, and I didn’t hear anything from Marilyn.

Sad.  But I was used to that from women.

Until one day, I received a phone call.

Marilyn: “Andy…Hi—It’s Marilyn from up in Michigan, do you remember me?”

Andy: “Sure I remember you, Marilyn. How are you doing?”

Marilyn: “I’m great!  Hey, I wanted to tell you that I’m so sorry I hadn’t kept in touch. You’re not going to believe this, but, the very next day after your program…well, I quit my job! I’m doing something completely different now. But, guess what….?”

Andy: “What?”

Marilyn: “I just became chair of the planning committee for our upcoming conference, and we’d love for you to be our keynote speaker. Are you available on August 23rd?”

Andy: “Yes…that sounds great. Would love to do it!”

After that program I presented on August 23rd, Marilyn and I again enjoyed dinner together. I asked her a question.

Andy: “So, Marilyn, I have to ask…After three years, what made you decide to track me down to present this program for you?”

Marilyn: “Sure, Andy. I’ve been waiting three years to tell you this. You know, I love your program. You’re really a great speaker. But, there are plenty of other great speakers out there who also present great programs, as well. Do you remember that case of A&W Root Beer you shipped to my home?”

Andy: “Sure…absolutely.”

Marilyn: “Andy, do you know I still have ONE CAN of that A&W Root Beer in my refrigerator, that I show my friends and family when they come over? That was the greatest gesture anyone has ever done for me when it wasn’t my birthday, or I wasn’t dating them at the time.”

Wow! As great as we think we are at what we do, there is another person, or another company, who can probably perform the same function or service just as well as we can, for about the same price. So, what makes the difference?

The little things.  The little things which take 15 minutes or less, and 15 dollars or less. What an amazing investment of so little time, and so little money. I am on a personal crusade against the excuse of: “We just don’t have the time or money around here for those sorts of things right now.”

Wrong. We should always have 15 minutes or less, and 15 dollars or less, to spend on the most important people in our life and career. Fifteen minutes per day is just 1/100th of our time.

So, what amazing impact can you make today with your special client, significant other, employee, or new contact, using just 15 minutes or less and 15 dollars or less?

Andy Masters, MA, CSP is author of the award-winning book “Kiss Your Customer: 77 Reasons Why Sales & Service Are Just Like Dating & Relationships,” and presents entertaining programs on leadership, sales/service and personal development topics. Visit Andy-Masters.com or email Andy@Andy-Masters.com for books and schedule availability.

For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com.

Read Shep’s latest Forbes Article: How AI (Artificial Intelligence) Creates A Better Customer Experience

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Ten Crimes Against the Customer

Are you guilty of disrespecting your customers? That’s a rhetorical question, and I’m sure the answer is no. At least I hope the answer is no. Our friends at Provide Support sent over an awesome infographic about different reasons customers don’t like the companies they do business with. I don’t think you’ll disagree with any of the reasons, and you’ll probably hope that your company is not guilty of what I call Crimes Against the Customer. With that said, here are ten of the more flagrant wrongdoings companies are guilty of, along with some of my commentary:

1.    Not Appreciating Loyalty – I’m amazed at the number of companies that take customers for granted. At least say thank you. I recently made a purchase at a store and the cashier didn’t even bother to say, “thank you.”

2.    Not Valuing Their Time – My dad taught me one of the most disrespectful things you can do to anyone (especially a customer) is to be late. If you say you’ll be somewhere or will call someone back at a certain time, do it. It is basically saying your time is more important than theirs, which is very disrespectful.

3.    Not Providing Clear Contact Information – I hate going on a website and having to hunt for an address or phone number. Make it easy to connect with you and your company.

4.    Not Being Easily Accessible – How long does it take to reach a live person on the phone. Or, to put another way, how easy are you to connect with? Doing business should be easy. Take the friction out of connecting with your support and sales people.

5.    Putting Them on Hold for Too Long – This is another way to disrespect your customer’s time. With the technology available today, you can inform the customer of how long the wait will be and give him or her the choice of being called back within that time or a time that is more convenient to the customer. There’s no longer an excuse to keep customers on hold for unreasonable periods of time.

6.    Failing to Resolve Their Issues Quickly – When there is a problem or a complaint, don’t let it linger. Take care of it as fast as possible. Acting with urgency builds confidence and makes the customer feel as if you care about taking care of their problem.

7.    Not Giving Them Opportunity to Solve Issues on Their Own – Self-service options for customer service are becoming the norm. Many people would rather get answers on their own, so give them the opportunity to do so. Provide options like a frequently asked questions section on your website.

8.    Ignoring them on Social Media – The customer’s voice can now be heard by many. Be sure to respond – and do it quickly – to all customers’ comments, good and bad. If there is a problem or question, realize the customer expects an answer quickly, not hours or even days from when they posted or messaged you on social media.

9.    Lack of Employee Knowledge – If you want to destroy credibility, put untrained people on the front line. Knowledge creates confidence. If an employee doesn’t have the answer, that’s okay. Just make sure they know who to go to or where to go to get the answer.

10.    Being Rude or Unfriendly – With all of the options that customers have to buy similar good and services from competitors, how can anyone act rude or unfriendly toward the customer? Enough said on that one!

So, if you like these, then be sure to check out the original infographic. There’s actually fifteen Crimes Against the Customer with interesting stats and facts to support each one. Great information that may help you stay away from being found guilty by your customers.

Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information contact or www.hyken.com. For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com. Follow on Twitter: @Hyken

(Copyright © MMXVI, Shep Hyken)

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Amazing Business Radio: Roy Atkinson

Roy Atkinson on Amazing Technology and

Advances in the World of Customer Service

Shep Hyken speaks with HDI’s senior writer/analyst, thought leader, customer support guru, and co-host of the popular #CustServ Tweet Chat, Roy Atkinson. They discuss how technology is advancing customer service and support.

From self-service options to social media, from chatbots to AI, technology is changing how businesses and their customers interact. Roy shares how the best companies know to not only empower their people to overcome obstacles, but also support their customers using technology and confidence. They also touch upon how communicating and interacting with internal customers has changed. For example, they discuss how IT departments are focused more on customer service than ever before.  This episode of Amazing Business Radio will shed some light into the advancing world of customer service!

“No matter who you are inside of an organization, you need to be paying attention to the customer service mentality.” – Roy Atkinson

 

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What questions will this episode answer?

How is technology reshaping customer service and support?
How has social media changed customer service?
What trends are happening in customers contacting service and support channels?

 

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5 Top Customer Service Articles For the Week of November 7, 2016

Each week I read a number of customer service articles from various online resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.

What’s stopping your customers from being loyal? by Graham Jones

(Graham Jones) Most business leaders appreciate that 80% of their profits come from 20% of their customers. These leaders understand that by ensuring that 20% continues to buy from their company, their profitability is assured. Keeping loyal customers is the “holy grail” of business.

My Comment: This is a very interesting way of looking at customer loyalty. It appears the biggest issue preventing loyalty is consistency – actually a lack of consistency. A lack of consistency will create a lack of confidence, which leads to a lack of trust, which erodes the possibility for loyalty. The author has some excellent examples of why customers are loyal to one brand over another.

The Customer  Advocacy Playbook: How to Create, Manage, and Grow an  Effective Brand Advocacy Campaign by Sujan Patel

(WebProfits) Who, or what, is responsible for bringing new business through your door?

My Comment: This is much more than an article. It’s actually a short “play book.” The author has shared a wealth of information on how to create customer advocacy. One of the most powerful forms of marketing is when others (as in your customers) do the marketing for you. When your customers become your advocates – or as I like to call them, evangelists – they sing your praises to others. And, who wouldn’t want that!

Three Types of Angry Customers and How to Handle Them by Sharpen

(Sharpen) We’ve all dealt with an angry customer…You know – the one who is ready to fight before you even say hello. They interrupt you, scream, make unreasonable requests, and either demand to speak to a supervisor or hang up. It’s an unavoidable situation as a customer service agent, and it’s no doubt the hardest part of your job. The bad news is that there will always be angry customers, the good news is there are some effective strategies you can use to calm them down.

My Comment: Our friends from Sharpen came out with another great article, this one on handling three types of angry customers. Good tips and tactics to turn an angry customer’s rant into a rave. My philosophy has always been that we’re never trying to win an argument. We’re trying to win the customer!

25 Ways to Keep Customers for Life by Arnold Sanow

(LinkedIn) The strategies for keeping customers for life can be honed down to some basic steps that any business owner can use. To get customers, keep them and to get enthusiastic referrals follow these 25 proven techniques.

My Comment: Many of you know I love a good list. This one, from Arnold Sanow, is a list of 25 simple, common sense (unfortunately not always very common) ideas that will help you create customer loyalty.

Your Secret Weapon to Winning Your Customers’ Loyalty by Sonia Thompson

(Big Brand System) As the owner of your business, you’ve got to have enough empathy for your customers to design an experience for them that will make you their favorite as well. Instead of someone who frustrates them.

My Comment: Sometimes it’s not the big things that create loyalty. It can be the little, seemingly insignificant things, that make the difference. While I enjoyed the entire article, the first part is what made me want to share this in this weekly roundup. It opens with the story about why the author’s favorite airport is Philadelphia International.

BONUS

30 Resources Every Customer Success Manager Should Read by Danni Friedland

(jaco Blog) This golden list will motivate you and help you grow your business, engage with your customers and get accurate insights from your Customer Success efforts.

My Comment: Customer Success is a hot topic. This article lists 30 resources/articles that are important for anyone involved in customer success.

Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken

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Guest Blog: Deliver Them Amazing and They Will Love You Back: Millennial World

This week on our Friends on Friday guest blog post my colleague, Shaista Haque, writes about the millennial generation’s use of technology and how it is affecting their customer experience. The millennial consumer must be understood in order to deliver an Amazing customer service experience. – Shep Hyken    

Don’t you think your innovative business idea is on the verge of losing its charm?

Do you have any better plans for sustaining the competitive environment?

How will you justify your ROI in the next few years?

Let me give you a hint.

Your son or daughter in college is updated in all the sense, from using a new technology to saying goodbye to the frayed piece of innovation.

“Being innovative as you were born each day” is the new anthem of the young generation or the Millennials, what you call them as. This breed is interested in learning more and their comfort level with technology is very high. Millennials are the first generation who have fully grown up technology literate, practically from birth. Their expectation from any particular service remains high; be it a home

delivery service at their door-step, an online shopping experience, or assistance during purchase in a physical store. They are tech savvy, expect more, are not afraid of complaining and have no regrets on switching brands. With this sort of environment where one mistake by a brand results in a customer defecting to the competition, it becomes very difficult to reduce the attrition rate. However, organizations can still lead the pack by being less innovative i.e., they will have to maintain their brand supremacy by providing impeccable service that delivers a ‘WOW’ experience.

Differentiating yourself from the crowd is not an easy task, especially when the competition is high. Millennials today are the forefront of organizations and drive the demand proliferation of any product or service. Moreover, digitalization has set high standards of delivering exceptional customer service. Therefore, it becomes necessary for organizations to define their USP and at the same time build strategies to

nurture bonds with customers. For this, organizations need to be omnipresent to serve customer expectations on their preferred mode of communication.

Brands can align their overall company goals by keeping millennials at the core of their business strategy and eliminating loopholes in delivering exemplary experience.

Here are few ways through which organizations can ensure that their service is up to speed and that they are on the road to earning future brand advocates:

Mobile Service: The tech-savvy millennials are always connected to the digital world. The usage of smartphones is very high among them. With the availability of smart features like click to call service on apps, millennials prefer to receive instant response to their queries. With a heavy focus on mobile commerce, it becomes of paramount significance for organizations to provide support on mobile.Through mobile customer service, organizations have the power to engage with customers anytime and anywhere based on the customer’s availability.

Real-time Assistance: Providing customer service through live assistance is one of the best ways to glorify your customer experience

strategy. Providing service through live-assistance and live chat can help in improving the first contact resolution on a large scale. Through real-time service, customer support agents can resolve customer queries on the go when the customer browses the company’s website. Studies by Forrester Research have shown that “Many online customers want help from a live person while they are shopping online; in

fact, 44% of online consumers say that having questions answered by a live person while in the middle of an online purchase is one of the most important features a Web site can offer.” Thus, driving customer experience with real-time service can help you in winning more customers with greater speed than your competition.

Social Evolution: Providing customer service on social media is not a new concept, in fact being omnipresent on all the channels of interaction is the need of hour. With the help of social media, customers have the power to voice their opinion.Research shows that “88% of people trust online reviews written by other consumers as much as they trust recommendations from personal contacts.”  With the help of social interaction management organizations can monitor, publish and provide social support on social networks. Organizations

can harness the power of social media and can keep a track on the market trends and ongoing customer discussions.

Predictive Analytics: Millennials have changed the way traditional customers used to buy, behave or react to different perspectives. Organizations have understood the importance of effective and mind capturing strategies for Millennials. These organizations cater to

omnichannel needs of the millennials and apprehends their buying behavior to create better and more meaningful transactions. Based on the above speculations, they are able to create customer profiles which includes their demographic as well as psychographic insights. These details help the organizations to create targeted campaigns for the qualified millennials and at the same time help in optimizing the media efforts for the promotion of the products or services. Such analytics can provide great turnaround to any organization and help them to stand out of the ordinary.

Millennials are doing it the way they like it, but are you doing the way they love it?

Let me know if you are facing any difficulties for your millennial customers, I will be happy to assist.

Shaista Haque is a marketing enthusiast at   Ameyo . She is extremely passionate about B2B marketing strategies for products that harness the web and social media as customer channels. Armed with this information, she writes about latest industry technologies and how it benefits organizations from small scale to global enterprises. Connect with Shaista on   Twitter   and   LinkedIn .

For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com.

Read Shep’s latest Forbes Article: Five Ways Vonage Says To Digitize Your Customer Service

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Five Ways to Create Customer Loyalty

It’s been a while since I approached the topic of customer loyalty. All of the tips, ideas, tactics, and techniques I write about are about driving a better customer service experience, which can (and hopefully will) lead to customer loyalty. The concept of repeat business, and ultimately customer loyalty is huge. A small increase in loyalty, just as little as one or two percent, can have a dramatic positive impact to your top and bottom line numbers. So, with that in mind, here are five ideas, a few of them revisited from the past, as well as some new ones, that will help you create that coveted loyal customer.

Don’t Confuse a Loyalty Program with a Marketing Program: The first thing that pops into my head when I’m asked about loyalty program is the mistake that many companies make when designing a loyalty program. Some companies think they have a loyalty program, but it is actually a marketing program, and there’s a big difference. If when you take away the perks and the rewards, you may lose the customer, then what you really have is a marketing program. The best companies have loyal customers because of the overall experience, not the perks and rewards.


Create an Emotional Connection: There is a big difference between satisfied customers and loyal customers. Satisfactory is a rating. Loyalty is an emotion. Find out a way to connect with your customers. Make them feel special. Thank them for their business. Treat them like they want to be treated.


Personalization and Customization: The concept of the personalized experience is a hot topic these days. With all of the data we are able to gather on individual customers, there is no reason we can’t give a customer a personalized and tailored experience.


Create Confidence: The old saying goes that people want to do business with people they know, like, and trust. The knowing and liking is easy. The trust is the hard part. Earn the customer’s trust by creating a consistent and predictable above average experience – all of the time. Customers want to know what to expect. No surprises. Consistency is key. When they trust you, they will continue to do business with you.


Break Down Customer Loyalty into Bite Size Chunks: Most people think customer loyalty is about a lifetime. Well, it’s not. The goal is about a lifetime, and a lifetime is a long time. How do we get a customer to be loyal to us for a lifetime? That’s huge. Let’s make it easier. Rather than a lifetime, focus on the next time. Every time. So, ask yourself what I call the Customer Loyalty Question: What are you doing right now to make sure the customer will come back the next time he or she needs what I sell? Think next time, every time, and it just may turn into a lifetime.

To wrap this up, the value of customer loyalty is obvious. Loyal customers not only do more business with the companies they are loyal to, they will also spend more each time they do business. And, when they are loyal, they talk. Word-of-mouth marketing is the best marketing there is. Combine the value of the lifetime customer with the value of their recommendations and the payoff to your customer service and experience efforts are huge.

Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information contact or www.hyken.com. For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com. Follow on Twitter: @Hyken

(Copyright © MMXVI, Shep Hyken)

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Amazing Business Radio: Merrick Rosenberg

Merrick Rosenberg on How To Understand and Adapt to Your Customer’s Communication Style

Shep Hyken speaks with Merrick Rosenberg, CEO of Take Flight Learning and author of The Chameleon: Life Changing Wisdom for Anyone Who Has a Personality or Knows Someone Who Does. They discuss how understanding your customers better will lead to a better customer experience.

Merrick shares his versions of the DISC behavioral style types, using birds (yes birds) to reference each style. He explains the different behavioral styles and traits associated with each style, making it easy to recognize and properly adapt to each style for better communication. This episode of Amazing Business Radio will help you delight your customers and build better relationships!

“Customers come in different flavors, they have different needs.” – Merrick Rosenberg

 

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What questions will this episode answer?

How can I better communicate with customers in order to build better relationships?
How do I gain customer loyalty?
How do I provide better customer service?

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5 Top Customer Service Articles For the Week of October 31, 2016

Each week I read a number of customer service articles from various online resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.

13 Haunting Customer Service Statistics by Tricia Morris

(Microsoft) Here are 13 haunting (and daunting) customer service statistics that are keeping brands, and especially CSRs, up at night.

My Comment: With today being Halloween I can’t think of a better article to kick off this week’s list of the best customer service and experience articles of the week. Tricia Morris of Microsoft shares 13 “haunting and daunting” stats and facts that many not make you scream, but could give you cause for concern.

23 Interview Questions You Should Ask Every Customer Service Candidate by Mathew Patterson

(Help Scout) How can you tell if that smart and eager customer service candidate will be an engaged and productive team member?

My Comment: Leadership defining the customer service vision may be the most important start to creating a customer-focused culture. Second to that is hiring the right people to execute. This is a great article with 23 excellent questions to ask your next customer service candidate – or any candidate you want to bring into a truly customer-focused organization.

From Baseball to Business: How ‘Maddonisms’ Drive Success by Dan Gingiss

(PureMatter) Here are 5 favorite “Maddonisms”, along with how they apply to baseball and drive business success.

My Comment: Major League Baseball’s Chicago Cubs and Cleveland Indians are duking it out in the World Series. Dan Gingiss, from Chicago and a HUGE Cubs fan, is one of my favorite guys in the customer service world. What happens when you merge baseball and Gingiss? You get a fun article that will motivate you to be more successful in business. (As I write this, neither team has clinched the title. I’m from St. Louis, so it would be blasphemous for me to root for the Cubs, but I want to see my buddy Dan Gingiss smile!)

The 13 Words You Never Use When Replying to a Customer by Jay Baer

(IBM) Here then are the 13 Words You Should Never Use When Replying to a Customer, grouped into three categories of potential trouble.

My Comment: I’ve written about phrases that kill the customer service experience. I call them customer loyalty killers. Well in this excellent article, Jay Baer shares 13 words that will kill the customer experience.

A Waldorf-Astoria bellman with 50 years experience shares the key to great customer service by Kathleen Elkins

(CNBC) Jillali “Jim” Elidrissi started working for New York City’s Waldorf-Astoria hotel as a bellman shortly after arriving from Morocco in 1966.

My Comment: What can we learn about customer service from a bellman? Jillali “Jim” Eldrissi has been a bellman for 50 years. Read this short article to find out his number one secret to delivering amazing customer service and making his customers feel special.

Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact or www.hyken.com . For information on The Customer Focus™ customer service training programs go to www.thecustomerfocus.com . Follow on Twitter: @Hyken

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Guest Blog: How Much Does A Negative Review Hurt A Business?

This week on our Friends on Friday guest blog post my colleague, Michael Becker, talks about how negative reviews and poor customer service can impact your business. I believe a negative review, like any complaint, is an opportunity to show how good you are. – Shep Hyken

Ever wondered what the impact of a negative review is?

You’re almost ready to buy. But if you’re like 60-90% of people, you flip open your laptop and quickly search for “[company or product] reviews.” You see a few bad reviews, and suddenly are second guessing a purchase.

The world of company and product reviews sometimes seems like a lawless, unpoliced land of only the bad and the ugly. Bashing, trash talking, and criticisms are the rule, not the exception. People are eager to vent about negative experiences with others – they’re just waiting for that opportunity to do so. And many users hide behind the mask of online anonymity.

Negative customer service is often the root of a negative review. And a flurry of bad reviews can have detrimental effects on reputation and revenue.

The reality is that the majority of people look for reviews prior to purchase. Unfortunately, it only takes one minor slip up or bad service experience for customers to run rampant. And the vast majority (95%) of consumers share bad experiences with others.

Of course, most reasonable people understand that no company or product is without flaws. You shouldn’t get caught up in one or two bad reviews. The key is to look for trends. If you see multiple poor reviews on multiple different sites, then it’s time to take a look at more deep-seated issues like product functionality or service quality.

While businesses like to think they can regulate and monitor their brand reputation, customers most certainly define it – now more than ever.

Only about 1 in 20 people who have a bad customer experience will take the time to leave a review online. But that’s all it takes to do damage. When these start to add up, it can be like a ripple effect. Let’s say that over the course of a year, of the hundreds of thousands of interactions customers will have with a large consumer-facing company, 5,000 have a bad customer experience. On average, then, 250 are writing about their negative experience online!

The more negative reviews prospective customers are exposed to, the worse. Recent research by Moz found that a company risks losing:

22% of potential customers when a single negative review of your product, service or company is found
59% of potential customers when 3 negative reviews are found, and

70% of potential customers when 4 negative reviews are found

Data source: Moz

Popular consumer-driven review sites like Yelp, TripAdvisor, Glassdoor, Yahoo!, and even Facebook and Twitter all allow open forums that make it easy for people to voice their opinions about experiences with a company:

 

In this case, one customer is frustrated with a long time on hold, and would prefer to engage with a customer service rep online – like web chat, email, or an online portal. On Twitter, especially, others are happy to jump in and offer their thoughts.

This brand lost this customer because she couldn’t figure out how to get in touch with someone to help.

According to the White House Office of Consumer Affairs, a bad customer service experience reaches more than 2x as many ears as praise for a positive one. Not good news for companies that lack an omni-channel customer service tool, a highly-trained team, and efficient processes.

More consumers are talking about their bad experiences, too. 58% of consumers are more likely to tell others about their customer service experiences than they were 5 years ago (Zendesk).

But it’s also clear that people do share good experiences. 1 happy customer will tell roughly 9 other people about their positive experience. And with the rising costs of acquiring new customers, it just makes good sense to let already happy customers do that for you.

It’s clear that the key to avoiding a harmful outbreak of negative reviews is to provide amazing customer service. Serving angry customers and resolving their issues efficiently is the best – and easiest – way to prevent bad reviews in the first place. It’s also crucial to make sure that you find a partner with the tools and guidance that can help your customer service agents be more efficient, better prepared, and more serviceable.

Michael Becker is a content strategist at Sharpen, a cloud-native contact center provider. He has experience in marketing for two SaaS companies and is passionate about the overall custoemr experience. He graduated from Butler University in 2014 with a B.A. in integrated communications and journalism. Connect on Twitter.

For more articles from Shep Hyken and his guest contributors go to customerserviceblog.com.

Read Shep’s latest Forbes Article: Customer Experience by Walking Around

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