This week’s topic covers part five of Shep Hyken’s ACA 2021 report, which is all about how customers rate and review their experiences at different businesses. We all know that word-of-mouth is critical to maintaining a good reputation and driving referrals, but what do the numbers actually say?
The first piece of information in Hyken’s report that might surprise you is that he found a nearly equal likelihood that a customer will tell his or her friends and family about a good experience as much as a bad (70%). This is surprising because the conventional wisdom was that there was a huge disparity between the two extremes, with negative experiences considerably more likely to get mentioned than positive ones. Andrew Thomas, writing for Inc.com, explains that, “Dissatisfied customers typically tell nine to 15 other people about their experience,” whereas, “only one in 10 happy customers leaves a good review.”
While Hyken is specifically talking about interpersonal word-of-mouth with that 70% average, as opposed to web reviews, his findings on web reviews actually show similar parity, with even a slight advantage going towards positive ones. For example, in the last year, customers reported leaving an average of 4.3 ratings for good experiences, 3.1 ratings for average experiences, and 3.0 ratings for bad experiences. (There are noteworthy differences by age group, as we’ve observed in previous blogs about the ACA 2021: in short, the rule of thumb is that younger people are more likely to rate and review experiences than older ones, but the numbers aren’t that far apart, i.e. the difference of an extra rating/review or two per year.)
So, what are we to take from all this? Is the conventional wisdom about dissatisfied customers telling more people about their bad experiences even still true? That positive and negative review likelihood is now the same? —Does it even matter?
Regardless, when it comes to your business’s reputation, your main goal should be to engender as many positive reviews, ratings, and referrals as possible. Hyken found that “Americans look at between 2.8 and 4.2 customer service ratings and reviews before buying products and services,” on average, with, 67% of them believing that “ratings and reviews are going to be more important to them in the future.” Reviews, whether good or bad, are definitely influencing customer behavior. If nothing else, you want that to be a positive influence. Consider how much sabotage a negative review can do. For example, you might be delighted to see a restaurant has numerous reviews extolling its food quality, but then you might be wary of eating there if there are complaints about rude service.
As we’ve always said about online ratings and reviews, if you’re waiting to get feedback from those, then you’re already late to the game. Once those negative experiences are online, the hit to your business’s reputation is done and you now have to dig out of that. No sane manufacturer should bring a product to market without testing it first because why would anyone want to risk their reputation by waiting for public feedback on potentially fatal flaws?
So, shouldn’t we follow a similar logic for the customer experience? After all, isn’t that also an important product for your business, and shouldn’t you want to test it before waiting for the reviews to roll in? Shouldn’t you want to catch the fatal flaws before they show up on review sites? Wouldn’t you want to know what’s working and what isn’t?
Just like a manufacturing line, your CX needs constant tweaking and maintenance. Problems can develop at any time, even when you believe you have a well-oiled machine and a well-trained staff. That’s where mystery shopping comes in: it’s like a testing-regimen to keep everything and everybody performing well, helping to ensure that by the time the reviews start rolling in, they’re helpful and not harmful. —Even if there have been negatives reviews in the past, at least you can now have the opportunity to change course and start repairing your business’s reputation. Digging out is always a challenge, but at least mystery shopping will give you the right tools for it.
So, what are you waiting for? A great CX will add up to more positive ratings and reviews, as well as consistent referrals. You’ll have happier employees, more satisfied customers, and better profit overall. Find out what you’re missing by reaching out to us today!
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