How do you measure and analyze the impact of negative feedback on your customer satisfaction and retention?

Negative feedback from customers can be hard to handle, especially if you take it personally or feel attacked. However, it can also be a valuable source of information and improvement for your business, if you know how to measure and analyze its impact on your customer satisfaction and retention. In this article, we will show you how to do that in six steps, using some practical tools and tips.

Find expert answers in this collaborative article

Selected by the community from 6 contributions. Learn more

1 Step 1: Listen and empathize

The first step to deal with negative feedback is to listen and empathize with your customer. Don't interrupt, argue, or defend yourself. Instead, acknowledge their feelings, apologize for any inconvenience, and thank them for sharing their opinion. This will help you to diffuse the situation, build rapport, and show that you care.

Add your perspective

John Lysack

Financial Advisor
Report contribution
One thing I found helpful is to remember you are the expert in your field. You have to listen to the message, not the words. As a financial professional we find clients need further education since they are not experts. For example, if a client says the investment fees are too high. Client often means what am I paying for, what is your value, remind me what you have done for me.

Like

2 Step 2: Clarify and confirm

The next step is to clarify and confirm what the customer is unhappy about, and what they expect from you. Ask open-ended questions, paraphrase their statements, and repeat back what you understood. This will help you to avoid misunderstandings, identify the root cause of the problem, and agree on a solution.

Add your perspective

John Lysack

Financial Advisor
Report contribution
This goes back to my original point, listening to the message not the words. This gives you a chance to rephrase the complaint to get to the heart of the problem. Shows you truly understand and are listening. You can also show you do understand your clients needs.

Like

3 Step 3: Resolve and follow up

The third step is to resolve the issue and follow up with your customer. Depending on the nature and severity of the problem, you may need to offer a refund, a replacement, a discount, or a free service. Whatever you do, make sure you do it quickly, professionally, and politely. Then, follow up with your customer to make sure they are satisfied, and ask for their feedback on how you handled the situation.

Add your perspective

John Lysack

Financial Advisor
Report contribution
Mixed feelings about this section... I remind the client, no one is perfect and mistakes will happen. What makes us different is how we handle and acknowledge complaints. Show you are committed to resolving the issue. Everyone's first response is to offer money back. My first reaction is to elevate the level of service and take noticeable action to show the client they are valued. Giving money back is a large corporation move, provides the least amount of emotional connection. You have an opportunity to show your commitment to the clients satisfaction. Follow-up and request for confirmation the client is satisfied is important. This is the businesses commitment. If you have to follow-up multiple times, that shows your commitment.

Like

4 Step 4: Record and categorize

The fourth step is to record and categorize the negative feedback you received, using a tool like a CRM system, a spreadsheet, or a feedback form. This will help you to keep track of the frequency, type, and source of the complaints, and to identify any patterns or trends. You can also use tags, labels, or ratings to classify the feedback according to its importance, urgency, or impact.

Add your perspective

John Lysack

Financial Advisor
(edited)
Report contribution
Love this. This is a great opportunity to fill in missing gaps. Data is very important. Too many complaints in the same area identifies a gap for improvement. Take to your leaders and offer a potential solution.

Like

5 Step 5: Analyze and report

The fifth step is to analyze and report the data you collected, using metrics like customer satisfaction score (CSAT), net promoter score (NPS), or customer effort score (CES). These metrics will help you to measure how happy your customers are with your products, services, or support, and how likely they are to recommend you to others. You can also use tools like charts, graphs, or dashboards to visualize and communicate your findings to your team, managers, or stakeholders.

Add your perspective

6 Step 6: Improve and innovate

The final step is to use the insights you gained from the negative feedback to improve and innovate your business processes, products, or services. You can do this by implementing changes, testing new ideas, or launching new features. You can also use the feedback to train your staff, reward your best performers, or recognize your loyal customers. The goal is to turn the negative feedback into a positive opportunity for growth and learning.

Add your perspective

Canyon Manske ☁

Sales Director at Medallia
Report contribution
You have the insights...What happens next? DO SOMETHING WITH IT. A story I once heard was a contact center rep who described themselves as shy and "socially awkward." As they began to get positive feedback from guests and customers, their confidence and self-worth boosted. Not only at work, but outside of work. This made the agent more confident in their ability to not only help customers, but it encouraged them to continue to go above and beyond. Recognize the experience goes both ways.

Like

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

John Lysack

Financial Advisor
Report contribution
If you get too many complaints from the same client. May not be the right match, that is ok. Help them with the transition out. People remember how you make them feel, not what you said. Helping them with a smooth transition may lead to a positive reaction and potential referrals.

Like

How do you measure and analyze the impact of negative feedback on your customer satisfaction and retention?

1

2

3

4

5

6

7

1 Step 1: Listen and empathize

2 Step 2: Clarify and confirm

3 Step 3: Resolve and follow up

4 Step 4: Record and categorize

5 Step 5: Analyze and report

6 Step 6: Improve and innovate

7 Here’s what else to consider

Customer Service

Rate this article

Thanks for your feedback

More articles on Customer Service

More relevant reading

How do you measure and analyze the impact of negative feedback on your customer satisfaction and retention?

1

2

3

4

5

6

7

1 Step 1: Listen and empathize

2 Step 2: Clarify and confirm

3 Step 3: Resolve and follow up

4 Step 4: Record and categorize

5 Step 5: Analyze and report

6 Step 6: Improve and innovate

7 Here’s what else to consider

Customer Service

Rate this article

Thanks for your feedback

Explore Other Skills