No business is perfect, and mistakes happen. However, how a company responds to a negative review or an upset customer can often make or break its reputation. In today’s episode of The Small Business Show, Michael Podolsky, CEO and co-founder of PissedConsumer.com and WiserBrand.com, discusses how small businesses can turn complaints into opportunities for growth and customer loyalty.
Podolsky introduces himself as the “original pissed consumer,” having launched the company 18 years ago after a frustrating experience left him, frankly, pissed. He saw an opportunity to highlight poor business practices and create a platform where consumers could share their experiences freely.
PissedConsumer helps customers better understand what to expect when dealing with a business. It also offers companies the opportunity to obtain genuine feedback and utilize it as a tool for improvement.
Why customers post negative reviews publicly
According to a survey conducted by PissedConsumer, 72% of respondents stated that they posted a negative review to prevent others from facing the same issue.
According to Podolsky, there are two main reasons for this mindset. First, consumers want to warn others about the business. Second – and perhaps more generously – they want the company to do better. These reviewers hope their feedback will encourage the business to recognize and rectify its mistakes for the benefit of future customers.
Podolsky stresses that the platform isn’t about damaging reputations. Instead, it serves as a guidepost for brands, providing insights into what not to do and what frustrates customers the most.
In fact, most customers don’t immediately write a negative review. They usually attempt to resolve the issue with the company first. Only if that fails do they turn to a public review.
Common mistakes businesses make with complaints
Handling complaints is essential for maintaining a positive reputation.
According to Podolsky, the most common mistake businesses make is ignoring complaints altogether. But what’s even worse is responding poorly. A mishandled complaint can severely damage a company’s credibility and long-term reputation.
When responding to negative feedback or a complaints, responses should:
- Be personal: Responses should be genuine, apologetic, and show a willingness to collaborate with the customer toward a resolution. More than half of the customers surveyed by PissedConsumer revealed that a simple apology is the most effective way to resolve a conflict.
- Be timely: Complaints should be responded to within a timely manner. The quicker the response, the more likely the issue can be de-escalated.
- Match the method: If a complaint is made publicly, respond publicly. If it comes through a private channel, respond privately.
Once the issue is resolved, especially if the customer is satisfied, Podolsky recommends asking them, or the platform hosting the review, to update or remove the original post.
He also recommends businesses respond to positive reviews with gratitude, reinforcing goodwill and customer loyalty.
"I am the original pissed consumer. I am the guy that got pissed once. Today, 200,000 companies are pissed at me for starting this business." – Michael Podolsky
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