In South Africa, the website hellopeter.com can be a business’ worse nightmare.
But all social media poses a risk to business all over the world. In the US up to $537 billion in annual costs are lost to businesses due to unhappy customers according to an article on cfo.com
It says US customers are two-thirds of the way to making their purchasing decisions before ever engaging directly with a brand or its sales representatives due to the power of social networks.
With mobile technologies customers’ experiences are spreading farther and faster — especially when they’re negative.
McDonald’s, for example, experienced one of its worst-performing years in 2014. Why? Because a wave of customers have abandoned fast food for more wholesome “fast casual” food. Pairing that trend with a series of food safety scandals in Asia was a recipe for a steep performance drop.
It was no shock that come January 2015, McDonald’s announced a new CEO and CFO. Soon after, company began to make real, public changes to its supply chain to meet customers’ demands for more-natural, less-processed foods. The move was a 180 from the company’s legacy tactics of investing heavily in marketing campaigns to combat public opinion.
CFOs can quantify many aspects of business operations, from employee turnover to a data breach, but how can they put a value on someone’s emotions and reactions? Understanding the nuances of the kinds of costs that go hand in hand with an angry customer is the first step.
Here are some tips for better handling of angry customers:
Invest in diligence to gain context.
Engagement from authority is key.
Seriously process customer feedback.
Invest in driving change.
Read the story here.