Turn That Frown Upside Down

Posted on 28 April 2011 | by Christina Quist

Responding to online criticism gives retailers a chance to right a wrong.

According to today’s USA Today, “Sony's PlayStation Network has been hacked, putting at risk the personal information of about 77 million user accounts. The company is coming under fire for failing to let users know immediately about the data breach, which was revealed today. The intrusion brought the network down April 17, and it remains down, but the company is only now revealing the seriousness of the breach.”

That’s a big OOPS. Once news of this magnitude hits the social media fan, it’s everywhere. Do retailers have a fighting chance of redeeming themselves with an online audience?

According to The Retail Consumer Report, commissioned by RightNow and conducted online by Harris Interactive in January 2011, “if the business owner or retailer responds to negativity or criticism, the consumer can be won back.” So in fact the retailer does have a chance to “turn that frown upside down.” A simple “I’m sorry, we confused Toledo, Ohio with Toledo, Spain and you’re Valentine’s Day gift is somewhere over the Atlantic” will go a long way with customers.

According to the study, “by listening and proactively responding on the social web, says the report, retailers have a chance to turn disgruntled customers into social advocates. The survey found that, of those who received a reply in response to their negative review:

33% turned around and posted a positive review.
34% deleted their original negative review. “

The thing is, consumers have low expectations that retailers care or will respond to online criticism on a public forum.

61% of consumers would be shocked if a retailer responded to their negative comment on the social web.

Responding to or acknowledging a customers complaint will help build a relationship and ultimately a brand loyalty. Since most customers don’t expect it, being the retailer who does show a human side will only be to your advantage.

Whether you mistake hair coloring for egg coloring or reveal the personal identity of 77 million users, one thing is certain: your business is everybody’s business. How you handle it could possibly grow yours.