Your Customers Can Put You Out of Business

Reputation ManagementYou know that it is important to give all your clients good customer service. But did you  realize that having poor customer service can break your business? It’s true. If you treat your customers poorly, they will run and take any future business with them. Even if you have a ton of desirable products available, you will still fail if your customers hate your business.

A few online websites like eBay and Amazon both use a seller rating system to show each seller’s customer reviews – and use this metric as a way of measuring a seller’s eligibility to sell in their marketplace.

If you review certain eBay sellers, for instance, you will see that they have no rating at all; instead, you will see the phrase “Not a Registered User.” This means the person received too many negative reviews and has been kicked off of the site.  Having such a negative connotation behind your name can really hurt your chances of attracting new business. Customers are protective of their cash — especially when times are tough.

Another way that customers can hurt your business is by word of mouth. Our brains are hardwired to remember the negative experiences more than the positive ones; this dates back to caveman days where it was extremely important to remember which plants were bad so we did not eat them again. Today, the same holds true – we remember negative experiences better than positive ones so we do not repeat those negative experiences. Sites like Yelp and PowerReviews allow customers to enter in positive and negative reviews so other potential customers can read about their experiences. Anyone can be a reviewer, which makes it even more important to treat each customer like someone who can impact your business. A study from Harvard Business School found that a restaurant who’s rating on Yelp increased by one star lead to a 5 to 9% increase in annual revenue. It pays to be nice to your customers.

Taking care of your customers and making sure that they have a happy and positive experience with your business is a great way to make sure your business is around for years to come.

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