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How The Customer Became KING and What You Can Do About It

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There is a common saying that the customer is always right. This is not surprising because there is no business without the customer. Knowing this, many businesses have become customer-oriented, meaning they sometimes put the customer’s needs above that of the business. This approach to business has proven to be very successful today where customers can buy anything they want online without ever leaving their homes. The upside of a customer-centric business approach is loyalty. On the flip side, it gives the customers so much power, literally speaking, the customer is KING'.

We're not competitor obsessed, we're customer obsessed. We start with what the customer needs and we work backwards." "The most important single thing is to focus obsessively on the customer. Our goal is to be earth's most customer-centric company.

Jeff Bezos, Founder of Amazon

So what happens then when the king is displeased with the services provided?

Things get ugly fast. In this case, unsatisfied customers can easily flex their powers by leaving a nasty review on a business page. The Internet has provided so much flexibility to both business owners and customers. Word-of-mouth doesn’t necessarily mean face-to-face communication anymore. Any satisfied customer could refer another customer to a business just as easily as they could convince them otherwise, simply by leaving a review.

Here is how powerful reviews are;

Among the customers who took part in a recent survey

91% say that reviews impact their overall perceptions of big brands in some way.

97% say they read reviews before making a purchase and only 3% do not read reviews.

Most customers use 2 or more websites to view reviews before patronizing a business.

Source: brightlocal
How did reviews get so powerful? 

Here are two reasons;

There are way too many options. Every business has two or more competitors all after the same target market. This means customers have the privilege of choice, but it also means they can easily get confused and burned out trying to decide which business to patronize. This is where reviews come in.

It is easier to go with the crowd. The majority may not always be right, but they do get the vote. It is easier for a customer to patronize a business with several reviews than one with no reviews at all. Call it herd mentality or our prehistoric brain kicking into action. Whatever it is, it feels a lot safer to go with a business that many people have tried and formed opinions about, even though these opinions may be subjective.

For these reasons, reviews have become an intrinsic factor in a customer’s purchase decision. With so much power in the hands of the customer, here is what entrepreneurs should do to move the needle in their favor.

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A few negative reviews are normal and should be expected

Getting a negative review of your business or product can cause so much anxiety. Most people would rather avoid it. The only way to do so will be to filter out the negative reviews or take away reviews altogether. Either of these decisions will be bad for your business. This is because customers are generally suspicious of a business with no negative reviews.

Look at it this way;

No review is bad, a higher negative review score is bad and an overwhelmingly positive review score (like a 5-star review from very few customers) can raise concerns in some customers. Typically a mixed score with more positive than negative reviews is the best (like a 4.5 out of 5-star review)

Encourage your customers to leave a review

Looking at how much influence one negative review can have on your business. You would be forgiven for not encouraging your customers to leave a review. But that will also not be a good decision. The reason is that asking for a review shows you value your customer’s opinions and are invested in their experience.

Aside from the optics, requesting a review could work in your favor since most customers who had a good experience would barely come back to leave a review. On the other hand, a customer is more likely to leave a review if they had a bad experience. This means if you don’t encourage your customers to leave a review, you may end up having more negative reviews than positive ones.

You can follow up with your customers either via call or email, and if they had a great experience, you can politely ask for a review.

Respond to negative reviews

You may be tempted to ignore negative reviews and act like they are not there. But this strategy may come back and hurt your business because it could seem as though you are uninterested in your customer’s plight. Therefore the best way to handle a negative review is by responding to it. For a big business, this could be a lot of work. However recent advancements in technology have made automated replies easier and more flexible for businesses.

88% of consumers are more likely to use a business that responds to both positive and negative reviews.

Source: brightlocal

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That’s all for now folks.

Until next time, stay inspired and keep chasing your dreams!

Cheers,

Alex