Showing posts with label risk. Show all posts
Showing posts with label risk. Show all posts

Monday, October 1, 2012

Are You Complaining About The Complainers?

Be careful when responding to online reviews.






How do you deal with an unhappy customer? Unfortunately there’s no one right answer for that. Factors like your business model, their specific complaint, even the current economic climate all go into determining how you can best put the gruntle back into the disgruntled.

But there are plenty of wrong ways to do it, and plenty of object lessons in how not to behave.

Not surprisingly, these lessons are all Internet-related. There’s danger inherent in the Internet, in that illusory degree of separation and in the way your impulsive typing-and-clicking can spread ‘round the world, and never be taken back.

Customers complain online. We have to accept that fact. Services like Yelp and Epinions make it as easy as can be for consumers to log their good and bad buying experiences. Alas, it’s been proven again and again they’re far more likely to talk about the bad than the good. And as bad as that might seem, it’s often the merchants’ reactions that really do the damage. Consider the evidence:

A one-star Yelp review for a Chicago-based wine-paring class resulted in dueling blog insults, and finally a half-million dollar defamation suit against an internationally renowned oenologist. In an email he accused his customer of acting like a child, but the resulting publicity hurt only him.

In Canada, a restaurateur responded to negative reviews by creating a fake sex site profile for the reviewer. She’s just been convicted of two counts of defamatory libel and will be sentenced later this year.

And perhaps the worst: the owner of an online eyeglass retailer has just been sentenced to four years in prison for stalking, harassing and intimidating critics. He would routinely email and even telephone reviewers, threatening them with his knowledge of their personal information such as home addresses. Amazingly, he was apparently courting bad feedback, under the theory that any online mention at all result in higher search-engine rankings.

How shortsighted. In business, your only real currency is your reputation. Your reputation utterly depends on how you deal with the most challenging situations. Can you win back every unhappy customer? Probably not, but you can certainly extend the effort to try to make things right. In the most extreme cases you can just ignore them. But engaging in a very public war of words (or worse)? That’s something you can’t win, and can never undo.

The C4:
  1. Try though you might, you can’t make every customer happy. Unhappy customers complain, and in our digital age there’s a very good chance they’ll complain online. Do yourself a favor and accept that fact.
  2. Resist the urge to engage. Yes, it burns inside to see your business publicly disparaged, especially if you don’t agree with the reviewer’s version of facts. But do you want to play “he said/she said” with the whole world watching?
  3. Instead, consider your alternatives. Can you turn a negative into a positive? Can you swallow your pride, say Mea Culpa, and make some kind of public effort at reconciliation? It might not feel good, but it’ll look good.
  4. Failing that, just walk away. Readers of online reviews are willing to take outlying gripes with a grain of salt. Prove your critic wrong by giving stellar service to everyone else who walks through your door. If you engage and say the wrong thing you’ll be tarnished forever. Treat your reputation as currency, and never risk it on a sucker’s bet.

Monday, February 20, 2012

What motivates an entrepreneur?

The urge to create may be high on the list.

There are probably as many answers to that as there are entrepreneurs. Popular opinion, however, holds that there are some similarities: entrepreneurs are seen as brash risk-takers, somewhat abrasive, always impulsive (we’re thinking of you, The Donald).

But are such generalizations fair? Probably not. Personality traits aside, the one thing that motivates most entrepreneurs is that which forms their signature achievement: the urge to create.

The specifics of that are varied. Some build companies within their fields of expertise because they’ve developed valuable innovations. Others enter unfamiliar markets when they sense a challenge or opportunity. But in every case they are inspired to create a new entity — their own unique company — where none had existed before.

Brash? Maybe. But certainly not in any negative sense.

As for risk-taking, the risks are inherent. Every venture risks failure or worse. But when entrepreneurs stake their fortunes and reputations, will they gamble with undue risks? Not likely.

It’s far more accurate to say that an entrepreneur is, whenever possible, a risk eliminator. An entrepreneur evaluates risks, weighs outcomes and chooses the path that offers the highest return with the best chance for success.

That chance for success is ultimately the most driving motivation for entrepreneurship. Maybe it requires a dash of brashness and a modicum of risk-taking. The payoff is worth it, though, for the entrepreneur and for all of society.

Bring on the brashness, we say, and hooray for the entrepreneurs.

The C4:
  1. Entrepreneurs are creators at heart.
  2. They are not intrinsically brash risk-takers.
  3. They rock at starting but not necessarily at maintaining new ventures.
  4. Without them, we would all be in big trouble.
Learn more about how we help start-ups.