5 Reasons Why Negative Feedback is Good For Business

Believe it or not, earning perfect reviews isn’t critical for your business. In fact, negative reviews can actually help your business in ways you may have never expected. You may find that hard to believe, but it’s true. Feedback can be scary but you need to ask for it anyway.

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Customer negative feedback may be harsh in the beginning, but it actually is good for your business. All businesses strive to have positive reviews, but unfortunately, you do not always get what you want. Negative reviews are sometimes inevitable.

Let us see how negative feedback is good for your business.

1. Improve customer service experience

Answering each and every customer review is a must. But it’s even more important to actually solve your customers’ problems. Many times, negative customer experiences are directly related to bad customer service from the staff maybe due to lack of training, knowledge or simply a bad attitude.

If negative feedback points to the customer service experience, the company should embark on talking to their staff, training them or simply letting go of that one - or more - rotten potato(s) that may ruin others.

Once a company has established that the problem may be due to their staff, it will be upon them to make the necessary adjustments to improve the customer service experience. Once this is improved, the company will begin to realize improved customer satisfaction, increased customer referrals, reduced customer turnover, stronger relationships and increased sales & revenues. This becomes a win-win situation - company gains and the customer is happy.

2. Guide you on where to focus efforts

After analyzing your customer feedback, you will be able to tell which areas need improvement, what to do when and where, and the need to focus on providing value for your customers. You will spend more resources on certain aspects of your service or products to make improvements, rather than waste so much time trying to improve the whole process. You may take the things you already do well and scale them up, so that you can do business on another more profitable level.

If for instance, you offer branding services for t-shirts and you have received negative feedback concerning the durability of the prints made on the t-shirts. You will therefore focus your efforts on getting a better machine to produce more durable prints. The negative feedback will help you pin-point the specific area that needs improvement. While positive feedback is great, it often doesn’t provide insight into where a business may need to improve.

3. Give you new business ideas

Instead of starting with a blank canvas to come up with innovative ideas for your business, why not use the existing issues that have arisen with customers as a baseline. Use the negative feedback to find out the problems, then develop a solution. To your surprise, you may just end up producing a new product/service line that will be the solution to that problem. Isn't this diversification!

A company that produces bottled juice got many negative customer reviews stating that their juice was too sugary, hence not healthy. This eventually affected their sales. After analyzing these reviews, this company introduced sugar-free, with no added preservatives or colors juice that was more acceptable and loved by their customers. Their sales sky rocketed and the customers were happy. Wouldn't you call this a win-win situation?

4. Improve product development

In the age of social media, running a business can put you under the microscope. If you don’t know how to harness negative feedback for good, this can kill your morale. Negative product feedback can be a great source of ideas for product updates, add-ons, or even new products and services.

Often, negative product feedback can present you with a lot of opportunities – to manage your brand perception, create customer confidence, and gain inspiration and useful insights. Negative feedback in a customer service setting can help the company to understand shortcomings in the product development, the customer service process and the marketing.

5. To beat competition

Truth be told, even the most professional business owners can be defensive and emotional in the face of criticism. While you monitor your own reviews closely, it’s also important to check the public reviews of competitors. By reading their reviews, especially negative ones, it’s possible to get a sense of how your products and services stack up to theirs and see if their customers have similar complaints. With this, you will have gathered valuable market intelligence information that you can use to beat your competitor.

Once your company receives any feedback indicating that a customer has had a poor experience, your front-line staff should reach out to them, and fix the problem. Keep this in mind - you have an opportunity to make things right here - and as long as you do manage to resolve the issues in a way that satisfies your customers, they will return to do business with you and may never consider going to your competitor.


A good business asks for feedback. Customer feedback comes in many ways, shapes and forms. Use negative feedback to leverage business growth and prosperity.

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