Are Traditional Customer Service Channels Losing Ground?

I saw an advertisement for a spa in my neighborhood on Instagram. I was impressed with the ad, and I called them to book an appointment.

I understood what was included in the booking, and I also confirmed the pricing for the service. I went there on time, but I was made to wait a good 30 minutes. After that, I made the payment, and I was taken inside the therapy room.

The therapy given to me was not the one I asked for, and I felt cheated at the end of it. When I inquired about it at the counter on my way out, the only response I got was a simple Sorry. Beyond that, they also weren’t giving me an explanation.

I checked with them to see if I could talk to their manager. Apparently, he was not available, and I asked them how to give them a review of the quality of service provided. They gave me a form, and I was sure that it would never reach their higher-ups.

And there were no other traditional means by which I could provide my feedback. Their website did not have an option, and the phone numbers displayed landed up at the front desk.

So, I decided to leave a Google Review about the service I received.

Now, this prompted an immediate response from their higher-ups. They offered an extensive apology and offered me a free 30-minute session on my next visit. So, I had to rely on a third-party review service to get a response from a business whose traditional customer service channels are broken.

Check our Article on: Ways to Collect Customer Feedback

Are Traditional Customer Service Channels Losing Ground?

To an extent, I would agree with this. While businesses still maintain email, phone, and in-store feedback forms, these channels often suffer from delays, lack of transparency, and limited accountability.

Today, customers prefer real-time, public, and transparent interactions, which is why platforms like Google Reviews, social media, and third-party review sites are gaining traction.

Look at these statistics:

• 81% of consumers read Google Reviews before visiting a business
• 95% of unhappy customers will return if their issue is resolved quickly and efficiently
• Consumers are 21% more likely to leave a review after a negative experience than a positive one
• 53% of customers expect businesses to respond to negative reviews within a week, yet 63% say they never hear back

All of these data points support the shift from traditional channels to third-party platforms.

Let me give you an example of the power of third-party channels.

United Airlines in the year 2018 faced backlash when a passenger live-tweeted his negative experience after being forced to give up his seat. The issue went viral, causing United to issue multiple public apologies and policy changes.

This highlights how public platforms push businesses to act faster than traditional complaint channels.

As a business, it is a reality that your customers are going to leave reviews on third-party platforms about the quality of your products, your service, and the overall experience. You need to address those proactively.

How Do You Go About Doing This?

Monitor Reviews

• Use tools like Google My Business, Hootsuite, or Reputation.com to track online reviews and mentions.
• Set up Google Alerts for your business name to catch customer feedback on blogs or forums.

Respond Actively

• A generic “We’re sorry for your experience” is not enough. Instead, respond with empathy and a resolution.

For example, Marriott Hotels has a dedicated team that responds to reviews within 24 hours, addressing complaints and offering solutions.

Encourage Positive Reviews

• 70% of customers will leave a review if asked, but many businesses fail to do so.

For example, I stayed at a Radisson property in Goa. Everyone from room service to housekeeping to the front desk asked us to leave a review about their service. We ended up giving at least three reviews before we left the hotel.

Turn Complaints Into Opportunities

• Domino’s Pizza saw a decline in sales in 2009 due to poor customer feedback. Without ignoring the complaints, Domino’s launched a campaign acknowledging its mistakes, improved its recipes and openly invited customers to review them again.

Their stock price surged from $3 in 2009 to over $400 in 2021 as a result of customer trust.

How Can Businesses Guard Against Negative Reviews?

While you may want your customers to post positive reviews about your service and offerings on public platforms, you’d definitely like to prevent negative reviews from getting aired in public.

To do this, you need to improve the channels for handling internal feedback.

Here are some tips to improve your internal feedback handling:

• Ensure multiple feedback options like WhatsApp, SMS, surveys, website forms, live chat, and dedicated complaint resolution teams.
• Empower your staff to handle complaints proactively without managerial approval. For example, the Ritz-Carlton empowers employees to resolve complaints on the spot, and it also allocates discretionary spending for resolutions without approval.
• Use technology to improve feedback handling – both stated and unstated ones. Zappos uses AI-powered customer support to analyze complaint trends and address issues before they escalate online.
• Proactively message users who leave negative feedback. Offer them compensation or fixes before they post public reviews.

The spa experience highlights a larger trend in customer service. If you ignore your customer feedback, they will take it to public platforms, where you suffer the risk of losing trust and credibility.

As a business, you have to be cognizant of the following truths:

• Traditional customer service channels have to be made accessible and responsive.
• Public platforms need to be monitored proactively.
• AI and automation are key to managing feedback effectively.
• You have the option of turning negative reviews into success stories.

In today’s era, customer voices are amplified online. Businesses that adapt will thrive, and the key is to meet customers where they are, listen, and act before they take complaints public.