When criticism is voiced: How negative word-of-mouth is created

12.11.2024

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6 min read

Pascal Sollberger

Pascal Sollberger

Co-Founder & Marketing Expert, hypt

Dissatisfied Apple Emoji

In the digital age, negative word of mouth spreads like wildfire — often faster than you'd expect. But what is actually behind the urge to share bad experiences with others?

The nature of negative word-of-mouth

Negative word-of-mouth describes the spread of bad experiences that customers have had with a company or product. This form of communication is often more intensive and far-reaching than positive feedback. Why Because people tend to process and share negative experiences more with others — and these stories leave a lasting impression.

Triggers & triggers for negative WOM

The spread of negative word-of-mouth can be due to various reasons:

Emotions as drivers: Why bad experiences leave deeper traces

Emotions are the key to creating and spreading negative word-of-mouth. Studies show that negative experiences often trigger intense emotional reactions.

“Negative experiences usually trigger strong emotional responses, such as anger or frustration, which are often shared with others to let off steam. ” Medill mirror

These intense emotions lead customers to share their experiences in order to be heard and to get rid of their frustration — often also to punish companies for their “bad” behavior.

An investigation by Gartner shows that dissatisfied customers share their negative experiences with an average of 9 to 15 people, while satisfied customers only talk to around 4 to 6 people. This shows how important it is for companies to understand and respond to the emotions of their customers.

Unzufriedene Kunden teilen ihre Meinung deutlich öfter als zufriedene Kunden.

Social echo: Why negative experiences flourish in community

One psychological incentive for spreading negative word-of-mouth is the desire for confirmation. People often compare their experiences with others, particularly in social contexts. Negative experiences create the need to exchange ideas with like-minded people, which is increasingly happening in online forums or social media. These social comparisons reinforce negative word-of-mouth advertising, as customers reinforce their own negative impressions by confirming their feelings in others' reports.

“A study has shown that consumers who see negative contributions about a brand often experience a decline in their own buying behavior. The reason is that they internalize the negativity, which decreases their trust and the likelihood of continuing to engage with the brand. ” Medill mirror

Adept at avoiding crises

Quick and proactive action is essential to counteract the development of negative word of mouth. Companies should specifically pursue the following approaches to prevent an escalation:

Quick response to negative feedback

A prompt and empathetic response signals appreciation and can pick up customers where they are most dissatisfied.

“Studies show that companies that proactively address negative feedback and address customer concerns directly can turn potentially harmful situations into opportunities to strengthen customer loyalty and trust.” Journal of Consumer Psychology

Provide personalized solutions

Every problem deserves an individual solution. Through tailor-made compensation such as discounts or vouchers, companies show their commitment, which strengthens customer loyalty.

Apply feedback

It is particularly important to use customer feedback to avoid future crises.

Public engagement and transparency

Public complaints should be responded to visibly and respectfully. A personal response shows a sense of responsibility and transparency.

Involve customers

It is recommended to regularly obtain feedback and involve dissatisfied customers in the solution process to show appreciation.

Use social listening

By actively listening and identifying patterns in complaints, common problems can be addressed in a targeted and proactive manner.

Build emotional ties

Trust can be strengthened by building emotional ties, such as through follow-ups following a complaint.

Why won back customers are often the most loyal

Winning back customers can not only be financially worthwhile, but also strengthens loyalty to the company. Studies show that recovered customers are often particularly engaged. This is because they already had a commitment to the company and are consciously returning — often after a positive recovery experience.

“Research shows that winning back dissatisfied customers can result in a 60% increase in purchases compared to new customers. ” Journal of Business Research

Recovering also has the advantage that it is more cost-effective than acquiring new customers. These customers already know the products and rebuild trust more quickly.

“It costs five times more to acquire new customers than to win back former customers. ” Harvard Business Review

In addition, research shows that recovered customers have a higher customer lifetime value (CLV) and are often even more willing to recommend the brand to others.

Long Story Short

The psychology behind negative word-of-mouth is complex and profound. Companies that understand the emotional triggers and react proactively to them can not only avert the damage, but also build long-term, strong customer relationships.
Transparency, the willingness to learn from mistakes and the targeted promotion of trust strengthen loyalty and increase customer loyalty. Customers whose negative experiences have been successfully corrected often develop a particularly high level of loyalty.

Marketing and communication experts who understand these psychological mechanisms are well equipped to master the challenges of the digital age — because once online, stays online.

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