How Negative Feedback Hurts your Company in South Carolina?
The internet has played a vital role in creating awareness among people about consumer rights. These days consumers do not try a product without having proper knowledge about it. According to a survey report, feedback plays a convincing role in increasing sales. A company with negative feedback cannot stay in the market for a long time. Consumer feedback is not a scary thing. It is a tool which points out flaws in the efficiency of a firm. In the US, consumers are free to express feedback about a service or a product.
Business Conditions in South Carolina
The US has the largest economy in the world. South Carolina is the 26th largest economy among the US states. It makes an approximate addition of 1.13% in the total GDP of the US. Besides aerospace and aviation and automotive industry, SC is also known for its agricultural sector. SC has a business-friendly environment. During the recession of 2010, more than 1200 companies increased their business activities in SC. Every year thousands of new companies enter the market of SC. According to USC Research Director Doug Woodward,“ South Carolina can face economic tug-of-war situation in 2019. He predicted that rising interest and tariff rates could slow down the pace of economic growth of SC.” Companies with a bad reputation will suffer from slow growth in this time frame because of the high cost of business. In short words, firms have to maintain an efficient mechanism of service for their customers. Otherwise, a firm will not survive in the market of SC.
Effects of Negative Feedback on Your Company in South Carolina
Feedback is the part of the consumer rights. A consumer can share his good or bad experience about a product or service provider. You can urge a consumer to give a positive review, but you can’t snatch someone’s right to give negative feedback. Congress approved the Consumer Review Freedom Act to control the practices of feedback suppression.
Fewer Opportunities for Growth
Growth of a business and revenue go hand in hand. Negative feedback shutters the trust of the existing and potential customers. According to a BrightLocal survey, a single negative review can affect 22% of the sales of a company. You must be wondering how much damage negative feedback could do to your company in SC? Let’s analyze the prediction of slow economic growth by Woodward. The sluggish GDP will affect all the sectors and companies in one way or other. But the ill-reputed firms will suffer more than others. The slow GDP growth will bring cut-throat competition among the firms. That’s why consumers will have a higher chance to choose from the better options. Negative reviews will knock out the notorious firms.
Degradation of a Brand
It takes years to build a brand in the market. A brand is not debited on the asset side of the balance sheet, but it is the most valuable asset of a company. Negative Feedback degrades the worth of a brand slowly. These are the three most common practices which generate negative feedback for a brand.
- inconsistent performance
- Lack of commitment
- Less or no value for the user
Companies in South Carolina like Michelin and Sonoco has developed themselves as a brand. Biggies of the market adopt the best brand management practices. Despite all the brand management efforts, negative feedback could tarnish the image of a business entity. The predicted slow economic growth in SC will increase competition among firms. Degrading brands will find it difficult to survive in such a competitive environment.
Exit From the Market
Ill-reputed firms suffer from high operational costs in relevance to their income. Stunted sales and the high cost of business are inversely related to each other as the sales go down the cost of business spikes up on the other hand. Why does that happen with a company? Because the fixed cost of the business remains unchanged. It is the sum of the value of fixed assets, property taxes, insurance, and interest expense, etc. You can fluctuate the variable cost of your firm to some extent. Low sales hit the ability of a company to buy fresh supplies of raw materials in bulk as well. That’s how negative feedback hurts a weak business in days of slow economic growth. Small companies with a bad reputation in SC will suffer the most in this period. Some may have to call off their companies because of reduced revenue influx and high business cost.
Online reviews are the new game changer for the consumer market because consumers live in a connected world. People rely on reviews to get an insight into a firm’s level of dedication. Reviews are not merely the personal opinions of a bunch of people about your company. They are the reflection of your way of treatment to your customers. The same thing applies to firms in SC. The higher level of dedication and commitment is inevitable to sustain in the South Carolinian market.