Wrath of the Reviewer
Connected
consumers are compelling companies to react
instantly to their complaints or
risk online crucifixion
Hotel
owners and managers around the country sweat when they
hear 27-year-old
Bornav Raychaudhary has checked into their property.
The freelance photogra
pher, who has posted some 400-odd reviews
on TripAdvisor, a website that
provides user-generated re views and
ratings for the hospitality industry,
has pum melled and praised
properties nationwide, criticising them for poor
cleanliness and services,
while praising others for their location and access
to public transport.
While his words may have been relegated to the cramped
confines of
a box full of feedback forms ear lier, the increasingly social
internet
has forced compa nies and brands to take notice; he says that some
20% of his posts on TripAdvisor get responded to -especially critical
ones
-and that he has been offered room upgrades and complimentary
meals when he's
pointed out shortcomings.
For consumer-facing businesses such as hospitality, this
surge in direct
feedback can be a boon and a bane.Today, companies don't have
the
luxury of consumers taking a breath before raging at perceived
shortcomings. Instead, they are on Facebook and Twitter in a flash,
venting
their spleen. And to try to get themselves heard beyond an
immediate group of
friends and followers, they are looking at forums
such as MouthShut (the
oldest in the business), Zomato and TripAdvisor
and even startups such as
Akosha to get a company's attention.
Not everyone likes the attention. Just ask Faisal Farooqui
of
MouthShut who has been sued literally hundreds of times (Kumar
Builders
taking the cake with a `2,000-crore case) for negative reviews
posted on the
site. Several company executives also claim that this forum
is a magnet for
questionable complaints.
Farooqui started MouthShut in 2000 as a 24-year-old when
dial-up
modems were in vogue and barely 0.5% of the population were
broadband
subscribers.Today, at least 15% Indians have broadband
access and by fiscal
year 2018, India is expected to have over half a
billion mobile internet
users, according to a Morgan Stanley study.
Taking a company to the cleaners has never been easier.
Many Shades of Reviewers
As the feedback piles up, companies and brands seem to be
taking
notice. “It is impossible to ignore this feedback; it is relentless,
real
time and the negative comments always tend to get amplified,“ says
Riyaaz Amlani, chairman and managing director of Impresario
Entertainment and
Hospitality, which runs restaurants such as
Salt Water Café and Smoke House
Deli. Amlani tries to put a positive
spin on things. He says his firm uses
these online outlets as a data
goldmine, looking for leads on which locations
work, what food and
drink is popular (or not) and even scout for new themes
to expand.
“The challenge is to differentiate the signals of customer
unhappiness
from the noise of the internet,“ adds Amlani, who is also
president of
industry lobby National Restaurants Association of India.
These reviewers can come in all shades.For example, some
restaurateurs complain that patrons threaten them with poor reviews
if they
are not handed a freebie (ranging from free dessert to an entire
complimentary meal), while others contend that there are often vested
interests at play looking to shred a joint's reputation online.
From fledgling startups to centuries-old brands,
everyone's under the
microscope of these trigger-happy consumers. “Everything
we do
is based on what the consumer says,“ contends Aprameya
Radhakrishna,
cofounder of TaxiForSure, an online taxi aggregator.
“We actively track
complaints -we respond to tweets in five minutes.“
He should know; despite a rating of 3.7 5 on Google Play,
reviewers
have taken a swing at their service. “They say book a cab in 15
seconds,
I couldn't book one in 45 minutes,“ a user on Google Play, Mudit
Kakaria,
raged. In the last few months, Snapdeal has been accused of
delivering
empty boxes, stones and waste paper instead of some of the
products
ordered. And it has paid the price, as consumers have savaged the
firm
for its tardiness. “I ordered a laptop from Snapdeal and got a bunch
of
papers instead,“ says Shouvik (he wanted only his first name used),
a
software engineer in Bengaluru. “They responded the same day after
I
complained on online forums.“ Others similarly complained that
deliveries
were delayed, wrong products were delivered and discounts
originally offered
were later rescinded.
“The feedback loop is instant today,“ says Sandeep
Komaravelly,
marketing head, Snapdeal. “More people are experiencing our
brand
and we have to ensure we are delivering a consistent brand experience
across users.“ For an ecommerce market place, slipups can happen
anywhere;
the technology backbone can give up during a sale,
backend support can muddle
packaging and thirdparty logistics may take
days to send a product across.
Part of the challenge for such companies
is to not give into rogue
reviewers.“We have had several cases where
people complain and demand a
replacement or refund after the
mandatory 60-day period and after they have
tried and disliked a
product,“ says Komaravelly. “The unfortunate truth is
that people will
complain and some will even take undue advantage of their
position.“
Trend Across Industries
Sayali Karanjkar, founder of Outsy, which pro vides a
curated listing of
online social events, knows the feeling well. As a
fledgling startup, being
visible and owning a strong rating on Google Play
are vital to staying
afloat and with some luck, winning financial backers.
Not if unscrupulous reviewers can help. The firm, run out
of her flat
in Mumbai's Ban dra suburb, was approached by the head of a small
BPO outfit seeking 300 coupons to pro vide glowing reviews and a
five-star
rating for their mobile app or risk an online shredding. “We
decided to hold
out against these black mailers,“ says Karanjkar.
“Our rating didn't change
... most of these people want freebies,
especially during a promotion and
think it is the simplest way out is to
beat us down.“
To be sure, it isn't just the hospitality industry that is
coping with
this backlash. Many other consumer-centric businesses including
banking, mobile telecom, consumer goods and auto are all dealing with
this
change. “People are getting increasingly comfortable using online
channels as
their first port of call, with higher expectations: quick
responses, high
degree of personalisation in responses and an
expectation that the brand will
have the customer's history at hand
before they respond,“ says a Vodafone
spokesperson.
Companies such as Vodafone have plenty to learn from
aggressive
reviewers, say executives. It helps companies review products
and
services on the fly and make tweaks when faced with negative reviews.
“Voda fone's approach has been to provide a resolution `on the medium'
-this
al lows us to also show transparency,“ says the spokesperson.
Then there's the curious case of HDFC Bank. Despite having
a robust
complaint management system in ng place, nearly two thirds of
reviewiers of the bank's service give it a single-star rating on
MouthShut.
“There is always mixed feedback,“ says Pranesh Rao, head,
quality
initiatives group at HDFC Bank. “These consumers are far more savvy
and expect almost instant response from us.“ HDFC Bank tries to
respond in an
hour to these critics (most issues revolve around questions
over a product or
service) and keep them updated, he says.
“This kind of feedback is much
richer than the offline feedback form
with its restricted set of five or six
questions,“ says Rao.
“For HDFC Bank, this is a far more effective way of
gauging
effective customer feedback.“
As consumers have got more connect ed (Facebook has some
100
million us ers in India, Twitter 22.2 million and WhatsApp 70 million),
getting the word out has become much easier and more effective.
Dedicated
reviewers are flocking to other sites as well.
Akosha, an online forum for consumer complaints, was
founded by
lawyer Ankur Singla five years ago and has since raised funding
from
Sequoia Capi tal. Akosha's growth provides some clues to how vocal
Indian consumers have become. Accord ing to Singla, Akosha's user
base has
grown 233% between 2013 and 2014, as a horde of
dissatisfied consumers has
swarmed the site looking for a fix to their
woes. Despite this growing
consumer angst, the firm proceeds with
caution. “We have our own inter nal
checks to verify the authenticity
of the complaint. If we find the consumer
has unre alistic expectations
or lack requisite details, we speak to them and
explain the proce dure,“
he says.
Over the past six years, Nikhil Ganju has witnessed the
rise of these
reviewers from his perch at TripAdvisor India, perhaps the most
popular consumer-driven travel re views portal in the business.
“The ability
of consumers to provide almost instant feed back on
TripAdvisor has
transformed the way people book hotels and holidays,“
says the country
manager of TripAdvisor India.
“With over 400 million monthly visitors half of them on
the mobile
-TripAdvisor's reviewers can heavily influence opinion.“
Given the heft of TripAdvisor online, it is little
surprise that the firm,
spun-off from travel portal Expedia in 2014, is
thinking several
steps ahead. “We are constantly thinking of features that
will foster
interaction within the community,“ says Ganju. “The level of
engagement
between users doubles with so cial reviews.“
With over 500 million Indians expected to be online by
2018,
according to a recent re port by telecom gear vendor Ericsson,
companies
can expect the temperature to only be turned up in the next
few years.
Rahul Sachitanand
ET 1FEB15
|
Saturday, February 7, 2015
MARKETING CONSUMER SPECIAL ..............Wrath of the Reviewer
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