Responding to Online Reviews: A Crucial Business Practice

In today’s digital age, we all have those tough days when things don’t go as planned. For small business owners, such days can extend into their professional lives, impacting customer experiences and leading to one of the biggest challenges in our tech-driven world: negative online reviews.

Why Engaging with Online Reviews Matters

Online reviews have become a vital tool for consumers making decisions about which businesses to support. Platforms like Google, Yelp, and Tripadvisor allow ordinary people to share their experiences with millions of potential customers worldwide. Every review, whether positive or negative, can influence your business’s sales. Your response, however, can make all the difference.

A staggering 98% of consumers read reviews of local businesses, according to the 2023 BrightLocal Consumer Review Survey. Not only that, but they dedicate time to researching products and services. A 2021 study by Bizrate Insights revealed that almost half of consumers read at least four reviews before making a purchase. Positive reviews rank among the top three factors influencing their decisions, according to a 2020 report by Trustpilot. Before customers set foot in your store or visit your website, they’ve already heard from past customers. Responding to reviews ensures potential customers hear from you as well.

Consumers Expect Business Responses

Consumers don’t just read reviews; they also scrutinize how businesses respond to them. Another BrightLocal survey found that up to 97% of review readers check company responses. These responses can hold even more sway than a company’s rating. The Trustpilot study indicated that 64% of people prefer buying from a responsive company over one with a perfect rating.

Responses are not only a way to attract new customers but also a crucial method for maintaining positive customer relationships. Customers who take time to leave reviews, be they positive or negative, offer valuable insights. About a third of reviewers expect businesses to respond, according to a Bazaarvoice study. Whether it’s a detailed apology or a simple thank-you, responses increase consumer confidence and foster customer loyalty.

Responses Shape the Narrative

Negative reviews can dent a business’s bottom line. A 2022 ReviewTrackers study revealed that 94% of people decided against buying from a business due to a bad review. However, negative reviews are sometimes unavoidable. The key is how businesses react.

While some may be tempted to remove negative reviews, doing so can be more damaging. The Trustpilot report found that 62% of consumers wouldn’t support a company that censors reviews. In fact, consumers expect to see some negative reviews. Most survey respondents deemed companies with less-than-perfect ratings as more authentic and trustworthy.

When faced with a negative review, the best course of action is to respond. Negative reviews often highlight specific issues like supply chain delays, product flaws, or poor customer service—topics that interest consumers. Over half of consumers actively seek negative reviews when making purchase decisions, as per research by the Baymard Institute. Responding to negative reviews offers a chance to address these concerns, potentially turning a customer into a believer in your product and your company. Another Bazaarvoice study found that reading a response to a review increased consumer trust.