Photo provided by Adam Leff
- Many consumers read reviews before purchasing a product or service.
- Negative reviews can identify areas for companies to improve.
- One small-business leader said companies should personalize and respond to all negative reviews.
- This article is part of "Marketing for Small Business," a series exploring the basics of marketing strategy for SBOs to earn new customers and grow their business.
Ben Kuhl, the CEO of Shelf Expression in Charlotte, North Carolina, prides himself on providing the best customer experience at his company, which sells custom shelves and home decor. But a few negative customer reviews let him know that some of his shelving products were arriving damaged and that some customers noticed swirl marks left on their shelves.
While these reviews are rare, Kuhl knows they're an "inevitable" part of business, he said. He considers them valuable feedback that he uses to improve his business and takes the time to respond to each one.
"It's important for me to show that I take the feedback seriously and am dedicated to improving customer experience," Kuhl told Insider.
After receiving negative reviews, he switched to stronger packing materials and offered customers the option to purchase insurance for shipments, he said, adding that he invested in higher-quality sanding materials and refined his sanding process to make sure the shelves had a smoother surface.
"These changes have helped me deliver a better product to my customers and avoid future negative reviews," Kuhl said.
Customers care about reviews
Most consumers read reviews before purchasing a product or service, and they don't seek out only positive ones. In a 2021 PowerReviews survey, at least 96% of respondents said they sometimes looked for negative reviews, while about half of them said they were suspicious of businesses with perfect ratings.
"A small amount of negative reviews helps legitimize the authenticity of your brand's review pages, making it not only an inevitable part of business but one that is respected by consumers," Adam Leff, a cofounder and the chief strategy officer of the reputation-management firm Merchant Centric, told Insider.
Negative reviews may not turn off customers, but the people who post them do expect businesses to respond to the reviews and offer solutions.
"Responding to negative reviews builds trust with customers by showing that I'm open and transparent, and it can also help me prevent future negative reviews from affecting my business," Kuhl said.
Here's a look at how small businesses can learn from negative reviews and why they should develop processes for responding to the feedback.
Negative reviews help companies learn where to improve
One of the biggest benefits of negative reviews is that they identify areas where companies can improve, Leff said. Business owners can use this information to make changes to boost operations and create better customer experiences.
"Reviews should be welcomed, as they give a business an opportunity to improve and the opportunity to celebrate excellent performance," Wayne Brackin, the CEO and president of Kidz Medical Services, a pediatric medical group in South Florida, told Insider.
Through negative Google reviews, Kidz learned about issues with its phone system and that patients wanted a more automated experience.
These reviews inspired the company to make several changes to improve patient experience. It upgraded its telecommunications systems, created new billing workflows, changed electronic-health-records vendors, and added a customer-relationship-management program to identify and respond to negative reviews, Brackin said.
Showing you value feedback builds customer trust
It may be tempting to ignore or even delete negative customer reviews. But Leff said business leaders should address all reviews, both negative and positive.
"It shows guests that you're listening and taking their feedback into account," he said.
Customers believe companies should respond to reviews, too. Even after a negative experience, they're more likely to repurchase from businesses that respond to reviews and try to resolve problems.
Photo provided by Ben Kuhl
Responding to negative reviews can solidify brand trust, which is a top consideration for customers when deciding what to buy, Leff said, adding: "This makes guests feel valued, can increase their loyalty and empathy, and capture them as a loyal guest, if handled properly."
It's crucial for small businesses to respond quickly to maintain customer relationships. In an analysis, ReviewTrackers found 53% of consumers wanted businesses to respond to negative reviews within a week and about 30% expected a response within about three days.
When he gets a negative review, Kuhl said, he responds as quickly as he can. He acknowledges the review and expresses regret, and if the company makes a mistake, he apologizes and offers a solution.
"My aim is to show everyone, including future customers, that I take all feedback seriously and want to provide the best possible experience for everyone," Kuhl said. "I try to put myself in the customer's shoes and show empathy for their situation. This helps build a connection and demonstrates my commitment to their satisfaction."
Create a process to respond to negative reviews
To help you handle the inevitable negative customer review, Leff recommends establishing a process.
First, flag any review with content that violates a website's content guidelines, such as offensive language or false information about a business, product, or service. Reviews that threaten legal action should be handled offline by the company's leadership.
Reply to all other negative reviews graciously, Leff said: "You are not only responding to win back that guest; you're showing other prospective guests how you might address them if they were in the same circumstance."
Individualize each response by mentioning the issue the customer brought up in the review, such as order accuracy or delivery time, he said. Be professional and respectful, and avoid using a template or including personal attacks, negative comments, or arguments.
At Kidz, Brackin told Insider the team had a formal process for handling negative reviews that's led by its marketing consultant. It involves responding with a personalized statement, and, if possible, speaking privately with the patient to resolve the issue.
Photo provided by Wayne Brackin
A small-business owner may not expect a negative review, but they're part of running a company. Leff said it's important not to take them personally and to view them as a learning opportunity.
"The positive reviews are great, but we don't grow from those," Kuhl said. "We grow from the negative reviews and the feedback they provide, especially if the feedback is warranted.
"These reviews help us refine our process and up our game. Without them, we can become complacent and not strive for continued growth."