Can online reviews really have an impact on your business? They certainly can.
While a good review can have a positive effect on your business, the impact from a negative review far exceeds the impact from a positive testimonial.
Furthermore, according to Moz Research, customers who have a bad experience are two to three times more likely to write an angry review versus customers who have a good experience.
Businesses are also faced with the fact that 12 positive reviews are needed to counter the effects of one negative post.
What is the financial effect that a bad review can have on a business? According to Alan Rabinowitz, in 2017, 97 percent of consumers did an online review search for a business that they have not patronized in the past. Rabinowitz found that a shocking 80 percent of consumers chose to go elsewhere if the business had four or more bad reviews.
This potential loss of new customers, as well as the failure to expand their customer base, can be devastating to any business.
How should a business owner react to a negative review? Ignoring or dismissing negative reviews posted on sites such as Yelp and Facebook is not a solution. Seventy percent of consumers only want an acknowledgement from the company to address their concerns, but only 38 percent of negative reviews are sent a response.
• Respond to the public post using clear and positive statements
• Accept responsibility – excuses or arguing are not productive responses
• Assure the person that you appreciate their input and that you will make every effort to correct the situation
• Offer amends such as a gift certificate or discount for future use
• If the issue is not amiably resolved within two online exchanges, try to move the conversation to a private discussion.
• If the conversation is private, keep calm, listen and don’t interrupt. Many times a person just wants to vent and be heard. Give them the opportunity to express themselves.
Because adverse reviews can have such a harmful effect on a business, owners need make every effort to prevent them from occurring.
Can a business completely control never getting a negative review? Most likely not. But by implementing proactive and positive practices in your business, most consumers would not consider writing an angry post.
Encouraging positive reviews and posts certainly will help. Do you encourage photo ops or rewards for positive reviews? The more positive reviews you have, the more likely a negative review will go unnoticed or be considered an outlier. The number one way to assure a positive review is to provide excellent customer service which will result in good customer relationships.
Remember it is easier to maintain a healthy relationship than it is to repair one.
When it comes to preventing a negative review always remember Benjamin Franklin’s words, “An ounce of prevention is worth a pound of cure.”
Rose Mays is a program specialist at the Small Business Development Center at the Columbia Gorge Community College. She can be reached at 541-506-6120
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