How Bad Reviews Affect Brands (And Ways to Handle Them)

It wasn't long ago when customers relied on word-of-mouth or referrals to buy something. But today, 90% of customers research and read reviews online before trusting a brand.

Thanks to the proliferation of mobile technology, customers from all walks of life can quickly lookup brands online and share their personal experiences with other prospective customers. Websites like Google, Yelp, Facebook, and Amazon are the most trusted review portals with millions of regular visitors.

But why do customers read reviews before buying a product?

• Trust factor. 88% of potential buyers trust online reviews just as personal referrals, while 72% say that positive reviews equal their trust in a brand.
• Increased revenue. Customers spend 31% more money on brands with top-rated reviews.
• Builds awareness. 86% of customers avoid businesses with negative reviews.

The stats elucidate the importance of online reviews on a brand's online reputation. However, just as positive reviews build your reputation and bring in business, negative reviews can cost you customers and money.

Also read: The Positive Aspects of Negative Customer Reviews

Impact of Negative Reviews on Business

1. Damaged Business Reputation

You may have given it all to build your business and gather a loyal clientele. But bad reviews can put your business reputation in jeopardy. Encountering negative reviews in bulk on popular review portals will create doubts in your potential customer's mind and make your credibility questionable, ruining your online reputation.

2. Losing Customers to Competitors

Negative reviews make potential customers question the quality of your product/service. The chances of losing your customers to your competitors also depend on the number of reviews. For example, reports suggest that one negative review can drive away 22% of customers to competitors. Three negative reviews can increase the loss of customers by 59.2%, while more than four genitive reviews increase the count to 70%.

3. Loss of Revenue & Profitability

Let's say your business is poorly rated on the review platforms. Chances are, you will generate 33% less revenue than your competitors. Poor reviews drive away 94% of customers and drastically reduce business profitability. Not to mention the additional you have to bear to repair your damaged reputation.

4. Low Ranking on Search Engines

90% of customers choose brands and products that rank high on the search engine, meaning they appear on the first or second page of the search results. Consistent negative reviews will damage your page ranking on Google and push you far below the list.

Also read: Understanding Review Management- Precise Analysis & Potent Tactics

How to Tackle Negative Reviews – 5 Surefire Tips

Reports suggest that businesses that respond to over 20% of reviews generate 33% more revenues than their competitors. Also, 45% of customers are more likely to visit your store if you respond to the negative reviews and address the problem.

Therefore, to build a strong reputation online, you must take the necessary steps to address the negative reviews. Your quick response to both positive and negative reviews can you more customers and more business.

Here’s what you can do to repair your business’s online image:

1. Be swift with your apologies-

If a customer took the time to share their disappointment with your services, treat it as an urgent matter and solve it quickly. Maintain a professional tone and show your customer that you are sorry and willing to make things right at the earliest.

2. Fix the issue-

Contact the customer directly and assure her that you will look into the matter. Always keep the promises you make to your customer.

3. Use reputation management tools-

Invest in reputation management services to fix your online image if your business has been involved in some serious scandals. The professionals have the right tools and experience to help you deal with the situation effectively.

4. Request customers for reviews-

You may a lot of customers are genuinely happy with your products. But they don't share their feedback online. So contact them and request them to share their experience. Let them become your brand advocate.

5. Improve your services-

When your customers complain about something, pay attention to their grievances so you can specifically address them. Then, find ways to make it up to them like a free product, coupons, or an additional discount.

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Also read: 7 Effective Tips to Get More Google Reviews