Online reviews have become an essential part of the consumer decision-making process. Whether it's purchasing a new financial services product or trying out a new restaurant, people often turn to the feedback of others. In fact, our research from October 2022 found that 84% of consumers trust reviews from other consumers. And 69% of consumers change their mind after reading reviews.
While positive reviews can be a great marketing tool, less positive reviews are often seen as being damaging to a company’s reputation. However, negative reviews can actually be beneficial. In this blog, we'll give you two key reasons why negative reviews aren’t all bad.
Identifying ways to improve
The first key benefit of negative reviews is showing companies how they can improve. Less positive reviews often highlight specific issues or pain points that customers have experienced, giving companies valuable insights into what they can do better.
For example, a customer may wish to speak to their mortgage provider on the phone about switching their rate. If they get stuck in a long call queue and give up trying to make contact, potentially the company may never know about the difficulties that customer faced. But if the customer shares their experience at a review site like Smart Money people, the feedback could prompt the company to make improvements, leading to a better overall experience for all customers.
Giving companies the chance to respond
The second key reason why negative reviews can be helpful is that they present companies with the opportunity to directly respond to customers and address any issues. Responding to negative reviews shows that they care about their customers and want to make things right.
When a company receives a negative review, it's essential to respond promptly and avoid getting defensive. Instead, acknowledge the customer's experience and offer a solution or apology. In the above example, the mortgage company could respond by saying they listened to the feedback and put more resource into their phone team. By addressing negative feedback in this way, companies showcase their customer service skills and potentially turn a negative experience into a positive one. At Smart Money People, we automatically notify companies about new reviews, and give them the opportunity to directly respond.
By using bad reviews to identify areas for improvement and responding promptly and professionally, companies can turn negative experiences into positive ones and even improve their overall reputation. So, don’t panic if your company receives a bad review. Instead, see it as an opportunity to improve and show your customers that their opinions matter.