FYI Magazine

How businesses can address negative online reviews

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Online retailer comment sections and review sites have become very popular over the last half decade. More and more consumers now rely heavily on product and business reviews to inform their decisions and purchases. Some consumers may scan individual product reviews prior to purchasing a big-ticket item, while others may visit review sites to find the right restaurant.
 
Savvy business owners recognize the influence that such reviews can have on their businesses. For example, a 2011 study of Yelp.com, an online business review sit that allows users to comment on and rate businesses employing a five-star rating system (five being the highest rating a business can receive), from researchers at Harvard University found that a one-star increase among reviews of Seattle restaurants led to a growth in revenue between 5 and 9 percent. Yelp reports it had an average of approximately 132 million monthly unique visitors in the first fiscal quarter of 2014, and those figures illustrate just how much consumers have grown to rely on review sites to inform their purchases.
 
As the Harvard study indicated, positive reviews can dramatically improve a business owner's bottom line. But what about negative reviews? The best way to address negative reviews is to cater to customers' needs in such a way that no such reviews are ever written. But issues, including negative reviews, are bound to arise, and business owners who work long hours may find it difficult to reconcile poor reviews of a company they put their heart and soul into. That compels some to overreact to negative reviews or immediately go on the defensive. But there are more productive ways to address negative online reviews and even turn them into a positive experience for all parties involved.