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Customer reviews can serve as a powerful tool in the contemporary marketplace, offering invaluable insights for both consumers and businesses alike.

However, while reviews can elevate a product or service, they can also become a source of challenge for businesses as negative comments find their way onto Google Review, TripAdvisor, Trustpilot and Yelp as customers enveloped by social media vent their frustrations.

But just how businesses can utilize the information from this positive or negative feedback can prove difficult when it comes to gauging the impact.

“It’s one of those things where you can’t ignore it. Emotionally, you can’t ignore it, nor should you,” says Brad Davis, Associate Professor at Wilfrid Laurier University’s Lazaridis School of Business and Economics, who specializes in consumer behaviour and trends. “If you’re seeing reoccurring patterns in your reviews, to me that’s free research so you will want to investigate the validity of that.”

He says customer feedback is clearly a good marketing tool and warns that companies attempting to ‘stack’ their reviews with positive ones can quickly pay a price, noting research shows consumers between the ages of 18 to 34 are very savvy when it comes to analyzing reviews.

“They can easily filter out the reviews where people are being too whiny or the ones that are too glowing and clearly smack of being written by a PR person,” says Brad. “They’ve developed this innate filter that can diminish the impact of much of it.”

Authenticity of reviews leads to skepticism

The authenticity of online reviews has become a growing concern, blurring the line between genuine recommendations and promotional tactics, leading to a loss of trust in reviews overall. In this way, the very tool designed to provide transparency can become a breeding ground for deception, causing skepticism among consumers.

In Canada, those promoting fake reviews could be liable under the Competition Act. Enforcing the Act is a key responsibility of the Competition Bureau and any business making materially false or misleading claims to promote a product, service or business interest could find themselves in legal hot water. 

Brad says there is already a certain amount of skepticism among consumers regarding online reviews noting research data shows that 88% to 95% of those between the ages of 18 and 34 say they rely on reviews. However, among them research also shows that 93% say they are suspicious of Facebook reviews, while 89% says they are suspicious of Yelp reviews, with 88% admitting to being skeptical about reviews on Amazon.

“On one hand, they’re saying reviews are very influential but on the other hand, they’re saying they are very suspicious of the content. I think there is a real shallowness about a lot of this research. There’s a lot of assumptions,” says Brad, adding consumer behaviour is driven more by subconscious emotional drivers where people rationalize their decisions after having already made them. “Consumers aren’t going to the reviews with a blank slate in most cases.  A review would really have to be very extreme in order to make you reconsider your decision.”

He says consumers often turn to reviews as a final ‘check’ to confirm they have made the ‘right’ choice and that striking a balance between leveraging the benefits of customer feedback and mitigating their potential drawbacks is crucial for businesses aiming to thrive in the digital era.

Companies must focus on genuine customer engagement, ethical practices, and continuous improvement to ensure that customer reviews remain a constructive force rather than a destructive one.

“I think consumers sometimes often just want to vent a little a bit and know they are being heard,” says Brad. “Reviews are worth monitoring but I would be concerned if businesses think they are a definitive thing and will make or break us.”

Tips on how to handle reviews:

Monitor Reviews Regularly: Stay updated with what customers are saying about your business by regularly monitoring various review platforms such as Google My Business, Yelp, TripAdvisor, and social media channels.

Respond Promptly: Address both positive and negative reviews promptly. Responding promptly shows that you value customer feedback and are proactive in resolving issues.

Personalize Responses: Personalize your responses to each review whenever possible. Use the reviewer's name, acknowledge their specific feedback, and express appreciation for their input.

Stay Professional: Maintain a polite and professional tone in your responses, regardless of whether the review is positive or negative. Avoid getting defensive or confrontational, even if the review is critical.

Acknowledge Positive Reviews: Thank customers for positive feedback and let them know that you appreciate their business. This encourages repeat business and loyalty.

Address Negative Reviews Constructively: When responding to negative reviews, apologize for any negative experience the customer may have had and offer a solution or compensation if appropriate. Avoid making excuses or blaming the customer.

Take the Conversation Offline: For complex issues or disputes, encourage the reviewer to contact you directly to resolve the issue privately. Provide a contact email or phone number for further assistance.

Seek Clarification: If the feedback is unclear or vague, seek additional information to fully understand the customer's perspective. This helps in providing more targeted and effective solutions.

Stay Consistent Across Platforms: Ensure consistency in your responses across different review platforms to maintain your brand's credibility and professionalism.

Use Feedback to Improve: Use feedback from reviews to identify areas for improvement in your products, services, or customer experience. This demonstrates your commitment to continuous improvement.

Encourage Positive Reviews: Encourage satisfied customers to leave positive reviews by including links to review platforms in follow-up emails, on receipts, or on your website. However, avoid incentivizing reviews in a way that violates platform guidelines.

Address Fake or Malicious Reviews: If you suspect a review is fake or malicious, report it to the platform for investigation. Provide evidence to support your claim and request its removal if it violates the platform's policies.

Seek Professional Help if Necessary: If managing online reviews becomes overwhelming or if you need assistance in developing a strategy, consider seeking help from reputation management professionals or digital marketing agencies.