How impactful are online reviews?

With a variety of online platforms such as TripAdvisor, TrustPilot, Feefo and Trusted Shops at our fingertips, we now live in a culture where we are instantly able to read a comprehensive list of customer reviews about near enough any product or service.

This user feedback helps many of us to decide which products to buy, which hotels to book and which restaurants to eat in, and this is often without ever feeling the need to read a single ‘expert’ opinion or review.

But for some businesses this rising phenomenon can have just as many negative effects as positive, as a crushingly bad review can damage a brand, something that is beginning to worry many businesses.

According to a new report by the Competition and Markets Authority (CMA) published last week, an increasing number of companies have allegedly taken matters into their own hands and posted fabricated positive reviews onto these websites.

The CMA, a non-ministerial government department, has warned this could contravene the Competitions Act and is investigating a number of unnamed companies. It is also concerned about the practice of companies choosing not to publish negative reviews on online profiles they control, and businesses paying for endorsements in blogs and other online articles without this being made clear to consumers.

CMA senior director, consumer, Nisha Arora says: “We have found that consumers who use online reviews and endorsements find them valuable, but we have also heard about some practices that may be unlawful.

“We’re committed to ensuring that consumers’ trust in these important information tools is maintained, and will take enforcement action where necessary to tackle unlawful practices.”

While it is clear that print companies that secure a vast amount, if not all, of their work online should steer clear of committing these offences, those who are reviewed regularly say it is also important to react appropriately to reviews that are posted, particularly those less favourable.

The way that businesses with a consumer-facing online customer base deal with online reviews can have a significant effect on future business opportunities.

Some companies reply to every review – good or bad – individually. Ensuring that negative comments are dealt with personally can reassure customers that their views are taken seriously by the business.

But stories about companies that have reacted to a negative customer review with an equally angry response have become commonplace in the media in recent years.

While this may seem tempting if a review seems unfair, for damage limitation purposes, commentators say it is probably more sensible for the companies involved to reply to these reviews in a more level-headed fashion, or to rise above them.

Exaprint UK takes a case-by-case approach to the situation, says managing director Simon Cooper: “When valid issues are raised we do engage with the customer and see this as an extension of our customer service support.

“However we did recently receive an unfair comment on Twitter that we chose to ignore on the basis that it was completely unfounded and untrue. 

“In those situations you have to tread very carefully as responding could well lead to a slanging match, which is not terribly dignified.” 

‘Waste of time’

Harrier LLC commercial business development consultant Julian Marsh believes replying to each review may be a counterproductive exercise due to their subjective nature.

“In a previous life I launched my own photo brand, which had an unexpected success. I personally dealt with the reviews and at the time I took them all very personally,” says Marsh.

“I replied to all the ones I came across – thanking the good ones and apologising to the bad ones. With hindsight I think it was probably all a bit of a waste of time.

He adds: “I always take a bell curve view and ignore the very best and the very worst and look at the general consensus.”

Supporting the view that many businesses are still unsure how to manage their online reviews, insurer Zurich’s SME Index has recently found that around 15% of SMEs have experienced some form of negative comment online, yet 40% admitted to never checking their online reviews, leaving them in a vulnerable position.

However, it highlighted that they are slowly becoming wiser to the situation, finding 9% already pay someone to manage their online reputation and a further 9% expect to do so in the next 12 months.

Richard Coleman, managing director of Zurich’s Commercial Broker business, says: “In a world where the consumer is increasingly guided by what they can easily find out online, SMEs need to get to grips with their own online presence and how to manage it.”

Online printer Saxoprint’s senior key account manager Phil Foster says the company answers each negative review it receives via the Trusted Shops platform in a polite and honest way.

“On the one hand it makes sure our customers are satisfied and on the other hand, potential new customers can see how we deal with problems and complaints,” says Foster.

“The customer will never be happy that there has been an issue, but we can go a long way to rebuilding their trust by reacting quickly and resolving the situation to their satisfaction.”

Web-savvy business people warn that all businesses should be aware of the potential for brand damage if social media is not managed correctly or adequately.

Companies that have a dedicated person managing their online reputation can more easily iron out issues and ultimately boost the percentage of positive reviews, which can in turn lead to more work.

“Positive reviews help us to appreciate the elements of our service that clients enjoy, thus helping us to create an overall positive experience for our customers,” says Foster.

“Obviously positive reviews are also a good marketing tool and they encourage new clients to try us.”