How To Measure Impact of Negative Reviews on Your Business Performance?

Sarah Smith
Written By Sarah Smith

10 min read

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  • Publish Date : 4/12/2024 12:12:55 PM
  • Last Update : 5/27/2024 7:11:15 PM
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Every business runs on some kind of publicity, either its offline word-of-mouth marketing or online Google reviews. Positive reviews drive more sales, and footfall and create an upgoing graph on your business performance. But what happens when your business receives a negative review? Does it affect your sales or customer retention? 

Well, there have been cases where customers have not written positively about businesses. There can be multiple reasons for such responses like bad product or service, unhealthy customer service, late delivery, etc. But the good part is you can measure these negative reviews and see how they affect the business and work on these to make things better. 

If you are a business owner, this blog will help you with:

  1. Impact of negative reviews
  2. How to measure the impact of bad reviews
  3. Why measure?
  4. How to overcome and strengthen your business’s online reputation

Let’s get started.

Why Do Negative Online Reviews Matter For Businesses?

Studies show that 86% [source - Invespcro] of consumers hesitate to purchase from a company with unfair reviews, and 94% [ source: Trackers] think a negative review makes them less likely to purchase from a firm.

This means it is the business's primary concern to maintain the image on Google or it will have a bad impact on the growth graph of your business. It might result in lesser or no new footfall, a decrease in sales or even the business may not be able to retain their old customers. 

However, if you measure these bad aka negative reviews and work on them, you can not only improve your brand’s trust but also win back lost customers. 

How Can You Measure The Impact Of Negative Reviews On Your Business?

Just like how businesses measure success it is equally essential to measure negative reviews for further growth of the organization. 

Start with monitoring reviews online but how? Begin with analyzing keywords relevant to your business. This can be done using tools like Google Keywords Planner, SEM rush, Google Analytics, etc. which helps in spotting the word that is driving the most traffic to your page. 

Ensure to also check keywords related to your brand or business such as company name reviews, company name complaints, etc. The conversion rates of these keywords can be seen using analytics on Google. 

Once you are thorough with keywords, start noting the negative reviews that showing in different search results for your business. You can use keyword traffic data from Adwords to estimate and measure the website ranking position received after negative reviews that were posted on the business page or third-party reviewing platform. 

After monitoring reviews based on search keywords and website ranking, one can check analytics to see if there e is a downfall in customer acquisition and retention. Further, establish the reason and work on responding to the reviews to reduce the negative impact on business created by negative reviews.

How Does Measuring The Impact Of Negative Reviews Help Your Business Grow?

The ultimate goal of measuring the impact of negative reviews is to improve your business growth by navigating the impact of negative reviews efficiently. It can boost client loyalty, expand your clientele, and boost revenue. 

You should use this negative feedback to demonstrate to customers that you learn from your failures and constantly improve your services for their benefit. Measuring unfair Google reviews can also be utilized as a gauge for sales, internet reputation, and customer happiness. You can regularly use these techniques and modify your objectives and course of action accordingly.

How To Navigate The Impact Of Negative Reviews On Business?

When someone posts bad Google reviews about your company, staying neutral can be difficult, but responding poorly won't improve things. So, to overcome these challenges, we bring you specific strategies to navigate the impact of negative Google reviews on your business.

           1. Quick And Prompt Reverts 

Make it simple for customers to contact you for your support services. For example, many companies now use AI-driven chatbots to improve customer support and guarantee that problems will be resolved promptly and effectively. 

React quickly to all comments, especially if they are negative. Unanswered complaints harm your company's reputation online and in the marketplace.

           2. Acknowledge and make up for your fault 

Refrain from debating customers' emotions. Instead, accept the review and extend your regret if the customer had a poor experience. Your willingness to apologize speaks to everything, even if you have done nothing wrong.

There are a lot of examples of restaurants' poor customer service or taste of food, and it has been ages since they have been giving a free dish, or an additional food item to manage their reputation. 

For example, in case of any mistake, offer a sincere apology and try covering it by offering or adding extra to their menu or package. 

           3. Maintain a professional tone 

Internet review sites are not courts. That is not the place to argue points of fact. Demonstrating that you know their concerns and informing them that it has been a mistake that may not happen again could save the business from some damage. 

You must maintain a professional tone and regard each customer as sir or ma’am. This will help you balance out negativity with positivity and later if customers are happy with the response they might forget and intend to repurchase. 

For Example, Zappos never fails to respond to negative customer reviews with humour and twist, but brands like Marriott always choose a professional and formal way to respond to their customer's complaints.

           4. Try to take the conversation offline - 

Keep your online interactions brief as much as possible. Offer to discuss the matter offline via phone, email, or in person. Because when you are contacting online there are people who can read and add to the volatility of the business. 

It is hence important to take business offline and maintain privacy in the conversation to ensure it stays confidential and doesn’t harm the image publicly. In private you can even give customers some extra discounts, and freebies to make up for the business’s mistake.

           5. Measure the success of your response - 

In case of any bad review on Google, one must send a revert to feedback. Show genuine concern and try to solve the problem. Once you have settled the business with the customer then check if your response has made them happy or not. 

To measure these responses, see how other customers respond, and check if the negative reviews have taken a positive turn in the eyes of all consumers.

Bonus Tip: How Can You Prevent Negative Reviews For Your Business?

You can prevent negative reviews by adding these marvelous tips to your business strategies. It will also preserve the energy, cash, and credibility you will use to deal with bad reviews.

#1. Quality products and services
Providing high-quality goods and services that satisfy or even beyond your client's demands and preferences will help you avoid negative reviews.

#2. Maintain communication with your target audience
Maintaining efficient and timely customer communication is imperative while ensuring that your social media accounts, website, and marketing materials are accurate and current with all updates regarding customer satisfaction.

#3. Follow-up reminders for reviews
You may also ask for and encourage favorable reviews by following up with consumers after they make a purchase, reminding them to leave a review through email, SMS, or providing discounts or other incentives. These endorsements can strengthen your brand, draw in new clients, and balance out bad ones.

Use Negative Reviews to Improve Your Business

It's one thing to calculate analytics and read bad reviews; it's another to know how to apply that data in your favor. It takes art to deal with unsatisfactory clientele in particular. Every day, hostile exchanges take place. Don't let this chance pass you by. Gather information on the types of negative reviews your brand receives, classify them based on quality, deliverability, and more such parameters, and seek help from your team to take appropriate action. 

Businesses might find great pleasure in receiving negative reviews because it is a sign that their clients know their offerings and are concerned enough to provide insightful criticism. Use these essential suggestions for responding to unfavorable reviews in a way that advances your business.

FAQs

#1. How can negative reviews impact a business? 

Negative reviews significantly impact a business's capacity to attract and retain clients. A bad review is a customer expressing how unhappy they were with the goods or service they received, and it can raise suspicions in the minds of other clients who might otherwise consider doing business with the organization.

#2. Which three tips are suggested for dealing with negative customer feedback?

The three tips that are suggested for dealing with negative customer feedback are:

  • Acknowledge it & apologize
  • Prompt response
  • Take the further discussion by phone, email, or in person.

#3. What are some of the ways negative reviews can help validate a business to other potential clients?

Following are some of the ways negative reviews can help validate a business to other potential clients:

  • Improve your services
  • Develop a rapport with your clients by paying attention to them
  • Unfavorable reviews promote trust by seeing unbiased feedback
  • Encourage you to Grow from your mistakes

#4. Which is the best way to address negative reviews?

The best way to address negative reviews is by replying promptly and professionally. Ensure you respond rather than just ignore any negative reviews.

#5. Why is it essential to deal with negative reviews?

Your internet reputation may be harmed by negative reviews, mainly if the criticisms are ignored. Regardless of how unfavorable reviews affect your brand, responding to them can help lessen their impact by demonstrating to prospective clients that you value them.

#6. Do negative reviews result in a decline in sales?

Yes, negative reviews result in a decline in sales. Furthermore, it reduces customer trust, ultimately affecting the business's profitability.

#7. How can a bad review convert into a good review?

The most excellent strategy to transform bad feedback reviews into a positive one is to offer your consumers an apology and make amends for the inconvenience.

#8. Is it okay to leave a negative review as it is?

Yes, it is okay to leave a negative review as it is. However, it would help if you carefully considered the effects of the review on business. One or two negative reviews on Google rarely destroy a business if there are enough positive ones.

Sarah Smith
Written By Sarah Smith

Sara holds expertise in brand management and rebranding. She has worked as a business communication specialist and understands the basic 'know-how' of empowered brand communication. Her experience in brand management helps her create Google reviews that hit potential customer's pain points. She is responsible for planning, ideating, and conceptualizing Google reviews at Buyreviewz.com for a group of brand owners looking for rebranding through local SEO, Google business, and viable digital reach!

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