Brand reputation is on course to usurp pricing and product differentiation as the strongest determinant of consumer purchasing decisions. With many brands offering similar quality at similar price points, it’s quality of service that is now making businesses stand out from the rest. According to a recent online reviews survey, 63.3% of consumers say they’ll check reviews of a brand before buying, and 89% state that negative reviews will make them reconsider a planned purchase, a clear indication of the value of a good customer experience.
Why Online Review Analysis Matters
More than just a thumbs up or down, customer reviews give us a hoard of useful data on where your business is lacking, where it excels, and, most importantly, what actually matters most to your customers. A 2024 State of Customer Service and Experience report reveals that 91% of surveyed shoppers think that companies need to place more emphasis on customer service, indicating this to be an area of service that, if performed to a high standard, should boost CX and thereby customer satisfaction.
What’s at Stake If You Neglect Customer Reviews?
Lacking any sort of strategy to engage with and gain insights from customer reviews is not only a waste of a valuable resource, it could prove highly damaging to your reputation, and negative reviews left unaddressed could potentially escalate to legal action against your business.
The Risks for Your Business
Reputational damage
Disgruntled customers are quick to take to social media to vent their frustrations with a brand, and with the prominence of online review websites such as PissedConsumer.com which aggregate overall scores for brands based on thousands of reviews, the impact of poor feedback can escalate very quickly, as negative review after negative review weakens brand reputation and sullies your name.
Word of mouth
Upset customers don’t only share their feelings about your business online, they’ll also share their experience with friends and family, who will then have to mind a story to tell whenever the tarnished brand name comes up in conversation. Remember that just one complaint that’s ignored or dealt with badly can put off countless potential customers.
Financial and legal consequences
Inaction over customer grievances means not only gambling with your brand’s reputation but also its finances. The Wells Fargo case serves as a prime example of how badly things can go wrong. The bank’s lack of response to customer feedback concerning unauthorized accounts escalated to regulatory scrutiny of large-scale mismanagement of auto loans, mortgages, and deposit accounts - a ‘how bad can it get?’ situation that blew up in the bank’s face and rewarded them with the burden of a $3.7 billion settlement.
It’s Now Much Easier to Monitor Your and Your Competitors’ Reviews
To the unfamiliar, negotiating the field of customer feedback and reviews can seem daunting – it can be very confusing and difficult to know where to start.
Yet, as online reviews have grown into an essential part of the customer journey, tools and expert consultation in this area have caught up to help a business significantly simplify the process. In my experience, brands that onboard experienced minds save a lot of time (and obviously cost) by quickly acquiring a foundation that can otherwise only be achieved through trial and error and ‘learn on the job’ customer support. It's not just internal reflection that can be productive either, specialized tools that analyze reviews of your competitors can inform you of their shortcomings and enable you to plan ahead to avoid making the same mistakes, as well as form a picture of your comparative strengths and weaknesses.
So many businesses struggle to devise a clear, goal-oriented strategy for online review management – leading to inaction on the task or investment in poorly thought-out, ineffective measures. Through employing outside consultation, they have been able to find their feet, transform the utility of their customer engagement strategy, and formulate a clear path to success.
Don’t Underestimate What Online Reviews Can Do for Your Business
A healthy brand reputation is the inevitable partner of a customer-focused company. Online reviews are arguably the most referred-to signpost on the customer journey. Analyzing reviews of alternatives to your brand is a solid approach to competitor benchmarking, and understanding the solutions your competition applies to common problems can help you identify less-than-optimal approaches in your own operation. So it’s imperative that your brand not only accommodate them but also understand how to work with them for the benefit of both your customers and your company.
Let your customers see how committed you are to customer satisfaction and how important a part they play as individuals in achieving this goal. Take on board the insights customer reviews offer up to your business, and with confidence you will create a customer experience that not only gives your customers just what they ask for, but associates your brand name with simplicity, trust, and reliability. This is how your business will keep satisfied customers coming back and, importantly, bringing new customers along with them.
Legal disclaimers:
- While every effort has been made to ensure the accuracy of this publication, it is not intended to provide any legal, medical, accounting, investment or any other professional advice as individual cases may vary and should be discussed with a corresponding expert and/or an attorney.
- All or some image copyright belongs to the original owner(s). No copyright infringement intended.
