The good, the bad and the awful – how business reacts to online reviews

Alongside packing and planning, many turn to online reviews to choose the perfect hotel, restaurant, or activity. These reviews, often shared enthusiastically or with a hint of frustration, play a key role in shaping our experiences. But what happens to these reviews once they are posted? Do businesses truly read them, and if so, do they make changes based on customer feedback?

The short answer is yes, businesses do read reviews and often act on them. In fact, for many, it’s a crucial part of their customer engagement strategy. Reviews offer a treasure trove of insights, from customer satisfaction and service quality to product usability and pricing perceptions. But beyond the numbers and star ratings, reviews provide a story of the customer experience that can highlight strengths and reveal weaknesses.

Businesses, particularly in competitive industries like hospitality, often have dedicated teams or software tools to monitor reviews across platforms like Tripadvisor, Google, and Yelp. These tools can aggregate reviews, analyse sentiments, and even benchmark against competitors.

For example, a hotel chain may use these insights to identify common themes in guest feedback, such as complaints about check-in delays or praises for room cleanliness. By doing so, they can prioritise issues and respond effectively.

However, reading reviews is just the beginning. The real value lies in how businesses respond to them, and whether they take actionable steps to address the feedback. In many cases, customer reviews have become catalysts for change. For instance, a recurring complaint about outdated decor might prompt a hotel to refurbish its rooms. Similarly, consistent praise for a friendly staff member can lead to rewards or recognition programmes, boosting employee morale and enhancing the overall guest experience.

Some businesses go a step further by engaging directly with reviewers. This engagement can take various forms, from public responses thanking customers for their feedback to private messages addressing specific concerns. Such interactions not only show that a business values its customers, but also humanises the brand, fostering trust and loyalty. A well-handled response to a negative review can even turn a dissatisfied customer into a loyal advocate.

The role of negative reviews

Negative reviews, while often dreaded by businesses, are an essential component of the feedback process. They provide honest, often blunt insights into what went wrong and where improvements are needed. For instance, during the holiday season, a restaurant might receive complaints about long wait times or underwhelming festive menus. Instead of viewing these reviews as setbacks, savvy businesses see them as opportunities to refine their offerings and enhance customer satisfaction.

In some cases, businesses have used negative reviews as a springboard for innovation. A restaurant receiving feedback about limited vegetarian options might introduce new menu items, attracting a broader clientele and boosting sales. Similarly, a hotel criticised for lack of amenities might invest in additional facilities, improving its appeal and competitiveness.

As technology evolves, the landscape of customer reviews and business responses is also changing. The rise of artificial intelligence and machine learning that uses algorithms has made it easier for businesses to analyse vast amounts of feedback and identify trends quickly. This capability allows for more proactive responses, with businesses anticipating issues before they become widespread problems.

Moreover, the increasing use of video and photo reviews adds a new dimension to customer feedback. Visual reviews can provide a more vivid portrayal of experiences, from showcasing a beautifully plated dish to highlighting a less-than-sparkling pool.

Businesses are adapting to this trend by incorporating user-generated content into their marketing strategies, showcasing real-life customer experiences to attract new clients.

However, the rise of fake reviews is a growing concern. In 2023, the popular travel website Tripadvisor saw an overwhelming influx of user-generated content, with over 30 million reviews, however, amid this vast pool of feedback, 1.3 million reviews were flagged as fraudulent and subsequently removed.

In the end, customer reviews are not just fleeting opinions left in the digital atmosphere. They are valuable conversations between businesses and their customers. For businesses, reviews offer an opportunity to understand their clients’ needs, address concerns, and celebrate successes. That is why businesses like Amazon are using AI to manage the reviews.

By reading, responding, and, most importantly, acting on reviews, businesses can foster a loyal customer base and continually improve their offerings. So, the next time you leave a review, remember that someone is listening, and your words may just be the catalyst for positive change.

Dr Mina Tajvidi, Lecturer in Digital Marketing, Queen Mary University of London; Nick Hajli, AI Strategist and Professor of Digital Strategy, Loughborough University, and Tahir M. Nisar, Professor of Strategy and Economic Organisation, University of Southampton

This article is republished from The Conversation under a Creative Commons license. Read the original article.