Customer Experience

5 Strategies for How to Handle Bad Reviews

5 Strategies for How to Handle Bad Reviews

As consumers, we know the importance of online reviews. As entrepreneurs, our relationship with them is, well, complicated. Because nothing feels better than getting positive feedback from a customer. And nothing can ruin our day quicker than a bad review. But the reality is that despite all your hard work and good intentions, bad reviews happen. Here are 5 strategies for how to handle bad reviews.

The influence of online reviews

As business owners, it’s impossible to ignore the influence of online reviews. Surveys show that 70% of people use ratings to filter out what local businesses they even consider. And over 92% of consumers rely on reviews to make purchasing decisions. A McKinsey study found that a small shift in rating makes a big difference. Just moving from 4.2 to 4.4 stars has the power to boost sales. So every review matters, and asking for feedback should be built into the customer experience journey.

The problem of fake reviews

At least 10% of online reviews are fake. The World Economic Forum estimates that fake reviews influence USD$152B of global online spending. From bots to review farms, it’s big business to create fake positive reviews to boost sales, and fake bad reviews to bring down competitors. Governments now recognize this problem, and in 2022 the UK announced reforms to protect consumers. More recently, the US Federal Trade Commission also proposed new rules. But legislation takes time to roll out, and enforcement can be challenging.

In the meantime, there are actions you can take to cope with the soul-crushing experience of negative reviews. Here are 5 strategies for how to handle bad reviews.

Strategy 1: Create a Boundary

The first thing to do is create a boundary to protect yourself from the impact of negative reviews. This means setting up the communication flow so that you don’t get dinged with the notification of a bad review just as you are about to head into an important meeting, or out for dinner with friends. 

This can be done using email settings, to send all review platform notifications to a special folder. Or, you can set up a new email, like “listen@company.com” or “reviews@company.com.” Use this email in all the places where your business is listed for reviews. Google, Yelp, TripAdvisor, Booking.com, OpenTable -whatever makes sense for your sector, in your area. 

The point is to create a boundary between your usual activities, and review notifications. Then you don’t get your workflow destroyed by a 1 star review popping up and stealing all  your attention. Instead, you can build into your schedule time to check in on reviews, and deal with it in a methodical, controlled way. Or, if your company has a bigger team, monitoring reviews can be assigned to an operations manager, administrator, or marketing manager.

Strategy 2: Don’t Make it Personal

This one is tough. Because when it’s your business, it feels personal. But you are not your business. And sometimes, people leaving bad reviews are frustrated by more than whatever just happened as a customer of your business. They may have experienced a whole list of crappy things, and that small mistake set them off. People need to vent, and leaving a bad review online can release stress and annoyance. Accept that, and build up your own system to support you. Journaling is an excellent way to vent. Share with other entrepreneurs, who will certainly have their own stories of nightmare fake reviews and heartbreaking negative comments.

Strategy 3: Respond to Every Review

Yes, even the bad ones. How you respond to reviews is an opportunity to demonstrate the ethics of your company. Reasonable people know that things are not perfect 100% of the time. Therefore, how you handle problems and complaints can be a deciding factor in whether someone wants to buy from you. 

 

While it’s ok to have a standard line like “please reach out to our customer care team at care@email.com” don’t cut and paste the same response to every review. The point of the review is to show that your company is paying attention, and your team genuinely wants to do right by your customers. Using the same response for everyone looks like it’s automated and doesn’t come off as authentic.

 

For example, when I was running my household management franchise, a disgruntled former employee went on a binge with his young mates on a Friday night, leaving 3 1 star reviews within the space of an hour. In my response, I stated that we had no records of booking services for them, suggested they had left the review for the wrong company, and invited them to contact us to discuss. We actually landed a client out of this – she told us that the reviews seemed fake and that she respected the professionalism of our response.

bad reviews online

A real life example

Here is a story. When I was running my household management franchise, a disgruntled former employee went on a binge with his young mates on a Friday night, leaving 3 1 star reviews within the space of an hour.

In my response, I stated that we had no records of booking services for them, suggested they had left the review for the wrong company, and invited them to contact us to discuss.

Actually, we landed a client out of this! She shared that she felt the reviews were fake. And that she respected the professionalism of our response. The way we handled that bad online review built trust with our target audience and turned into sales.

Strategy 4: Research and Investigate

Sometimes, it is easy to spot the real reviews from the fake ones. Specific details may be clear that it was left by one of your customers. Be open to this opportunity to learn and improve. Research and investigate the circumstances. Even if it mentions a staff member that you think is a star. Because everyone can have a bad day. The review could indicate a chance to improve your processes, or training. And include this in your response, to show that you are taking steps to ensure the situation doesn’t happen again.

Strategy 5: Build Other WOM Tactics

As explained at the start of the article, online reviews are an important part of the customer decision process. But social proof and word of mouth (WOM) can come from other places. A referral program to encourage your customers to tell people about your business is effective for bringing in more revenue.

Also, be aware of positive feedback from your communication channels. If you deal with customers in person, on the phone, or over email, watch out for comments expressing satisfaction and happiness. Ask them if you can use their comment, and share it on your website, social media, and marketing materials. Finally, be proactive and create a customer feedback survey. Include this in after sales followup, or in newsletters. Statistics like “98% of our customers would recommend our company” can be pulled from survey data, and this is a powerful social proof for your audience.

The Bottom Line

To conclude, it is impossible to avoid bad reviews. It’s just a fact of doing business. So these 5 strategies for how to handle them are valuable.

First, protect yourself from the flow of reviews to your phone and desktop. That way, you can control when you sit down to look at them, and prevent the stress of a surprising 1 star review when your focus is needed elsewhere.

Secondly, understand that it isn’t personal, and build your own support system. Then, respond to every review. This demonstrates your professionalism and willingness to do the right thing for your customers. And this can also highlight the fake reviews.

Next, take a moment to investigate, to see opportunities to improve processes, systems, and training.

Finally, build your own sources of testimonials and feedback. Customer surveys and normal customer interaction can provide a wealth of data that can be used across different marketing channels. This gives authentic, positive information for consumers researching their purchase decisions.

5 Strategies for How to Handle Bad Reviews Read More »

4 assumptions that can hurt your business

4 Assumptions That Can Hurt Your Business

We move through with world with sets of assumptions. And thank goodness! Because society needs them. It makes life easier. When we drive a car, we assume the drivers around us know the rules of the road. At a good restaurant, we assume the food will be fresh and prepared in a clean kitchen. As entrepreneurs, we assume our staff are doing their best and that our customers will pay their invoices on time. But as with everything, there are limits. Here are 4 assumptions that can hurt your business. Read these and consider if you need to reevaluate your beliefs and expectations. 

1. Assumptions about staff: thinking employees are as dedicated as you are

Remember that for them, it’s always a job. When a company is new and scrappy, it often feels that everyone is in it together. But when the business grows, it’s not unusual for staff to feel resentful. They see the owners getting a bigger slice of success than they get. Even with a competitive salary, perks, and a bonus, there may still be a sense that you are benefiting more from their hard work than they are.

Tips on how to manage this assumption:

  • Recognise the imbalance between owner and employee, and never assume staff are as dedicated as you
  • Document all tasks, policies and procedures so new staff can step into roles with minimal disruption to operations
  • Keep all business activites (email, documents, files) in company drives and systems
  • Don’t let staff do any work for your business using their personal email
  • Benchmark their compensation to confirm salary and benefits are in line for their role
  • Share compensation data so they see they are being paid fairly
Assumptions that can hurt your business example

Here is an example. I know a CEO who puts in 50-60 hour weeks, often steps in to fix staff mistakes, and has significant personal investment in the success of the business. The employees are paid well with full benefits, flexible hours, and work from home options. I just happened to be waiting at the company head office to meet with this CEO for a coaching session, when I overheard one of the staff say “I’m the only one who works around here.” 

2. Assumptions about pricing: thinking your rates are too high

It’s a natural reflex. When sales are slow, or a lead goes nowhere, it is easy to assume that the price is too high. You may actually hear prospective customers say that your rates are too high. But instead of slashing prices and giving away valuable profit margin, take a step back. Because is cutting rates really the answer? Or are you just not reaching the right audience?

Tips on how to manage this assumption:

  • Research the market and chart what competitors are charging
  • Clarify where your brand is positioned and how you compare among competitors
  • Know your customer avatar. Use this worksheet!
  • Review marketing message and placement to see if it aligns with your branding and target customer
  • Analyze all marketing data to see if you’ve been reaching your target customer
  • Readjust marketing if necessary
  • Adjust prices only if it better aligns with branding and target customer

3. Assumptions about suppliers: thinking you have the best deal

All businesses have suppliers. It might be parts for manufacturing, software to keep a product operating, or items used by staff. Supply chain management is a bigger task in some sectors than others. However, every business has some dealings with other businesses. Sometimes, there relationships are set up and then left alone, for years. 

Tips on how to manage this assumption:

  • Add supplier review to your annual strategic planning
  • Check in on quality and pricing every year
  • Monitor their financial health and customer ratings
  • Forecast growth for the coming year and confirm your supplier can keep up
  • Stay aware of who competes with suppliers. A small firm that wasn’t a fit 2 years ago may have grown and be able to better meet your needs now
  • Talk to your network for referrals and feedback

4. Assumptions about customers: thinking you know what they are thinking

It’s always thrilling to get a positive review from a customer. Personally hearing great feedback can make you feel on top of the world. But don’t think that all your customers feel the same way. That assumption closes down opportunities to make changes and improvements. 

The fact is, not everyone shares feedback. And when customers like you, they are less likely to speak up. Here is an example. When I ran my household service franchise, we introduced a new quality control review process. That revealed one particular employee who wasn’t meeting standards. When we approached the customer, they shared that they “liked him and didn’t want to say anything.” So we thought the customer was happy, but she was actually tolerating sub-standard services for the sake of being nice. But we were losing out on referrals, and it explained a couple of cancellations. That assumption cost us money. 

Tips on how to manage this assumption:

  • Include a feedback loop into the customer experience journey that is easy to complete. Digital forms can be added to email footers and invoices. 
  • Allow anonymous feedback surveys to get full honesty
  • Investigate every compliment and complaint to fully understand what is working, and what is not working, in your business
  • Monitor all sources of customer feedback, appropriate to your business. This may be Google Reviews, BBB, TripAdvisor, Yelp, TrustPilot, OpenTable

Questions for entrepreneurs to check assumptions

questions for entrepreneurs to check your assumptions

Do you have KPIs that you use to monitor the output and quality of your staff, or do you go by what they tell you and what you observe?

Do you provide customers with an anonymous evaluation process, to gather their honest feedback about their experience with your company?

When was the last time you asked staff for feedback on your performance as a leader?

Have you checked benchmarks for your industry to see how your business performance compares? Profit margins, year over year revenue growth, clickthrough rates?

Have you mapped out workflows to check for duplication, gaps, and opportunities to improve efficiency?

How assumptions can hurt your business

These are just 4 assumptions that can hurt your business by causing a loss of revenue, profits, productivity, and opportunity. Being aware of these expectations and biases is valuable for keeping your competitive edge. Include this awareness and these questions in your regular strategic planning process. This will help keep you open to change and improvement. 

4 Assumptions That Can Hurt Your Business Read More »

Answering customer calls

Answering the Phone is Basic CX

This post may contain affiliate links. I will receive a small commission if you use these links, at no additional cost to you. For the full disclosure, visit this page.

It’s such a digital world that it is easy to forget old-school basic CX like, you know – answering the phone. A recent experience with with a local small business turned out to be a powerful example of how the fundamentals can gain or lose customers. Read on, and consider whether your CX map needs some business process reengineering to bring back the basics of answering the phone. Or, you can skip the story and jump down to the Bottom Line bit at the bottom to get the takeaways that can help you be a better entrepreneur.

I recently came to accept that my favourite hair stylist is not returning to London. She went back to Italy to visit family in July, and she still isn’t back. Summer is long gone, so it should have been clear ages ago that it’s time to find a new stylist, but hey, I’m an optimist. Every time I called the salon, they said no, she isn’t back yet. YET. That gave me hope that her return was imminent. I finally went ahead and booked a cut with their senior stylist, figuring this place must know how to spot talent, since they had had the good sense to hire the amazing woman who flew to Italy and hasn’t flown back. YET. My haircut with the senior stylist was a borderline horror story, but that isn’t what I want to share here. This is an example of the power of the basics of answering the phone.

After researching hair salons in my leafy area of North London, I came across a place I liked. It had lots of positive, recent reviews, and Google Maps told me it was a 13 minute walk from my flat. I used the online booking function and the appointment dropped into my calendar. A SMS confirmation popped up on my phone a couple of days before my appointment. Technology was working well.

Technology Fail, or Human Error?

Rather, I thought technology was working well. The morning of my appointment was a crisp sunny Saturday. Perfect for a short walk. I’m very grateful for the good weather, since my walk to the salon took 30 minutes longer than expected. Leaving my flat, I opened Maps on my phone and entered the name of the salon, which was promptly pinned with its name and the icon of a teeny pair of scissors, just to confirm what kind of business it was. I walked through back roads to the High Street until my location on the map matched where Google had pinned the salon. But it wasn’t a salon, it was a laundrette.

I slowly walked up and down for a few minutes, in case the business had moved a few doors down or I was missing the signage. Next, I double checked Google Maps, which had me firmly planted over the salon name and scissor icon. Then I opened the business website and saw the address was for High Street Way – I was on High Street Road. Gah. As I’m entering this new address into Maps, my phone rings. It’s the salon calling, and I explain I’m on Road and the website says Way, I’ll be there in 10 minutes. 

Off I go again, following Maps along more back roads, away from the High Street, until I turn onto Way. It’s a residential street, but I carry on, hoping the end will have a row of shops with a salon on the corner. Like I said, I’m an optimist. At the end of the residential street was another residential street. I wondered if I was being punked, for 2 reasons. One, I was standing at the address listed on the business website. Two, I told the guy who called from the salon that I was on my way to this address.

Signs from the Universe

For a moment I wondered if this was a Sign From the Universe that my stylish young Italian stylist was in the process of returning to London, and that I should just abandon the idea of a haircut today. Should I give up and carry on with my day, or shall I plunge on?

Plunging on with renewed determination, I called the salon again, and told him my story. I went to Road, I went to Way, where are you? He explained where the salon was in relation to Landmark, and finally, I knew where they were. This landmark is a rather prominent and locally famous bit of architecture. I know it well, and finally, I could find them. I made my way there, arriving almost 30 minutes late, because of the 2 unnecessary legs of the journey.

Answering the Phone

Back to why answering the phone is important for business processes and strong customer experience. My failure to find the salon was not due to my map-reading skills (which is surprisingly good, considering how often I get lost). Human error is a thing which impacts businesses, but this wasn’t user error. Google had pinned their location to the wrong spot. I showed this on my phone when I arrived. He responded “that is a problem” which is an understatement. Sorting out settings and updating content in Google My Business is an excellent example of working ON your business. It may take time, be frustrating, and not fun, but neglecting it can cost you revenue.

In addition to being so willing to fix the Google Maps issue, this story is an example of the power of answering the phone. Sometimes, good customer experience is really that simple. For a retail or shopfront or service business, having a real human answer the phone is Page 1 of CX. Technology is wonderful, but it fails, it has limitations, and there is user error. If you have a phone number for your business, answer when people call it.

Note that this website uses affiliate links, which may earn a commission at no additional cost to you, only if you decide to make a purchase. See my disclosure about affiliate links here

Bottom Line: What does this mean for your business?

If you want to skip the story and get straight to the lessons of this customer service experience, read these 4 tips for direction on how to improve CX and marketing visibility for your business.

1. Update Google My Business

Keep your Google My Business listing updated. Clear your cache and test where Google is pinning your business on the map. If you don’t have Google My Business, read about how it will help your business.

2. Include detailed directions

If you need your customers to come to your place of business, include detailed directions on your Contact or Location page. An address alone may not be enough, especially if there are many streets with identical or similar names. Postcodes help, but not everyone will want to look that up. Make it easier for your customers by providing visual clues. “Across from the Main Street Post Office” is more clear than “123 Main Street.” If the salon website had one line explaining its location in relation to the famous landmark nearby, I would have found my way there without fail. 

3. Answering the phone is basic CX

If your business is retail, storefront, or a service, and there is a phone number on the website and Google listing, your business process must include answering the phone. You or your staff must always be answering the phone. And have a system to collect messages. And check those messages, frequently. If that isn’t possible, outsource to a service which can handle this professionally. You can customise your answering service to fit your business needs and budget. In the UK, MoneyPenny is an outstanding choice, and in the USA there is Ruby. If I hadn’t connected with someone to get accurate information about their location, I would have missed my appointment, and the salon would have lost my business. I had gone to the address in Google Maps, and the address on their website, but still hadn’t found the hair salon. Answering the phone and helping me find them landed them a customer.

4. Never blame the customer

Stay positive with customers, even when they do annoying things like rolling up late to an appointment. Especially a new customer, because this first customer service experience sets the tone for the relationship. Instead of being grumpy and abrupt, they were kind and welcoming. I showed them the pin on Google Maps, which placed them a few streets away from their actual location. His face fell and he said “that is a problem.” To their credit, when I paid for my (very good) haircut, I was given an update: “our IT is fixing it.” And they did – their Google Maps now pins their salon in the correct location.


Answering the Phone is Basic CX Read More »

Scroll to Top

Subscribe to
The Hagstone Blog

Insider stuff for entrepreneurs like you