A few days ago, I went to Amazon.com to buy a couple of accessories for my Halloween costume. For each item, there were several different vendors offering the products that I was looking for. The prices were pretty consistent across vendors. Before clicking on a vendor to purchase, the first thing that I did, was scroll through the reviews for several of them and look at the highest rated vendors that had many satisfied customers. I quickly ruled out any vendors that had a lot of negative reviews.
Most companies have online reviews, comments, and feedback on Yelp, Facebook, Twitter, as well as marketplaces such as Amazone.com. These reviews and comments can have a lasting impact on a business.
It is critically important it is for companies to manage their online and social media presence as it relates to customer reviews.
A study from global marketing firm, Mintel, found that (not surprisingly) researching online reviews is now an integral part of the buying decision for consumers. Millennials make up the market segment that is most likely to utilize online reviews prior to making a purchase with 81% of respondents to the survey stating that they seek the opinion of others online prior to making purchase decisions.
Knowing that bad online reviews can devastate a business with millennials, how they handle and respond to the negativity is critical to their success. Some brands are able to take advantage of negative reviews and even build a strong relationship with millennials in the process. Marketing professors Michael McCollough and Sundar Bharadwaj coined the “service recovery paradox” as “the result of a very positive service recovery, causing a level of customer satisfaction and/or customer loyalty even greater than that expected if no service failure had happened.”
So, don’t get “spooked” by negative reviews. Take quick action and turn a negative into a positive!