How to Handle Negative Reviews: A Guide for Small Businesses

“Your most unhappy customers are your greatest source of learning.” —Bill Gates.

No matter how well-run, every business will encounter negative reviews—it’s an inevitable part of doing business. While criticism can be difficult, especially when undeserved, how you respond can make all the difference. Thoughtfully addressing negative feedback provides an opportunity for resolution, showcases your professionalism, and can turn criticism into long-term growth. Below, we’ll explore strategies and mindset for handling reviews gracefully and using feedback to your organization’s advantage.

Respond Quickly and Calmly

Timing is everything, and unrushed expediency is to your advantage regarding bad reviews. A study by ReviewTrackers shows that 53% of customers expect businesses to respond to a review within seven days. This window isn’t just about meeting expectations; it shows potential customers you care. We recommend shooting to respond within 48 hours.

Negative reviews are public, and your response should reflect your business's tone and values. While your instinct may be to defend your company, it’s more productive to thank the reviewer for their feedback, acknowledge their experience and offer a solution.

Pro Tip: A timely response is ideal, but we need to be in the right frame of mind. Take a moment to collect your thoughts before responding, ensuring that your message is intentional and prioritizes the interests of the business, not ego. It might be a good time to walk around the block!

When responding to reviews, it's helpful to tailor your approach based on the platform. For example, a detailed response might be best for a review on Google, where potential customers often turn for information. At the same time, a more conversational tone can be used for a Facebook review. Consider where the review was posted and adjust your tone and style accordingly. Facebook, Google, TripAdvisor, and Yelp are all valuable platforms to maintain and manage, though prioritization does depend on the industry.

Your Response is for Everyone Else

Here, we get to perspective: When you respond to a negative review, your target audience isn’t the person who left the review—it’s everyone else. Assume the individual who posted the review already has their mind made up, which is often the case. However, the potential customers visiting your page are watching how you handle the situation. People want to see that you’re willing to take responsibility and are committed to customer satisfaction.

A defensive or dismissive reply will drive people away. A calm, measured response, on the other hand, will signal that you care deeply about your customers. Imagine you were at a restaurant where a patron was berating the general manager for some trivial reason; how would you feel if the general manager yelled back, and how would you feel if they remained calm and composed instead? In the former case, you’d probably start to think that the angry customer has some justification, but in the latter, you’d probably side with the stoic general manager. Online, we have the same choices as the general manager.

Some reviews may come from customers who are irrational or overly harsh. In these cases, remain professional, but know that it’s also within your rights to report reviews that violate platform guidelines. If a review is defamatory or abusive, consider escalating it with the platform to have it reviewed and possibly removed.

Related Read: The Right Way to Respond to Negative Feedback (Harvard Business Review)

Personalize Your Responses and Offer Solutions

A generic response to every bad review won’t cut it- although they’re often fine for positive reviews. Personalize each reply, addressing the reviewer by name and referencing specific details from their review. This shows that you’ve taken the time to understand their issue rather than simply going through the motions.

For example, instead of writing:
“We’re sorry for your experience. Please contact us for assistance.”

Try this:
“Hi Sarah, thank you for your feedback. We understand how frustrating it can be when delivery times don’t meet expectations. We’re reflecting on what went wrong, and we’d love to offer a discount on your next order. Please reach out at [email address] if you’d like to take the next step.”

Personalization conveys empathy and helps humanize your brand, making it more approachable to potential customers. It also provides the best opportunity to resolve this encounter meaningfully.

Make Negative Reviews Productive for Your Business

Constructive criticism provides insight into where your business might fail to meet expectations. Use this information to improve your services by addressing product flaws, streamlining processes or retraining staff. I try to frame setbacks as expensive education whenever possible. If I can succeed in preventing the same mistakes, it’s well worth the cost.

If your business were a car, negative reviews would be the check engine light. The vocabulary used in 1-star reviews is often brutally honest—and that’s valuable. If a pattern emerges in the reviews, consider it a signal to make changes. For instance, if multiple reviews mention slow customer service response times, it’s worth investigating whether your support team is understaffed or undertrained. 

Pro Tip: After resolving customers' issues, contact them privately and ask if they would be willing to update their reviews. This may seem obvious, but it likely won’t happen if you don’t ask.

Related Read: Study: Replying to Customer Reviews Results in Better Ratings (HBR)

Encourage Positive Reviews

Counterbalance negative reviews with a steady stream of positive feedback. Happy customers are often less likely to leave reviews unless they’re prompted. After a successful sale or great customer interaction, encourage clients to share their experiences online and give them easy ways to do so. The more positive reviews you have, the less impact a few negative ones will have.

It’s worth noting that with positive reviews, it’s still important to respond. Here, it’s more acceptable to be quick and generic, although personalization does add a professional touch.

Final Thoughts

Dealing with negative reviews is just another part of running a business, but how you respond will set your brand apart. Rather than viewing criticism as damaging, see it as an opportunity to show the community what your brand is all about. Remember, your audience is everyone reading the review, not just the person who posted it.

With these thoughts in mind and your own experiences in business, the best next step is to summarize your thoughts on the topic into documented and explained processes for your business. Have a plan for responding to good and bad reviews, ascertaining reviews in the first place, specifying who’s responsible and how this will all be measured and reviewed. Otherwise, you will waste time with each scenario and lose consistency in form.

As Warren Buffett said, “It takes 20 years to build a reputation and five minutes to ruin it.” Managing negative reviews with care, transparency, and a focus on solutions will help ensure your reputation remains intact—even in the face of criticism.

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