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Apr 4, 2023



eCommerce Expert Workshop


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From One-Star to Five-Star: Real Cases of How Reviews Can Make or Break Your Online Business

This article is about the importance of customer reviews for any online business with examples of businesses that handled them perfectly, and terribly.

From One-Star to Five-Star: Real Cases of How Reviews Can Make or Break Your Online Business


As an online business owner, you're no stranger to the power of customer reviews. They can make or break your reputation and ultimately, impact your bottom line. In this article, we'll explore real-life cases of how reviews have influenced the success of online businesses. From one-star ratings that have led to lost sales and damaged reputations to five-star reviews that have attracted new customers and boosted revenue, we'll analyze the impact of customer feedback on various industries. We'll also dive into the best practices for managing customer reviews, including how to respond to negative feedback and how to leverage positive reviews to build trust and loyalty. So, whether you're just starting or looking to improve your online reputation, this article is a must-read for anyone who wants to use the power of customer reviews to grow their online business.

The Impact of Positive and Negative Reviews on a Business

Customer reviews can have a significant impact on your business. According to a study by BrightLocal, 98% of consumers trust online reviews as much as personal recommendations. Positive reviews can attract new customers and help build trust and credibility, while negative reviews can drive customers away and damage your reputation.

Negative reviews can also have a direct impact on your bottom line. According to a study by Harvard Business Review, a one-star increase in a business's Yelp rating can lead to a 5-9% increase in revenue. On the other hand, a one-star decrease can lead to an identical decrease in revenue.

It's important to remember that customers are more likely to leave a review after a negative experience than a positive one. This means that negative reviews can quickly accumulate if not addressed promptly and effectively.

Real-Life Examples of Businesses Affected by Reviews

Let's take a look at some real-life examples of businesses that have been impacted by customer reviews.

Casper: The Power of Positive Reviews

(source: Casper)

One example of a business that has benefited from positive reviews is Casper, a mattress company. Casper has over 50,000 five-star reviews on its website and has been featured in numerous publications, including The New York Times and TIME Magazine.

Casper's success is partially due to its commitment to customer satisfaction. The company offers a 100-night trial period and free returns, which has helped build trust with its customers. By encouraging customers to leave reviews and showcasing them on its website, Casper has been able to attract new customers and build a loyal following.

United Airlines: The Impact of Negative Reviews

(source: Guardian)

In 2017, United Airlines faced a public relations nightmare after a video of a passenger being forcibly removed from a flight went viral. The incident led to a flood of negative reviews and a significant drop in stock prices.

United Airlines' response to the incident was criticized for being slow and inadequate. The company's CEO initially apologized for "re-accommodating" the passenger, which only fueled the anger of customers and the public. The incident highlights the importance of responding quickly and effectively to negative reviews and PR crises.

Union Street Guest House and their Yelp page

123In 2014, Union Street Guest House had a ridiculous policy of fining wedding parties $500 for every negative review posted by their guests. Can you believe it? Needless to say, this policy didn't sit well with the public or the media. A news article exposed the policy, and all hell broke loose. Negative reviews flooded their Yelp page, causing their overall rating to plummet.

The impact was so severe that the incident received coverage in major news outlets like CNN, CBS, and The New York Times. Union Street Guest House was suddenly in the spotlight for all the wrong reasons. The negative reviews had a profound effect on their reputation, brand, and media appearance, even though they claimed it to be a ’joke’.

The story doesn't end there. Union Street Guest House eventually removed the policy and issued an apology. It was a clear demonstration of the power of customer reviews. They can make or break a business. One bad policy and some negative reviews can turn a business's reputation upside down.

Customer reviews are an essential part of any business's success. They can make or break your reputation, brand, and media appearance. In today's digital age, customers rely on reviews to make informed purchasing decisions. And, with the rise of social media, negative reviews can spread like wildfire.

Customer reviews are a powerful tool that can make or break a business. The case of Union Street Guest House and their Yelp page is a perfect example of this. If you're not already leveraging customer reviews as a marketing tool, you're missing out on a huge opportunity. And if you're looking for a tool to help you manage your reviews, look no further than Growave.

Strategies for Responding to Negative Reviews

Negative reviews can be difficult to deal with, but they can also provide an opportunity to demonstrate your commitment to customer satisfaction. Here are some strategies for responding to negative reviews:

1. Respond Quickly

The longer you wait to respond to a negative review, the more damage it can do to your reputation. Responding promptly shows that you take customer feedback seriously and are committed to addressing their concerns.

2. Be Empathetic

When responding to negative reviews, it's important to show empathy and understanding. Acknowledge the customer's concerns and apologize for any negative experiences they may have had.

3. Offer a Solution

In addition to apologizing, it's important to offer a solution to the customer's problem. This could involve offering a refund, a replacement product, or a discount on a future purchase.

The Importance of Encouraging Positive Reviews

While negative reviews can be damaging, positive reviews can be incredibly beneficial to your business. Here are some strategies for encouraging positive reviews:

1. Ask for Reviews

One of the most effective ways to get more reviews is to simply ask for them. You can do this by sending follow-up emails after a purchase, including a call to action on your website, or by offering incentives for leaving a review.

2. Make it Easy

Customers are more likely to leave a review if it's easy and convenient to do so. Make sure your review process is straightforward, and consider offering multiple review platforms to accommodate different preferences.

3. Showcase Reviews

Once you have positive reviews, make sure to showcase them on your website and social media channels. This will help build trust and credibility with potential customers and can also help improve your search engine rankings.

Leveraging Reviews for Marketing and Customer Acquisition

Positive reviews can be a powerful marketing tool, especially when used in conjunction with other marketing strategies. Here are some ways to leverage reviews for marketing and customer acquisition:

1. Use Reviews in Advertisements

Include positive reviews in your advertising campaigns to build trust and credibility with potential customers. This can be especially effective for retargeting campaigns, where you're targeting customers who have already shown an interest in your products or services.

2. Share Reviews on Social Media

Share positive reviews on your social media channels to build engagement and awareness. This can also help encourage more reviews from your followers.

3. Use Reviews in Email Campaigns

Include positive reviews in your email campaigns to encourage repeat purchases and build loyalty. You could also use reviews to highlight new products or promotions.

Tools and Platforms for Managing and Monitoring Reviews

Managing and monitoring customer reviews can be time-consuming, but there are tools and platforms available to help. Here are some options to consider:

1. Google My Business

If you have a physical location, Google My Business is a must-have tool for managing customer reviews. It lets you respond to reviews, monitor your online reputation, and update your business information.

2. Yelp

Yelp is one of the most popular review platforms, and it's important to monitor your business's Yelp page for new reviews. Yelp also offers advertising options and tools for managing your online reputation.

3. ReviewTrackers

ReviewTrackers is a review monitoring and management platform that allows you to track reviews across multiple platforms. It also offers analytics and reporting tools to help you understand customer feedback and improve your online reputation.

The Future of Online Reviews and Their Impact on Businesses

Online reviews are only going to become more important for businesses in the future. As consumers increasingly rely on online research before making purchases, managing your online reputation and customer feedback will become essential for success.

One trend to watch is the rise of review aggregators, which compile reviews from multiple platforms into a single location. This could make it easier for consumers to find and compare businesses based on customer feedback, and it could also increase the importance of having a strong online reputation.

Case Studies of Businesses That Have Successfully Managed Their Reviews

Let's take a look at some case studies of businesses that have successfully managed their online reviews:

Example 1: Zappos

Zappos is known for its exceptional customer service, and that extends to its online reviews. The company actively encourages customers to leave reviews and responds to each one, whether positive or negative. By embracing customer feedback, Zappos has been able to build a loyal following and a strong online reputation.

Example 2: Uber

Uber has faced its fair share of negative reviews and PR issues, but the company has also been successful in managing its online reputation. Uber responds to each review, and the company has also launched initiatives to improve driver and rider experiences. By taking customer feedback seriously, Uber has been able to maintain a strong market position despite its challenges.


Managing customer reviews is essential for the success of any online business. By responding to negative feedback, encouraging positive reviews, and leveraging customer feedback for marketing and customer acquisition, you can build a strong online reputation and attract new customers. With the right tools and strategies, you can turn customer reviews from a potential liability into a powerful asset for your business.

FAQ Section

What is Growave?

Growave is a bundle of apps built for Shopify stores to increase conversion rates. You can upgrade your Shopify store with a simply install the app and test out the entire bundle of apps for 30 days with out charge. You can build a complete marketing strategy using Growaves apps.

Does Growave have a Demo Store?

Growave has a demo-store with real examples of how each app works and gives you some context to compare with. All the features you find in the demo-store can be implemented in your own store.

Why use Reviews in your Ecommerce store?

Reviews give an authentic glance at your company through external voices. They create positive impressions and build trust with shoppers. Reviews are widely considered amongst the most important ecommerce tools.

How do Reviews look like in store?

Reviews are generally seen under products, on dedicated pages or as pop-up widgets. Reviews can also be used in emails and often feature on social media or search engines. They can be customized to improve their appearance and often have additonal features that improve your control over how they are displayed.

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