Introduction
Customer feedback is important in most industries but particularly in the hospitality industry. It can provide information on what people want and need, and what they expect from products and services. The phrase “The customer is always right” is widely known and quoted for a reason. A business with happy customers is a business that’s thriving. But businesses can also learn from the unhappy customers. In the words of Bill Gates, “Your most unhappy customers are your greatest source of learning.”
Customer feedback pinpoints the strengths and weaknesses of your business and what changes can be made to enhance customer experience.
Statistically, the reviews have a significant impact on business. For example, just 3 per cent of customers say they “never read reviews online”. 69 per cent of customers report that they would use a business if its reviews “described a positive experience” and in particular if they were written by a named user. 71 per cent of customers would not frequent a business if it had an average rating below three stars.
Word-of-mouth marketing is one of the most effective types of advertising. Personal reviews from family and friends fall into this category but in recent years, online reviews are included as well. People share their recommendations or warnings for products online and in general, this impacts customers’ choices about said products or services.
Google is the main platform for customers leaving reviews and their star rating (1-5) is of particular importance (especially with regards to the hospitality industry). Studies show that 63.6 per cent of people check Google reviews before visiting a business. This is why a business should put every effort into obtaining reviews from their customers. When googling a business, the first thing that appears is that business’s average rating and reviews. If the business has many negative reviews and a low ranking, potential customers will likely go elsewhere.
The hospitality industry, in particular, is more likely to have more face-to-face time with customers than some other businesses and therefore are more likely to have online reviews written about them. Hence, it is essential they manage the reviews effectively.
Social proof comes into play regarding reviews. It is a psychological concept coined by Robert Cialdini in his 1984 book “Influence: Science and Practice”. It explains people’s social actions as guided by others, especially if they are unsure about a choice.
If a business is looking to influence decisions and grow their brand, social proof is a powerful tool.
It is the notion that, if others are doing it, I should be doing it too. Decision-making is validated by the choices of others. In real life, social proof could be seen by assuming that a full restaurant must be better than the empty one beside it or that the nightclub with the longest queue is the best.
In this digital age, social proof has expanded. Now, customers are not just trusting the people in their life (family and friends) but also strangers’ experiences with products or services. Review sites encourage this, with some businesses having thousands of reviews. One review by one stranger may not sway customers, but multiple saying the same thing can influence customers’ choices and behavior significantly.
Social proof can be leveraged by businesses not only by highlighting positive reviews but also by marketing slogans such as “140 people bought *such a product* in the past 24 hours – get yours before we run out”. This creates a sense of urgency for the customer because they will trust that if a great number of people are buying it, it must be good. Uncertain customers will find comfort in the fact that others are pleased with it.
Say, you were shopping for a new bed. Three of them look great and you are undecided. Now, do you choose:
The choice made by most people is obvious. Therefore, a business highlighting and focusing on reviews is very important to its sales.
Any positive comments about your business are social proof. The online comments serve as endorsements for other potential customers. Essentially, if the business highlights and features these reviews, it serves as free advertising.
Not only do reviews promote your business in a huge way, but the business can also learn from the reviews.
Example:
A customer leaves a review for a restaurant, “Lovely food but the door kept opening and there was a draft”. The restaurant can learn from this and make sure that the door is closed/fixed.
Google star ratings are a system used to grade companies based on several factors. For instance, hotels are judged on guest experience, amenities, cleanliness, and service quality. Although different professional organizations usually determine the rating, customer experience in the form of reviews and feedback is also a factor.
A large number of reviews can lend credibility to an overall rating.
Reviews on trusted third-party platforms (e.g., TripAdvisor, Yelp, Booking.com) are often deemed more reliable than those on the company’s own website.
Many customers do not have a problem leaving a review if the company requests it, particularly if they had a very good experience with them.
Positive reviews can build trust among potential customers. Customers trust a brand more if it has a history of delivering quality products and services as attested to by reviews.
Feedback need not all be positive in order to be constructive. Negative reviews can highlight weaknesses for your business and therefore instruct you on how to improve the product or service. Positive reviews, of course, showcase your strengths and can also reinforce areas in which you excel.
Reviews can also serve as credibility to the product or service as they come from real customers’ experiences.
For products, customers’ feedback can include functionality and ease of use. For catering businesses, it could include timeliness of food, quality of food, and customer service.
Feedback is essential to the hospitality industry as it helps pinpoint the areas in which a company needs to improve, thereby enhancing the service and reputation. Online customer reviews have overtaken critiques from food critics. Many customers now prefer to see regular customer experiences rather than those of an “expert.”
Once you have gathered feedback, a business needs to identify the main themes, trends, and patterns. This can be done by manually reading and categorizing the comments or by comparing your feedback with other companies and industry standards. Constructive feedback, i.e., feedback that offers solutions and suggestions for improvement, can be invaluable (especially in running a catering business).
Search engine optimization (SEO) is closely related to Google ratings. The more positive reviews a company receives, the higher their website ranks on search engines. A study by BrightLocal found that a business with a 5-star rating earns 39% more clicks from Google Local than a business with a 1-star rating.
Text reviews can also improve keyword rankings. If specific products or services are mentioned, those terms can help your business rank higher in search engine results. For example:
Caterboss Review: “I bought a display fridge and display chest freezer from Caterboss some weeks ago, and they are working perfectly. Their customer service is so professional, and the delivery is fast and reliable.”
Google can also detect the tone of reviews. For example, if a review contains the words “amazing”, “delightful” “very happy”, google will detect that the customer had a positive experience. Google considers customer sentiment when determining search rankings so your business will score higher in the rankings if people leave good reviews.
Caterboss Review: “Wonderful to deal with. Geraldine was a pleasure to deal with, nothing was an issue. Prompt replies to emails and set us up in no time to place orders. Easy-to-follow website for online purchases. I would recommend Caterboss to all.”
The words “wonderful” and “pleasure” Google will automatically flag as a positive experience and thus, contribute to higher search engine position.
The answer to this question is less straightforward. Typically, if there is a bad review, businesses will suffer a drop in sales and customers, however, if the negative review is managed well, it might mitigate the damage. The key course to take here would be to address grievances promptly and professionally. If negative reviews are ignored this could affect the rankings of a business on the search engine and ultimately a decline in sales and reputation.
Having a large number of reviews, such as Caterboss’ 190 Google reviews, is better for business than having just a few. A large number of reviews signals to search engines that a website is trusted and a reliable source of information in its industry. Positive reviews will, in most cases, improve a business’s search engine ranking and influence local Google rankings in particular. According to a BrightLocal survey, 91% of consumers aged 18-34 trust customer reviews as much as personal recommendations.
Review management is the practice of monitoring and engaging with reviews left by customers. Guests in the hospitality industry are becoming particularly aware of the ratings of hotels and restaurants which in turn influence where they choose to bring their custom.
According to one survey, a single negative review can drive off 22% of customers. As the number of negative reviews increases, so does the percentage of lost customers. For example, three negative reviews can deter 59% of potential customers. However, if negative reviews are handled well, they can become an opportunity to strengthen customer relationships and attract more business.
Replying to a negative review, means that you value your guests custom, are understanding of their grievances and it offers you the opportunity to apologize and resolve their issues.
Here are some key tips:
Providing solutions usually appeases customers and can help turn a negative experience into a positive one.
Scenario: A customer posted a negative review on Yelp about their experience at a Starbucks store. They complained about slow service, a poorly made drink, and the baristas’ inattentiveness. The customer expressed disappointment, stating they had expected better given Starbucks’ reputation.
Starbucks' Reply:
"Hi [Customer Name],
Thank you for taking the time to share your feedback. We’re so sorry to hear about your recent experience—it sounds like we fell short of the high standards we strive to uphold.
Your feedback is incredibly valuable, and we want to make this right. Could you please reach out to us at [Contact Information] or send us a direct message with more details about your visit (e.g., the store location and date)?We’d love the opportunity to learn more and ensure your next visit reflects the quality and service you expect from Starbucks. Thank you for giving us the chance to improve.
Warm regards,
The Starbucks Team"
The response Starbucks provided to the negative review demonstrated several key principles of effective review management:
Studies show that hotels responding to more than 50% of their reviews experience a 6.8 percentage-point increase in occupancy rates. According to Michael Morton, Vice President of Member Services at Best Western Hotels, “This research shows that letting employees engage with customers online pays real dividends.”
Responding in a timely manner also has a direct impact on occupancy rates. Properties that respond to feedback in less than a day boast occupancy rates 12.8% higher than those that take longer to respond.
Positive reviews directly impact revenue in several ways:
Sending customers a feedback form can be an effective way in obtaining reviews. Asking for their feedback in a timely fashion is also important as customers are more likely to respond than if the business waits before contacting them. Customers tend to be disinterested when the stay is over.
Thanking customers for their custom on social media in a shoutout can also help with good feeling towards the company; by publishing an Instagram post about the customer they are encouraging their followers to interact with the customer as well possibly leading to more business for them and thus a good review for the company.
For instance, Caterboss posts a thank you post to three customers a week which they post on Instagram, facebook and linkedin. This shows the customers that they are valued and they appreciate the shoutout on their social media (which has a large amount of followers).
Specific questions can help elicit meaningful feedback:
The most effective way to persuade a customer to leave a review is to ask. Here are some strategies:
It’s important to focus not just on getting reviews, but on getting positive reviews. A way to achieve this could be to send out a satisfaction poll. Then, the company could send an email asking for a google review to the customers who rated the company highest on the poll.
Caterboss is a shining example of how to leverage customer reviews. With 190 Google reviews and a 4.8-star rating, their approach to review management has been highly effective. Here’s how they do it:
And of course, it is down to the exemplary service provided by the team and the level of commitment they show for each customer!
CEO Ciaran Kilbride explains: “We aim to be customer-centric first and foremost. It's paramount to gaining market share and customer retention.”
Some choice reviews:
5/5
“Bought IMC sp12 from Caterboss 4 weeks ago, great sale assistant and fast delivery, great machine, a lot quicker and quieter than old one, very happy!”
5/5 (many of them mention the excellent service by staff)
“Fast, friendly service. Bought a pizza oven from Caterboss and Amanda was brilliant in keeping in contact with me about the delivery date. It was the first time that i have ever used this company and I would not hesitate to use them again.”
5/5 (word of mouth spreading)
“Absolutely brilliant. Got great help and delivery was following day. Delivery man so polite and helpful. I am delighted with my new purchase and have already recommended Caterboss to a friend.”
Conclusion
Customer reviews have transformed what “word of mouth” now means. People trust other customers to write about their experiences honestly (particularly if there is many positive reviews or on the other side, many negative reviews.)
The review platforms have replaced where food critics used to stand. All of a sudden, they have become so influential, they can make or break your business.
But even if your business has negative reviews, there is a way to turn it around. It is important to reply to negative reviews in a constructive and professional manner. Being helpful and courteous and validating the users concern can turn your negative review into a positive!
Positive reviews can act as powerful endorsements, while negative reviews provide opportunities for improvement and growth.
In the end, great guest experiences lead to glowing reviews—and glowing reviews lead to sustainable success. The question isn’t if you should focus on customer reviews, but how well you can use them to elevate your business.
Ciaran Kilbride is the CEO and Founder of Caterboss, Ireland's leading supplier of catering equipment. With years of experience in the food and hospitality industry, Ciaran established Caterboss in 2017 to provide high-quality, reliable equipment tailored to the needs of professional caterers. His commitment to innovation and customer service has helped Caterboss grow into a trusted name, known for anticipating industry trends and consistently meeting the needs of its clients
