How to handle online reviews

A single bad review can cost a small business dozens of potential customers. Handled well, though, the same review can actually strengthen trust, build loyalty and demonstrate professionalism.

Online reviews can make or break a small business, whether they come via your own website or Amazon, a social media platform or a dedicated review site like Trustpilot or Feefo.

According to government figures, online reviews are used by nine in ten consumers when making purchasing decisions. Meanwhile, according to BrightLocal’s 2026 Local Consumer Review Survey, 41 per cent of consumers always read reviews when browsing for businesses, using an average of six review sites.

Online reviews, therefore, are something businesses ignore at their peril.

The rise of fake and misleading reviews

One of the biggest challenges in recent years has been the growth of fraudulent or malicious reviews. These can take several forms:

• Rival businesses posting negative feedback to deter customers
• Companies boosting their own ratings with fake five star reviews
• Sellers hijacking positive reviews from unrelated products to inflate ratings

Crematorium firm Dignity, for example, is currently under investigation by the Competition and Markets Authority (CMA)  for allegedly asking staff to write positive reviews about the company’s services. Just Eat, too, has been accused of using its ratings system to inflate the star ratings of certain restaurants and grocers.

"Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online," says CMA chief executive Sarah Cardell.

"With household budgets under pressure, people need to know they’re getting genuine information – not reviews or star-ratings that have been manipulated to push them towards the wrong choice."  
 

What the law says about fake reviews

If you suspect that one of your competitors has been pulling similar tricks, you should go straight to the CMA, which recently announced a crackdown, explicitly banning the practice.

Businesses and online platforms are now legally required to take steps to prevent and remove the publication of fake reviews that are published on their websites.

The government has secured undertakings from Google that it will sanction UK businesses that have boosted their star ratings with fake reviews, as well as people who have written them for UK businesses.

And it’s also secured similar pledges from Amazon. The firm will now work to eliminate so-called ‘catalogue abuse’, where sellers hijack the reviews of well-performing products and add them to an entirely separate and different product, in order to falsely boost its star rating.

It will also sanction users who post fake reviews, up to and including banning them from posting reviews altogether.

"We will use these new provisions to safeguard people from harmful and unfair treatment, and to foster the level-playing field for the vast majority of businesses who want to do the right thing for their customers," says Cardell.

Managing genuine customer feedback

Often, though, the problem is genuine poor reviews, sometimes justified, sometimes not. And it's important to keep an eye out for these and try to manage any potential damage.

The first step is to be aware of places, other than your own website, where customers may be leaving reviews: the three major sites reviewing small businesses are probably Facebook, Trustpilot and Google.

If you don't already have accounts with these - and if you think reviews are likely to boost your business - it's easy to set up accounts. This will increase the number of reviews that you get - and, with BrightLocal's research finding that almost half of consumers won’t use a business with fewer than 20 reviews, this matters.

You should, of course, make sure you monitor them regularly. And, according to the Federation of Small Businesses (FSB), you should respond to a review, good or bad, every time, and if possible within 24 hours. This shows your customers that you value their feedback, and allows you to engage with them to build a relationship and encourage loyalty.

In the case of a good review, responding is pretty straightforward: simply thank them, and say you're looking forward to dealing with them in future, or a variation of that. Things, though, can be a little more tricky in the case of a poor review.

The most important thing is to avoid brushing off concerns: you should always try and show that you understand their issue and feel sympathy. If you've made a mistake, admit it and apologise for not giving the customer the service they should expect.

Next, you should offer a solution - or, if possible, a choice of solutions, such as a refund or replacement. And if you can, switch to a private communication channel to do this.

Don't be tempted to try and remove bad reviews, and don't argue with the customer - if they've made a mistake, point it out respectfully and politely. Sometimes - depending on the customer and the nature of your business - a touch of humour can help.

"For businesses looking to maximize the benefits of responding to online reviews, the key lies in balance and strategy. Prioritising responses to positive reviews can drive immediate improvements in ratings, while addressing negative feedback requires a long-term approach focused on trust-building rather than quick fixes," advises the US Academy of Marketing Science.

"Managing online reviews is about more than just damage control; it’s an opportunity to build loyalty, strengthen reputation, and create lasting relationships with customers. By taking a thoughtful and intentional approach, businesses can turn online engagement into a powerful tool for long-term success."

Chief Executive Officer for the specialist online harm response service Risk Eye, Sarah Holland, explains there are exceptions to the rule of responding to all reviews “For some businesses, regardless of whether a review is positive or negative, public engagement may never be appropriate. Limiting public interaction can be a deliberate and responsible way to reduce risk, protect customers and preserve trust. Businesses operating in, for example, professional and advisory services, healthcare and wellbeing, and security-sensitive sectors should seek guidance before deciding whether and how to engage with online reviews.”

“If in doubt, always seek expert advice. Your online presence can be just as valuable to your business as your real-world one and requires the same level of oversight and security.”

At Howden, we can help you place, review or enhance your insurance so you can focus on your customer experience. Our team of experts are available for any of your insurance questions via the button below.