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1) I put a lot of stock in negative reviews (I, for one, am much more likely to post a review on Amazon/Yelp/etc when its a negative experience than a positive one). So yes, I take any negative reviews seriously, and Yelp is #1 site I check for reviews on retailers.
2) My experience is that the type of people who take time to make Yelp reviews are above-average active in social media (e.g. moms that are active and influential on mom blogs). So, at the very least, directly addressing negative commenters and offering them a free product/service could reap greater rewards beyond that individual customer.
2) My experience is that the type of people who take time to make Yelp reviews are above-average active in social media (e.g. moms that are active and influential on mom blogs). So, at the very least, directly addressing negative commenters and offering them a free product/service could reap greater rewards beyond that individual customer.
Bad reviews can be killers! One of the more studied areas in Psychology is Negativity Bias. It basically states that even if you have two offsetting reviews (one good and one bad) people will have a generally negative impression of your store. Bad reviews are weighed so heavily that if you have a dozen good reviews and a single bad one, you're probably only beginning to return to a neutral impression.
If you've got enough volume to maintain a 20:1 good/bad review ratio, you probably shouldn't worry too much. If you don't see your Yelp numbers getting too much larger I'd suggest trying to respond to the customer.
If you've got enough volume to maintain a 20:1 good/bad review ratio, you probably shouldn't worry too much. If you don't see your Yelp numbers getting too much larger I'd suggest trying to respond to the customer.

Addressing a legitimately unhappy customer (especially one with a megaphone) is always a good thing. Yelp provides tools (biz.yelp.com) to allow business owners to post replies. If you think the comment is worth a response — assuming it sounds plausible and not a hoax — you show that you are a conscientious owner who cares what your clients think. Also consider replying to the other positive review, too, and thank that Yelper – which could encourage similarly pleased clients to do the same. Finally, while Yelp does have a wide audience, I would advise not getting too distracted by the uncontrollable whims of the online reviewers. (See an interesting Harvard Business Review column, "When You Shouldn’t Listen to Your Critics." - hbr.org ) Stay focused on your clients and on delivering the best possible service. First-hand experience always trumps a stranger's online gripe.

treat your negative review as a feedback from the third party and provide a permanent solution to the same. After providing the same try to market the solution provided as one of the best way you resolved the challenge thru your newsletter / website.
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