Businesses can learn a lot from feedback – if they’re willing to listen. However, it still amazes me that some companies still shy away from reviews.
A friend told me about a business that avoids review sites completely because it believes “customers just want to moan” and public feedback would damage the brand. If that’s your view of your own customer base, chances are the damage is already being done.
Customer reviews aren’t a side issue – they’re a deciding factor. Especially in financial services. Our recent research at Smart Money People found that 74% of consumers read before considering a switch to a new financial provider. So reviews aren’t just helpful – they’re critical.
Here’s why companies must not only collect reviews but also respond to them. Ignoring this part of the customer experience doesn’t just mean missed opportunities – it could be hurting your business.
1. You miss valuable insight
Customer reviews are not just compliments or complaints. They offer real insight into what your customers think and what they expect. Without this feedback, decisions are based on guesswork. Companies that ignore reviews are missing a direct link to customer preferences and pain points – and the chance to fix what isn’t working.
2. You throw away chances to improve
Every review – even the bad ones – gives your company a chance to improve. Companies that collect and engage with feedback can fix problems, update services, and show customers they’re willing to change. Those that ignore reviews risk standing still while the competition moves forward.
3. You lose customer trust
People trust companies that are open and honest. Reviews provide that openness. If your company has no reviews – or worse, ignores the ones it does get – customers may think you have something to hide. Review platforms like Smart Money People also allow companies to respond, which shows you’re listening. Silence, on the other hand, sends the opposite message.
4. You hand your competitors an advantage
In sectors like financial services, reviews are now expected. If your competitors have strong feedback and you don’t, you risk being overlooked. Customers want to know what others think before they decide. If you’re not in the conversation, you’re not in the running.
5. You weaken your marketing
Customer reviews are one of the most persuasive marketing tools. They give real-world proof that your service works. In fact, in our recent research at Smart Money People, 84% of people said it’s important that others have had a good experience before they buy a product or service*. If your company isn’t showcasing feedback, it’s missing a powerful way to win new business.
Why responding matters as much as collecting
It’s not enough to simply let reviews roll in. How you respond – especially to negative feedback – speaks volumes. Here’s what a good response strategy can do:
- Show customers they matter: responding shows that you care about their experience.
- Build credibility: public replies signal professionalism and honesty.
- Win back unhappy customers: a thoughtful response can change someone’s opinion.
- Encourage repeat business: customers who feel heard are more likely to return.
- Drive better decisions: ongoing feedback leads to smarter improvements.
Not collecting or responding to reviews isn’t just a missed opportunity – it’s a bad decision. Customer feedback is essential to stay relevant, improve your service, and grow your business. Ignoring it leaves you in the dark, while others use it to shine.
Jess Trueman is head of business development at Smart Money People
