One negative experience is all it takes to lose a customer forever. According to our research, 49% of consumers say they are unlikely to return to a business after a bad interaction. 

When that frustrated customer leaves a negative review, the damage multiplies. With 88% of consumers checking reviews before making decisions, one poor experience can snowball into significant lost business.

So what pushes customers to share their grievances publicly? To answer that, we dove into 5,000 negative reviews from over 100 businesses spanning 10 industries. We didn’t stop there—surveying 255 U.S. consumers to uncover the best strategies for addressing these issues.

This report will help you understand what those challenges are. And more importantly, how to fix them. 

Key findings at a glance

• Your product probably isn’t the problem. Only 20% of negative reviews focus on product/service quality. The majority are about the experience that surrounds it.
• Poor communication is what kills small businesses. 37% of negative reviews stem from poor communication, making this the biggest opportunity for improvement.
• Hidden costs hurt more than high prices. 50% of pricing complaints focus on unexpected fees and “bait and switch” tactics rather than the actual price point.
• Phone support is failing customers. According to our survey, calling is the most preferred channel for customer support, yet our review analysis shows that 50.5% of communication complaints specifically point to frustrating phone interactions.
• In-person businesses face unique challenges. 98% of staff behavior complaints come from brick-and-mortar and service businesses, with online businesses like e-commerce stores accounting for just 2%.
• It’s easier to keep a customer than to win one back. Our survey shows it would take 2-3 positive experiences for 45% of people to regain trust in your company. For 27% of others, it may take four or more positive experiences.

Where we got our data

This analysis is based on 5,000 negative customer reviews from over 100 businesses across 10 major industries. We focused on U.S. businesses to ensure consistency in service expectations. For brick-and-mortar businesses, we scraped our reviews from Google Maps. For digital businesses like e-commerce and software, we turned to Trustpilot.

Industries analyzed:

1. E-commerce
2. Software
3. Home Services
4. Retail
5. Real Estate
6. Legal Services
7. Health & Medical
8. Financial Services
9. Food Service
10. Automotive

We also surveyed 255 consumers. We sought out a balanced panel that’s representative of the general population in terms of gender, age, and income. We asked them various questions regarding their communication preferences with a business and how negative experiences impact their decision to shop with a business.

The four factors that shape customer experience

To make sense of the reviews, we used AI to identify common themes. Our analysis revealed that most negative reviews cluster around four key areas: poor communication, pricing issues, staff behavior, and product/service quality. Let’s look at each one in detail.

1. Customer communications

Poor communication isn’t just annoying. It can ruin an entire experience, even if the quality of the product meets expectations. Our data shows communication failures are the leading cause of negative reviews. The good news? It’s often the easiest and cheapest problem to fix. Here’s what customers frequently complain about:

• No response: Calls go unanswered, and messages are ignored.
• Poor follow-up: Customers feel like they’re chasing you for updates.
• Slow response times: Replies eventually come, but not as quickly as expected.
• Lack of clarity: Communication is unclear, confusing, or misleading.
• Internal misalignment: Poor handoff between staff or a lack of internal communication.

So, what do consumers expect? What constitutes a timely response in their eyes? The answer depends on how they reached out to you. 

According to our survey, 63% of consumers expect a callback the same day if they leave a voicemail. 13% expect a callback within just an hour. For other channels, like email, more consumers are comfortable waiting until the next day.

It’s impossible to be everywhere at once. Prioritize a robust phone support system. Nearly half of consumers (47%) say phone calls are their preferred method of communication with businesses.

What customers say:

“Sat on hold for a while then was directed to leave a voicemail. Left my number twice, never heard back.”

“Never responded to my email on a time sensitive issue.”

“After applying, and submitting all required paperwork I didn’t hear back for over a week.”

What to do about it:

• Use an AI answering system like Upfirst to handle basic inquiries 24/7 and route urgent issues to staff.
• Set up email and SMS auto-replies with expected response times (56% of people expect email responses on the same business day)
• Create simple templates for common scenarios (appointment reminders, shipping updates, etc.) and save them where everyone can access them. Keep in mind that 45.8% of people preferred appointment confirmation via text message while 35.3% preferred email.
• Schedule automatic check-ins at key points (order confirmation, 24h before appointments, after service completion)
• Make sure the contact form on your website is working properly

2. Pricing

Price is one of the top themes that comes up in customer reviews. But don’t go running to offer discounts. High pricing is just one of the factors customers complain about. Let’s break it down:

• Other predatory billing practices: Things like unexpected cancellation fees, pressure for tips, or ongoing charges after a subscription cancellation.
• High pricing: Customers felt the quality didn’t match the price.
• Hidden fees: Surprise charges customers weren’t informed of upfront.
• Bait-and-switch tactics: Pricing that changes after a commitment, leaving customers feeling misled.
• Other predatory billing practices: Things like unexpected cancellation fees, pressure for tips, or ongoing charges after a subscription cancellation.

When it comes to pricing complaints, 68% of customers are frustrated by hidden fees, bait-and-switch tactics, or other predatory practices. The remaining 32% cite high prices as the issue. Does this mean most businesses are engaging in shady pricing practices? Not necessarily. And should you immediately slash your prices? Probably not.

Most pricing complaints stem from a lack of clarity and transparency—not necessarily the cost itself. In fact, over 86.6% of our survey respondents say that clear, upfront pricing would influence their decision to pay more for a service. This is good news: people are WILLING to spend more money, they need to trust that they’re getting what they pay for.

What customers say:

“I paid $900 as a down payment. The first day he started, he asked for an additional $500 which is not what we agreed for.”

“I went to enquire and the staff kept on confusing me with the net and gross prising. Then they said the agreement would have a different price but committed to pay something else. Very strange. Please avoid this place”

“Paid $11 for a cappuccino. $11. They ask you to choose between different coffee flavors, which don’t have any prices next to them. Turns out a specific flavor adds $3 to your drink. Then add $1 for non-dairy milk. They also don’t sell drip coffee. The cappuccino was ok. Not worth $11.”

What to do about it:

• Keep your pricing simple and transparent. Ensure customers can easily understand the full cost—fees included—so there are no surprises when it’s time to pay.
• Clearly communicate value. When customers perceive prices as high, it’s often a disconnect between cost and value. Highlight the benefits, features, and outcomes that justify the price to help customers see why it’s worth it.
• Deliver on your promises. Reflect honestly: Is your product or service worth the price? If not, identify areas for improvement and adjust to meet customer expectations.
• Actively seek and apply customer feedback. Use reviews and surveys to understand if your pricing aligns with the value delivered or if adjustments (in your product or your messaging) are needed.

3. Staff behavior

Brick-and-mortar businesses face unique challenges when it comes to staff behavior. Unlike online businesses, where most interactions happen over email (accounting for just 2% of staff-related complaints), in-person experiences leave little room for error. Here’s what we found in the most common negative reviews about staff behavior:

• Professional conduct violations: Complaints about rudeness, unfriendliness, and outright disrespect are common.
• Discriminatory treatment: Instances of poor service or derogatory remarks related to race, gender, neurodivergence, or age.
• Staff competency issues: Customers dealing with untrained or unknowledgeable staff.
• Customer engagement failures: Lack or complete denial of service.

Although staff behavior takes the smallest slice of the pie among the 5,000 negative reviews, it’s possible it has one of the largest impacts on customer loyalty since it taints so many other aspects of the customer experience, like product/service quality. 

Reviews about rude interactions rarely stop at just one issue. Customers often pile on additional complaints—bad food, long wait times, slow service, or dismissive attitudes. Staff behavior seems to drastically change how a customer experiences other aspects of the business.

Even with the best training and intentions, staff may fall short of the standards you’ve set. The good news? It’s possible to win customers back.

According to our survey, 36% of customers say they’re likely to give a business another chance after a negative experience, while many others remain undecided, leaving room to win them back.

75% of consumers say offering a refund is highly effective in restoring confidence. But when refunds aren’t an option, all is not lost. Simply acknowledging the mistake can still make a big difference—67% of respondents say that simply acknowledging the issue is very or extremely effective in regaining their trust.

What customers say:

“This store has an extremely rude and impolite employee. She acts like she’s blind, but she’ll tell you that her inability to find things is somehow your fault. Her tone and attitude are incredibly harsh, and she will even go as far as to demand, in an accusatory way, what your problem is.”

“This stands out as one of the worst customer experiences I’ve ever had. We felt disrespected from the moment we walked in; every interaction was like pulling teeth and the food wasn’t even that good. Bottom line, if you want friendly service, go somewhere else”

“Good sales service but a guy named Kris, the delivery person, was very disrespectful and refused to do his work . He screamed and threatened my staff. A very unpleasant situation . I will never buy again from the store.”

What to do about it:

• Review hiring practices. If poor staff conduct is consistently a problem for your business, reconsider your hiring processes. Try incorporating more questions that assess a candidate’s customer service skills.
• Improve training programs. Revisit your training process. Implement customer service training and focus on communication skills, attitude, and empathy.
• Create an atmosphere that prides itself on customer service. Foster a workplace that prides itself on customer service, and your business will win.
• Take quick action after bad experiences. 80% of people say that a prompt resolution of an issue will help them regain trust in your business.

4. Product and service quality

There’s no way around it. If your product isn’t good, customers won’t be happy. But when we dig into reviews related to product quality, we uncover important nuances. In e-commerce, complaints often stem from receiving the wrong item. For home service businesses, customers might praise the product itself but criticize poor installation. In food service, diners may enjoy the food but feel unsettled by signs of unsanitary practices.  

All of these can be solved through better processes without needing to change the product itself. Here are some common complaints:

• Defective or malfunctioning products: Poor-quality items, bad food, or subpar service.
• Poor workmanship or installation: Work that doesn’t resolve the issue, falls short of quality standards, causes damage, or remains incomplete.
• Wrong or incorrect items: Food or products that don’t match what was ordered or expected.
• Substandard materials or components: Items made with cheap or low-quality parts.
• Unsanitary conditions: Dirty or unclean spaces in restaurants, stores, or health/wellness centers, and even food-related illnesses caused by contamination.

It’s tough to communicate your way out of a bad review if your product is simply bad or not working. But if you make your business easily reachable and reply in a timely manner to resolve the issues, it can make all the difference between a review that says, “Product was poorly made and did not work. DO NOT BUY,” or “The product didn’t work when I got it. Reached out to the business and they quickly sent me a new one. It looks great in my kitchen!”.

The impact of preventing negative reviews cannot be overstated. Our survey shows that 77% of customers say a negative review is moderately to extremely influential in their decision to visit or buy from a business.

What customers say:

“I purchased a pair of blue light glasses yesterday, but when I opened the box, only a wipe was inside – the glasses were missing. I went back to the store, and the manager told me he couldn’t help. He also implied that I had done something like this before, even though it was my first time at this location. “

“Avoid at all costs. Poor quality, over priced furniture. They do not stand behind their product or commitment to resolving issues. The manager is evasive, they ping pong you between their office and customer service and neither returns calls! “ 

What to do about it:

• Make your business easy to contact. Provide accessible phone and email support, and respond promptly—most customers expect a reply within the same business day.
• Correct your mistakes. Perfection is a dream. Mistakes are bound to happen. If a customer is unhappy with the quality of a product or service, do what you can to fix it. Offer a refund, partial refund, or replacement of product/services.
• If defective products are constantly an issue for you, it’s time to revisit some quality control practices. Are the materials you are using of good quality? Does the product have a good structural design? How can you ensure the right product gets to the right customer?
• Clean up your space. Having dirty workspaces or bathrooms greatly affects not only the perception of your business, but also customer loyalty. A staggering 92% of Americans consider cleanliness as an important factor when deciding whether they will come back to your business.

The takeaway: communication is your competitive advantage

After examining 5,000 negative reviews across the internet, one thing is crystal clear: good communication is the foundation of exceptional customer experiences. Sure, product quality and pricing have an impact on customer experience, but it’s the nuances of how you interact with customers that often tip the scales between a positive review or a harsh critique.  By prioritizing responsiveness, clarity, and transparency, you can make immediate strides in improving customer satisfaction and creating a more enjoyable customer experience.