New research indicates that businesses may be undermining their online reputations by responding to positive customer reviews in overly self-congratulatory ways. While conventional wisdom encourages companies to thank customers and echo their praise, studies suggest this approach may inadvertently lead to slightly lower ratings from future reviewers.

The findings, derived from a series of experiments involving over 7,000 participants, reveal that when businesses repeat a positive aspect of a review in their response, subsequent customers tend to rate them between 0.3% and 0.6% lower than if no response had been made. This seemingly paradoxical effect is attributed to customers’ perception of reviews as personal compliments. Responding by merely echoing the praise can seem awkward or insincere, akin to replying to a compliment with excessive self-focus.

Researchers Katherine C. Lafreniere, an assistant marketing professor at the University of Alberta, and doctoral candidate Yi Wei explain that effective responses should display both gratitude and humility. Instead of reinforcing the compliment, businesses are advised to either temper their language—scaling down “fantastic” to simply “good,” for example—or shift attention by acknowledging others involved in the service, such as local suppliers or staff.

This subtle adjustment conveys humility, which resonates more positively with customers. Responses that demonstrate such humility were found to outperform both no response and standard appreciative replies in controlled experiments. Despite the potential benefits, the research shows fewer than 20% of businesses use these humility-based strategies when responding to positive reviews.

However, the researchers caution that these tactics require nuance. Simple phrases intended to counter overpraise, like “You’re too kind,” do not effectively communicate humility. Furthermore, attributing praise to individuals or groups not involved in the customer’s experience can come across as promotional rather than genuine. Overly minimizing compliments to the point of lukewarm statements, such as “We’re glad your dinner was acceptable,” may also backfire.

Another notable finding is that although 81% of online reviews are positive, nearly 85% of those receive no response from businesses. This evidences a missed opportunity for companies to engage with customers in ways that not only acknowledge positive feedback but also enhance their appeal compared to competitors with similar ratings.

The research underscores that consumers assess not only products and services but also how companies communicate. Crafting thoughtful, modest responses to positive reviews allows businesses to demonstrate genuine appreciation without appearing self-promotional, potentially fostering greater customer satisfaction and stronger reputations.