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To do it right:
Normally people react with caution and fear towards negative feedback, but it is much better than no feedback at all.
Informing the colleague/subordinate/client/customer or individual about something that is not working, is always beneficial, and builds transparency and trust.
The fundamental goal of giving feedback is to help the person you’re giving it to. They should realize that you are not trying to make them feel bad, and this is an exercise to help make them better.
How it impacts each individual is going to be different so a tailor-made approach is required.
Imagine an art director giving feedback to an animator on some sketches for Pixar’s next blockbuster movie and instead of saying something like “but the characters expression is all wrong,” they’ll frame it using more encouraging and creative words like and or what if: “what if we could make their expression more (enthusiastic, brazen, etc).”