Online reviews show that online reputation management is becoming more important in today’s digital age. A Harvard Business School study found that restaurants see a five- to nine percent increase in revenue when their Yelp ratings are higher by one star.
These are just a few more statistics from online reviews that demonstrate the importance of managing your online reputation for your business.
- Positive customer reviews are more trusted by 72% of buyers than businesses without them.
- Eighty-six percent of customers said they would be reluctant to do business with companies with poor customer reviews.
- Eighty-eight% of customers trust customer reviews online as much as personal recommendations.
Your customers’ purchasing decisions are influenced by online reviews. Positive reviews are more likely to be trusted by consumers, which can lead to higher revenues. This is a clear indication of how important reputation management is to businesses looking to attract modern consumers.
According to statistics from reputation management, 50 percent of social media users will post negative reviews about brands. Their chances of posting reviews are two percent higher. These reputation management statistics show how crucial it is to provide excellent service, especially considering that consumers now read reviews online before purchasing.
Bad ratings are not uncommon, but these reputation management statistics show how strategic online reputation management is crucial for a company’s success. Many companies choose to invest in reputation management software and hire agencies that offer online reputation management.
What Consumers Want in a Review
A good understanding of what makes a great review is essential for reputation management.
- Star rating
- Legitimacy
- Recency
- Quantity
- Sentiment
It is important to have high star ratings. However, there are other factors to consider. A product with a rating of 4.5 and many reviews will be preferred by consumers over one with only a few reviews. Also, you should ensure that your reviews are current. Businesses are always looking for more customer reviews.
Five Industries Most Impacted by Online Reviews
Online reviews should be a top priority for companies. This is especially true for companies that work in industries most affected by online reviews:
1. Hospitality Industry
This industry is more costly than other industries, so customers need to be convinced when choosing the right hotel or motel. Travelers always seek value for money and rely on reviews online to find the best hotel or motel.
According to statistics from reputation management, 49% of customers won’t choose hotels without reviews. A bad review or rating can cause a hotel to lose as many as 30 reservations.
Online review monitoring must be a top priority for hospitality businesses. This includes tracking customer mentions, responding appropriately to feedback, and increasing customer reviews.
2. Restaurants
Online review statistics show that 60 percent of diners check out online reviews and that 67 percent prefer to eat at restaurants with four- or five-star ratings.
When choosing a restaurant to eat at, people are very careful. They consider many factors when choosing a restaurant to dine at. These include food taste, health concerns, allergies, and the atmosphere. A majority of millennials now prefer to order food from restaurants that deliver due to the pandemic.
BrightLocal lists the restaurant industry among the top five industries in which customers are most likely to have read customer reviews. Online reputation management is an investment worth making for cafes and restaurants. It helps to increase sales and customer retention by monitoring and promoting positive brand images.
3. Healthcare
Online reviews are trusted by 76 percent of people as well as 90 percent of patients who evaluate doctors using them. Positive feedback and ratings will be abundant in the medical industry because patients tend to post positive reviews. A positive reputation can bring you more calls and visits.
Negative reviews can reduce visits and calls by as much as 1/3. Negative reviews from doctors should be treated with care. You are not permitted to confirm that the reviewer is your patient and to share any information with the feedback.
4. eCommerce
88% of consumers use online reviews to help them make an informed buying decision when the product is new. Products that have ratings between 4.2 and 4.5 out of 5 are more likely to be bought than those with lower or higher ratings. Customers are more likely to purchase products with 5-star reviews. Customers will prefer brands that have more reviews and feedback, no matter how positive or negative.
Retailers must increase their review acquisition efforts. Spiegel Research Center found that displaying reviews can increase your conversion rates by as much as 270 percent.
Consumers tend to think more about higher-priced products. These products have the potential to increase your conversion rates by as much as 380 percent. Software that monitors your online reputation can help you get more reviews from customers and increase your visibility.
5. Service
This industry includes salons, consultants, real estate, and salons. All of these businesses are focused on providing exceptional services to customers. If a customer is not satisfied with their services, they can post negative reviews on the internet for other potential customers to read. Negative reviews can negatively impact your bottom line as customers may be less likely to do business with you.
If a customer leaves a negative review, it is important to quickly acknowledge the experience and offer a solution. This is a great way to show your appreciation for the reviewer and for all consumers that are interested in how companies handle feedback. A sincere apology and firm resolve will improve your brand’s perception.
Conclusion
Reputation management online is more than avoiding negative reviews. It’s about responding to every review appropriately and maintaining a positive brand image. Research has shown that consumers trust companies that respond positively to reviews and 70 percent trust those who respond negatively. It is therefore vital to monitor reviews and respond promptly to them.
It can be difficult to track customers’ feedback on all the different channels and platforms. The right reputation management software app can help you increase your sales, customer retention, and revenue generation.
To gain a competitive advantage, it is important to prioritize reputation management in business. It is just as important to show people that you care about their feedback as it is to deliver optimal service. This is crucial in setting up your business for success.
