Online review statistics indicate that in today’s digital world, online reputation management for businesses is more critical than ever. According to a Harvard Business School report, restaurants that improve their Yelp scores by one star see a five to nine percent rise in sales.
Here are some more online review figures to demonstrate the value of online reputation management in the business world.
- Seventy-two percent of customers are more likely to trust a company that has received good customer feedback than one that does not.
- Eighty-six percent of consumers claim they will be unable to do business with a company that has received negative feedback.
- Customers trust online consumer reviews as much as personal recommendations, according to 88% of customers.
Consumers’ buying choices are heavily influenced by online feedback. Furthermore, customers are likely to invest more money in companies that have received positive feedback; positive feedback leads to increased sales. This also goes to show how important reputation management is for companies looking to appeal to today’s customers.
According to reputation management figures, customers have a 50% risk of sharing negative experiences with a brand on social media. They have a two percent better chance of posting on review pages. Given that the majority of today’s customers read online reviews before making a purchase, these reputation management figures highlight the importance of offering excellent service.
Poor ratings are unavoidable, and these reputation management figures indicate that a company’s online reputation must be managed strategically in order to thrive. This is why many businesses invest in reputation management tools or employ firms that maintain their online reputations.
Factors Consumers Look For In a Review
Company reputation management necessitates a thorough understanding of what constitutes a positive review:
- Star rating
- Legitimacy
- Recency
- Quantity
- Sentiment
Although having high star ratings is beneficial, there are other aspects to consider. Consumers, for example, would choose a product with a 4.5 rating and a large number of reviews to one with a 5-star rating but just a few reviews. You should also make certain that your reviews are current. This explains why companies work so hard to get more positive feedback from their customers.
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5 Industries That Are Most Affected By Online Reviews
Managing online feedback should be a top priority for businesses. This is particularly true for those who work in industries that are heavily influenced by online reviews:
1. Hospitality Industry
This industry is more expensive than others, and consumers need to be persuaded more when choosing a hotel or motel. People always want to get the most bang for their buck, so travelers depend on online reviews to find the best value for their money.
According to reputation management figures, 49% of customers will not stay at a hotel that has no feedback. According to studies, a hotel or motel may lose up to 30 reservations as a result of a negative rating or review.
Monitoring online reviews should be a top priority for businesses in the hospitality industry. This entails keeping track of mentions, reacting appropriately to comments, and increasing customer reviews.
2. Restaurants
According to online review figures, 60% of diners read online reviews and 67 percent tend to eat at four or five-star restaurants.
People are picky about which restaurant they go to. Menu, food preference, medical conditions, allergies, and desired environment are some of the factors that influence their decisions. As a result of the pandemic, 67 percent of millennials now favour restaurants that have delivery services.
The restaurant industry is one of the top five industries where consumers are most likely to have read customer reviews, according to BrightLocal. As a result, tracking feedback and promoting a positive brand image is a worthwhile investment for restaurants and cafes, as it helps capture a larger customer base and improve conversions.
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3. Healthcare
90 percent of patients use online reviews to assess doctors, and 76 percent of people trust online reviews as much as personal recommendations. Since patients usually leave good reviews, you’ll find a lot of positive feedback and ratings in the medical sector. A good reputation will help you get more visitors and phone calls.
Negative reviews may result in a 13 percent reduction in calls and visits. Negative doctor reports should be dealt with extreme caution. Since the Health Insurance Portability and Accountability Act (HIPAA) prohibits the disclosure of patient details, you can’t confirm whether or not the reviewer was a patient or reveal any information when responding to the reviews.
4. eCommerce
When a product is new, 88 percent of customers depend on online reviews to help them make an informed purchase. Items with ratings between 4.2 and 4.5 out of 5 are more likely to be purchased than those with ratings outside of this range. Products with 5-star ratings are more likely to have fewer complaints, which influences the likelihood of purchase. Customers like products that have a lot of ratings and feedback, whether positive or negative.
As a result, retailers must increase their review acquisition efforts. Displaying feedback can increase conversion rates by up to 270 percent, according to a Speigel Research Center report.
When purchasing higher-priced goods, customers are more likely to think about it. These products’ reviews will increase conversion rates by up to 380 percent. Reputation management tools will assist you in obtaining more customer feedback and keeping track of your online presence.
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5. Service
This industry’s real estate, salons, consulting companies, and other businesses are all focused on delivering exceptional service to individual customers. Consumers who are dissatisfied with the services they got can go online and leave reviews and comments for your potential customers to see. Bad reviews will hurt your bottom line because customers can be unable to do business with your company.
When these customers leave a negative review, respond quickly to their concerns, apologize, and offer a solution. This is beneficial not only to the reviewer but also to the majority of customers who are interested in how a business manages reviews. Your sincere apologies and strong determination to make things right would have a positive effect on your brand’s image.
Conclusion
It’s not about ignoring negative feedback entirely; it’s about reacting properly to all of them in order to retain a positive brand picture. According to research, 69 percent of customers trust businesses that respond positively to feedback, while 70 percent trust businesses that respond negatively. As a result, it’s important to keep track of and react to feedback on a regular basis.
With so many forums and outlets where consumers can leave reviews, keeping track of them without resources like a reliable reputation management software app can be difficult. The way you do company reputation management has an effect on your lead generation, sales, customer retention, and revenue generation efforts.
To achieve a competitive edge over other businesses, reputation management for businesses should be prioritized. Showing customers you care for their input is just as vital as providing excellent service and is critical to your company’s success.
