Online review statistics show that online reputation management for business in today’s digital world is more important than ever. According to a Harvard Business School study, restaurants experience a five to nine percent revenue increase when their Yelp ratings increase by one star.
Here are more online review statistics that show us the importance of online reputation management for business.
- Seventy-two percent of buyers are likely to trust a business with positive customer reviews more than those without.
- Eighty-six percent of customers say that they will hesitate to do business with a company with negative customer reviews.
- Eighty-eight percent of customers trust online customer reviews as much as they trust personal recommendations.
Online reviews largely influence your consumers’ purchase decisions. Moreover, consumers are willing to spend more with businesses that boast positive reviews; good reviews translate to better revenues. This simply shows how vital reputation management is for businesses hoping to attract a modern consumer.
Reputation management statistics show that the chances of consumers posting about poor interactions with a brand on social media are 50 percent. The chances of them posting on review sites are even higher by two percent. Considering that most consumers today read online reviews before making a purchase, these reputation management statistics indicate how important providing optimal service is.
Poor ratings are inevitable, though, and these reputation management statistics show that strategic online reputation management is essential for a business to succeed. This is why many companies invest in reputation management software or hire agencies that provide online reputation management for business.
Factors Consumers Look For In a Review
Reputation management for business requires a good understanding of the things that make a good review:
- Star rating
While it helps to have good star ratings, other factors need to be considered. For example, consumers will prefer a product with a 4.5 rating but has many reviews over a product with a 5-star rating but only a handful of reviews. You’ll also want to make sure that your reviews are recent. This explains why businesses continually strive to acquire more reviews from their customers.
5 Industries That Are Most Affected By Online Reviews
Companies should make managing online reviews a priority. Even more so for those that belong to industries that are most affected by online reviews:
1. Hospitality Industry
This industry is more expensive than others and customers require more convincing when selecting the right hotel or motel. People always want value for their money, so travelers rely on online reviews to find the one that can provide the most comfort for the least cost.
Reputation management statistics show that 49 percent of consumers won’t choose hotels with no reviews. Research also shows that a hotel or motel can lose up to 30 reservations due to a bad rating or a poor review.
Businesses in the hospitality industry must make online review monitoring a priority. This means tracking mentions, appropriately responding to feedback and increasing customer reviews.
According to online review statistics, 60 percent of diners look up online reviews and 67 percent prefer dining in restaurants with four or five-star ratings.
People are careful in choosing their restaurant of choice. Some of the factors that affect their decisions are menu, food taste, medical concerns, allergies and preferred atmosphere. Due to the pandemic, 67 percent of millennial consumers now prefer food establishments that offer delivery options.
BrightLocal cites the restaurant industry as among the top five industries where customers are most likely to have gone over customer reviews. Thus, online reputation management is a worthwhile investment for restaurants and cafes because monitoring reviews and promoting a positive brand image helps capture a broader customer base and increase conversions.
90 percent of patients evaluate physicians using online reviews, and 76 percent of individuals trust these reviews as much as they trust personal recommendations. You’ll find many positive feedback and ratings in the medical field because patients generally post favorable reviews. A positive reputation can help bring in more visits and calls.
Negative reviews may reduce calls and visits by up to ⅓. Negative doctor reviews need to be handled with the utmost care. With the Health Insurance Portability and Accountability Act (HIPAA) prohibiting patient information disclosure, you’re not allowed to confirm whether or not the reviewer was your patient nor share any information when you respond to the feedback.
When the product is unfamiliar, 88 percent of consumers turn to online reviews to make a good buying decision. Products with ratings within the range of 4.2 to 4.5 out of 5 are more likely to be purchased than products that fall below or above this range. Products with 5-star ratings are likely to have fewer reviews, and this affects the purchase probability. Customers prefer brands with more reviews and feedback, regardless if these are positive or negative.
It is, thus, imperative for retailers to bolster their review acquisition efforts. According to a study by Speigel Research Center, displaying reviews can accelerate your conversion rates by up to 270 percent.
When consumers are buying higher-priced items, they tend to give it more thought. Reviews for these products can amp up your conversion rates by up to 380 percent. Reputation management software can help you gain more consumer reviews and monitor your online presence.
Real estate, salons, consulting firms and other businesses in this industry focus on providing stellar services to individual customers. Consumers who are not satisfied with the services they received may take it to the internet and post their reviews and feedback for your prospects to see. Negative reviews may negatively impact your bottom line, as consumers may hesitate in doing business with your company.
When these consumers leave a negative review, be quick to acknowledge their experience, apologize and provide a resolution. This goes a long way, not just for the reviewer but for most consumers who are keen on how a company handles feedback. Your genuine apology and firm resolve to fix things will positively impact your brand perception.
Online reputation management is not about avoiding negative reviews altogether but responding to all reviews appropriately to maintain a positive brand image. Research shows that 69 percent of consumers tend to trust companies that respond to positive reviews, while 70 percent trust those that respond to negative ones. It is thus vital to continuously monitor and respond to reviews.
Given all the platforms and channels where customers can post their feedback, it can be challenging to track them without tools like a reliable reputation management software app. Handling reputation management for business the right way impacts your lead generation, sales, customer retention and revenue generation efforts.
Reputation management for business should, therefore, be prioritized to gain a competitive advantage over other companies. Showing people you care about their feedback is as important as delivering optimal service and is essential in setting your business up for success.