For over a decade now, people from all walks of life turn to the internet when they want to learn more about a person or a company. This is also a fact that remains constant regardless of age. When people are looking for more information about a company, they are looking for reviews. Many different review sites appear each year. Some of the most popular among them are Yelp, Google Reviews, OpenTable, Angie’s List, and Facebook. This is the reason that when you consult a reputation management company, they are interested in how your name or your company’s name look on a Google search engine results page (SERP). The information obtained from this simple search will have all the information they need to determine the length of the campaign you need. Not only are review sites an excellent way for potential clients to find out about you, but it is also a unique way for you to know how to serve your clients better. Below, we are going to look at the popularity of review sites, breakdown the basics of online reviews, and discuss the problem with negative reviews and how they are impacting your bottom line.
The Popularity of Review Sites
Not that long ago, you would have to talk to your friends and family about a person or a business to find out if you should do business with them. As for today, you only need an internet connection and about five minutes of your time; more if you want to do a thorough job. It all started with a website called Yelp. In 2004, Yelp made its debut. While it was initially intended for a place for foodies to gather and share experiences of the food and service they received, it quickly became a place for potential customers to find out about any local business. Today, Yelp has received more than 115 million reviews on its site that spans across all industries, from local services to health care facilities.
You may think that this is just a place for people to air their grievances towards a company, but you would be surprised. Yelp reports that more than 72% of their reviews are what is considered positive. That is a far cry from the company bashing they are known for. On the other hand, you need to know that to be regarded as a positive review; it is only required for a company to have a two-star rating. It is considered below average, but still not poor.
On a side note, we feel that it is crucial to inform you that increasing your star rating by just one star can translate into a 5 – 9 percent in revenue. That can be the difference between staying in business and having to close your doors for good.
The Basics of Online Reviews
Online review statistics echo what many people already know. That is that online review sites are considered authoritative. Simply put, this means that people trust what they read on these sites. Why does this matter? We will tell you.
Not quite everyone is reading online reviews, but 90% of consumers do. In fact, the majority of people will not make a purchase until they know about the company. Sadly, this means the days of giving a new company a chance is long gone. While there are still people that will do this, they are very few and far between. Thankfully, some do this, which is how we get more products and services on the market. Below you will find some statistics about online reviews.
Reviews are trustworthy: Almost 90% of the 90% of customers that read online reviews state they put as much trust in an online review as they do by getting a personal recommendation.
Good reviews mean more money: Customers have admitted that they spend more money at stores that have positive reviews. In a recent report, they found that people spend as much as 31% more in these stores.
Bad reviews equal less money: No real surprise here. If positive reviews equate to more money, it would stand to reason that negative reviews would translate into less money. Almost 90% of customers admit they are hesitant to spend money receiving products or services from a person or company with a poor rating.
More stars translate to more trust: Just over 70% of customers that were questions admit that they trust a company more solely based on the number of stars they have.
Negative Reviews
The major problem with reviews is that when it comes to reviews, more people are likely to share negative reviews as opposed to positive ones. Likewise, as humans, we tend to focus more on the negative than we do the positive. Think about the last time you were in traffic and wondered why. There was likely an accident. Even though you despise the fact that you are stuck in traffic because someone in front of you had to get a good look at what happened, you found yourself looking as well.
It is for that reason that you need to make sure that you address every review that comes your way. It doesn’t matter if it is positive or negative. Many companies feel that responding to negative reviews will make the problem persist. It is quite the opposite. If a person shares a problem they had, people are looking for a response from you. They want to know that you care. Likewise, you don’t want to only respond to negative reviews. This implies that you only care about making your company look good in the face of adversary. Read and respond to each and every review.
Conclusion
Reputation management companies work tirelessly to make sure that you have the position that you desire on web results. It would be in your best interest to make sure that you are helping them out as much as possible. Now that you have a little more knowledge of how negative reviews can impact your company, it is time you get out there and make a difference. Aim for getting one extra star on your review sites. We promise that you will see a difference in your clientele and revenue.