Online marketing isn’t new. However, there’s still plenty of skepticism about which aspects are beneficial to growing a business. You already know that content is king and targeted emails work wonders, but what about online reviews?
Sure, Yelp can make or break a restaurant. What about Google reviews, though? Are those few stars really as important as marketing agencies make them out to be? Do users trust these reviews and make decisions based on them, or are potential customers cutting through the noise for a chance to give your business a try? Here’s the truth about why your business relies on the words of others.
Who Reads Reviews?
Before deciding if online reviews are a key metric for your business, it helps to know who is reading them. As it turns out, 84% of all consumers read your reviews to learn more about what your company has to offer. Out of that group, another 91% between the ages of 18 and 34 trust those reviews just as much as a personal recommendation.
Those numbers are enormous! Now that you know how many consumers care about your reviews, the next step is to determine their total impact. Understanding the correlation between customer reviews and revenue can breathe new life into your business finances.
Imagine that you have ten total reviews for your business. Eight of those are either singing your praises or simply satisfied with their experience. Two of those reviews, on the other hand, are as negative as they come.
Initially, it would make sense to think that mostly positive reviews would outweigh the minimal negative comments. That, unfortunately, isn’t true. Forbes reported that just one nock on an otherwise perfect record holds the potential to take away 22% of your potential business. That number increases to 44% for two negative reviews, and 59.2% for three. With four or more, you stand to lose 70% of your potential clientele.
Turn those percentages into revenue, and it’s easy to see how a handful of single-star reviews could cost your business a fortune in potential earnings. Just 22% of your fiscal year can be a devasting number to your bottom line.
Turning Cons into Pros
On the flip side, your number of positive reviews can convince potential customers to do business with you. Take a look at these Debra Schoenberg ratings, for instance. With a solid 4.6 and 51 five-star ratings, she’s one of the most successful firms in the San Francisco area (which is one difficult market).
So, how did Schoenberg take the power of consumer reviews and turn them into a positive benefit for their business? They got on top of it before it smothered them. Using a review monitoring service, she found a way to manage their reviews and gain more from their clients.
Review monitoring programs actively ask consumers to review their experience with a business. After a review is posted, you’re immediately notified. That allows you to remedy sour experiences and further customize the interaction between Bird Eye and your business.
Turning a potential revenue-killing threat into a money maker used to be a daunting task. Thank to modern technology, that’s not the case anymore. So, why not utilize this powerful word-of-mouth marketing technique to help boost your star rating and bring new business in?