Businesses are being reviewed Online as often as the products they sell, making management of their Online reputation critical for success. Growth is an important phenomenon in Small Businesses. In fact, their survival essentially depends on their power to participate in the market with other big companies. So to beat those big giant companies, the importance of online reviews for small businesses has become very essential.
Let see some data to show how reviews can impact businesses all around the globe. They can make you and they can break you can well.
Online reviews influence whether a consumer sees your business in a positive or negative light.
• 88% of consumers trust online reviews as much as personal recommendations.
• 65% of customers prefer brands with an abundance of great Online reviews.
• Approximately 68% of customers utilize social networking sites to read product reviews.
• 85% of consumers read up to 10 reviews before making a buying decision.
• 94% of Google users will only review the first top 10 results of a search.
One Negative Online Review makes a great difference to your business’s reputation
Each additional Star on Yelp increases a business’s Revenue by 5-9%. On the flip side, a negative Online review on a site like Yelp, or even your own social media pages can do serious damage to your reputation.
In some cases, these negative Online reviews can end up on the first page of results when people search for your business
Do you know your reviews are now only one click away from your potential customers searching for your business Online?
Google is now using their own autogenerated Google Places sites to catalogue and archive Online reviews from around the Web about your business.9 It may also impact the estimated 94% of Google users who only review the top 10 results of a search.
So, if you have negative reviews and poor ratings, instead of attracting new customers to your business, it will cause them to continue to search for another business that does have great reviews and ratings.10
Cost of Negative Online Reviews For Small Businesses?
Consider these real-time facts about customer reviews:
• Customers are 3X more likely to tell their friends about a negative rather than positive experience at a business which can be especially damaging considering word-of-mouth recommendations are the primary factor behind 20% to 50% of all purchasing decisions.
• It takes 12 positive experiences to make up for one unresolved negative experience.
• 80% of potential new customers will not buy from a business with negative reviews.
• The cost to acquire a new customer: between six to seven times more than simply retaining an existing one.
• An unfair negative Online review can cost a business as much as $ 46,000 a year. 12 • The annual cost of unhappy customers: more than $537 billion.
• Totally satisfied customers will contribute 2.6 times more revenue than somewhat satisfied customers. What Is A Negative Online Review Going To Cost You?
• Businesses with a three-star rating or higher on Google receive 87% of the clicks.
• Four out of five consumers will change their mind about making a purchase due to negative information Online.
• 72% of consumers trust businesses with positive reviews.
• Harvard research indicates that the revenue difference between a restaurant with three stars and a restaurant with five stars on Yelp can be as much as 18%. For a restaurant with $1 million in revenue annually, that represents about $180,000 in lost sales—every year.
How small business owners should respond to negative reviews?
It’s very normal to get a negative review, you shouldn’t be hype or angry after seeing those reviews just wait and take a deep breath. You should reply to the customer very calmly and patiently. Describe the situation in such a way that customer who is going to see your response will know that you care about them and maybe the reviewer has done some mistake. It’s not your fault.
Your response as a business owner matters, So always respond to negative reviews.
Want to know how you can respond to negative reviews Just click here. Read the in-depth article it will surely help you understand better.
One negative review can cost your business thirty new customers.
To put this in perspective, if your business is not monitoring and managing its Online reputation and has 10 negative reviews with no responses, it could mean that your business has lost 300 potential customers.
Negative reviews cannot be ignored for they will not go away and may be viewed by hundreds of potential customers for years; instead, embrace negative reviews as opportunities to prevent any potential damage from occurring.
Most importantly, be sure your customers have an easy way to quickly and privately communicate with your business either via your own website, or an automated customer feedback solution.
Thank you for staying this long. I hope I have added some value to your life 🙂
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If you want to learn more about Digital Marketing for local businesses then here is my other blog post