One of the most important characteristics of successful business organizations is their ability to revise their business strategy and adapt their model based on changes to the business environment.
Revising a business model on-the-go is a sign of a healthy, strong, and agile business with responsive leadership. Tweaking the mechanisms that generate revenue and increase business growth can only take place if a business organization has the proper data to understand the impact of its actions or non-actions.
Disciplined tracking of online reputation and feedback (such as online reviews) presents a unique opportunity to implement changes to a business model based on unprompted real-time assessments.
Reviews, as provided in the larger and more active review sites, have become a game-changer for those that are willing to invest in methodical tracking of online reputation trends. In short, capturing service gaps, high-performing products or services, and customer demographics equips strategists with the ability to refine their offering and optimize their business model to best serve their intended market.
Online reviews highlight revenue sources
Online reputation monitoring is generally perceived as a way to hear the bad news about the way you do business. It is imperative to abandon this perception and take advantage of every facet of the online feedback you receive.
By tracking your product or service reviews across all review websites, you should be able to identify customer favorites based on raves and use the data to optimize pricing or product strategy. Rave reviews may alert you to potential elasticity in pricing for certain products. It may also give you insights about groupings preferred by patrons. Understanding customer preference can help you expand your offerings, and generate new revenue sources, with a decreased risk of failure.
Online reviews profile your customer base
Refining your marketing strategy and maximizing our marketing dollar is perhaps one of the smartest revisions you can make to your business model. Quite frequently, business managers tend to throw a broad net without careful consideration to segmentation, and it is not until the business reaches a certain maturity level that you can begin to identify segments that prove more profitable to your business.
By carefully studying the wording, voice, and cultural nuances of the reviews left by customers, you can refine and select groups of people by age, gender, region, or income that show higher potential for engagement with your product or service. On the other hand, if the segment that you are serving the most is not aligned with your original objectives, reviews give you insights that can help you revise your offering to match a more profitable segment.
Online reviews point out shortfalls in operations
Knowing where you are dropping the ball is perhaps the most valuable asset you will find in the careful management of online reviews and reputation. Pure tracking of sales seldom provides business with a sound understanding of shortfalls in delivery.
For example: in a large city with a high level of transient business traffic, a retail operation may demonstrate consistent sales of a particular product or service even when the service or product is not excellent by any means. Because the business strategists do not see a drop in volume, alarm bells do not go on. All of this can continue to happen for a long time without the realization that the enterprise is failing in developing customer loyalty. Every customer is a first-time customer if the data mining is happening at point-of-sale level only.
On the other hand, businesses that incorporate online review analysis will quickly identify patterns of concern or shortfalls in delivery that may be causing a decrease in repeat business and a tarnished online reputation. Tracking and tweaking procedural and product shortfalls will quickly result in a more effective and growth-conducive business model.
A timely implementation of a review management platform may just be that little extra that pushes your business and marketing strategy to the next level.