Research

How Online Reviews Affect a Business’ Online Reputation

August 06, 2013

45 percent of customers say they’re more likely to visit businesses that respond to their reviews

Online Reviews Survey

shutterstock_264466133

“It takes 20 years to build a reputation – and 5 minutes to ruin it.” This quote by American business magnate Warren Buffett has been used a bunch of times to emphasize just how fragile reputation is. And you know what? It’s truer than ever, too – thanks to online customer reviews, which have become increasingly essential to business reputation. We’re living in the world where a one-star decrease in Yelp rating can mean significant revenue loss for a business – and a one-star rating improvement can do wonders. (Check out: “9 Effective Tips for Responding to Online Critics”)
It’s no surprise that Buffett’s oft-quoted statement was used again by rep management company Reputation Advocate released their new infographic: “Customer Reviews: Friend or Foe?” Here are some of the most important numbers highlighted by that infographic:

  • 5 percent of bad reviews are written by customers who show no record of actually making a purchase. (According to this study, these customers are sometimes valuable, loyal fans who are acting as ‘self-appointed brand managers.’)
  • People consider other consumers’ online opinions/reviews as one of the most trustworthy sources of information today. In fact, 70 percent say that they trust these reviews ‘completely/somewhat’; reviews are second only to ‘recommendations from people I know’ as consumers’ trusted information sources.
  • Your business will be in a much better position to attract new customers if you have positive online reviews. Just how much better? Well, just take note of these facts: 73 percent of consumers say that good reviews make them trust a business more; 50 percent are also more likely to choose a local business after reading great reviews. Moreover, 87 percent say that high ratings and glowing reviews reinforce their decision to purchase a product or service.
  • 67 percent of consumer read up to 6 online reviews before making a decision. Even more interestingly, 22 percent read at least 7 reviews, while only 11 percent take no notice of what’s being talked about in community-based review sites.

Needless to say, online review management (and monitoring) is more critical than ever in order to effectively manage a business’ reputation. For more facts and figures, check out the awesome infographic below, courtesy of Reputation Advocate:   online review management   (Infographic: Reputation Advocate blog)

related posts

New Study Highlights Increasing Impact of Online Media on Local Shopping
ReviewTrackers’ List of Free Online Tools for Checking Backlinks and Social Mentions
U.S. Businesses to Spend $700M on Fixing Bad Reviews

Try ReviewTrackers for two weeks, no credit card required.

See all your reviews in one dashboard. Respond to customer faster. Generate 3 times more reviews with email and SMS campaigns.
Start my free trial