What is an online review costing your business?

As a business owner, you already know that people are leaving customer reviews online for everything from shipping times to problem employees, product damages to billing issues. Even though most business owners understand that a good review can lead to new customers and a bad review can drive prospects away, PRWeb reported that only 36 percent are investing in review marketing. 

Perhaps one reason is that business owners don’t fully realise what an online review is actually worth. Another may be that many don’t know how much it costs to collect reviews, and they fear review marketing may be more of an expense than they can afford. 

What is the real value of a review for your business? Is online reputation management really that big of a deal? Let’s explore the truth about how online reviews affect business, and what customer reviews may be costing your business if you aren’t tracking, responding to, and using them. 

Your customer reviews are the key to more business

As Social Media Today reported, “92% of consumers read online reviews before making purchases, and they trust those reviews as much as they trust recommendations from friends and family.” 

That’s why you can’t afford not to be engaging with and using your customer reviews. Put another way, positive online reviews are better than any paid ad, or marketing plan you could create. Before a prospect reads the words on your website or looks at a single image on your social media profile, they are searching for what people are saying about you. 

Great reviews put more money in your pocket

Positive online reviews can also justify your current pricing as well as increases in price. The Cornell School of Hotel Administration discovered that hotels can earn as much as 11 percent more on their room rates for every single point increase in their star rating. And, because consumers associate the higher cost with the higher hotel rating, raising their rates won't stop customers from booking rooms. 

Can you imagine what an 11 percent increase in revenue could do for your business? 

You may not run a hotel, but your customer reviews can still lead to additional revenue in any industry. Adobe explained that the reason people are willing to pay more is that consumers want to know they will have a positive experience when making a purchase. 

They went onto say, “Forty-two percent of consumers said they would pay more for a friendly, welcoming experience, and 52% would pay more for a speedy and efficient customer experience.” 

Online reviews tell consumers whether or not a company can provide the level of quality and customer service they are looking for. Not only will they pay more upfront, but it can lead to more money in the future as well. In a study done by PwC, they reported that “73% [of respondents] said that a good experience is key in influencing their brand loyalties.”

Poor online reputation management can cost you money

While good reviews can earn you more money, the flip side of the coin is that poor reviews can take money out of your pocket. Especially when you don’t respond to them. 

Failure to address a bad review, or even neglecting to respond to positive reviews, makes it seem as though your company doesn’t care what others are saying about you. Whereas managing both positive and negative reviews effectively can boost things like your brand recognition, your company’s visibility and authority, and even your ranking in search engines. 

You may be wondering how much it will cost your company to manage your online reputation. The answer is that it all depends on how you go about it. Here’s the expensive way:

• You could hire a team of influencers to spread the word about your company and sing its praises
• You could also hire a public relations company to take care of your crisis management and attempt to get you some good publicity 
• You could even buy ads on social media and with Google

All of this is a great way to get your name out there, sure. But, the problem is it will cost you hundreds if not thousands of rands, and it will be exceptionally time-consuming as well. 

So how can you manage your reputation without breaking the bank?

The better way is to use Hellopeter to help craft the narrative about your company. With Hellopeter in your corner, you can easily:

• Reply to customer reviews that are being created
• Increase the number of reviews you’re receiving
• Share your reviews on social media
• Get email notifications when a new review is live
• Report reviews that are malicious, and so much more 

Getting control of your reviews can take your business and revenue to the next level. Save yourself time and money with our easy to use online reputation management software. We’ll even teach you how to leverage both positive and negative online reviews to increase your customer base. Learn the true value of online reviews with our free guide.