Just as many consumers are using the internet more and more to purchase goods and services, they are also using the words of other customers to inform those purchases. The average consumer has become jaded when it comes to some advertising methods, so they are turning to reviews and testimonials from their peers to provide them with an honest assessment.
Many potential customers will read the marketing copy, then scroll down to read reviews by actual users. They use the information gathered there to decide if a product or service is going to be a good fit for them.
Recently, Womply completed a study that details the correlation between reputation management and revenue. This study included a wide variety of industries and covered data for over 200,000 small business in every state in the US. Womply connected review and presence management best practices with revenue outcomes and came up with some interesting findings.
In the study, they found that the average American business had only one listing. These businesses did better in regards to revenue than others that had no listing, but had less revenue than businesses that claimed 2 or more listings. The difference in revenue ranged an average of $40,000 to $110,000 a year.
In the study, Womply found that a business that did nothing more than claiming their listing could increase their revenue by 58% and businesses that had more reviews than average generated 54% more revenue.
Those are pretty good numbers, but you can increase those even more by responding to your reviews. The study went on to show that businesses that responded to the reviews averaged another 35% more in revenue.
Potential customers are more likely to buy from a business that interacts with online reviews. The belief is that the responses show that the business values customer service. In the study, 75% of businesses don’t respond to online reviews, so there’s a great opportunity to be one of the few to take advantage of this easy and inexpensive way to generate revenue.
An interesting item that was found during the study is that businesses in the 3.5-4.5 star range do better than those below or above, even if the business has a 5-star rating. Womply believes there are two possible reasons for this. Businesses with a 5-star rating tend to have fewer reviews and consumers may believe the rating has been faked or manipulated. It’s ok to have an occasional “less-than-perfect” rating.
You’re not going to please everyone, and the occasional bad review must be handled professionally. People know that some customers will never be happy and will be interested to see how that type of complaint is handled. If the issue is addressed professionally, this shows potential customers that the business cares about its customers and their experience.
Team WTI has been working with clients for years to help keep their online reputation in shape. We offer advice, tips, and strategies to manage and improve your online reputation. If we are handling your social media accounts, we can quickly address any negative reviews or comments and make sure every review is addressed.
Staying on top of your social media can be time-consuming and we know you have work to do. At Team WTI, this IS our job. Let our team of specialists handle your online reputation and social media profiles, so you can spend your time running your business and taking care of your family.
If you’d like to learn more about how Team WTI can help manage your online reputation, give us a call. We’d be happy to answer any questions you may have and discuss how you can get your share of the revenue that is out there.