“Why should I care about the opinions of online reviewers?” says the overconfident business owner. “They’re just a few people who have nothing better to do than write whatever is on their mind.” Sure of their company’s brand, marketing approach, and loyal customers, this owner is unlikely to hear of the sales silently lost by customers who do care about the opinions of online reviews.
Let’s be honest: reviews affect companies differently. Some businesses cannot afford a single negative experience, like brain surgeons and child safety products, while others, like restaurants or hotels, are bound to disappoint guests over time. Either way, reviews have an affect on your customers.
The key is to build enough trust with your target customer to convince them to follow through rather than run away.
So what businesses are affected most by online reviews? Here are five areas that determine if reviews cause a business to thrive or dive.
1. Need for New Customers.
Companies that do business with many first-time customers, rather than repeat customers, will see a greater effect on their sales from online reviews. Because an online review profile is building trust with those who do not trust you yet, reviews are most important to prospective customers.
Most home buyers are unlikely to make multiple purchases, so real estate agents need to attract new customers by having a stellar review profile. Apartment complexes draw in people who probably know very little about the living situation there. Prospective renters will look into online reviews to see what this place will be like for them.
If your business brings in at least 20% of your revenue from first-time customers, you really must attend to how you appear to new buyers in your online reviews.
2. Lesser-Known Brands.
When you walk into a Taco Bell restaurant, you have a good idea of what the experience will be without doing any research. The brand has built a reputation over time, with which you probably have had prior experience. You don’t expect your 79₵ bean burrito to wow you; you came looking for a cheap fill up.
When you consider HG Sply Co., you may have never heard of it or had a friend try it. So, you pull up Yelp to check out the reviews. Here is where Yelp holds immense power over the independent restaurant: if the researching diner sees a convincing testimony of great reviews, they’ll likely be a new customer. If they see a report of cockroaches, dry steaks, or rude employees, they are likely to move on to another option.
A Harvard business study found that, especially for lesser-known brands, a one-star increase in Yelp ratings led to a 5-9% increase in revenue. Now, more than ever, customers are seeking out not just restaurants, but professional services and big purchases, on Yelp and Google. If you’re trying to convince people who don’t know you that they should give your brand a try, you cannot afford to neglect online reviews.
3. Low-Trust Fields.
Do people come to your industry or interactions with suspicion? This is a good indicator that they will do additional research before committing to a purchase.
When a customer cannot see the product they are about to purchase beforehand over the phone or online, they are more skeptical than those holding the item in-store. They need to be sure the risk is worth it.
People are often skeptical when talking to insurance salespeople or visiting the auto mechanic. Fields that traditionally get a bad wrap will experience greater success… or greater failure… based on the story of their online reviews.
Low-trust fields have an immense opportunity to build trust and win customers over their competition by having a solid online review profile.
4. High Stakes Purchases.
People don’t mess around when they’ve got a lot to lose. When the stakes are high, consumers spend more time doing their research to trust their decision.
Transferring your IRA into gold is a big financial move that you can’t afford to get wrong. When you search for a doctor to perform heart surgery, you don’t want to see any scary reports.
Finding a lawyer to represent you during a lawsuit is a daunting task. Wouldn’t it help to see other clients share affirming messages about the one you are considering? Maybe then you wouldn’t get thousands of dollars into a pit before realizing your new attorney is impossible to work with.
If the decision to choose your business is a big one, your really ought to pay attention to your online reviews.
5. Long-Lasting Commitments.
When you’ll likely stick with your decision for a long time, you want to get it right from the beginning. Finding a pediatrician for your newborn could mean an 18-year commitment to their care. Don’t you want to know that this person is available, gentle, helpful, patient, and amazing at what they do? Online reviews by their current and past patients can give you the information you seek.
When you consider moving to QuickBooks for your business accounts, you are taking a risk on a potentially long-lasting relationship. Moving your accounts is a hassle, so you want to get it right the first time. When customers consider a long-term purchase, they’re likely to check out reviews first.
Businesses always want to reduce risk for the buyer. Providing a helpful, trust-building online review profile gives confidence to ensure you don’t lose the sale.
More and more consumers are finding products, people and services online, and their decisions are guided by the online reviews they see. Certain factors mean your business may be more or less affected by online reviews. Reach out today for your free consultation, and see how we can recruit honest reviews from your happy customers to hook future customers.