Business owners today have an incredible advantage in reaching their audiences with online marketing. From banner adds to social media, it’s easier than ever to connect with consumers and boost your revenue. One avenue that businesses have yet to master, however, is the power of local reviews.
There are still a wide variety of misconceptions about how these reviews impact business revenue, but this article is here to debunk some myths. If you’ve ever wondered how you can make the five-star rating system work in your favor, then read on.
The Power of a Review
In recent years, studies have shown that 84% of all consumers read your reviews. Just over 91% of people in those studies are between the ages of 18 and 34. With newer generations being born into technology, experts expect those numbers to rise.
Potential customers just reading reviews might not seem like much, but it directly correlates to your financial success. Forbes reported on how revenue and reviews are now eternally intertwined. Their findings show that just one negative review holds the potential to turn away 22% of potential customers.
With two and sour experiences exposed online, that number increases to 44% and 59.2% respectively. Add in a fourth, and you stand to lose 70% of all potential future business. Those percentages are enough to terrify even the largest of corporate conglomerates. It isn’t just about numbers, though.
Local reviewers impact your business in the same way that word of mouth does. If one customer leaves after a bad experience, they might tell a friend or neighbor. That individual turns around and tells three of their friends. Maybe the domino effect stops there, maybe it continues down the line until everyone in town starts labeling you with a reputation for poor service.
This devastating effect shuts down more local businesses than you might think. That’s the true power of a negative review. In the online realm, this series of dominoes continues into a far broader pool of potential customers. One individual has the power to reach thousands.
Review and Revenue
Whether it’s 22% or 22 people, you can imagine the damage losing new consumers does to your bottom line. However, you can also imagine what gaining a 70% boost in business can do for your revenue. Until recently, there wasn’t much any owner could do to turn the tide in their favor.
Nowadays, companies like Bird Eye are helping local business owners just like you to stay on top of the impact that reviews can have. Today’s tools allow owners to encourage positive reviews from recent customers, view feedback in real time, and remedy any negative comments in minutes.
If you need proof, take at look at these Schoenberg Family Law Group reviews. Using modern tools, they maintain over 4.5 stars with the majority in the five-star range. That helps their law firm stand out from the noise of the San Francisco Bay Area. Which, in turn, most certainly boosts their revenue.