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The Significance of Customer Reviews

Connor W, Director of Growth at NiceJob

Apr 3, 2018 @ 4:00PM 4 minute read

Happy customers often return, and many tell others about your business. But leaving this word of mouth to chance isn’t your best move. To get results, businesses need to be proactive and go after reviews by requesting them.

According to one study, only about 13% of small businesses ask for reviews. Many say they don’t think it’s appropriate to ask or don’t have an easy way to get reviews. But to put it plainly, when you request reviews, you increase your odds of getting them. Most customers are happy to provide a review when asked. The trouble is, most do not ask.Why reviews are important

Here’s another thing to consider concerning reviews. While word of mouth referrals are within a small network, it’s online reviews that create much more visibility. The more positive reviews you have, the more likely it is that customers find you, because they not only improve your visibility in Social Media, Google My Business listings, and other review sites, they also help with your search engine rankings.

While word of mouth is great, online reviews take things to the next level. It’s digital word of mouth on steroids, increasing your chances of referral traffic and ability to acquire even more customers.

The Challenge of Online Reviews

Many customers are willing to provide reviews. At the same time, most need to be asked more than once. People are busy, and while they mean well, aren’t always available when you ask and often forget.

Imagine this scenario if you wanted to take control of your online reviews manually:

You send just 3 requests a day, between Monday to Friday. The next week you do the same. But you also need to send reminders, so from all the people that you invited or requested to provide a review need a follow-up reminder. That first week, with a minimal 3 requests a day, is 15 reminders. Unless someone provided a review, which can happen, most will need a reminder or two. So if you send 15 requests in a week, which is on the low side, and you’re 3 weeks into the process, you now need to send reminders for the past requests. Without getting too deep into the math, that quickly becomes 50 emails to send per week.

Now let’s be realistic here. Do you really have the time, energy, and data to not only be sending out these 50 emails (minimum) a week but to also be sending them each out at the best possible time for them to be received? With review marketing automation software like NiceJob, this process becomes easy. You only send the initial review requests and invites, it does the rest, automating follow-ups for you, and if you integrate it with Housecall Pro, it will even automatically send the initial requests for you as well.

The challenge of online reviews

It’s A Numbers Game

More review invites (and reminders) equal more completed reviews. With more reviews, your visibility improves, and you start to see more reviews and sales. While more than three quarters say they are willing to provide a review, only about a third eventually do. If you only ask once, that probably drops to less than ten percent. This is why it’s so important to not only follow up with your customers for reviews, but to make it incredibly easy for them to leave you one. Using tools like NiceJob, you can provide a quick and simple interface for your customers to leave reviews on all of the important review sites for your business.

It’s a Process, Not A Set And Forget Strategy

Consumers look for a few things, and it’s not just the star ratings. When consumers look at review websites, they’re looking for social proof to help validate a decision about giving their business. This is to mitigate the risk they face by giving you their money for your services. They don’t know if you’ll do a good job and if they’ll get their money’s worth, so they look to reviews to help them alleviate those fears, or to validate them if a service provider is a bad one. The most important factors considered are the star ratings, overall sentiment, frequency, and recency of the reviews. It’s also a growing concern from consumers that businesses respond to reviews.

It's a process, not a set and forget strategy

Another consideration is customers that are referred by other customers are over a third more likely to have a strong retention rate. That’s the power of word of mouth.

Star ratings

It’s not just how many reviews you have, it’s the quality of them and the subsequent average rating that give important signs to most consumers.

Overall sentiment

It’s important to reply to almost every review, good or bad. How you handle engaging with customers that may have left negative sentiment on a review is seen by others. In situations where a customer was dissatisfied, how you go about responding to negative reviews is known to affect others in reading them and their decision to do business with you.

Overall sentiment

Recency of reviews

Not only does the overall rating of your reviews matter to consumers, how recent your reviews are is also a consideration for those looking to decide whether to select your business over the competition. About 73% of consumers believe reviews older than 3 months are no longer relevant, and 44% say a review should be written within one month or less to be relevant.

With these many consumers believing that reviews older than 3 months are no longer relevant, it’s essential that you not only manage your reputation but keep a steady stream of fresh reviews.

recency of reviews

Frequency of Reviews

Even if you have a few recent reviews, the rate at which (frequency) they’re acquired is almost as important as how fresh they are. The number of reviews you have is important to some consumers. Your typical consumer prefers to see businesses have at least 34 reviews on average before they feel they are able to trust the accuracy of a star rating for a business. Businesses with less than this number are often assumed to have simply gotten their friends or employees to write them their reviews. This is much harder to fake with a greater number of reviews, making them more trustworthy when more numerous.

Reputation Management

The more reviews you have, the less likely that a poor review will have an impact on your overall rating. As an example, if you only had 5 reviews and a negative review came in, it would bring down your overall rating far more than if you had at least 20 or 30 reviews in total. It would stand out more and be much easier for customers to find.

Consider this scenario - a potential customer is in need of a product or service you offer. Unless they have a favorite place to go already, most will either ask their personal network of friends and/or family for a recommendation, or they’ll search for a solution themselves. This is a process that happens millions of times each day.

Now, what if they saw one of their friends had left your business a review? They would trust that business more than one that didn’t have this review. Why? Because they trust their friend, even if they don’t know you, that friend’s review is a public declaration of trust in your business.

reputation management

Reviews and Local Search

You should also know that online reviews affect local search and SEO (Search Engine Optimization), which are another primary channel for customer acquisition. Online reviews impact local search and SEO by about 12%. Given the hundreds, if not thousands, of different factors search engines use to rank websites like yours, this is a huge impact on your SEO. The quantity and overall ratings are just a few of the signals considered.

Another major factor of your SEO is having a website that is updated with new over time, rather than staying static, which search engines will eventually come to see as outdated content and rank it lower. Reviews are an excellent stream of fresh new content that you can use to keep your website updated. Convert is one website product that can not only help you do this but also make sure that those website visitors become leads for your business.

While lots of hard work goes into building a reputation, it’s important to remember that your brand is not what you say it is. It’s what others say it is. For those new to your brand, your reputation and first impressions are often influenced by online reviews or social media and what others have to say. If these are neither numerous nor positive, they will often keep on looking for other providers and not even make it to your (hopefully good) website.

To help manage what’s said about your business, ensure the customer experience is as positive as possible and aim to not just meet but exceed expectations. Doing so, you’re much more likely to see positive sentiments within reviews, and have more control over reputation management. Word of mouth has its rewards, but you have to earn it.

What if I don’t have any Reviews?

This can have a negative effect. Many consumers believe that not having any reviews is almost as damaging as having several bad ones. By implementing an action plan and process (we recommend using software to automate this for you), you can start building your reputation and acquire online reviews from past customers. But if you don't have any reviews, it's not something to put off. They influence consumer decisions, as well as help you to appear within local search results. The longer you wait to implement a review system, the more time you’re giving potential customers (and their friends) to become loyal to competitors.

59% of consumers look at 2-3 review sites before they make a decision about a business

87% of people say that a business needs a rating of 3-5 stars before they will use them

The Takeaway

If you want more referrals and reviews, it's essential to make it part of your process. That means sending requests often, and practically every day.

When it comes to business, many experts will tell you that your brand is the most valuable asset you own. In some cases, it can represent the best of something for a local market. The best bakery, the best place to get a car, the best place for dinner? Reviews are what gives a business this brand reputation, and they're also what gives the brand value if you ever choose to sell it by making that reputation transparent to potential buyers.

More than half of businesses are not making use of online reviews, yet over 90% of consumers trust and rely on them to help make decisions for purchases or local products and services. This means if you start collecting your own online reviews today, you will stand out.

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