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Online Reviews

If you are a business owner by now you are well aware of online reviews and the impact it can have on your business.  Negative reviews can have a serious impact on your business, did you know that a customer is 75% more likely to write a negative review than a positive review.

Is this how you feel when you see bad reviews about your business!  Nothing is more frustrating than a negative review that is very misleading, customers are very likely to exaggerate a negative review.  I have clients every week call me frustrated about reviews that are not true.  They all want to know how to deal with them or how do I get rid of them.  The best answer is to engage the upset customer and see if you can resolve the issue and have it removed.

Another complaint that I hear over and over is about Yelp.  Yelp is notorious for extorting business owners.  I have seen dozens of instances where Yelp put positive reviews into a filtered area (can’t be seen and not counted in star system) and only show bad reviews of a business owner.  They have been sued dozens of times but continue to prevail in court.

What is the Financial Impact of Negative Reviews:

Harvard Business School Assistant Professor Michael Luca set to find out exactly by how much, and identify winners and losers in the process. “I have always been interested in how companies form their reputations, not only restaurants and hotels but also schools and doctors,” says Luca.

How reputation is earned in the digital age is a fertile area of his research. Luca is looking at rankings, expert evaluations, online consumer reviews, and quality disclosure laws to see how they work in market settings, and which are most important for consumers.

Luca determined that each ratings star added on a Yelp review translated to anywhere from a 5 percent to 9 percent effect on revenues (depending on the control variables and means of estimation)—more than he had expected.

How to Control your Online Reputation:

First and foremost sit down with your staff and develop a plan.  Engage your customers through social media channels like Facebook and ask them to review your business.  One of the services we offer all of our clients is an automated review systems.  Make sure to train your staff to ask for reviews and reward your customers for the reviews.

Word of Mouth is now taking place online and it is important that you take control of the process.

If you are struggling with your online reputation we can help we are experts in this area call us today for an evaluation.

 

 

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