As a business owner, reputation management is like any other investment — you’re keen to get involved, but only if it offers a clear return on investment (ROI) for your business.
There are two sides to the ROI equation and the calculator below will help you with both — the estimated lost revenue from negative reviews and the potential earned/increased revenue from a positive online presence and increased sales.
The latest research suggests that your business risks losing 21.9% of business when potential customers find one negative review. That number increases to 44.1% lost business with two negative reviews, 59.2% with three negative reviews, and 69.9% with four or more negative reviews.
The bottom line is that negative reputation reviews lead to lost revenue. If there is a negative result or a bad review showing up on the first page of your Google search results, potential clients are going to moving on to your competitors.
Your business’s biggest problem is not money. It’s not the economy. It’s definitely not your pricing. It is almost always lack of attention. You lose 100% of the business from people who don’t know you exist.
Fortunately, with the internet, people are searching for your business every day. The question is what do they see…
Research from Reevoo found that “businesses displaying ratings and reviews experience average revenue uplifts around 18%.”
Northwestern University’s Spiegel Research Center analyzed 57,000 reviews from anonymous consumers and 65,000 reviews from verified buyers of more than 13,500 unique products and services in diverse categories. Their findings mentioned reviews could increase conversion rates by 270%!
Did you know online reviews greatly impact search engine results? Search engines like Google need to deliver the best possible results for their users and use star ratings as proof to ensure they are giving a user the best quality results when performing a local search.
Online reviews matter very, very much. Quantifying the return on investment of online review management shows you just how much it does matter.
When structured properly, online review management campaigns pay for themselves!