What Customers Say Online Impacts the Bottom Line
In November 2011, the Harvard Business Review published a study on the impact of online reviews. Looking at restaurants specifically, the authors found that a difference of one “star” in the average rating of the establishment led to a difference in revenues of 5 to 9 percent. Prompted by this growth in the importance of online reviews, Reputation.com launched a service last year specifically geared toward monitoring, tracking, and improving online reviews.
Released late 2011, the Reputation.com review focused product, Reputation.com for Business, collects customer-generated reviews from across the Internet, provides intuitive tools for analyzing trends, and helps business owners ask their customers for feedback. Reputation.com also offers industry-specific versions of the product, focusing on healthcare, hospitality, and the automotive sector respectively.
Through the process of deploying the Reputation.com review for Business framework, our R&D team has learned a few things about how a business’s bottom line is impacted by reviews. Reputation.com research has shown a correlation between review volume and volatility, for instance. Businesses with many reviews are more likely to have an overall positive rating, whereas businesses with only a few reviews suffer major up-and-down swings depending on the perspectives of only a few reviewers. Businesses with low review volumes are also vulnerable to attacks by their less-ethical competitors, who might enlist the help of friends and employees to write bad reviews for the business.
Reputation.com’s review-focused services help businesses protect themselves against these types of threats. Built on review-site best practice and unique technology, Reputation.com for Business is an easy way for companies of all sizes to protect their investments and keep an ear to the ground of consumer sentiment.