From retailers to service providers and restaurants, businesses receive a noticeable uptake if they receive positive write-ups on user-generated review sites. On average, a one-star increase on Yelp leads to a 5 to 9 percent increase in a business’s revenue, according to an infographic provided by Chatterbox, a company that builds customer-engagement platforms for marketing purposes. On the flip side, one negative review can cost you 30 customers.
Clearly, online reviews are serious business. And they are becoming increasingly important: By 2017, millennials — a group whose purchasing decisions are disproportionately impacted by customer-reviews — will have the most spending power of any generation.
Unfortunately, it’s easy for your business’s online reputation to get sullied. Cranky customers, disgruntled employees and even sneaky competitors can barrage your business with nasty social media mentions and online reviews. In fact, a whopping 45 percent of customers share their negative experiences over social media, while 35 percent post them on review sites.
All this online negativity can be very damaging, which is why it’s essential you respond to bad reviews in a prompt and appropriate fashion.