How to Handle Online Reviews

Recently there has been a lot of talk about online reviews and how customers exchange their opinions across the internet, and how this in turn affects your business, and some of it's pretty scary.

But do online reviews really matter? I always love numbers and I think you will too after considering these statistics:

• 92 percent of consumers trust recommendations from friends and family above all other forms of advertising.
• 88 percent of consumers trust online reviews as much as personal recommendations.
• 72 percent of consumers say positive reviews make them trust businesses more.
• 72 percent of consumers will take action after reading a positive review.

When you look it at that way, online reviews don't seem scary at all, but their importance to your business should never be underestimated. Fall asleep at the wheel and a few negative online reviews can turn into a nightmare in no time.

But as a whole there's no need to feel threatened. If you're doing your job right, the chances are high that your business will get positive reviews on the internet. In addition we're going to take a look at what can go wrong in the world of online reviews, how they affect your business, and what you can do to make them work for you.

1) You don't take online reviews seriously.

It's very surprising that there are still a lot of business owners who don't believe in the power of online reviews. They figure word of mouth is where it's at. After all, 85 percent of small businesses say word-of-mouth referral is the main way new prospects discover their businesses. As long as their satisfied customers are sending them referral business, what do they have to worry about?

But that's just it, online reviews are also considered word-of-mouth referrals, only online reviews can have a more permanent, long-lasting effect. Plus even offline referrals are likely to research your business online before making contact.

• 81 percent of consumers conduct online research before making a purchase.
• 85 percent report reading online reviews.
• 67 percent form an opinion after reading six reviews or less.

Consumers are always online, whether through their smartphones, I-pads or laptops reading about your business and forming opinions before ever reaching out to make direct contact with you. No reviews or a perceived lack of positive reviews can make your business seem like a gamble next to more well-endorsed brands. And if the negative outweighs the positive, potential customers are going to turn away in a blink of an eye.

So what can you do? Step one is to find out where you're being reviewed and claim ownership of your brand. But that brings us to our next problem.

2) You don't know where your business is being reviewed online.

Just because you haven't claimed your brand on social media channels such as Facebook or Google+ doesn't mean the listings don't exist. Online reviews are happening whether you're aware of them or not, and consumers are seeing them and taking them into consideration.

Do a local Google search for your company and you'll likely see several reviews from third-party sites in the results. One example is Yelp. Founded in 2004, Yelp reported an average of 142 million monthly visitors in Q1 for 2015, and Yelpers have posted over 77 million local reviews in industries including food, entertainment and home services.

In 2011, a study conducted by Harvard Business School found that a one-star increase in Yelp ratings led to a 5 to 9 percent increase in revenue for restaurants. While the numbers would certainly vary from industry to industry, the result shows the definite impact online reviews can have on your bottom line.

In addition, negative online reviews can represent a missed opportunity if left unchecked. Customer complaints can educate you on the potential problems with your products and services and help you improve over time. Online reviews also give you an opportunity to respond and turn negative situations into positive results.

So the answer is to claim social media profiles and business listings and put them to work in your favor. Not only does this allow you to better monitor your online reputation, but it also expands your online presence and puts you in control of your business information so everything is accurate when consumers pull you up in their search results.

3) New reviews today's technology has made instant gratification the norm.

When a customer posts a question or complaint, they expect an immediate reaction. Let's take a look at these numbers:

• 41 percent of consumers expect an email response within six hours.
• 42 percent of consumers expect a response on social media within one hour, and 32 percent expect a response within 30 minutes.
• 57 percent expect the same response time at night and on weekends as during normal business hours.

Patience may be a virtue, but it's not a luxury that unhappy customers often afford business owners. It pays to have a program in place that provides push notifications and allows you to monitor online reviews in real time.

Knowing when new online reviews are posted provides an opportunity to do immediate damage control if necessary. This not only makes the customer feel better, but it also helps build your reputation as a caring, action-oriented business.

4) You don't know how to reply to online reviews.

With the influence that online opinions have on today's consumer, it's crucial to face negative reviews head on. According to PeopleClaim, 95 percent of unhappy customers will return to your business if an issue is resolved quickly and efficiently.

This is one time you don't want to avoid confrontation. In fact, ignoring negative reviews is the worst thing you can do. An angry reviewer can escalate a situation quickly and across multiple channels, especially if the review goes viral.

Instead of hoping the problem will go away, look at negative online reviews as an opportunity to showcase excellent customer service. Take immediate but thoughtful action. Apologize and let the customer know that you empathize and want to rectify the situation if possible. Show customers that your business has the ability to quickly and efficiently correct any situation.

By reaching out and making human connections with online reviewers, you can often turn unhappy customers into loyal brand advocates who are happy to provide testimonials and send you business referrals.

5) You don't know how to proactively get reviews.

According to a customer service survey done by Dimensional Research, 95 percent of respondents who have had a bad experience told someone about it, compared to just 87 percent who shared a good experience. Since consumers are more likely to share bad experiences on their own, it's important to proactively pursue positive online reviews from satisfied customers.

Online reviews are just another form of the traditional business referral, only they have the added advantage of reaching untold potential customers over the long term. One thing I can assure you; if you're not proactive, the negative comments can quickly outnumber the positive and give a false impression of your business.

So not only is it imperative to ask for positive online reviews, but it's also necessary to guide the process. Don't make your customers confused about what they are supposed to do. Ask for a specific action and have a process in place to accommodate eager clients. The easier you can make it for your customers, the more likely they are to follow through. Use CTAs on your website, social media profiles, business listings and email campaigns to point your clients in the right direction.

Conclusion:

If you don't get involved and take control of the conversation surrounding your brand, you not only leave potential leads circling the funnel, but you also let potential sales slip down the drain. Don't live in fear of online reviews. Monitor the situation, take action as necessary and make online reviews another referral source for your business.