Online reviews: how much do they affect business revenue

We've repeatedly stressed the importance of online reviews and their impact, but that's not enough. Recent studies have shown that there is a significant negative impact on revenue caused by receiving negative reviews on Google, Yelp and Facebook: small businesses with a rating of 1 to 1.5 stars on Google generated 33% less revenue than average.

A mix of positive and negative reviews.

Having a mix of reviews, both positive and negative, is the best strategy, as long as the average score stays strong. In fact, being a 5-star business is apparently overrated. Optimal performance is apparently achieved in the 3.5-4.5 star range. In fact, 5-star companies earn less than 1-1.5 star companies.

Volume and "fresh" reviews make the difference

Review volume is also a revenue factor: the study reveals that companies with more than 82 total reviews earn 54% more annual revenue than average. Recent reviews also make a difference. Companies with more than nine "fresh" reviews earn 52% more than average. Responding to reviews has a major impact on performance. Companies that respond to more than 20% of their reviews generate 33% more revenue than average. Conversely, companies that never respond to reviews earn 9% less than average.

SOCI and the Local Search Association recently joined forces on a study examining how top "Localized Social Marketing" performance affects business results for multi-location brands. Google My Business is an important ranking factor in user searches. According to LSA, for 25% of users GMB is the touchpoint consulted before visiting the store - a figure that has grown compared to 2017. Google My Business and Facebook Places pages are very important digital touchpoints for people who research online before buying offline. Brands aren't always able to manage their Google My Business listings and Facebook reviews, especially when it comes to brands with multiple stores, which consequently have multiple Google My Business and Facebook listings to manage. It's impossible to keep up with all of them.

The Customer Care service

RetailTune has built into its platform a Customer Care service designed specifically to manage responses to reviews and to the Q&A section of Google My Business listings, where users find information about a brand's store - address, phone number, hours, map - and where they can leave positive and negative reviews that brands aren't always able to manage. In addition to this, RetailTune also manages Facebook reviews, an important digital touchpoint for users looking for information and contact with the brand. Responses are discussed in advance with the client company or drawn from available information.