Discover how online reviews directly impact your bottom line. Learn proven strategies to boost revenue through reputation management and improve search rankings. Includes templates and ROI data.

From Customer Review to Revenue: The ROI of Reputation Management

November 28, 20247 min read

Your Reviews Are Worth More Than You Think

While you may not pay attention to your online reviews, your customers do. According to Podium, "93% of consumers say online reviews have an impact on their purchase decision." It is critical for small business owners such as yourself to care about your online reputation. It is the key to not only maintaining good standards of business, but also for business growth. This is where Reputation Management comes in. More than just a buzzword, it's the strategic practice of monitoring and improving your business's online presence. Through customer reviews and ratings, you can build a strong digital reputation that attracts new customers and keeps them coming back. According to trustmary, "73% of consumers don’t even consider reviews if they were not written during the past month", so while it is important to grow your total review count, you can't stop there. You need to continue to get new reviews and maintain the reputation on an ongoing basis. Building your online reputation isn't a one-time effort - it requires consistent attention and fresh reviews. While customers can leave feedback on many platforms, Google and Facebook reviews matter most for local service and construction businesses. These platforms are where your community looks first when searching for trusted contractors, directly impacting how potential customers view your business.

Reviews: Your Most Powerful Revenue Driver

Think about your own online searches - whether you're choosing a restaurant or hiring a painter, you check the reviews first. Your potential customers do exactly the same thing - they want to see your track record before trusting you with their project.

Reviews are important for many reasons, but the most important reason is that reviews increase consumer trust in your brand, positive reviews build credibility. Customers will trust a business with a better rating and good consumer reviews over a business with no online presence at all. You need to get as many 5 star reviews as possible because better reviews lead to more customers, improved Google search ranking, and a competitive advantage.

Reviews also provide crucial feedback about your service quality. When customers share their experiences, you can quickly identify and fix any issues before they become recurring problems. Remember - if one customer has a negative experience, others might too unless you address the underlying cause.

Just as good reviews attract new customers to your business, negative reviews will detract from your business. Reputation management is not only about getting more good reviews, but it's also about minimizing negative reviews. There are ways in which you can address negative reviews, don't leave them alone. If there is an unfair or inappropriate review you can flag it to Google, or if there is a negative review you can make sure to respond to customer and try to address the issue. It is extremely important to keep on top of your reviews.

Just as Warren Buffett has famously said, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." This can apply to anything in life, but especially your business. It can be the difference between a hugely successful business and a business that will be overlooked by customers.

Without spending a dollar on additional marketing for your business, you'd be amazed how many more customers you'll attract organically to your business from simply improving your online presence. Uberall has determined that "increasing your star rating by 0.1 stars could lead to a 25% improvement in conversion rates." With an improved reputation your business will naturally attract customers over your competition. This will directly drive revenue growth for your company.

Sources: Forbes [https://www.forbes.com/sites/allbusiness/2022/07/27/what-every-small-business-needs-to-know-about-google-reviews/]

Why Google Loves 5-Star Businesses

The general term that is used to indicate how businesses improve their ranking with Google is called Search Engine Optimization (SEO). Google ranks businesses to show searchers the most reliable and relevant businesses in their area. Google sees positive reviews as a sign of quality and customer satisfaction. Google's algorithm is always changing, and it is continually being updated so hiring an SEO professional can also be productive for your business.

Your review profile influences several key aspects of local SEO:

  • How high your business appears in local search results

  • Whether you show up in the Google Maps pack (those top three business listings)

  • How often Google displays your business to potential customers

This means having a strong review profile isn't just about impressing potential customers - it's about making sure they can find you in the first place.

Sources: Forbes [https://www.forbes.com/sites/allbusiness/2022/07/27/what-every-small-business-needs-to-know-about-google-reviews/], trustmary [https://trustmary.com/reviews/online-reviews-statistics-that-will-blow-your-mind/]

Get More Reviews, Automatically

Getting reviews requires a systematic approach. Start by setting up your Google Business Profile and Facebook Page. Then, follow these key steps:

  1. Send review requests via email or text shortly after completing work

  2. Include a direct link to your review page

  3. Provide clear, simple instructions for leaving a review

  4. Follow up with customers who haven't responded

  5. Thank customers who leave reviews

  6. Respond to each review promptly

Timing is crucial - reach out while the experience is still fresh in your customer's mind. The easier you make the process, the more likely customers are to leave a review. Does this sound like a lot of work? Think about it... you need to follow these processes for each and every customer in order to keep on top of managing your reputation. Great news...there is a way to automate this!

Why is automation important? The most important aspects of reputation management is response time, and the overall customer's experience. Success in getting reviews depends on timing and consistent follow-up. Customers are most likely to leave a review when their experience is fresh, but manually tracking and following up with each customer is time-consuming. This is where automation becomes valuable - it ensures timely review requests and follow-ups while personalizing each interaction. No more forgotten follow-ups or missed opportunities.

LocalPro Connect's platform streamlines your reputation management by providing:

  • Automated SMS review requests and follow-ups

  • Real-time monitoring of customer responses

  • A centralized dashboard to view all your reviews

  • Improved search rankings through increased review volume

  • Better SEO through timely review responses

  • Stress-free management of your online reputation

The result? More reviews, better rankings, and less time spent on manual follow-ups.

Sources: Forbes [https://www.forbes.com/sites/allbusiness/2022/07/27/what-every-small-business-needs-to-know-about-google-reviews/], Podium [https://www.podium.com/article/how-to-automate-google-reviews-with-ai/]

Master the Art of Review Response

While reviews are important, many business owners don't realizing just how important responding to these reviews are. Not only does Google care about how quickly and how many reviews you respond to, but your customers do to. According to Bright Local, research shows "93% of consumers would expect a business to respond to their reviews". In conjuction with this, "88% of consumers would use a business that replies to all of its reviews, compared to just 47% who would use a business that doesn’t respond to reviews at all", Bright Local. This means that not only do your customers individually want to hear from you in regards to their specific review, but your consumers are also using your response rates to determine whether they want to work with you or not. This clearly shows the importance of responding to your customers reviews.

What to include in a response? You want to acknowledge that they went above and beyond to leave you a review, they didn't have to, thank them for their willingness to do so. Acknowledge their experience whether it was good or bad. If it was a positive review be grateful, and be compassionate if it was a negative review. Make sure you address the issue and see if there is a remedy.

Here are some templates that can help you out with responding to your customers reviews:

Positive Review Template:

Hello [Reviewer Name],

We’re delighted to hear about your recent experience with us and we’re so pleased that you recommend our [insert product/service]. Thank you for taking the time to share your experience and we look forward to welcoming you back soon!

Source: Bright Local

Negative Review Template:

Hello [Reviewer Name],

Thank you for taking the time to share your feedback with us. I’m sorry to hear that your experience hasn’t met your expectations on this occasion. It sounds like [insert reason for the miscommunication]. 

I’ve shared this with the team so we can make our [insert policy] a little clearer. Please do reach out [insert contact info] if we can assist further. 

Source: Bright Local

Please be sure to visit Bright Local for a more in depth breakdown of specific response instances.

Sources:

  1. https://learn.podium.com/rs/841-BRM-380/images/2017-SOOR-Infographic.jpg

  2. https://www.forbes.com/sites/allbusiness/2022/07/27/what-every-small-business-needs-to-know-about-google-reviews/

  3. https://uberall.com/en-us/resources/blog/a-comprehensive-guide-to-reputation-management#:~:text=Our%20reputation%20management%20report%20shows,than%20those%20who%20don't.

  4. https://brightlocal.com/research/local-consumer-review-survey

  5. https://insights.discoverglobalnetwork.com/insights/tips-for-revenue-through-reviews

  6. https://www.reviewtrackers.com/reports/online-reviews-survey/

  7. https://trustmary.com/reviews/online-reviews-statistics-that-will-blow-your-mind/

  8. https://www.podium.com/article/how-to-automate-google-reviews-with-ai/

Cameron Smith is the owner and operator of LocalPro Connect. He understands the unique challenges faced by local home service businesses. His goal is to bridge the gap between traditional service industries and the digital world, empowering local pros to thrive in an increasingly online marketplace.

Cameron Smith

Cameron Smith is the owner and operator of LocalPro Connect. He understands the unique challenges faced by local home service businesses. His goal is to bridge the gap between traditional service industries and the digital world, empowering local pros to thrive in an increasingly online marketplace.

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