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Online Reputation Management [20 Awesome Stats for 2020]

by Darko

Online marketing has become one of the most important business tools to promote growth. 

The thing is:

Since everything is done online these days, you need to ensure you have team members looking after your reputation. These employees are known as your online reputation management, and we are going to show you exactly why they are so crucial to running a successful business. 

To this end:

We’ve gathered the latest statistics that are going to help you know how people view your brand and service, as well as their overall experience. 

Let’s dive right in.

Amazing Online Review Statistics (Editor's Pick)

  • A 1-star increase in your Yelp rating can increase your revenue by 5%-9%
  • Only 13% of customers will consider a business that has a 1- or 2-star rating.
  • 80% of customers say they trust businesses that have a 4-star rating or above.
  • A perfect 5-star rating is considered too good to be true. 
  • 82% of shoppers look for negative reviews on purpose.
  • 4 out of 5 consumers have changed their minds about a purchase after reading a negative review.

General Online Reviews Statistics

1. 97% of consumers read reviews online to search for local businesses.  

(Source: financeonline.com) 

What’s more, 12% of them do so daily. Almost everyone would search for your business on Google, check your Facebook page, or read some reviews by Yelp users to get a better insight into your business. So, the wise thing to do is maintaining an online presence that creates a positive experience for the customers. A good online reputation will certainly get potential clients one step closer to your checkout.

2. 91% of the 18-34-year-old consumers trust online reviews as much as recommendations from their family members and friends. 

(Source: financeonline.com)

Word of mouth used to be the best way to find the best businesses and places for you to visit or work with. Nowadays, online reviews are as important if not more so than word of mouth. Getting positive reviews online will help your potential clients reach you quicker.

Check out these word of mouth marketing statistics for more info on this topic.

Need for Online Reviews

3. It takes an average of 40 online reviews before a consumer can start to believe the accuracy of the business’s star rating. 

(Source: financeonline.com) 

This number might seem scary. However, consumers get caught up in social media these days. They get lost and tend to read as much as they can about a business before they can believe it’s as good as everyone says it is. The more positive reviews you have, the more impressive your business will look to your potential clients. 

4. 89% of consumers read the responses of businesses to reviews. 

(Source: financeonline.com) 

The way you conduct yourself to your clients is vital when it comes to building a good reputation online. We all want to get to know how much you as a business appreciate our feedback. Customers feel like they are a part of building your business when they give you feedback. So, they want to know that what they have to say – good or bad – is heard and taken to heart. 

5. 63.6% of consumers are likely to check Google online reviews before visiting the business website. 

(Source: financeonline.com)

Nearly two-thirds of people will read Google online reviews in order to decide whether to check out your company’s website. Yelp can also help build your online reputation and get you more clients, more repeat work, and ultimately more money. 

6. Review Signals make up 15.44% of the Google Algorithm pie factors. 

(Source: financeonline.com)

Three out of eight does not sound like a very big number but:

At the end of the day, you need to make sure you have good reviews online to ensure that your business is at the top of Google’s search list! The quicker people see your website and your reviews, the quicker they go from potential customers to lifetime, loyal, clients. 

Online reputation management - smiley

Impact of Online Reviews

7. In the UK, 1 in 20 companies lost £500,000 because of damaging content. 

(Source: igniyte)

And that’s not all:

5% of companies say that a damaged reputation costs them from £100,000 to £500,000. 

Positive reputations may be damaged, but a negative reputation tends to stick with you for life. So, it’s crucial that you have a positive reputation online because people tend to remember the bad a lot quicker than they remember the good. 

8. About 40 positive customer experiences are needed to undo the damage of 1 negative review. 

(Source: Inc.)

Customer experience stats show that statistic reviews are vital to help undo the single bad review that one dissatisfied client might have posted. A minimum of 40 people need to have a good experience with you and share their positive feedback online to ensure that you improve your internet reputation. 

9. 1 in every 3 businesses feels that negative social media posts are the greatest threat to their reputation.

(Source: BrightLocal)

It’s important that you take this statistic to heart when viewing your online reputation. At the end of the day, about one-third of businesses believe their main threat is not, in fact, the competition but instead their negative social media online reviews. 

10. 73% of consumers trust a local business that has more positive reviews.

(Source: BrightLocal)

Small local businesses do not always see the importance of an online presence. But it’s absolutely crucial, as nearly three-quarters of people trust your business more if you have a positive online review.

Online reputation management - photo

Online Reviews/Trust Ratio

11. 83% of consumers believe that a business with a user-generated review on its landing page is trustworthy. 

(Source: BrightLocal)

Speak to your reputation manager to ensure that your user-generator is on your website’s front page. This is a smart little trick to show your consumers that you have nothing to hide and want people to see what other people have said about your business. 

12. 74% of consumers said they would contact a business with reviews on its landing pages. 

(Source:BrightLocal)

This is just another statistic to show you how important it is for your potential clients to see your reviews as soon as they get on your page. Use bold, enthusiastic words to show off your pride for your business as well as your current clients. 

Top 5 Online Review Companies

People tend to follow trends. They go on sites that their friends have told them about, or they use Google and find the sites below. Keep in mind that the sites below are used to review different sectors of the business and service world. These are the best online reputation statistic sites of 2019.

13. 158.03 million US consumers use Google My Business every month.

(Source: vendasta.com) 

Google My Business is the undisputed leader in the field of online reviews. Facebook is a distant second with 85.57 million monthly US consumers, closely followed by Amazon with 85.44 million. Yelp (40.47 million) and Trip Advisor (28.27) round out the top five.

Fake Reviews Statistics

14. 74% of consumers have read fake reviews online in the last year.

(Source: Brightlocal.com)

18-34-year-olds tend to be able to spot fake reviews a lot easier than the other age groups. Due to the fact that they have grown up online, they have developed what we call online street smarts. They can read a review, see the mistakes, and realize it is not a reliable source they can trust. 

For example, reviews that have too many exclamation points tend to be more likely to come from someone who has never purchased the product they are reviewing in the first place. 

15. According to the UK’s Competition and Markets Authority (CMA), fake reviews influence a whopping £23 billion of customer spending in Britain each year.

(Source: Brightlocal.com)

This is one of the truly frightening online review statistics! As we know by now, online reviews are a massive influencer, and consumers need to learn to distinguish fraudulent ones from genuine ones.

Which brings us to…  

2020 Online Reputation Management Trends You Need to Follow

16. Know who you are first, and stick to it.

(Source: reputationinstitute.com)

Be authentic in your business brand and make sure you get that message across to your existing as well as potential customers. Looking good online and being authentic is your key to success.   

17. Form your focus groups.

(Source: reputationinstitute.com)

Focus groups are a marketing tool you can utilize to see what it is that your clients expect from your relevant products. This will show them you care about them as well as boost your business reputation.

18.  The big data revolution will have consequences.

(Source: reputationinstitute.com)

In 2020, big data will dominate the way in which a company manages its reputation. Big data means that your clients will feel secure and realize that you conduct your business in an ethical way. 

19.  Employees will be your reputation ambassadors.

(Source: reputationinstitute.com)

This is one of the most important trends of 2020. Your employees need to believe in your brand as much as you do so that they can promote your business as much as possible. A company with 100 employees can end up with hundreds of goodwill ambassadors spreading the word of your business to the world.

20. Reputation management will increase the value of the business.

(Source: reputationinstitute.com)

Your reputation manager will be able to use your reputation online as an indicator to predict the value of the company as well as how people view the company as a whole.

And on that note… 

Online reputation management - review

Conclusion

Without a doubt, sound online reputation management is going to be your weapon of choice when it comes to boosting your online reputation. It is going to take your business to the next level. And with the help of our stats, you now know exactly how to go about it.

Bottom line:

2020 can be your year to shine in the online reputation management department. Be mindful about your brand identity and how you want your customers to view your brand as a whole. Be true to yourself, and the positive reviews will flood your pages. As a result, the new, loyal clients will become lifetime customers who will be your wonderful brand ambassadors through their online reviews as well as word of mouth.  

Sources:

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