Unlock the potential of your business’s online reputation with insights from a groundbreaking study.
Are you tired of watching your top local competitors rack up impressive review volumes and star ratings? It’s clear that the number of reviews and overall ratings significantly impact these brands’ visibility in Google’s local Packs and Maps.
However, there’s some encouraging news that could help local businesses level the playing field.
A recent comprehensive report by GatherUp analyzed 23,000 locations, revealing three actionable insights that can help enhance your reputation management strategy.
The primary takeaway from this insightful study is that to boost your review volume, Net Promoter Score (NPS), and ratings, local businesses need to rethink their approach to reputation management. The data suggests that user-generated content (UGC), like customer reviews, should be integrated into the customer service and customer experience departments of your business operations.
By treating review requests with the same care as customer service inquiries, businesses can foster stronger relationships with their clients and improve overall satisfaction. This strategic shift not only encourages more customers to leave positive feedback but also enhances the credibility and trustworthiness of the brand.
Review Volume as a Key Performance Indicator in Customer Service
To ensure your local business thrives, it’s essential to invest significant resources into providing top-notch customer service. A stellar reputation not only enhances your brand image but also translates into greater profits.
Every effort you make to create convenient and memorable customer experiences will influence both offline word-of-mouth recommendations and the online reviews you receive.
GatherUp’s recent report emphasizes this principle, highlighting a compelling correlation between customer convenience and success in acquiring reviews.
Key Insights from the Study:
1. The Impact of Inviting Reviews
Businesses that actively seek customer reviews average 122 reviews per location, compared to just 53 for those that don’t request feedback.
A well-crafted review request prompts 30% of customers to take action, underscoring the importance of engagement.
Much like how you would greet every customer who walks through your door or calls your business, it’s crucial to extend this welcoming approach to encourage all patrons to share their experiences through reviews.
In this light, your review volume can serve as a key performance indicator (KPI) that reflects the success of your community engagement efforts. If your review acquisition rates are low, it may signal a need for refinement in your customer outreach strategies.
2. Customers Appreciate When You Prioritize Their Convenience
Key Insight: Only 6% of surveyed businesses effectively use both SMS and email to request reviews.
This indicates a significant opportunity to boost review volumes is being missed when customer service policies do not consider the best methods for reaching out. While email remains a valuable tool for detailed review requests, it’s worth noting that 48% of customers prefer text-based invitations. SMS messages enjoy impressive open rates of around 98%, making them a powerful option.
When it comes to response rates, the data is compelling: an email-only strategy yields 15 reviews for every 100 requests, while SMS-only requests generate 20 reviews per 100. However, combining both methods leads to 26 reviews per 100 requests, showcasing how diversifying your communication channels can enhance customer engagement.
Just as local businesses may offer various dining options or shopping experiences, you can improve customer convenience and responsiveness by integrating different platforms for review requests.
3. Engaged Customers Are More Likely to Recommend Your Brand
Key Insight: Businesses that invest in reputation management software see, on average, a 50% higher Net Promoter Score (NPS) compared to their peers.
Your NPS reflects the likelihood that existing customers will recommend your business to others. The study found that in four out of six surveyed industries, businesses that engaged customers with review requests also enjoyed higher average star ratings.
A better star rating is widely recognized as a factor that can positively influence local search rankings, enhancing your visibility in Google’s Local Packs, local finders, and Maps.
Engaging customers has long been known to underpin sales. Here, the focus of your outreach should be on nurturing positive sentiment rather than just driving transactions. By ensuring that customers feel acknowledged, valued, and respected, you can extend this ethos to your review requests, fostering both referrals and improved ratings.
4. Customer Service as the Cornerstone of Local Business Success
I recently conducted an informal analysis of public reactions to criticism aimed at an Ace Hardware franchise on X (formerly Twitter). The criticism centered on the claim that Ace’s prices were higher than those of larger competitors like Lowe’s or Home Depot. Remarkably, nearly 4,000 accounts chimed in, and the prevailing sentiment was a strong preference for shopping at their local Ace due to its exceptional customer service.
Local brands seeking a competitive edge have various avenues to explore. Here are some key differentiators:
- Location: High foot traffic areas can attract more customers.
- Inventory: Offering a larger or more unique selection of products can draw interest.
- Price: Competitive pricing or bulk-buying options may entice budget-conscious shoppers.
- Guarantees: No-questions-asked return policies can enhance trust.
- Deals: Annual sales or bundling offers provide added value.
- Loyalty Programs: Referral programs or birthday clubs encourage repeat business.
- Expertise: Knowledgeable staff can significantly improve the shopping experience.
- Gimmicks: Attention-grabbing advertising campaigns can create buzz.
- Convenience: Services like home delivery or curbside pickup add convenience.
- Mission: A compelling business story can resonate with the community.
While these factors can help a brand gain recognition, exceptional customer service is crucial for fostering local loyalty and maximizing profits. For instance, warehouse-style retailers might boast extensive inventories, but without adequate staff to assist customers, shoppers may feel lost rather than supported. Conversely, a well-staffed business can falter if employees lack friendliness, leading customers to feel undervalued.
Moreover, stunts like an auto dealership owner parachuting into town may generate temporary media attention, but if the customer experience feels gimmicky, it can undermine the establishment of a strong brand reputation.
In contrast to monopolistic companies that often neglect customer care—resulting in long hold times, lengthy lines, and subpar offerings—most small to medium local brands have the opportunity to thrive by focusing on excellent customer experiences.
The following traditional hallmarks of good customer service are essential for cultivating loyalty:
- Friendliness: Staff should be welcoming and possess effective communication skills.
- Adequate Staffing: Sufficient team members are necessary to minimize wait times.
- Trustworthiness: Transparent business practices and pricing build confidence.
- Accountability: Staff should be trained to resolve complaints fairly.
- Accessibility: Businesses must operate during stated hours and provide after-hours support.
- Authoritativeness: Employees should be knowledgeable about the company’s offerings and policies.
These customer service factors have always mattered to consumers, but the rise of online reviews has intensified their importance in recent years.
Reviewers as the Authors of Your Local Business Story
The significance of customer service extends far beyond individual transactions; it plays a critical role in shaping various aspects of your business’s online presence and reputation. Here’s how exceptional customer service can influence your local business story:
Online Reputation Metrics:
Customer service directly impacts your Google Business Profile’s star ratings, the individual ratings left by customers, and your scores on platforms like Yelp and TripAdvisor.
Positive customer interactions lead to favorable sentiments in reviews, enhancing your offline word-of-mouth (WOM) recommendations and solidifying your reputation in the local business community.
Impact on Profitability:
Each of these elements can substantially influence your profitability. Online reviews are now integral to your local SEO Trend and marketing strategies, with organizations like Whitespark highlighting their historical significance in local search rankings.
Recent Survey Insights:
Recent data from the Whitespark annual local search ranking factors survey indicates that high Google ratings, the number of native reviews, and the recency of those reviews are among the top 20 factors affecting your visibility in local search results.
User-Generated Content:
Actively soliciting reviews can amplify these benefits, particularly if you are already excelling in customer service. The positive ratings and sentiments will drive your local SEO effectiveness.
Consumer Trust:
According to a 2023 Ipsos survey, consumers trust reviews from sites like Yelp more than they trust brand-published information. In this context, customer reviews become pivotal in telling your business story, as they convey:
- What an excellent experience looks like at your establishment.
- How effectively your business resolves issues.
- The strengths and weaknesses of your offerings.
The Power of Storytelling in Reviews
Storytelling has become a significant differentiator in today’s market. By requesting reviews, you empower customers to share their experiences, turning them into advocates for your brand. Star ratings can be seen as concise summaries of each customer’s experience, but full reviews offer a richer narrative that can attract potential customers.
From my experience reading local business reviews, it’s clear that brands that go above and beyond in delighting their patrons receive commendation in reviews. Simple gestures—like providing free treats or special discounts—often become memorable parts of customers’ experiences and are frequently highlighted in their reviews.
Key Takeaways
GatherUp’s report emphasizes the importance of actively seeking reviews and the wealth of industry-specific data available. Here are some critical lessons for local business owners:
- Exceptional customer service contributes significantly to your brand’s success.
- Focusing on the convenience and opinions of your customers enhances their overall experience, leading to improved reputation metrics.
- Public trust in reviews surpasses trust in brand messages, reinforcing the value of cultivating positive customer experiences.
- Implementing strategic review request processes can result in higher review volumes, improved star ratings, and a better Net Promoter Score (NPS).
Investing in customer service not only enhances customer satisfaction but can also dramatically elevate your business’s reputation and performance in a competitive market.