Why Bad Reviews Are Hurting Your Business
You’ve probably heard the phrase “your reputation precedes you.” In business, this saying couldn’t be more relevant—especially in today’s hyper-connected digital world. If you’re not actively managing your online reputation, you’re leaving the narrative up to the internet. And let’s be honest, that’s a risky game. Online reputation management (ORM) goes beyond just dealing with negative reviews. ORM focuses on shaping and maintaining a positive brand image that makes your business a magnet for talent and customers alike. Let’s dig into why you should be putting ORM at the top of your to-do list—complete with some eye-opening stats to back it up.
On the docket:
Why Does Online Reputation Matter?
Think about this: 91% of consumers read online reviews before making a purchasing decision, and 84% trust those reviews as much as a personal recommendation. The power of reputation isn’t just confined to customer decisions—it’s also a major player in your ability to attract top-tier talent.
In the age of Glassdoor and LinkedIn, candidates do their homework before applying to jobs. 86% of job seekers research company reviews and ratings before deciding where to apply. If your company has a poor online reputation, you can bet your top candidates are swiping left before you even know they’re interested.
The Business Impact of a Strong Online Reputation
It’s easy to dismiss ORM as a nice-to-have, but businesses with a solid online presence see tangible results. Here’s why:
- Increased Sales: Companies with positive online reviews see 31% more sales than those with a poor or mediocre reputation.
- Hiring Advantage: Companies with favorable Glassdoor ratings receive more applicants compared to companies with poor ratings.
- Brand Loyalty: Customers are more likely to stay loyal to a company with a strong online reputation, even after a negative experience.
What’s at Stake If You Don’t Manage Your Online Reputation?
The flipside of ORM is that ignoring it can be a costly mistake. Customers view a 3.3-star rating out of 5 as the minimum acceptable standard when deciding whether to buy from a business. Imagine what that could mean for your hiring efforts. If candidates are reading terrible reviews from disgruntled employees, you’re missing out on top talent before they’ve even walked through the door. Additionally, negative online sentiment can snowball quickly. It only takes one viral social media post or negative review to send your reputation into a tailspin. Studies show that it takes 40 positive customer experiences to undo the damage caused by a single negative review. Ouch.
Proactive vs. Reactive Reputation Management
Now that we know how crucial online reputation is, the question becomes: Are you being proactive or reactive?
Proactive ORM means actively managing your company’s online image before issues arise. This involves:
- Monitoring review sites like Glassdoor, Indeed, Yelp, and Google.
- Engaging with both positive and negative reviews.
- Encouraging happy customers and employees to leave feedback.
Reactive ORM, on the other hand, involves putting out fires once negative reviews or comments have already hit the web. This is damage control mode—and while necessary, it’s not an ideal place to be. 89% of consumers say they are more likely to patronize a business that responds to their reviews, so engaging with negative feedback can help mitigate the damage, but it shouldn’t be your only strategy.
Building a Strong Online Reputation Strategy
So, how do you build a solid ORM strategy? Here’s the playbook:
1. Monitor What’s Being Said
You can’t manage what you don’t know. Set up alerts for mentions of your company on Google, Glassdoor, and other review sites. This will give you real-time updates on what’s being said about your brand.
2. Engage Authentically
A staggering 89% of consumers read businesses’ responses to reviews. If someone leaves a bad review, acknowledge it—don’t ignore it. Apologize if necessary and offer a solution. Similarly, don’t forget to thank customers for positive feedback. Engage, but keep it real.
3. Encourage Positive Reviews
When was the last time you asked your happy customers or employees to leave a review? You’d be surprised how many people will, if you just ask. A well-placed request in a follow-up email or during an employee survey can work wonders.
4. Be Transparent
If there’s a major issue that has affected your customers or employees, own it. Transparency is key to rebuilding trust. Whether it’s a product recall or a cultural problem within your company, admitting your faults can go a long way in restoring your reputation.
5. Use Social Proof to Your Advantage
Showcase your glowing reviews on your website, social media, or even job postings. Social proof is a powerful tool—when people see that others are happy with your product or work culture, they’ll be more inclined to join the team or buy from you.
Where to Start
In today’s world, reputation is everything—and it lives online. Managing your online reputation isn’t just about damage control; it’s about crafting a story that attracts customers and top talent. With 75% of job seekers considering a company’s brand before even applying for a job, you can’t afford to ignore your digital presence. If you’re not actively shaping how people perceive your business, someone else will do it for you. And trust me, you don’t want that.
Need help fine-tuning your reputation management strategy? Commit HR is here to help you monitor, engage, and build a reputation that’ll make top candidates and loyal customers come knocking. Reach out to us today.
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