Insights into local presence management
The Power of a Response
By Patrick Hagarty
There was a time when complaining about poor service/products meant customers had to speak one-on-one with a manager. But with the proliferation of online business listings on sites like Yelp, TripAdvisor, Google Maps, etc., it’s becoming easier and easier for customers to share their experiences directly and publicly. This leaves businesses struggling to control their online reputation. In the digital age, negative feedback can go viral – and a poor online reputation can be detrimental to a business.
But other than resolving negative reviews, what is the benefit of staying on top of all reviews? Well, the Harvard Business Review recently conducted a study looking at hotels on TripAdvisor to see if responses – to negative and positive reviews – made a difference in overall online reputation and business (spoiler: it makes a big difference!)
The study compared the star rating of specific hotels on TripAdvisor, using the same hotels on Expedia (where the reviews were not responded to) as a control group. This way, factors such as renovations or the addition of facilities or amenities could be discarded in any changes in average star ratings.
They discovered that, on average, hotels that were responding to reviews received both more reviews (12% increase) and received a 0.12-star rating increase. This might seem nominal – but remember these sites display average star ratings (on a scale of 1 horrendous to 5 spectacular) rounded to the nearest .5-star. That means if you are at 4.21 stars you will display as a 4-star average whereas if you are at 4.33 you will display at 4.5.
This can be a big difference when customers are doing research – and can mean the difference between a potential customer choosing your business or skipping to the next one in the list. This change was apparent whether the reviews being responded to were positive or negative. So, what are some of the best practices for responding to customer reviews? We have some handy guidelines for this. But they boil down to these four key points:
- Be nice
- Keep it simple
- Be thankful for the feedback
- Don’t be a salesperson
Really what you are wanting to portray in the response is that you understand a negative experience happened and that you are there to help resolve the issue and hear the complaint. Some people just want to be heard. For the most part, you can’t remove reviews (unless they contain vulgar language), so if you demonstrate you are listening and willing to help, your online reputation will reflect this.
These findings can really help businesses justify spending both the time and money to get a grip on the online reputations. When there is a direct correlation between the response and an improved rating it just makes sense. If done the right way, the insights that come from engaging with customer feedback can prove invaluable.
Patrick Hagarty is our Sales Support Specialist. For more information on how ConvergenSEE can help you manage online reviews, get in touch!