Customers – The Reason Every Small Business Needs Online Reputation Management
Online Reputation Management is not just for big businesses. Chances are that most big businesses have a very pro-active approach towards reputation management and would either have a dedicated department to manage their reputation or consider online reputation management as part of their online marketing and brand management strategy.
Small businesses however have a very reactive approach towards reputation management services and do not focus on their reputation unless the situation goes out of hands and has the potential to cause a major setback to their revenue.
Understanding the Online Reputation Management
Online brand reputation management is all about making people think positively about a brand or business. It means keeping an eye on what people are saying about your brand and doing things to make your brand look good.
It’s not something you do just once—it’s ongoing. This way, you can handle any problems that might come up before they get too bad. When you do it well, you’ll get good reviews and keep customers coming back.
But if your brand gets a bad reputation, it could mean fewer sales and losing customers. So, it’s important to manage your online reputation carefully.
Let’s say you own a small bakery. If someone posts a negative review about your bakery online, good online reputation management would involve responding politely to address their concerns and showing that you care about your customer’s feedback. This helps to maintain a positive image of your bakery online.
Fun Facts:
Studies show that-
- 85% of consumers trust online reviews as they do personal recommendations. Additionally, 92% of consumers take the time to read online reviews, with 60% admitting that negative reviews discourage them from using a business. Moreover, 74% of consumers express greater trust in local businesses that have positive reviews.
- 91% of adults, who are online, use search engines to gather information on the web. Additionally, 65% of individuals consider online search the most reliable source for learning about people and companies.
- 95% of consumers indicate that they trust a company that has a positive reputation. Research also reveals that businesses achieving a rating of four stars or higher on review sites experienced a revenue boost of 25%-30%.
- Businesses that engage and respond to over 25% of their online reviews experience a 35% increase in revenue.
Benefits of Online Reputation Management
Listed below are some of the compelling reasons why brands need online reputation management (ORM):
- Positive Brand Image: Taking care of what people see about your brand online helps create a good impression. It shows potential customers that your business is trustworthy and reliable.
- Builds Customer Trust: When customers see positive reviews and interactions online, they feel more confident about choosing your brand. Responding to feedback shows that you care about their opinions and satisfaction.
- Insights into Customer Preferences: Monitoring online conversations can give you useful insights into what customers like and what concerns they have. This information helps you improve your products or services.
- Improves Online Visibility: Managing your online presence can boost your visibility on search engines. This means more people can find your business easily when searching online.
- Prevents and Manages Crises: By addressing negative feedback promptly, you can prevent small issues from turning into big problems. Handling complaints professionally can help maintain your reputation.
- Attracts Talent and Opportunities: A positive online reputation can attract talented employees and open up new business opportunities. People prefer working with and for companies with a good reputation.
- Gives Competitive Edge: Standing out with a positive reputation can give you an edge over competitors. Customers are more likely to choose a business with a strong online presence and good reviews.
What is the importance of Online Reputation Management?
To safeguard your image and to increase your profit – that’s the simplest way of putting it.
As more and more consumers (including baby boomers) have become internet savvy, they are increasingly sharing their experiences online with family, friends and the entire world. Research shows that people trust their peers more than the marketing messages that they receive from businesses. They look at what is being said about a business online and make up their mind based on what they read. If there are too many negative feedbacks regarding your business, consumers will not engage with your business.
You need to understand that your customers are talking, searching and listening and therefore, whatever is said about your business, can affect your business profitability. More importantly, when taking a note of the customer feedback for ORM, you may also gain valuable insights about your business. You might get to know that there are indeed problems that have to be solved. You can, if you want to, take measures to avoid similar problems in the future.
Your Customers Are Engaging in Conversation
More and more people are sharing their experiences online. This is true especially when they have a bad experience. They may or may not tell their friends and family about a good experience but you can be sure that a bad experience will be shared with everyone they know and increasingly with the wider audience using the Internet.
If people perceive that they have been cheated, they will make an extra effort to find places where they can go and complain.
People generally don’t just do it to vent their anger; most people do it so that they can get your attention or their problem is heard by the right people in your business. They want their problem to be heard so that the issue is resolved. This is an opportunity to change their perception and possibly convert them into your loyal customers.
Generally when customers have a good experience with your business, they may have to be instigated to share their experience with family and friends. They may not on their own talk about their experience but might give you referrals only when someone asks for their advice. Thus you should make it a part of your online reputation management strategy to ask them for their feedback. Send them links to your listings on online review sites and tell them that you appreciate their feedback.
Your Customers are actively seeking
According to a ZMOT research, moms on average will consult 13.3 sources before actually buying a product and service. They are searching on the Internet to find the best possible product/service at the best possible price.
They go to review sites to see what others are saying about your service. What their experiences are and if they would recommend your business.
They go to Social Media websites like Facebook, Twitter and LinkedIn to see how people are engaging with your business and how do you respond to any complains or issues that you receive. If they see that you have a very strong customer service focus and any issues reported are very quickly resolved, they will treat your business as a low risk and feel comfortable dealing with you.
A positive review from someone can increase your chances of getting their business while too many negative reviews (even from strangers) can dissuade them from using your service.
Your Customers are paying attention
Even though people are not actively looking for products and services that you offer, they still are exposed to Social signals regarding your business. This is especially true for people who are very Social Media savvy and are power users of Social Media. They constantly read what is being said about your business by their friends and friends of friends. They make a mental note about what they read or hear. When they need the products or services your business offers, they will remember the feedback they read on social media and make their decision about engaging with your business.
Your Competitors Are Doing It
A large number of small businesses now understand that online marketing and reputation management are very important to sustain their profits. They understand that it’s cheaper to have a pro-active approach towards reputation management. It is much easier to resolve an issue when it is hot – the customers may be annoyed with your business but if they feel that they are being heard and you are making a sincere effort to rectify your mistake, they will give you a chance to do so. However, after this grace period your efforts to rectify the situation will become futile and a lot of damage can be done to the business.
A simple Google search will tell you if your competitors have an active reputation management strategy. Type your competitors’ names and if you come across a lot of positive material about your competitors (blogs, articles and press releases) chances are that your competitors have an active reputation management strategy.
Also, if you find that your competitors have a lot of good reviews, it is possible that they are actively engaging with their customers and are requesting reviews and it’s time you should do the same.
You Might Be Lacking Somewhere
Most small business have limited resources available at their disposal. This could sometimes lead to inferior customer service levels, which may eventually result in a lot of disgruntled customers. However, if you keep an eye on what is being said about your business, you can understand what skills your staff lacks (and the need to train them)!
Online Reputation Management is important now and will become a necessity in the near future. It is important that every small business invests time, effort and money into it. The small investment you make now can protect you from major headaches (expenses & losses) in the future.
Wrapping Up,
After making a sale, managing your online brand reputation (ORM) is crucial for businesses to keep customers coming back and attract new ones. It’s a key task for companies to ensure satisfaction among all stakeholders in today’s world.
While the specific benefits of ORM can vary depending on the industry, the core advantages remain consistent across different sectors. Therefore, if you are looking to implement the perfect online reputation management strategies for your business, contact us at Web Circle today! Our ORM experts will provide you with a walk-through of the strategies that would suit your business perfectly.
Customers – The Reason Every Small Business Needs Online Reputation Management,