In today’s digital world, managing your online reputation is more important than ever. Whether you’re in healthcare, law, hospitality, or any other field, potential customers are reading reviews and making decisions based on what they see online. Last week, we shared some exciting findings during our Back to School for Digital Agencies, unveiling new research Maximizing Your Online Reputation. This study, based on data from 2023, looked at 23,000 businesses and locations that use GatherUp to manage their online reputation. Here’s a look at some of the valuable insights we uncovered.
The research shows just how powerful reputation management can be when it comes to building trust and loyalty with customers. Businesses that take the time to ask for feedback, respond to reviews, and use a combination of communication channels—like SMS and email—are seeing improvements in customer satisfaction and overall ratings. Whether you’re managing a restaurant, healthcare practice, or any other type of business, focusing on your reputation is a smart way to stand out in a crowded market and attract more customers.
Why Your Online Reputation Matters
It’s a well-known fact that almost everyone checks online reviews before deciding where to shop, who to book an appointment with, or what to buy. In fact, nearly every online reputation platform has its own research confirming this, with estimates ranging from 70% to 95% of consumers relying on reviews before making a decision. Our own data supports this trend as well. Reviews often act as the first impression for potential customers, and as we all know, first impressions are crucial.
Think of it this way: reviews are like word-of-mouth recommendations in the digital age. Just as people used to ask friends and family for suggestions, they now turn to online reviews for guidance. Whether you’re running a restaurant, a healthcare practice, or an insurance agency, your online reputation can make or break a potential customer’s choice. Having positive reviews and well-written responses to negative reviews helps build trust and credibility, reassuring customers that you’re the right fit for their needs. And in competitive markets, where several businesses may offer similar services, a strong reputation can be the deciding factor that sets you apart in your Local Pack on Google or in other comparison websites.
Investing time in cultivating positive reviews and managing your online reputation isn’t just a nice-to-have—it’s essential for growing your business and standing out in today’s crowded digital landscape.
The Importance of Asking for Feedback
One of the key takeaways from the GatherUp study is the power of actively requesting feedback. Businesses on GatherUp that ask for reviews through SMS or email receive 2.3x more reviews than those that do not. This result highlights a simple yet often overlooked fact: asking for feedback directly impacts the number of reviews your business receives.
This is particularly important for industries where trust and relationships are vital, such as healthcare and legal services. Consumers making significant decisions—like choosing a doctor or a lawyer—are more likely to rely on reviews. By actively soliciting feedback, businesses can ensure they are not only improving their online reputation but also making it easier for potential customers to make informed choices.
First-Party vs. Third-Party Reviews: What’s the Difference?
Understanding the difference between first-party and third-party reviews is crucial for effective reputation management:
– First-party reviews are collected directly by your business and can be displayed on your website. These reviews are invaluable for SEO, as they provide user-generated content that can be marked up with Schema to improve your site’s visibility in search results.
– Third-party reviews, on the other hand, are hosted on external platforms like Google or Yelp. While you don’t own this content, third-party reviews are critical because they reach a broader audience and often serve as a key decision-making tool for consumers.
What the Data Shows: Key Findings from the Study
- Asking for Reviews Leads to More Feedback
The data from the GatherUp study reveals that asking for reviews directly correlates with the number of reviews businesses receive. Specifically, businesses that request feedback via email or SMS receive 2.3x the number of reviews compared to those that don’t. This holds true across multiple sectors, with healthcare, insurance, and legal services benefiting the most from this practice.
- Impact by Industry
In sectors like healthcare and legal services, where long-term relationships are key, the impact of asking for feedback is even more pronounced. For example, businesses in the healthcare industry that actively solicit reviews saw an 11x increase in reviews, providing a significant competitive advantage, especially in high value sectors.
- Multi-Channel Feedback Requests Improve Results
The study also found that using both SMS and email to request reviews led to better results than relying on just one channel. Businesses that used both methods saw a higher review request conversion rate, highlighting the importance of reaching customers where they are most responsive.
Boosting Your Net Promoter Score (NPS) and Ratings
Your Net Promoter Score is one of the most effective ways to measure customer loyalty. NPS gauges how likely customers are to recommend your business to others, and a higher NPS score is directly linked to better business outcomes. According to Bain & Company, a 12-point increase in NPS can double your company’s growth rate. Additionally, companies with the highest NPS scores in their industry tend to grow 2.5 times faster than their competitors (Harvard Business Review).
In the GatherUp study, businesses using the platform consistently showed higher NPS scores compared to industry averages. For example, healthcare businesses using GatherUp had an average NPS score of 73, compared to the industry average of 58. This demonstrates the power of listening to your customers and acting on their feedback.
Actionable Steps to Improve Your Business Reputation
- Make It Easy to Leave Feedback
Asking for feedback should be part of your regular business process. Keep it simple for customers by using email, SMS, and even in-person requests when appropriate. Timing is also critical. For example, if your business provides services that take time to show results, like lawn care or pest control, wait until customers see the benefit before requesting a review.
- Be Authentic in Your Engagement
Responding to reviews—both positive and negative—is key to building trust. Take the time to craft thoughtful, genuine responses that show you value your customers’ feedback. If a review is negative, focus on resolving the issue and use it as an opportunity to turn a dissatisfied customer into a loyal one.
- Embrace Multi-Channel Review Requests
The GatherUp study found that combining SMS and email requests results in more reviews. Since people are more likely to open and respond to SMS messages, incorporating this into your strategy can boost your review volume significantly.
- Showcase First-Party and Third-Party Reviews
Both types of reviews are valuable. First-party reviews can enhance your SEO and provide content you control, while third-party reviews are essential for reaching a wider audience. Make sure you have a strategy for both.
Conclusion: Reputation Management as a Growth Tool
Managing your business’s online reputation is about more than just collecting reviews—it’s about fostering trust, improving customer satisfaction, and driving growth. By actively seeking feedback, using multi-channel strategies, and focusing on NPS, your business can enhance its reputation and build lasting customer loyalty.
To learn more about how reputation management can drive business growth, download our research on how to unlock the power of your online reputation and start implementing these best practices in your own business today.
