More Likely to Have Positive Impact Than Negative

Online reputation management company RatePoint released some findings from a released some results from a survey on customer reviews. The company reports that customer reviews are six times more likely to impact a business positively than negatively.

"Consumers love to see the unedited reviews of their peers when making purchase decisions," said Neal Creighton, CEO of RatePoint. "Proactively asking for feedback and promoting it to prospective customers can significantly impact the decision-making process."

Here are some stats from the survey:

- 24 percent of small businesses say an online review has had a positive impact

- 4 percent of SMBs reported a negative business impact from an online review

- Approximately 31 percent of small-business owners say they are not sure if an online review has impacted their business

- More than half of small businesses surveyed reported perceiving a decline in business due to the current economic climate

- 20 percent report growth

- 24 percent report no change

- Of those who responded that a review had positively impacted their business, 55 percent reported business growth or no change in business

- Of those who responded they could not be sure if a review had impacted their business, 71 percent reported a perceived decline in business

"Participating in online conversations is a low-cost, high-return marketing tool for SMBs," Creighton said. "With the summer and hospitality business is in full swing, now is the time to capture and promote what customers are saying about you. In the reputation economy, it's in a small business' best interests to use these conversations that are already occurring as a way to build trust and stand out from their competitors."

It can be hard to accept survey results as indicative of the world at large, but the numbers are what they are. It's an interesting look at the impact of customer reviews. If you are going to openly try to get customer reviews, you would be wise to offer a product you are proud to stand behind.

ANSHU KUMAR
P.G.D.M-1st sem