How online reviews influence a company’s online reputation

Internet users have taken over. By sharing their reviews online, they influence the online reputation of companies, particularly in sectors as varied as e-commerce, hospitality and food service, travel and tourism, and even healthcare. A closer look at a phenomenon that can become both a threat and an opportunity for a business.

The weight of online reviews

The weight of online reviews keeps growing. While 92.7% of French people use Google as their search engine, 96% of internet users pay attention to ratings and reviews and 89% consider them useful in their purchasing process(1).

These reviews carry enormous weight in the goods and services sector, such as hospitality and food service. Conversely, they matter less for technology goods (since it is more the opinion of experts and specialists, or even the press, that counts), and very little for cultural goods (where appreciation is more subjective and individual).

Internet users are just as interested in positive reviews as negative ones: 93% of internet users abandon a purchase after reading a negative review while 95% buy after reading a positive review(1). They favor testimonials from other internet users over the rating or the number of reviews. Finally, they are aware that fake reviews exist (90% of internet users have seen some) without necessarily questioning the credibility of the company or its products and services.

The influence of online reviews

Faced with reviews, how do internet users react? According to the Médiamétrie/Orange Labs study:

– Only 10% of internet users are indifferent to them;

– 15% remain passive or even wary;

– 23% factor them into their decision-making process;

– and 52% consider them decisive in their purchase decision.

Beyond these reactions, it is worth noting that internet users, in turn, take up the pen to share their opinions on networks and platforms. 79% of people who research their purchases share their opinion online, either to help other internet users, to express how they feel to the company, or finally to respond to a request from a website.

The rise of a new economy

The importance of consumer reviews generated online is such that an economy has developed around it, with various players: merchants, e-commerce platforms, price comparison sites, specialized portals (collecting, processing and displaying reviews), technical providers (including publishers of review-filtering software), online reputation firms, polling institutes, and finally consumers or their representatives.

In this new environment, we observe not only a strong heterogeneity in the methods of collecting and processing reviews, but also abuses (notably fake consumer reviews, reviews paid for in one way or another, etc.). Professionals gathered within CIRVAD and AFNOR are working to standardize the reliability of online reviews.

When online reviews become a threat or an opportunity

The first page of Google is therefore more than important. When online reviews appear there, the impact can be direct on revenue, on customer loyalty, on the company’s online reputation, and even on its long-term survival, in one direction or the other. According to the Médiamétrie/Orange Labs study, the first consequence is revenue. Some professionals are now able to assess the impact of a negative rating. It is clear that the presence of negative consumer reviews on the first page will have an overall negative impact on the brand. Here are a few examples of Google pages for brands (of all sizes) where consumer reviews can directly impact (negatively or positively) the internet user’s purchase decision process:

Examples of brands with negative reviews on the first page of Google

Examples of brands with positive reviews on the first page of Google

5 tips for managing online reviews well

Tip #1: take negative reviews into account

It is important to remember: having a certain proportion of negative reviews is, after all, normal. Above all, it is an opportunity for the company to improve its organization, its products, its services, its customer relations, and more.

Tip #2: give priority to your “Customer Support”

When negative online reviews start to be felt, the company has every interest in highlighting its “Customer Support” space in order to channel negative online reviews. This makes it possible to quickly resolve the dissatisfaction of certain customers and to showcase the company’s service quality, all within a space you control.

Tip #3: encourage online reviews

If a brand suffers from a poor online reputation caused by a limited number of negative reviews, it is advisable to adopt a proactive strategy by encouraging all of its customers to publish reviews. Not only is this an opportunity to show customers they are valued (which builds trust), but above all it is a way to counterbalance the reviews of dissatisfied customers (who speak up more often) with more positive reviews. To do this, the company can send an automatic email after each online purchase to measure customer satisfaction and encourage them to leave a review.

Tip #4: generate more online reviews

In addition to its dedicated “Customer Support” space, the company also has the option of generating more online reviews via specialized platforms such as Trustpilot (e-commerce) and TripAdvisor (hospitality and food service). It is advisable to concentrate your efforts on a single platform at first.

Tip #5: drive engagement from internet users on your social networks

With the growth of social networks, it has become essential for companies to highlight their social networks (for example Facebook and Twitter) on their Google page, to show internet users that the company is taking an active approach to communication and dialogue with its customers.

By following these 5 tips, a company should benefit from greater trust from its customers and prospects, and consequently from greater audience reach and gains in brand awareness.

Sources:

1. Study conducted by the SENSE laboratory at Orange Labs in November 2013 in collaboration with Médiamétrie, based on a representative sample of nearly 2,600 internet users aged 15 and over.