Online reviews matter, and companies often take extraordinary measures to gain positive reviews and prevent negative feedback. This makes good business sense: a recent study showed that almost three-quarters of consumers read online reviews when they are researching businesses, and a similar number state that these reviews influence their purchasing decisions. Another study showed that almost half of consumers trust online reviews as much as recommendations from friends.
In fact, reviews are often one of the first things a prospect looks at when researching a business. These might be star ratings, comments on review sites (Yelp, Trustpilot, etc), or even directories for specific industries. You can’t avoid them, and they have become a critical factor in how customers see your business and how they make purchasing decisions.
There are two questions at play here. The first is how to gain and manage online reviews, and the second is how to then use them to fuel growth. That’s what this article looks at – why online reviews matter, how businesses should manage them, and the ways they can be transformed into a growth engine. Because reviews are not only an important reflection of how customers are feeling and what they are thinking – they are also a powerful tool that can help your business scale.
Why online reviews matter to your business
Online reviews are a starting point for the relationship a potential consumer has with your business, and reviews act as powerful social proof. Star ratings and customer comments are usually the first things that come up when someone searches for your business. Those reviews are then consumed before a purchase decision is made. Having low-star reviews or poor reviews means you’re falling at the first hurdle.
Reviews also connect to measurable ROI – businesses with higher ratings are more likely to appear in the most coveted area within local search results (ie, the set of three Google Maps-based results) which can increase click-through rates considerably. Also, improving your average star rating by just a single point can boost conversions.
Unlike your marketing efforts, these customer reviews carry a real authenticity. And alongside building your reputation, they help you become more discoverable. The better your reviews, the more likely your business will appear in a prominent position on the search results pages. Think of it as a feedback loop where you get a sense of what your customers are thinking and feeling, and from there the kind of improvements you need to make.
When you don’t respond to negative feedback, it gives the impression that your business doesn’t care about the customer. At the same time, it’s important to acknowledge positive reviews, otherwise you’re wasting an opportunity to build customer loyalty.
Be aware that not all reviews are genuine and the increase in AI-generated and fake reviews has meant that regulators in the UK, EU, and US have started to crack down on those which are misleading. For businesses, this means encouraging genuine reviews but also making sure the ones that are posted are authentic. Failure to do so could damage your reputation or lead to penalties.
How you can turn your reviews into business growth
When handled properly, reviews can fuel growth in multiple ways:
- Customer acquisition: Positive reviews give you a better chance of attracting new customers – they help bring in those who might be hesitating. If you run a small business, a good review policy can help create more of a level playing field with competitors. So for a small independent restaurant a handful of positive five-star Google reviews can lift foot traffic almost overnight. Meanwhile, in the world of SaaS strong Trustpilot ratings can cut through the noise.
- Customer loyalty: When you respond to reviews, you’re showing your customers that you care what they think, that you’re taking it on board, and that you will take action. This goes a long way to strengthening the important emotional connection between customer and business.
- Making improvements: Think of each review as a piece of data. When you categorise comments, you start to find patterns that give insights into what’s working and where you need to make changes.
- Brand: Reviews are about how your business speaks to the outside world. But they also affect your current employees’ morale. Then there is the issue of potential future employees – people often research companies before applying, and if you have strong customer service, it suggests a strong and positive business culture.
- Partnerships: When we think about B2B, reviews and ratings can have a major influence in discussions around partnerships and decisions on procurement. When you have a good reputation, backed up by reviews, it reduces the perceived risk for both collaborators and investors.
Getting the most out of your reviews – how to harness their power
Like everything in business, if you want to do it properly, it needs to be part of a structured practice. This is the only way to ensure consistency.
The first step is to establish a clear review policy, ensuring that everyone in the business understands how and when to request reviews and knows who is responsible for responding. This way, you create a clear process that prevents responses from being inconsistent or falling through the cracks.
With this in mind, training is key. All customer-facing staff must understand how important reviews are to the company and must be adept at both encouraging them and dealing with them. They must also understand the ‘company voice’ so the responses are consistent.
Finally, agree on the key performance indicators for managing reviews and apply them consistently. These measures should include how quickly staff reply to comments and reviews, the percentage they respond to, how often they resolve an issue, and so on. By linking these actions to measurable outcomes, you can demonstrate the real business impact of reviews and ratings.
Making the journey from reputation to growth
Online reviews are no longer optional. They play a central role in shaping first impressions, act as social proof, and have a major impact on where your business shows up in the search rankings. Beyond that, the data you gain from reviews can provide actionable insights. The best way to stay on top of them is to put together a system for addressing reviews and ensuring all customer-facing staff are on board.
When your business makes that internal change and starts to see reviews as a marketing asset in an increasingly competitive digital landscape, it can be a genuine path to growth. A successful strategy will help you protect your reputation while also creating a driver of customer acquisition and long-term growth.
In the end, reviews tell you far more than how your customers are feeling. They show how well your business is listening, and how well it is learning. Beyond simply engaging with them, the question is how your business can harness their power. Put a system in place, measure its impact, and use reviews as both a reputation shield and a revenue driver.
