A study conducted by eVOC and RelevantView shows that 63% of shoppers are more likely to make a contact or purchase at sites that offer generated reviews
Similarly, an independant study done by Superpages.com shows that businesses with a rating or review receive double the performance (in clicks / contacts) of listings without. A Comscore/Kelsey Group study found that 24% of users who purchase local services (such as restaurants and hotels) consult online reviews before making a decision. Research from the e-tailing* group shows that 53% of consumers using ratings and reviews are doing this so they can decide between businesses that they are considering to purchase from. 28% said that they used reviews and ratings to confirm that they made the right decision in choosing a particular business.
“Your existing customers are-or should be-among your strongest evangelists. After all, they are buying your product again and again[...]they must like it! Your objective should be to get them to talk about their positive experiences. This gives you the double benefit of making the current sale - to them- and a future sale to the new customer that they create for you”
- Dave Evans, Social Media Marketing: An Hour A Day, pg 85
*E-tailing is the selling of retail goods on the internet.
How to Handle a Negative Review
Contrary to what some might think, most reviews posted online are positive. A study by Bazaarvoice and Keller Fay showed that 79% of reviewers submitted comments to reward a company for their products and services. This study also showed that 97% of readers find positive reviews to be accurate.
If you have a few less-than-perfect reviews, it can actually strengthen the value of the reviews overall, because the accuracy is perceived as higher.
According to a study done by DEI Worldwide in 2008, 71% of users found company recommendations (also known as ratings or reviews) valuable. 68% found them to be relevant, and 67% said they helped influence purchase decisions.
If you find that a customer wrote a negative review about your business, it is recommended that you join the forum/discussion and try to address the issue at hand. The worst thing you could do is lie and pretend that you are a satisfied customer promoting your product/service. If you lie or cheat on the internet, the truth will eventually get discovered.
Can you Sue Someone for Writing a Bad Review?
A Yelp user was recently sued by a chiropractor who claims his review is ‘defamatory’. According to an article written by Andy Beal “The lawsuit, filed February 25, 2008, alleges that Biegel [the chiropractor] has suffered loss of reputation and business as a result of the review and seeks punitive damages. According to the lawsuit, the review allegedly contained false statements and inaccuracies that suggested Biegel was dishonest and accused him of fraudulent billing practices”
The chiropractor’s lawyer, Eric Nordskog, claims that “Dr Biegel has no problem with people expressing their views and opinions about his service, but there is a line where if someone, even on Yelp or on the Internet, publishes a false statement of fact as opposed to an opinion, then that person can and should be held responsible for their words”.
Unfortunately for Yelp, this incident has caused a lot of negative press about their site. A Google search for “Yelp lawsuits” currently triggers a site known as www.yelp-sucks.com, which is a place where “frustrated Yelpsters can vent”.
Here are some other Documents describing the incident:
The San Francisco Chronicle – Dentist Sues over Negative Yelp Review
MediaPost News – Yelp Reviews Spawn at Least Five Lawsuits
CNet – Yelp User Faces Lawsuit over Negative Review
