Creating World-Class Experiences That Lead to World-Class Reviews
By Tony Bridwell Partner and Practice Leader, Partners in Leadership (PIL) | May 15, 2016
Co-authored by Mattson Newell, Director of Partners In Leadership (PIL)
In a world full of options, real-time media and people connected around the globe like never before, it's no surprise that people are also sharing experiences and reviews like never before. But let's not overlook the fact that people have always shared reviews with each other. In fact, if we went back to caveman days, we're almost certain that they probably were telling each other what cave had the best rocks and why. The question is, how do you make sure people are talking about your rock?
Power of Reviews
In a recent Forbes study, 90% of consumers claim that reading a positive review influenced their buying decision. More importantly, 85% of consumers read online reviews before making a decision on how and where they would spend their money. Further, Harvard Business School did a study that focused on online reviews and found that just a one-star increase in Yelp rating led to a 5-9 percent increase in revenue, and Cornell University found that a hotel can increase its price up to 11.2%, without any backlash, with each one-point increase in its review score.
So what does all this tell us? Reviews are powerful, and they are impacting your business today, tomorrow, and into the future, whether you like it or not.
"There are really only two types of local businesses in this brave new world: those that have gotten a negative review and those that will. If that negative review is the only thing that potential customers see about your business, there is no doubt they will choose a different one. And a business owner has two choices on how to deal with this new review reality: ignore it and face the consequences or approach it proactively and start giving all of your customers a voice in how your business is perceived," says Mike Blumenthal, the co-founder of Get5Stars and a local search expert. We would add a simple leadership principle to the conversation, "All feedback is good."