So you think you know how to handle the word-of-mouth effect, but how do you manage your reputation when feedback is being passed on to hundreds, thousands or potentially millions of strangers?

Introducing the all-powerful Online Review.

What is an Online Review?

An Online Review or Feedback is the modern equivalent of telling a friend about a recent customer experience you had with a product or service. However, where feedback would usually be spread around a customer’s close inner circle, it can now be shared online, where the audience is much larger and the impact far greater.

Where Can Customers Post a Review?

There’s a large variety of sites where customers can go to leave feedback about your business, often depending on how present your brand is online. Choice.com.au, productreview.com.au and our very own ServiceSeeking.com.au are amongst the most popular pages for leaving a review about a local service. Business Facebook profiles also allow customers to rate their experience and share it with fellow networkers.

How Important are Reviews in the Decision-Making Process?

According to a recent ServiceSeeking.com.au customer survey, reviews and word of mouth were rated as the most important factors when deciding to hire a tradie, followed by pricing and then licensing accreditation.

Studies show that customers are increasingly relying on online reviews when making decisions. According to Forbes, in 2015, the proportion was close to 90% of those surveyed.

The best thing to do is to turn their need into your business’s strength: give them important information, show them that you are worth hiring, and help them make smart choices.

On average, ServiceSeeking.com.au businesses with ten or more reviews have the highest win rates

ServiceSeeking.com.au also conducted a study using the win rates in October 2016. These three groups were used as samples:

• Businesses with more than ten reviews
• Businesses with 0 reviews
• Businesses with 1-10 reviews prior to October 2016

The results showed that businesses with more than ten reviews on their ServiceSeeking.com.au business profile have a 4.7% win rate — higher than the other two cohorts with fewer reviews.

3 Secrets to Handling Negative Reviews

Of course, there are customers you can’t please, no matter what you do. However it’s useful to remember that negative feedback can be used for improvement. Here are some tips to help you handle negative reviews properly and to your advantage.

1. Don’t Lose Your Cool

It’s important that you do not get angry when you receive a negative review. Escalating any issues with the customer can often be counter-productive and hurt your reputation even further.

2. Listen to What Your Customers Have To Say

It’s the only way you’ll be able to know what the real problem is. Through listening carefully, you’ll be able to analyse what happened, pinpoint problem areas, and implement the best solutions.

3. Implement necessary changes

Once you determine where things went wrong, you should trace back your steps and ask yourself, “How can I do things differently next time?” You should always use negative feedback to improve your business and serve your customers better.

So don’t hesitate to ask for feedback from your customers, especially when you’ve done a great job. Let them help you grow your business.