As a small business owner, it probably sometimes feels like the world is spinning at warp speed, with few moments to brace yourself against the whiplash motion. But the trick is learning how to move in sync with customer expectations, providing what they need precisely when they need it. 

This means no longer relying on the traditional slow relay of serendipitous word-of-mouth to stimulate sales. Instead, focus on showcasing online reviews that customers can evaluate whenever inspiration strikes using the online review platforms they prefer.

Easy public access to enlightening customer reviews is no longer optional. It’s expected every time someone considers making a purchase. Leveraging testimonials can lead to huge triumphs that will help position your local business for long-term success. 

Let’s dig deep into why gathering reviews is one of the best ways to increase earnings as a small business, along with some juicy stats that are impossible to ignore. You’ll learn exactly why improving your overall star rating can significantly boost your business’s revenue.

1. Reviews Help People Find Your Business

Does your small business ever feel invisible beside the competition? Fading into the background might be desirable if you’re an introvert at your in-law’s birthday bash, but wallflowers will struggle to make the sales necessary to celebrate their quarterly results. Your brand needs exposure across various platforms to become recognized as an established authority in your space. 

Surveys show that reviews help 88% of consumers discover local businesses, and a potent online presence full of reviews will increase your reach across the web. Search algorithms take notice when your business name pops up everywhere, especially when positive testimonials are included.

2. Reviews Provide Social Proof that Builds Trust

You work hard to provide superior products and services, but to attract new customers, you need to prove this to complete strangers. Why should they pick your brand over another? Plus, with constant online scams and disappointments, potential customers will grasp for compelling reasons to take the leap of faith with your business.

To entice buyers, you need genuine social proof. When someone vouches for your business, your validity rises. This may seem unbelievable when potential customers don’t even know the reviewers, yet these evaluations are everything. Consumers trust online reviews and a staggering 94% of consumers have taken the time to read one in the past year.

3. Positive Reviews Tell You Where You’re Winning 

Customers are more vocal when they’re unsatisfied, so it’s a real treat when someone offers voluntary praise. What aspect of the buying experience are customers gushing over in their positive online reviews? Pay close attention so you can continue delivering what keeps your customers coming back.

Keep in mind that 12% of consumers who had a pleasant experience were motivated to leave a positive review after seeing a request sign. This number was driven up to 36% upon receiving email requests. Sometimes, the best way to get what you need is to show confidence and ask for it.

4. Negative Reviews Uncover Opportunities to Improve 

It can be painful, but don’t let unpleasant criticism drag you down. No business is perfect, nor can you always satisfy every customer. The takeaway from receiving a negative review is that it gives you the opportunity to uncover problems and do what you can to make things right to prevent further discontent.

Sitejabber found that 51% of customers who had a negative experience will give a business another chance after receiving a personalized response. So check out our tips for responding to negative reviews and seize the opportunity to show class with a thoughtful reply.

5. Reviews Help You Understand Your Customers

It’s crucial to pay attention to every snippet of customer feedback, whether it makes you swoon or sweat. By hearing more about your customers’ experiences, you’ll understand your audience better and how they feel about what transpired throughout the process. 

Reviews can also reveal that many of your customers don’t even match the ideals you had in mind, influencing your entire marketing strategy. A Zendesk survey discovered that 75% of customers spend more when they have a positive customer experience, suggesting that data-driven decisions based on what you’ve collected about your customers can lead to a thriving future.

6. Reviews Show Customers You Care

By giving your customers an uncensored platform to share their experiences, you’re already winning points. Transparency matters, and modern consumers need evidence you’re not peddling any snake oil.

When you let everyone know that you’re willing to display their feedback, for better or worse, you’re sending a serious message about authenticity. Customers like supporting businesses with honorable values.

Taking the time to respond to reviews is another way to show customers you care with positive responses. BrightLocal’s survey found that 89% of consumers were more likely to continue business when customer reviews received regular responses. This type of engagement reads as a green flag and shows appreciation. 

7. Reviews Drive Purchase Decisions  

Has your excitement for a product or service ever fizzled out when you couldn’t find a single customer review anywhere on the internet? This is a common scenario, and any hesitation could cost you a sale. On the other hand, encountering an abundance of glowing commentary is incredibly encouraging, diminishing any doubt. 

About half of consumers will go the extra mile—literally—and pay more to do business with a brand featuring an impressive review tally. Start campaigning for the testimonials you need to improve your conversion rates.

8. Your Competitors Have Online Customer Reviews 

There’s no getting around the fact that potential customers are going to compare your business with your competitors. If you have zero company reviews while a similar brand is boasting endless 5-star praise, you’re likely to lose this round while your rival continues its winning streak. 

To stay in the game, a review-gathering strategy is a must. We’ve found that local businesses that are more proactive about building a strong online reputation were 1.4x more likely to gain a rating of at least 4.5 stars compared to brands taking a more passive approach.

You may feel behind, but the only way to get ahead is to get started. A wise proverb states, “The best time to plant a tree was 20 years ago. The second best time is now.”

9. Your Customers Expect You to Have Reviews

Without a single online review in sight, you’re pretty much toting around a big red flag telling everyone to back off. Potential customers expect to browse through reviews, and if no one has anything to say, your credibility is nonexistent. 

A G2 survey found that over 92% of buyers were more likely to seal the deal after reading trustworthy reviews. Your job is to make customers feel comfortable, and part of that is collecting feedback from anyone willing to publish their impressions. Opting out for fear of honest reviews can be harmful to your business.

Podium Helps Local Businesses Get More Reviews

We founded our company on the belief that small businesses can prosper by actively pursuing customer reviews using modern technology. The Podium platform simultaneously gives you and your customers a voice that resonates, helping your business reach its goals and gain recognition.

Start gathering online business reviews and so much more by trying our free 14-day trial. You’ll soon discover why we’re so optimistic about creating mutually beneficial relationships between local businesses and happy customers.