Skyrocket Your Business Credibility with Online Company Reviews!

Imagine you're eyeing that sleek, new gadget online, toggling between tabs, weighing your options, and in no time you find yourself going through online company reviews or watching comparison videos on YouTube. Sounds familiar, right? That's because, in our digital age, the voice of the customer has never been louder—or more influential.

Whether it's the latest tech from a giant online retailer or the charming wares of a local boutique, how people discuss and perceive your business online can make or break it. In this article, we will explore how positive customer reviews and online feedback by customers can boost your company’s reputation, build trust amongst users, help you with product development, increase sales & revenue, and enhance your digital presence.

So, let’s dive right into it. 

How can Online Business Customer Reviews Boost a Business's Reputation?

Have you ever considered, if not bought a product, based on a recommendation by a friend or acquaintance? That’s because word-of-mouth holdss a huge power in influencing our decisions.  

Reviews are like digital word-of-mouth. They provide potential customers with insights into the quality of products, services, and customer experiences. A positive company review can be a powerful tool in building trust and credibility among prospective customers.

Significance of Online Company Reviews

Doing business is all about adding value and constantly improving your offering to make your customers happy. And what’s better than the customer themself telling you what can get better? 

So consider online reviews like a feedback loop for consumers and businesses to understand and improve their offerings. Positive feedback online, especially good feedback for online shopping, can significantly boost a business's reputation by:

• Enhancing Visibility: Search engines favor businesses with positive reviews, making them more visible to potential customers.
• Building Trust: Reviews of businesses by consumers act as testimonials to the reliability and quality of a business's offerings.
• Influencing Decisions: A positive review for a company can sway undecided shoppers to commit to a purchase.

Industries Benefiting from Positive Online Reviews

• Hospitality and Travel: A bunch of positive reviews can mean the difference between a room booked solid and one that's eerily quiet. 

Take Booking.com, where the spots swimming in rave reviews are the ones snagging the travelers.

• Healthcare Providers: Healthcare, too, gets a dose of this review magic. With platforms like Practo, folks are finding the right doctors with just a few clicks, guided by the experiences of others. It's a big deal in a field where trust is everything.

• Retail: Ever notice how online shops with top reviews draw you in? That's because those stars signal quality, inviting you to join the club of happy customers. The assurance of quality and positive shopping experiences, as shared in company reviews by customers, can drive sales and foster loyalty.
  For example, notice the number of reviews and ratings of the top-ranking tailors on Google search results. 

• Service Industries: From plumbers and electricians to digital marketing agencies to freelance coders, positive online reviews help build credibility and trust. 

Similarly, there’s the food delivery and dining industry, home services marketplace, and many industries that heavily depend on online reviews. Almost all businesses today can benefit hugely from a good online presence and more importantly, a perception of trust, amongst people.

How Positive Customer Reviews Affect Businesses

Online reviews can make or break your business! That’s their power to build trust and credibility for businesses across various sectors. How would you prove to online shoppers the quality and credibility of what you offer? That’s best done through these online reviews. 

A survey by Global Newswire reveals that about 95% of online shoppers consult reviews before making a purchase. Additionally, 96% of these shoppers specifically seek out negative reviews, a notable increase from 85% in 2018.

The Psychology Behind Online Reviews for Building Trust 

We, as humans, are wired to look at others’ behavior, decisions, and opinions to guide our own shopping decisions and online feedback serves as a powerful form of social validation. When consumers see positive feedback online, it reassures them about the quality of the product or service, reducing perceived risk and encouraging purchases. 

Positive customer reviews and good feedback for online shopping contribute significantly to a business's reputation, signaling to potential customers that a business is trustworthy and credible. Sure, not all feedback is a high-five. But even the occasional thumbs-down is a chance to show you're all about improvement, and ready to make things right. It’s how you turn a frown upside down, winning back trust and maybe even turning critics into fans.

The most successful and influential reviews are online reviews that speak from clients' perspectives and communicate in the same language and terms familiar to them.  The reviews in the example below are of an Infant Cereal. These reviews are mostly written by parents, as potential customers are also parents. Notice the language and style of communication and storytelling, and note how well it’s speaking to its target audience. 

Source: Amazon

Reading detailed accounts of others' experiences allows potential customers to imagine themselves in a similar situation, making the reviews more impactful and trustworthy. It’s another form of storytelling. A good online reputation can do most of the selling for you!

Examples of Success Through Positive Online Reviews

Today, many brands and businesses are built through positive online reviews and word-of-mouth. For example, TikTok started blowing up on the Play Store and App Store when teenagers posted about their experience with the app on these app stores and started sharing their content with TikTok logos on Facebook and Instagram.

Now, talking about small or local businesses, a small-scale restaurant chain, called “Carnatic Cafe” was initiated when people on the Indian food-ordering app Zomato discovered it. The business started with a single restaurant and expanded itself to three more locations when it was declared a “hit” by Zomato customers. 

You can also start your online reviews and storytelling with testimonials by developing a comprehensive strategy for managing your online reputation. For that, you can use Testimonial Donut, where you'll find various resources to collect and manage reviews and testimonials in various formats. 

Examples of Reputation Damage Due to Negative Reviews

United Airlines suffered a notable blow to its reputation following the widespread sharing of negative customer experiences online, including service issues and customer mistreatment. These reviews and viral incidents have led to a public perception challenge that the airline has had to work hard to overcome.

Negative video testimonials can be a true PR nightmare especially if they go viral. The United Airlines video has been viewed 1.3M times. Reputational damage like this has adverse consequences in the long term, influencing the overall perception of the brand negatively. 

Similarly, following a series of scandals that were widely reported and discussed in online forums and review sites, Wells Fargo faced a massive trust deficit with the public. 

Byju’s is another example of an Indian startup whose bad online reputation led to its crash from being valued at $22B in 2022 to $1B in 2024. Both its customers and employees reported fraudulent sales practices and a toxic work culture that led to the company's downfall. 

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Increasing Visibility and Engagement Using Positive Feedback Online

How would your product get discovered if it doesn’t have a substantial number of online reviews? When did you last purchase something valuable online without going through its reviews?

Online review platforms like TrustPilot, Amazon, Yelp, Google Business, and others have become a way for customers to verify what their experience will be like, and whether they should invest their time and money into it. 

They offer a space for customers to share their experiences and for businesses to respond, facilitating a two-way interaction that can significantly influence customer engagement.

That’s mostly because consumers today don’t trust traditional advertising. Performance Marketing World reports that 84% of millennials are skeptical of traditional advertising methods.

Boosting Visibility in Search Engine/SEO Results

Search engines, such as Google, prioritize content that is fresh, relevant and demonstrates authority. Online reviews contribute to all three factors, which is why testimonials and SEO go hand in hand. 

When customers leave reviews, they generate new content that search engines can index, improving the business's SEO (Search Engine Optimization). Furthermore, positive reviews increase a business's perceived authority, making it more likely to rank higher in search results. High-quality, positive reviews can also improve click-through rates, as businesses with better ratings appeal more to potential customers.

People perceive businesses or brands with more positive reviews as more reputable and credible. Search engine crawlers also replicate that behavior and rank them higher.

Understanding How Online Marketplaces & Review Platforms Work

Regarding visibility, online reviews are extremely important for discovery. So, as an exercise, look for any product on Amazon. Let’s say, instant noodles, and see what results show up on top. As you can see in the image below, the visible results are either Sponsored products or those with the most positive reviews.

This was just to explain how discovery on online marketplaces and search engines work, whether a food-ordering app or an affordable hotel discovery portal. 

Online review platforms can enhance your overall visibility and boost your search engine results. These platforms serve as a critical touchpoint for building trust, encouraging interaction, influencing purchasing decisions, and creating brand advocates.

Product Development and Practice: Improving Products & Services using Company Reviews by Customers

Customer reviews serve as a goldmine of business insights, significantly impacting product development and enhancing business practices. By providing direct feedback, reviews allow companies to understand consumer needs and preferences, revealing what aspects of their products or services are well-received and which areas require improvement.

Read Customer Reviews for Feedback Loop

Reviews create a feedback loop, offering real-time insights into customer satisfaction and areas for enhancement. This feedback is invaluable for refining existing products and guiding the development of new ones.

Innovation and Improvement

Negative reviews, while initially disheartening, are particularly useful as they highlight specific issues or shortcomings. Addressing these can lead to innovation, improvement of product features, and enhancement of service quality.

Google has given a great example of addressing a negative review and positioning yourself as someone willing to improve. Besides, you can speak with the customer and strategize actionable steps to serve your customers better. 

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Feature Enhancement

Positive reviews about the company, on the other hand, help businesses understand what features or elements are most appreciated by consumers. This can guide companies in focusing their development efforts on these popular aspects, ensuring they continue to meet and exceed customer expectations.

Better Business Practices

By understanding the customer experience in-depth, businesses can streamline processes, improve customer service, and enhance overall operational efficiency. 

For instance, consistent feedback about the checkout process can lead companies to simplify their purchasing steps, thereby improving the customer experience and potentially increasing conversion rates. To get in touch with customers and get detailed feedback, you can request them to connect with you by responding to the online reviews and sharing any contact details. 

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Easing Marketing Efforts

Knowing what consumers like and dislike about a product or service also simplifies marketing efforts. With this knowledge, businesses can tailor their marketing strategies to highlight the most appreciated features and address common concerns proactively. 

This targeted approach not only makes marketing more effective but also more authentic, as it's based on real customer experiences and feedback. Moreover, online reviews can be repurposed as marketing material. There are many creative ways to use testimonials for marketing. 

For example, Octopus Energy skillfully incorporates its reviews into its marketing materials. Their latest out-of-home (OOH) advertising campaign prominently features excerpts from 5-star customer reviews gathered from Trustpilot.

How Could a Major Online Retailer Build a Solid Reputation Among Consumers?

If you’re an online retailer, you must utilize review platforms, customer testimonials, and social media to build a trustworthy perception of your business online. There could be different review platforms depending on where you reside and which niche you operate in, but some common platforms are Google Business, Amazon, and Trustpilot. 

You must have a strong social media game too. You can prioritize your social media channels, whether YouTube, Facebook, Instagram, TikTok, Linkedin, etc., depending on the demography of the audience you cater to. 

How Online Reviews of Businesses by Consumers Affect Sales and Conversion Rates

Customer reviews are a crucial factor influencing sales and conversion rates, echoing the scenario at the beginning of our discussion where you, as a consumer, find yourself weighing online reviews before making a purchase decision. 

This moment of consideration is not unique to you; it's a common experience shared by countless shoppers, highlighting the profound impact of online reviews on purchasing behavior.

Northwestern University’s Spiegel Research indicates that products with higher ratings (above four stars) can increase conversion rates by up to 270% compared to products with lower ratings.

Online reviews equip consumers with the knowledge and confidence needed to make informed decisions. Moreover, the trust, SEO results, social proofing, and visibility that online reviews bring also help conversions. 

For example, Trustpilot allows you to search for businesses by entering the country name and ZIP Code and allows you to filter using various parameters as shown in the image below. 

Similarly, other review platforms like Google Business, Zomato, AirBnB, etc., also allow location-based search. That can bring you more business and boost sales. 

Direct Impact of Online Reviews on Revenue

Online reviews significantly influence revenue by affecting both sales volume and pricing strategies. Positive good reviews for a company can justify higher prices for products or services, as consumers are often willing to pay more for quality assured by the feedback of others. This direct link between positive online feedback and the ability to command higher prices underscores reviews' critical role in revenue generation.

Customer Loyalty and Motivation to Review

Loyal customers are the backbone of any successful business, not only because they repeat purchases but also due to their willingness to share their positive experiences through reviews. Their reviews often carry a genuine tone, reflecting their connection with the brand, which can significantly influence potential customers. Hence, you must provide the same value for each customer every time. It’s a cycle, but know that everything will be built on the foundation of your first set of loyal customers. 

To harness the power of these positive testimonials and manage your online reputation effectively, it's crucial to engage actively with your customer base. Give your satisfied customers more encouragement and incentive to post their experiences online. 

You can do this through follow-up emails post-purchase, incentivizing reviews with future discounts, or by making the review process as seamless as possible. Additionally, responding to all reviews, whether positive or negative, demonstrates your commitment to customer satisfaction and can further enhance your reputation.

Start today by developing a comprehensive strategy for managing your online reputation. For more guidance and best practices, you can use Testimonial Donut, where you'll find various resources to collect and manage reviews and testimonials in various formats. 

Responding to Feedback

Actively managing and responding to online reviews is crucial for any business aiming to maintain and enhance its reputation. Both positive and negative reviews present opportunities to strengthen customer relationships and also improve whatever it is that you’re offering them.

You can also treat this as an opportunity to understand your customers better. For negative feedback, a thoughtful response strategy involves acknowledging the issue, apologizing sincerely, and offering a solution or compensation. 

This approach can transform dissatisfaction into trust. Businesses like United Airlines have shown that addressing criticisms directly can help recover customer trust. 

Monitoring and Measuring Success

Monitoring online reviews is vital for understanding how customers perceive your business and its impact on your reputation. Regularly checking review platforms allows businesses to promptly address feedback and adjust strategies.

This vigilance helps in maintaining a positive image and can signal when to innovate or improve. Tools and software like Testimonial Donut can help you track reviews and analyze sentiment provide insights into overall customer satisfaction, and pinpoint areas for improvement.

To quantify, anything over 100 reviews is considered trustworthy, depending on the platform. If you want to monitor if your review strategy is working, you can consider the following metrics.

Leveraging Social Proof Using Online Company Reviews

Social proof, driven by positive customer reviews and testimonials, is a powerful tool for businesses to attract new customers. You must understand the psychology of social proof and the impact it has on customers. 

Online reviews act as a vote of confidence from existing customers, reassuring potential ones of the quality and reliability of your products or services. 

Strategies for leveraging this social proof include showcasing testimonials on your website, highlighting positive feedback in marketing materials, and sharing customer success stories on social media. 

Final Thoughts

As we have seen, there’s a direct relationship between a business's success and its online reviews. These reviews serve as crucial feedback for refining offerings, enhancing customer service, and guiding marketing strategies. 

Positive reviews can also justify premium pricing and increase sales, while negative feedback can protect and even improve reputation. We have also given you the main metrics you need to monitor to gauge your review campaign success. 

Ultimately, embracing and actively managing online company reviews is indispensable for businesses aiming to build trust, improve visibility, and drive growth. And with that understanding, we developed Testimonial Donut, an online testimonial collection and management platform, with the best tools, templates, and resources for simplifying your process of collecting testimonials and online company reviews. 

We are the only company to offer these services for free, with a subtle widget on the marketing materials. So do try it out and start immediately with collecting reviews and testimonials.