Your company's online reputation can make or break your business

In any business, regardless of size or industry, encountering an unhappy customer is inevitable. Typically, most customer concerns can be addressed quickly and effectively over the phone or via email. However, if a customer reacts by posting negative reviews about your business online, the situation can become more complex and potentially harmful. Due to the Internet’s ability to spread information quickly, word-of-mouth now travels faster and farther than ever before.

To mitigate the impact of negative reviews, having a strategy in place to manage your online reputation before issues arise is crucial. Additionally, being prepared can enable your organization to respond quickly and effectively, minimizing potential financial losses.

Given that 85% of prospective customers prioritize online reviews over personal recommendations, it’s clear that strangers’ opinions hold as much weight as those of close friends. This suggests that the general sentiment of your online reviews can significantly impact your business. Research shows that many people avoid doing business with a company after seeing a single negative review on any social media platform. However, positive reviews and online consumer feedback carry the same level of trustworthiness.

In Latin America, complaints websites such as ReclameAqui in Brazil, AproPol in Peru, Sernac in Chile, QuejasYReclamos and TuQuejaSuma in Colombia, Defensa del Consumidor in Argentina, and Profeco in Mexico, have become crucial platforms where customers express their concerns and grievances daily. These platforms also allow customers tpo assess the quality of products and services before making a purchase. As a business, addressing these complaints proactively and with empathy is essential to protecting your reputation and even turning dissatisfied customers into loyal brand advocates.

Negative reviews that appear high in search results when potential clients look up a business can be very damaging. This is particularly critical for well-known local businesses that may be searched for by name frequently. Negative feedback ranking in branded search results can directly impact profits, as it influences approximately 60% of consumers to avoid using a company.

The visibility of a business in search engine results is a major indicator of trust. However, relying solely on a company’s presence is not enough. Here's why: According to Reputation X, nearly half of consumers (49%) require at least a four-star rating before they consider using a business. Additionally, consumers read an average of seven reviews before trusting a business. A high level of trust in a brand leads to purchases, but online reviews hold the power to either establish or break that trust.

For many years, online reputation management and restoration have become integral aspects of digital marketing. From my experience working on and learning with numerous cases of reputation repair, it’s clear that businesses that don't invest proactively in building their online presence and reputation face significant costs in terms of lost revenue, damage control, and establishing a positive image they may have neglected. Below I share some points that I have learned over the years that companies should pay attention to.

• Social Media Monitoring

Creating multiple social media profiles for your business is not enough for effective social media reputation management; these profiles must be regularly updated and maintained to attract an organic following. By consistently updating your social media channels with engaging and entertaining content, you can enhance your impact, boost engagement, and connect with current and potential customers. Neglecting your social media accounts after they are established may result in weaker rankings and overshadowing by negative reviews made about your account on the same platform.

Negative reviews or even a single customer complaint can severely impact conversion rates, with 1- or 2-star reviews deterring 86% of potential customers.

• Enhance Your Brand's and Product's Online Visibility

If your company has well-known brands and products beyond its name, you might need to take additional steps to boost your digital presence and social profiles. Establish websites, social media accounts, and other searchable content for each division of your business that customers might search for by name on different social media platforms. If someone else claims your online identity first, not taking ownership of your company's associated brands and products could become challenging—and potentially expensive—to manage.

On average, customers mention a brand 90 times per week in their feedback. Additionally, 87% of people research every product they purchase, using a variety of platforms. Social media posts influence 78% of consumers' purchasing choices, and 54% use a social media platform to research products. Furthermore, 71% of customers who have had a positive experience with a product on social media are likely to share it with family and friends.

According to 39% of customers, brands are valuable only if they have engaged with them on social media.

• Cultivate Online Reviews and Respond Thoughtfully

One of the most effective strategies for building your online reputation is by allowing your satisfied clients and customers to contribute through online reviews. According to the 2018 Local Consumer Review Survey, 86% of individuals check online reviews for businesses before making a purchase decision. By encouraging reviews, your company can establish a strong reputation, build consumer trust, and foster strong business relationships.

Beyond gathering customer feedback, online reputation management also includes how your organization handles any negative publicity. Instead of ignoring unfavorable reviews—or worse, responding antagonistically—apologize for any inconvenience and reach out to the reviewer directly to find a solution. Often, after resolving their issues, the reviewer may be willing to revise their original comments with a better star rating.?

In the eyes of modern consumers, a company that doesn't have an online presence simply does not exist. The way your company is perceived online—whether it has stars and positive or negative ratings—holds significant importance. While the statistics presented are specific to local businesses, the principles apply to every company, regardless of its physical location.

It’s essential to recognize a core truth about your online reputation: your digital identity is your reputation. If you’re not visible online, you essentially don’t exist.

• Value Your Customers' Feedback

When responding to negative customer feedback, keep in mind that the criticisms may have some validity, particularly if you receive consistent complaints about a specific issue. Instead of dismissing online grievances as the work of a disgruntled former client, address all concerns professionally and consider how this feedback can be used to improve your company's operations in the future.

Treating customers with respect and showing that you value their opinions is crucial, as you never know how many potential future customers might read your responses and use them to decide whether to engage with your business.

The way you handle criticism online can unknowingly drive existing and future customers into the arms of your competitors. Make a deliberate effort to respond to every instance of customer dissatisfaction and poor experience, regardless of your stance on the issue. Always respond with politeness and professionalism rather than hostility in all online comments.

• Make Authentic Changes

Mistakes are a part of life, but if they go unaddressed, they can be costly for your business. If you or your company makes an error, it’s important to own up to it and apologize to those affected in any online forum.

A genuine apology coupled with tangible changes can work wonders in defusing a crisis and rebuilding a professional relationship, bolstering your online reputation management efforts.

• Avoid Engaging in Online Arguments

Regardless of who is right or who initiated the conflict, online disputes are almost always unprofessional. Allowing criticism to provoke an emotional response can lead to actions or statements that may harm your reputation.

The best strategy for avoiding a public online argument is to take the conversation offline to resolve the issue. Keeping a professional demeanor is more likely to earn you respect and business than winning an online argument. If you or your company becomes entangled in a digital conflict, take a step back from online interactions until you’ve devised a strategy to resolve the matter and continue to provide excellent online reputation management services.

By following these recommendations for online reputation management, your company will be better prepared to handle any negative remarks or reviews that may arise. Gathering reviews from customers not only helps your business improve, but also guides your progress. Although proactive reputation management may involve an initial investment, it ultimately saves money in the long term. Think of it as a form of insurance - it won’t render your company immune to reputational attacks, but it can mitigate the damage and prevent it from becoming catastrophic.

Being ready for the worst-case scenario is essential: if your company becomes a target of online criticism, there are various strategies to remedy the situation.

Local businesses, lacking the financial resources and expertise of larger firms, are particularly vulnerable to online reputation threats. Proactive online reputation management is the best way to protect yourself from adverse claims and the accompanying financial damage. Additionally, effective reputation management fosters long-term, strong, and reliable customer relationships.

It’s never too early to begin planning your company’s online reputation management strategy. Consider working with a reputation management team to understand what your company is doing well and where improvements can be made. By doing so, you can strengthen your online reputation even further and position your business for long-term success.