Online reviews are crucial for businesses as they influence customers, boost online visibility and brand, and drive sales. Despite this, many companies fail to manage and respond to online reviews effectively. This study by RetainTrust aims to collect data and analyze the extent to which companies engage with their online reviews and manage their profiles on various review platforms.
Methodology of Our Research
RetainTrust conducted a data analysis, researching 250 companies across different industries, including hospitality, restaurants, healthcare, automotive, local services and trades, B2B providers, and eCommerce sites. These companies, ranging from large enterprises (500+ employees) to small businesses (20 people or more), have been in business for at least five years and have a minimum of 20 reviews on one of the selected review networks: Google My Business (Google Maps), Yelp, Trustpilot, and/or Glassdoor.
Based on our observations, we categorized the results based on companies responsiveness to reviews and business profile management:
- Don’t Respond – companies that never replied to reviews and/or have unclaimed profiles.
- Respond Inconsistently – companies that replied to some reviews (less than 30%), have only some claimed profiles, or managed reviews at some point but then stopped.
- Respond and Manage Reviews – companies that have all profiles claimed and respond to all or more than 30% of reviews on a regular basis.
The initial analysis of 160 companies showed consistent data patterns, indicating that our sample size was statistically sufficient.
Results on How Many Companies Respond to Online Reviews
Our study revealed the following distribution:
- Don’t Respond: 64%
- Respond Inconsistently: 24%
- Respond and Manage Reviews: 12%
These findings highlight a significant gap in how companies manage their online presence and respond to customer feedback.
Please note that these results apply only to established companies with more than 20 employees and at least 5 years in business. The outcomes may differ for companies with fewer employees or a shorter business history.
Discussion on Research Findings
The data shows that a vast majority of businesses (64%) do not engage or reply to their online reviews at all. This lack of interaction can negatively impact their online reputation and customer trust. At the same time, only a small fraction of businesses (12%) actively manage their profiles and respond to reviews on a regular basis.
The remaining 24% of companies show inconsistent engagement. This could be due to factors such as time constraints, changes in management, motivation issues, or a lack of understanding of the importance of engaging with online reviews.
Conclusion on How Companies Respond to Online Reviews
The study reveals that, despite clear data demonstrating the significant impact of online reviews on sales and revenue, many companies continue to struggle with managing and replying to customer feedback.
Recommendations for Businesses
Based on our findings, we recommend the following actions for businesses:
- Claim and Manage All Profiles – ensure all business profiles on review networks are claimed and monitored.
- Consistent Engagement – develop a regular approach to respond to all reviews, both positive and negative.
- Customer Feedback Integration – use customer feedback from reviews to improve products, services, and customer experience.
By implementing these strategies, businesses can better manage their online presence and bring more positive relationship with their customers.
RetainTrust Helps Companies Respond to Online Reviews
We specialize in managing and removing negative or fake reviews about your company.
Advantages of Hiring a Professional Reputation Management Firm for Handling and Responding to Online Reviews
To stand out among competitors, it’s essential for businesses to manage reviews in-house or hire a professional reputation firm that can manage and respond to online reviews. These firms not only handle your reviews but also provide other services for online reputation management, visibility improvement, social media monitoring, and search optimization.
RetainTrust services is here to help your company navigate these challenges. Don’t be like the other 88% of businesses that either fail to respond or do so inconsistently to customer feedback. With RetainTrust, you can enhance your reputation, improve web visibility, and boost your sales.
