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If there is positive thing you take away from 2020, it is that consumers trust is more critical to a brands success today compared to any time in history. Online reviews play a key role in consumers making purchasing decisions.
Lost Sales Revenue
Consumers trust online reviews more than ever before. In fact, four out of five customers won’t buy from companies with negative reviews. Sites like Amazon cracking down on fraudulent feedback, 65% of reviews may be fake. Whether false reviews positively boost a competitor’s products, or target your own business with complaints, the result is lost revenue. However even Amazon can’t stop the fake reviews.
These facts would be terrifying to any business owner or management team. Whether negative complaints are rooted in legitimate grievances or totally fabricated, they will carry the same weight with customers who aren’t able to discern the difference. While most of us understand that mistakes happen and are willing to overlook a few blemishes, repeated negative reviews will drive your customers away.
A bad reputation could cost your billions millions of dollars in lost revenue per year, and this could be said of any industry – retail, food service (QSR), hospitality and many more.
Bad Press Impacts Hiring & Retention Costs
Sales revenue isn’t the only casualty of a negative online reputation. Bad press can also impact hiring costs and cause an employee retention crisis. Of course this is a chicken and egg problem if bad employees are causing your reputation woes and your bad reputation prevents you from hiring good employees.
Sometimes negative press isn’t a gradual systemic problem, or even one that’s rooted in reviews. A executive’s reputation is tied to the entire company. So a poorly worded social post could result in brand boycotts and employee turnover at every level, including management.
In some cases, you may be able to retain managers, but doing so could cost you as much as 21% more in salaries. What about the employees you can’t convince to stay?