Reputation management is an important part of any business. It is the process of monitoring and influencing how customers perceive a company. In today’s digital age, it is more important than ever for businesses to understand the impact of their reputation on their customers. Reputation management statistics show that businesses with good reputation have a higher customer retention rate and can attract new customers more easily.
With this in mind, it is essential for businesses to stay up-to-date on the latest reputation management statistics. In this blog post, we will explore the latest reputation management statistics and discuss how businesses can use them to their advantage.
Reputation Management: The Most Important Statistics
A company’s reputation accounts for 63% of its market value.
A negative online reputation can result in a significant loss of revenue for companies, as reported by 41% of those with a negative reputation.
Reputation Management General Statistics
Creating a positive image for a brand online can have a significant impact on a consumer’s purchasing decision.
As businesses prioritize building a positive online reputation, the global online reputation management services market was around $276.59 million in 2022, and is expected to achieve $319.12 million in 2023, projecting growth at a CAGR of 15.51% to reach a value of $876.77 million by 2030.
The cost of online reputation management solutions typically ranges from $5,000 to $20,000 and can take 50 to 200 hours over several months.
A company’s reputation accounts for 63% of its market value, and 58% of executives understand the importance of online reputation management.
A negative online reputation can result in a significant loss of revenue for companies, as reported by 41% of those with a negative reputation.
According to Forbes, customers read an average of 10 reviews before trusting a business and spend over 13 minutes making a buying decision.
Furthermore, a report by Search Engine Land indicates that 88% of people trust a company’s digital reputation as much as they trust a recommendation from a friend.
Finally, 59% of people look at 2-3 review sites before making a decision.
73% of consumers pay attention to reviews written in the last month, while 50% only read reviews posted in the last two weeks.
What Are The Main Benefits Of Reputation Management?
A company’s online reputation can significantly impact its market valuation, with approximately 25% of the market valuation being due to its online reputation.
When it comes to local businesses, positive reviews can have a significant impact on consumer trust, with 72% of people indicating that they are more likely to trust a business with positive reviews.
Additionally, 86% of people would be willing to pay more for services from a company that has higher ratings and reviews, highlighting the value of a positive online reputation.
Research also shows that consumers place a lot of trust in recommendations from their peers, with 83% of people indicating that they trust brand recommendations from friends.
Furthermore, nearly 70% of people trust consumer opinions more than paid advertisements, highlighting the importance of online reviews and ratings.
An impressive 92% of users will consider using a local business if it has a minimum rating of 4 stars, while only 48% of online users would consider a business with an average rating under 4 stars.
The threshold is even lower for businesses with fewer than 3 stars, with only 19% of online users willing to consider using such businesses.
The vast majority of consumers, 97%, search online for local businesses, with 12% doing so on a daily basis.
A one-star increase in a business’s Yelp rating can lead to a revenue increase of up to 9%. On the other hand, reviews that gave 1 or 2 stars failed to convert 86% of prospective customers.
Negative reviews can have a severe impact on consumer behavior, with 60% of consumers stating that negative reviews made them not want to use a business.
A company’s online reputation can also impact its ability to attract and retain talent, with up to 69% of job seekers saying they would reject a job offered by a company with a bad reputation, even when unemployed.
Interestingly, even a significant increase in compensation would not sway 30% of job seekers to accept a job offer from a company with a bad reputation.
Reputation Management Challenges In The Digital Age
In the digital age, companies face significant challenges when it comes to managing their reputation online.
One of the most significant challenges that companies face is the fact that people tend to form their impression of a company based on the first page of search engine results.
In fact, research shows that 90% of people worldwide only look at the first page of search engine results, and a staggering 93% of searchers never go past the first page.
Another significant challenge is the prevalence of fake reviews.
Despite the importance of reviews, only 3% to 10% of people actually write reviews.
This has led to an increasing number of fake or unverified reviews, with 61% of electronic reviews being deemed “fake”.
As of March 2019, there were over 2 million unverified reviews on Amazon alone, which accounted for 36% of the reviews. This number increased in 2020, with approximately 42% of the 720 million customer reviews on Amazon being not reliable.
In 2022, 62% of consumers think they’ve seen at least one fake review for a local business over the past year.
These fake or unverified comments can have a significant impact on a company’s reputation, creating a reputation management crisis.
Negative reviews can be particularly damaging, with 60% of consumers saying that negative reviews turned them away from using a business.
In fact, 4 out of 5 people changed their minds about a business after reading negative online reviews, and only 13% would consider using a business with a 1 or 2-star rating.
It takes around 40 good customer reviews and experiences to heal one negative review.
Reputation Management On Social Media
Reputation management on social media is a key factor for businesses to maintain and improve their online image in the current digital era.
Consumers frequently mention brands, averaging 90 times per week.
Additionally, 87% of people do comparative shopping across multiple channels, while 78% are influenced by social media posts when making purchase decisions.
About 54% of consumers use social media to research products.
Positive experiences on social media increase the likelihood of 71% of consumers recommending brands to their friends and family.
Also, customer trust is only gained by 39% of customers if brands have interacted with them on social media platforms.
Social media posts influence purchase decisions for 76% of American consumers, with videos being the top branded content used by marketers.
Around 93% of marketers say they have gained a customer through videos on social media, and 86% of B2B organizations prefer LinkedIn for social media marketing, while 98% of B2C companies use Facebook.
What Is The Future Of Reputation Management?
Managing reputation risk is considered a top priority by 87% of executives, while 84% of marketers believe that building consumer trust is becoming the primary objective of marketing.
With TikTok and YouTube increasingly becoming sources of information, videos could become even more important to enhance brand reputation, as 95% of video marketers say that video marketing has helped them increase brand awareness.
Besides social media, Google is still a major player in the online market and businesses should focus on maintaining a good reputation there.
In fact, Google dominates the American search engine market with a 90.77% share, and Google Chrome is the world’s most popular search engine with a market share of 91.9%.
When it comes to online reviews, Google is the most popular destination with approximately 59% of customers using it.
This is followed closely by Amazon with 57%.
Yelp is also a powerful tool for businesses, with 45% of customers using it to find business reviews, and 178 million unique visitors consult it every month.
The majority of Yelp users give 4 and 5-star reviews, and businesses with free Yelp accounts see an average of $8,000 in annual revenue from the site.
Conclusion
Reputation management is an important factor for businesses to consider in today’s digital world. With the rise of online reviews and social media, it’s essential for businesses to stay on top of their reputation and take steps to ensure their brand is well-received.
The statistics in this blog post demonstrate the importance of reputation management and how it can affect a business’s success. By taking the necessary steps to monitor and improve their online reputation, businesses can ensure their brand is seen in a positive light, build trust with customers and boost sales. So, take the time to invest in your company’s reputation, it’s an investment that will pay off in the long run.
References:
Hubspot: “Reputation Management: How to Protect Your Brand Online in 2022”, cited in February 2023 (Source).
Be Unique Group: “3 Reputation Management Challenges Companies Face in the Digital Age”, cited in February 2023 (Source).
Hsmai: “What does the Future of Online Reputation Management Look Like?”, cited in February 2023 (Source).
Report Linker: “Online Reputation Management Services Market Research Report by Services, End Users, Region – Cumulative Impact of COVID-19, Russia Ukraine Conflict, and High Inflation – Global Forecast 2023-2030”, cited in February 2023 (Source).
Invite Referrals: “50+ Online Reputation Management Statistics to Use in 2023”, cited in February 2023 (Source).
ReputationX: “2023 Online Reputation Management Statistics”, cited in February 2023 (Source).
Review42: “Online Reputation Management Statistics [From 1 to 5-Star Rating]”, cited in February 2023 (Source).
Review42: “What Percentage of Amazon Reviews Are Fake”, cited in February 2023 (Source).
Truelist: “Reputation Management Statistics -2023”, cited in February 2023 (Source).
Status Labs: “77 Online Reputation Statistics for 2022”, cited in February 2023 (Source).
