Online Reviews: Unlocking Growth for Your Business

When I personally look to do business with a company, purchase a product, or pick a restaurant for dinner, I often find myself looking at reviews. Online reviews strongly influence my decisions about whether to do business with a company or purchase a product.

And I’m not the only one. Here are some key statistics about online reviews:

• 72% of people say positive reviews make them trust a local business more
• Customers are likely to spend 31% more on a business with "excellent" reviews
• 8 in 10 shoppers use their smartphones to look up product reviews while in-store
• 91% of individuals 18 to 34 trust online reviews as much as personal recommendations
• 7 in 10 consumers use rating filters when searching for businesses
• 60% of consumers believe the number of reviews a business has is crucial when deciding whether to use its services

These statistics should be of interest to business owners, including contractors. A strong positive or negative experience can motivate a customer to post a review on sites like Facebook, Angie’s List, Google, Porch, Yelp, and Houzz. It is a good idea to look at both good and bad reviews. The middle ground is likely to remain relatively silent. Negative reviews can be viewed as an opportunity if the contractor is willing to work with the customer to address the problem. Feedback and allowing the customer to feel heard are important. Understanding the problem and what the customer truly needs will give you valuable insight. 

Some reviews are vague, with little information. These posts are less likely to sway a potential customer. I believe contractor reviews that address key issues, such as pricing, workmanship, cleaning up, timeliness, staying within budget, responsiveness, and overall professionalism are more likely to influence customers.

Contractors should encourage customer reviews. Potential customers want to hear about others' experiences before signing a contract. Here are three things customer reviews can do for your business:

Establish credibility and trust. These are key factors many people consider when hiring a contractor. Whether building a new home, putting on an addition, remodeling a kitchen or bathroom, or installing a new furnace, working with a contractor often involves a large purchase. Credibility and trust go a long way when deciding which contractor to hire.

Generate impartial views. Having reviews that are not all perfect shows you are looking for honest feedback and want to provide third-party insight into the experience and quality of your company.

Transform how customers view you. Contractors are not all the same. You want to stand out and have an edge on your competitors. This may include having a better design, updated technology, better building materials, improved service agreements, better warranties, more value, or going the extra mile for an outstanding customer experience.