Case Study: Efficacy of Reputation.com Managed Service
Question: How does the Managed Service program affect the online reputations of subscribers?
Methodology: In May 2013, we analyzed data on all Reputation.com for Business Gold and Platinum subscribers who had been using the service for at least three months. The data was collected. using the Reputation.com for Business technology platform back-end.
We looked at three metrics of online reputation:
- Proportion of reviews that are negative
- Average star rating across all review sites
- Volume of new reviews per month
- Average for all subscribers prior to start of Managed Service
- Average after at least three months for subscribers not using Review Kiosks
- Average after at least three months for subscribers who were using Review Kiosks
Results: All subscribers saw a marked gain for each metric within the first three months of the Reputation.com Managed Service program. Kiosk users saw gains 2–3 times larger than non-Kiosk users.
Impact of Managed Service
|Proportion of Negative Reviews|
|Managed Only||↓ 89%|
|Managed w/ Kiosk||↓ 400%|
|Change in Average Star Rating|
|Managed Only||↑ 16%|
|Managed w/ Kiosk||↑ 25%|
|Change in Monthly Review Volume|
|Managed Only||↑ 178%|
|Managed w/ Kiosk||↑ 650%|
Why Reviews Matter
Consumer Research: 92% of Internet users read product reviews and 89% of people say that reviews influence their purchasing decisions. (eTailing Group)
Trust: 72% of consumers trust online review as much as word of mouth. (Local Consumer Review Survey)
The Bottom Line: A difference of one “star” in the average rating in a typical online business profile can lead to a 5–9% difference in revenues. (Harvard Business Review)
Local Visibility: 88% of consumers who search for local services on their mobile devices will call or visit one of the businesses they find within the next 24 hours. (Google/Ipsos OTX)
Positive Impression on Consumers
- Requesting reviews from customers significantly increases the proportion of new reviews that are positive.
- Using an onsite review-request kiosk further augments the trend, by making it easier for customers to review.
- Prospective customers see a much more positive image of the business when conducting research.
Projected Increase in Revenues
- Subscribers saw a significant increase in average rating.
- Searchers often do not click on the review profiles of businesses with low or average ratings; subscribers can therefore expect a much higher click-through rate to their positive reviews.
- Kiosk subscribers saw an average increase of almost one full star, which the Harvard Business Review predicts should lead to a 5–9% increase in revenues.
Increased Local/Mobile Search Visibility
- Subscribers saw a marked increase in the average number of reviews per month, boosting the perceived relevance of their review profiles.
- Search engines prioritize active review profiles and place them higher in the search results.
- Consumers are more likely to find subscribers’ businesses, leading to increased search referrals and return on advertising/marketing investment.