Today, more people are leaving online reviews, and if they’re not posting reviews, they’re reading them to gauge whether they should purchase from a business or not. Several studies have found that reviews help consumers make buying decisions. For example, Testimonial Engine found that 72 per cent of customers read reviews before making a purchase. This practice isn’t limited to particular products or industries, either. Across all sectors, customers are researching businesses before making purchases. 

Customers leave positive and negative reviews for businesses on various platforms, including but not limited to Google, TrustPilot, TripAdvisor, Facebook and Yelp. Reviews on these platforms will help customers decide whether they should use a particular business or look elsewhere. However, a study by Womply found that the price for negative Google reviews is particularly steep for business owners compared to other review platforms. 

So, how do Google reviews impact a business, exactly?

Credibility

Firstly, positive Google reviews give businesses a significant credibility boost – for free, no less! Online reviews hold significant weight nowadays. According to the Consumer Review Survey by BrightLocal, 87 per cent of consumers read online reviews for local businesses. 

In contrast, negative reviews will undermine your businesses’ reputation. As a result, prospective customers might lose trust in your business and spend their money elsewhere.

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SEO

Positive Google reviews are vital for your all-important SEO strategy. Google works hard to deliver relevant search results to its users, and the tech giant understands that users want to determine how other customers perceive a business before they make a purchase themselves. As a result, Google does consider reviews in SEO rankings. Consequently, the number of reviews and the quality of the reviews is vital for local SEO, which optimises your website to increase traffic, brand awareness and leads. 

In contrast, consistent negative reviews will affect how your business ranks on Google. When asked about how negative reviews affect a website’s Google ranking, John Mueller, Webmaster Trends Analyst at Google, explained: “if all the signals point in that direction, I could imagine that we might pick that up.” Essentially, Mueller hints that if a business has consistently bad rankings, it may harm its Google ranking. The bottom line is that companies should not underestimate the power of positive and negative Google reviews on local SEO.

Interaction with Customers

If you want to succeed in local search results, you must respond to Google reviews promptly. BrightLocal found that as many as 20 per cent of customers expect a response to their review within one day of posting. Additionally, Womply found that businesses that reply to 25% of their reviews receive approximately 35 per cent more revenue than the average business. In contrast, companies that fail to respond to reviews reduce their revenue by nine per cent on average. 

Negative Google Reviews: More Damaging Than Yelp or Facebook Reviews?

Interestingly, Womply found that a bad Google review can be more costly than a bad Facebook or Yelp review. The Impact of Online Reviews on Small Business Revenue study, which involved in-depth analysis of the online data of around 200,000 small businesses in the United States across various industries, provides some intriguing and valuable insights.

So without further ado, let’s explore the Womply study in more detail.

Consistent Negative Reviews = Decreased Revenue

The study demonstrates the significant impact that negative Google reviews have on businesses. For example, companies with reviews averaging 1 to a 1.5 rating received 33 per cent less revenue annually than the average business. Whereas on Yelp, the reduction in revenue stood at 19 per cent, and for Facebook, nine per cent.

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Aim for 3.5 to 4.5 Stars 

But, surprisingly, the study also found that a mixture of positive and negative reviews is beneficial, provided the overall score is relatively high. Womply found that businesses should rank within the 3.5 to 4.5-star range for the best performance, allowing positive and negative reviews. 

Review Volume

Review volume also plays a big part in how Google ranks a business. For example, BrightLocal found that the average local business has 39 Google reviews. However, Womply found that companies with over 82 reviews earn over 50 per cent more revenue annually than the average business. 

Additionally, Womply found that new reviews posted within the last 90 days possess more value than older ones, resulting in 52 per cent more revenue than the average business. This figure is supported by research by BrightLocal, which found that 73 per cent of consumers only pay attention to reviews written in the last month. 

The Real Impact of Google Reviews

Since 2019, the number of customers leaving reviews for local businesses has risen from 66 per cent to 72 per cent, meaning more people are making their views known online. Additionally, Womply’s study demonstrated the effect negative of Google reviews on business reputation and revenue. However, further research has shown that reputational damage can be limited by promptly responding to Google reviews.

It is important not to focus solely on the negative. If customers think you offer a good service, they might choose to leave a positive review. With each positive review, you stand a chance of climbing higher in those all-important local search rankings. Building a solid Google review base takes time and patience. But as we’ve demonstrated, a score over 3.5 stars will set you up for success.