Online reviews are one of the most effective ways to drive potential customers to your business. Sure, you can spend thousands of dollars trying to shoot your business to the top of the google search engine results page (SERP), but that can be expensive and inefficient. In addition, while being at the top of the SERPs can show that you’re an established business, it lacks the authenticity and brand trust that an online business review can provide.

Why Positive Online Reviews Matter for Your Business

The three examples below show the positive user experience (which Google aims for) for the consumer/searcher as well as the cost and time efficiencies for businesses who leverage online reviews for their business.

Scenario #1

It’s a Friday night and you and your family decide you want ice cream as a late-night snack. Curious about what your options are, you conduct a search for ice cream shops near you. Along comes the top-rated ice cream shops in your area with their respective company reviews.


Scenario #2

You’re in the market for a new car. Sure of the make and model, but unsure of the dealer, you perform an online search for relevant dealers in your area. Tada, results and online reviews.


Scenario #3

It’s time for a dental checkup, but your original dentist no longer cuts it. You want a dentist that you can trust, will be around for a while, and is conveniently located. You do a quick online search for general dentists in your area. Again, dentists with customer reviews.


Like I said, online reviews are a relatively inexpensive way to attract potential customers. Think about it, not one of those business owners did anything during any of those searches. They simply implemented on online review strategy and watched the results help drive their business. Google, Yelp, and Facebook reviews not only help your business get discovered, but allow you a chance to prove your business.

Now that we’ve covered how online reviews can positively impact your business, we’ll walk through the core benefits you can expect from leveraging company reviews in addition to a quick guide to getting you started. We’ve constructed this post as a comprehensive guide for any business to navigate the “in’s and out’s” of online reviews.

How Online Business Reviews Impact on Local SEO

Whether it’s on mobile or desktop, businesses with online reviews can find themselves near (or at) the top of local search results relating to their products and/or services. In fact, there have been strong correlations found between online business reviews and local search engine results.
Of the over 200+ ranking factors in Google’s search engine algorithm, almost 10% of the total weight is estimated to be review signals (review quantity, review velocity, review diversity, etc.). And, it’s presumed that Google’s local algorithm, which is different than the general algorithm, weighs reviews more heavily. This provides a great opportunity for any brick and mortar business or retail chain to help influence their online search presence through positive online reviews.


Click-through-rates (CTR) are also a factor within Google’s algorithm. Online company reviews tend to receive more engagement, or CTR, with increases in yellow stars. This, in theory, means that a higher quantity of online reviews and a higher CTR translates to a higher likelihood that your business will be displayed near the top of the search engine results. The high quantity of positive reviews combined with the high CTR for your site, helps tell Google that your website will provide the searcher/consumer the best user experience and serve the content that matches their searcher intent. This is the power that online reviews can provide any business, big or small.

Catapulting your business to the top of local searches through local SEO isn’t the only benefit received from generating online business reviews. In fact, there are a number of benefits including associated increases in revenue and consumer trust in your brand.

A recent study by Harvard Business School (HBS) found that a one-star increase in a restaurant review can lead to a 5-9% increase in revenue. That’s anywhere from $50,000-90,000 in additional revenue for a $1M/year business. That’s simply from unleashing your silent majority on Google, Yelp, Facebook, and/or other online review sites. Imagine what those numbers look like for automotive dealerships, law firms, or dental practices that increase their online business reviews. It’s no surprise that 88% of consumers have been influenced by an online customer service review when making a buying decision.

Gain Trust and Credibility through Company Reviews

Generating online business reviews is one thing, but managing the online reviews is another. Enter online review management. Consumer trust and credibility is another benefit that businesses can realize through online business reviews. According to BrightLocal, 79% of consumers trust online reviews as much as personal recommendations. Furthermore, 73% of consumers say positive customer reviews make them trust a business more (up from 58% in 2012). Trust and credibility are ingrained in online business reviews and local search allowing consumers to have to have a clear view into any business. It also allows a business to provide complete transparency into what they offer their customers and how well they offer it. That’s why we at Podium say that we help good businesses prove it.

Last of all, online reviews allow a business to engage with past and current customers. Through online review management software, businesses can monitor and quickly respond to positive and negative reviews on Google, Yelp, and Facebook. According to a recent study, 70% of respondents said their opinion was changed after a business responded to a review. Therefore, you should choose a review to response ratio that is realistic for you and do your best to stick to it. For example, a ration could be to respond to 3 out of every 5 positive or negative reviews left.

Positive online review response

Taking the time to respond to a few positive online business reviews is a great way to show that your business cares and is proud of the experience they were able to provide. Showing that your business is grateful for the company review also shows potential customers that your business thrives to create an experience like that for every single customer.


Negative online review response


On the flip side, taking the time to respond to a negative company review can have an even larger impact. In fact, 41% of consumers see a brand’s response to an online review as a sign that the brand really cares about its customers. This is a chance for your business to act fast and right whatever wrong the customer feels your business made. The above is a great example of taking a cool-headed approach in responding. They follow a few simple steps that can turn this negative into a positive for any potential customer:

  1. They apologize.
    1. “We’re sorry to hear…”
  2. They approach the review with a calm and collected response (cushioned-defense).
  3. They offer a pro-active way to right their wrong.
    1. “We’d like to do what we can to change that”
  4. They ask to continue the conversation privately.
    1. “Please contact our Customer Service Manager…”

What happens if the negative response isn’t legitimate? Hootsuite suggests that regardless of whether or not the complaint is legitimate, you should address it and apologize. Tell your side of the story in a sympathetic manner and offer to help correct the issue in anyway possible. Again, by addressing negative online business reviews, you get the opportunity to show that your brand has real, genuine people behind it and that you care about your customers’ experience.

Focus Online Business Reviews on the Most Effective Online Review Sites

Not all reviews sites are made the same. For example, Google reviews, in most cases, will carry more clout than your average niche, vertical-specific review site. Yelp reviews, in general, will also carry more authority than most other review applications. So which online review site is right for your business and which should you focus on?

In a general sense, it’s beneficial for all businesses to focus on the Big 3. That is, Google reviews, Yelp reviews, and Facebook reviews. Why? Because all three online review sites give your business a much larger audience and chance for exposure. Once you tackle the Big 3, moving into the niche online review sites like Avvo or Houzz, will help supplement and increase your online review strategy.

Google Reviews

Google has arguably the most prominent online review site. For starters, Google reviews have the potential to put you near the top of the search results page (as seen below). Many businesses will see this as the sole reason for focusing on generating Google reviews. While Google’s online reviews are a great starting place, it should not be the only factor to your online review strategy. Not everyone has a Google Account, something that is required to leave a google review, meaning you must supplement those efforts with other online review sites. Besides, Google isn’t the only online review platform that can rank in the search results.


Yelp Reviews

Yelp’s online review platform is also a great general option for most businesses. Yelp touts an astounding 135 million unique users and while tilted towards restaurants, provides categories for almost every vertical. The online site’s reviews CAN also show up in Google search results, show your hours of operations, and show pictures from user contributions.

Facebook Reviews

With nearly 1.4 billion monthly active users and 890M daily active users, Facebook is an online review site to be reckoned with. One main advantage to Facebook reviews is that most of your customers use Facebook and will already be logged in (via mobile or desktop) allowing you to easily direct them straight to your review page. While Facebook reviews arguably aren’t quite on par Google and Yelp reviews, the platform is fast-approaching.

Niche Online Review Sites

Lastly, vertical-specific online review sites are a great way to supplement your online review strategy. Do a quick search for “Lawyer review” and you’ll likely find Avvo. A quick search for “doctor reviews” will serve up And, a search for “home builder review” will bring you Houzz. These examples of supplemental online review sites are crucial for any complete online review strategy. Use them to your advantage, but don’t rely on them as your sole engine for online reviews.

How to Ask for Online Reviews

Many businesses that already have a review strategy in place will tell you that collecting reviews isn’t always the easiest thing to do. So what’s the best way to generate them?

As a general rule of thumb, don’t incentivise for online reviews. Offering an incentive in exchange for a review may lead to a biased review that might not accurately reflect that specific customer’s experience. You may argue that it’s just business and you will do whatever it takes to increase revenue for your business. I admire that tenacity, but some online review platforms like Yelp do not.

A good alternative to incentivising is to choose an online review management platform that works for you and your customers. There are many online review management platforms out there but choosing one that works for both sides (your business and your customers) is key.

For example, the odds of a dental patient filling out an online review that they received through an email a few days after their visit is very slim. In fact, our statistics at Podium show that only around 2-3% of those patients will click through to get to the actual review. After they have clicked, the completion rate drops even further for those that have to sign into the online review site. Rather, a text message directly to their phone, before or as they leave the dental practice, show to have around a 68% click rate and a 15% completion rate (up to 15x the email approach).

A similar argument can be made for automotive dealerships and almost any other industry vertical that collects online reviews. The investment in an online review management platform is one that can yield significant results, comply with terms and conditions, and cut away the awkward moments of asking for a Google, Yelp, or Facebook review.


If you currently maintain an online review strategy, make sure you’re focusing first on the Big 3 (Google, Yelp, and Facebook reviews). These three sites can help increase your business’s online exposure and increase brand trust. After you have a firm grasp on continually generating reviews for the Big 3, start to supplement those efforts with vertical-specific online review sites. Make it a point to respond to a certain ratio of positive and negative responses. This will help show your potential customers that you care about their experience. And, when you respond to a negative one (most everyone reading this will at some point) keep a cool head and approach it with a problem-solving mindset. Last, choose an online review management platform that works for you and your customers. Generally, text-based online review management platforms will work be more efficient and cost-effective than traditional email platforms.

If you don’t currently focus on gathering online reviews, head over to Google My Business and claim your business/location. Also, make sure you do the same on Yelp and Facebook. From there, take similar steps as mentioned above and watch those reviews flow in.


Watch a 1-minute demo to see how Podium’s efficient, mobile process can help your business collect 15x more reviews than traditional platforms. This will, in turn, improve local SEO and ultimately boost revenues.