Word-of-mouth referrals have long been the lifeblood of many businesses. These days, however, the information superhighway has supercharged referrals and customer recommendations, often to the surprise – and possible demise – of organizations everywhere. 

Online recommendations and blogs are pervasive throughout the Internet, and there are websites dedicated solely to the practice of posting local product or service reviews. Sites like Yelp, Yahoo Local, CitySearch, and Angie’s List give individuals the chance to express their opinions and review everything from restaurants to realtors, hotels to hairdressers, and doctors to day cares.

These reviews are created by real consumers who’ve had real-life experiences with products or services. Their ratings and feedback help other would-be buyers make informed decisions.

Such web-based reviews are powerful influencers, and companies that dismiss them do so at their own peril. Today’s consumers are more likely to seek out the opinions of online friends or a community of unbiased strangers when making their purchase decisions. Additionally, credible online reviews can rapidly launch interest in new products and new companies.

Your organization is likely on the receiving end of a review somewhere on the Internet – or soon will be. Whether online opinions are good, bad, or indifferent, companies should respond, using that information to make improvements and updating marketing strategies.   

A marketing megaphone

For smaller companies competing against global brands, online reviews provide a greater marketing voice, one that’s amplified to the world. Smart companies refuse to let this trend persist as a happy coincidence. Instead, they embrace the concept and initiate proactive marketing steps.

For one, they actively encourage their customers to submit comments and honest ratings to online review sites. It’s the age-old “If you like our service, please tell others” approach, only using the broader reach of technology.

Businesses that typically generate positive reviews can further leverage those recommendations by adding them as testimonials to their own websites, posting them in their stores or offices where customers can see them, and using them in their marketing materials.

Additionally, some review sites offer free business listings and paid advertising opportunities. Companies that consistently receive good marks on a particular site can take advantage of the other presence opportunities offered as a way to reinforce their positive online ratings. Depending on a company’s customer base and its social network savvy, a business may realize an equal or better ROI through this kind of advertising than via traditional printed yellow pages.

Feedback for finding and fixing faults

Handling negative reviews as well as the positive ones can be a worthwhile endeavor. Granted, some poor reviews can be off the mark, but most can provide significant opportunities to make amends and retain customers, who in turn, spread the favorable word.

Bad reviews are also a practical way to get valuable feedback without doling out a research investment. Negative reviews contain many truths and may shed harsh light on a company’s weaknesses. Businesses often find legitimate insights, along with ideas for improving their operations and service.

The online conversation about businesses, products, and services is in full swing. Take the time to monitor what’s being said about you – and your competitors – then adapt your marketing strategy to take full advantage of this online influence.