Understanding how your digital reputation impacts your ability to bring in new customers.
While the benefits of a good digital reputation are clear, companies often struggle to quantify their reputation and the effect it has on acquisitions, conversions, revenue, and profit. Luckily, the Net Promoter Score (NPS) makes it easy to measure and boost your digital reputation.
To find your NPS, subtract the percentage of customers who would not recommend your company from the percentage of customers who would recommend your company. Numerous studies reveal the effect that your NPS has on your company’s acquisitions, conversions, revenue and profit. Take a look at some of the more striking statistics:
- A full 97 percent of people read local business reviews online. As many as 12 percent search online for information about at least one local business every day, according to a BrightLocal survey.
- According to BrightLocal, 85 percent of consumers trust online reviews as much as they trust personal recommendations. Two in three say that online reviews are the form of recommendation they trust the most.
- People read about seven reviews before making up their mind about a business, up from six reviews last year. According to BrightLocal, 74 percent of people say that reading positive online reviews increases their trust in a business.
- According to BrightLocal, 52 percent won’t do business with a company that has an average rating of three stars and 87 percent won’t do business with a company that has an average rating of two stars.
- There is a direct correlation between digital reputation and revenue. A Harvard Business School study found that companies that increased their average Yelp rating by one star increased their revenue by 5 percent to 9 percent.
- That doesn’t mean people want to see all five-star ratings. According to Northwestern University, people are less likely to purchase a product with an average rating higher than 4.5 stars. People doubt the authenticity of companies with overwhelmingly positive reviews.
XAmplifier works with a number of companies to decode the math behind digital reputation and, ultimately, to boost revenue. By making digital reputation a priority, an XAmplifier client saw a 65 percent year-over-year increase in inquiries across several locations in 2017.
If you're curious about your company's digital reputation, sign up for a free business analysis with XAmplifier. One of our digital reputation experts will review your business and provide a detailed assessment.