Customer reviews should play into every company's marketing efforts -- they hold the power to boost your brand and bring in new customers. However, if not well managed, some reviews could steer customers elsewhere.

Here's a quick guide on why your small business should care about customer reviews—good and bad — and a few tips on how to get more customers to leave reviews. 

Also, read on to learn how customer reviews impact local SEO, what to say when someone leaves a negative review, and the lowdown on the most popular customer review sites.

Why Your Small Business Needs Reviews

Basically every consumer now checks reviews before buying a product or service they've never purchased before, or before shopping at a business they're not already familiar with. Most people also rely on reviews before trying a new restaurant, or booking a hotel or other short term rental when making travel plans.

Statistics vary, but research shows anywhere from 88 percent to as high as 98 percent of customers checking reviews before making a purchase.

"They've become a crucial part of the buying journey, making reviews far more than just opinions; they're a deciding factor," says Jon Clark, managing partner and chief SEO at Moving Traffic Media, a New York-based digital marketing agency.

"Reviews can either elevate your brand or leave it struggling to keep up. Good reviews can act as social proof, reassuring people that your business is worth their time and money," he writes in Search Engine Journal. 

Reviews can also provide small businesses valuable insight into potential weaknesses at your company or with a product or service, shining a light on specific areas requiring your attention.

"Reviews have moved beyond mere opinions — they now impact businesses in tangible ways," says a post by CMSWire.

Brian Lim, founder and CEO at fashion retailer iHeartRaves, told CMSWire that customer reviews are perhaps the most straightforward method of gauging how your business is doing, and they've helped the Anaheim, Calif.-based company see where improvements were needed.

"By analyzing reviews, we found some common pain points, like sizing confusion and shipping delays, and set out to resolve them," Lim said, according to the article by Scott Clark.

Also, reviews can reveal what's resonating with customers, such as iHeartRaves' unique designs and fast customer support. "Learning about these allowed us to double down on these strengths," the entrepreneur adds.

How To Get More Reviews

Asking customers to leave a review is really the most effective place to start, according to an article by Skye Schooley, senior lead analyst for business.com.

When and how you make the request might vary, but some say the best time to ask is shortly after a customer's positive interaction with your small business.

"That will increase your chances a lot," recommends Matija Lesko, online reputation manager at Omnisend, in the business.com article.

Respond to All Feedback

Marketing experts and successful entrepreneurs say you should be prepared to respond to all reviews, whether good or bad.

"Potential customers are not just reading what others have to say about your business; they also read how you reply to that feedback," says a post by the Better Business Bureau, which points to a study that says 97 percent of consumers read company responses to reviews. 

Providing a prompt response also matters, particularly if a customer is expressing something negative.

Schooley advises small businesses to avoid the temptation to just ignore negative reviews. Your lack of response will diminish trust with current and potential customers, and can be interpreted as a lack of interest in customer's concerns.

"Leaving a negative review unaddressed might signal to customers that you don't value their opinions or experience," she adds.

Remember, says Jon Clark in the SEJ article, that all hope is not lost just because someone has left a negative review. "Thoughtful, well-handled responses can turn an unhappy customer into a loyal one and show potential clients that you value transparency and improvement."

When responding to negative reviews, be respectful and avoid making denials or excuses, even if you have a different perspective, advises the BBB. Apologize for the mistake, and illustrate that you value customer feedback as an opportunity to improve. If applicable, provide a resolution or a way to address the issue," the group says in a blog.

Also, if reasonable, offer to have a conversation in a one-on-one setting. "They'll know that you genuinely listened to their concerns. This also gives you a chance to reach a resolution that satisfies you and the customer," explains the BBB post.

Get on the Right Sites

While there are industry-specific review sites, TripAdvisor for dining and travel, for example, the top review platforms otherwise, are Google Business Profile, Yelp and Facebook, according to organizations that track customer review statistics.

Be sure your business has created or registered a profile on the popular sites to make it easier when asking a customer to leave a review, and so potential customers can readily find reviews about your business.   

Once you create a profile, or "claim" or "optimize" one, you can add a link to your review page on your company's website, in emails, and other marketing.

Impact on Local SEO

How you generate and engage with reviews affect not only your credibility with customers but impacts your SEO visibility too, explains Summit Ghimire, founder of the SEO agency Outpace.

By requesting and responding to reviews effectively, you can make your SEO efforts more successful, he writes in a Fast Company article.

"Customer reviews help demonstrate to search engines and users that your business is active and trustworthy," explains Ghimire. "They signal that your Google Business Profile (GBP) and website are receiving consistent engagement."

Customer reviews may be most effective for local SEO. People most often leave reviews on Google Business Profiles (GBP) and that boosts your chances of being highlighted in search results, he adds.

GBP reviews feed directly into your local search ranking. 

"Positive, keyword-rich reviews help you appear in the 'Local Pack' (the top 3 businesses shown on Google Maps results), giving your brand prime visibility for 'near me' and intent-driven searches," according to a post by the social media management platform SocialPilot. 

In conclusion, managing customer reviews is an essential aspect of running a successful small business in today's digital landscape. By actively seeking feedback and responding thoughtfully to both positive and negative reviews, you can enhance your brand's reputation, gain valuable insights, and foster customer loyalty. Remember, every review is an opportunity to engage with your audience and demonstrate your commitment to quality and improvement. Embrace the power of customer feedback, and you’ll not only attract new customers but also build stronger relationships with your existing clientele.