September 6, 2006 Comments
Main steam media is starting to catch on to the amazing power of a good online reputation. In fact, just this past week both the San Francisco Chronicle and the New York Times ran articles talking about the effect that online review sites can have on small businesses.
These articles highlight the fact that even apart from doing typical online reputation management like watching blogs and setting up Google Alerts, any service oriented business needs to also be keeping an eye on the things that are said about them in this review communities.
The San Francisco Gate Chronicle article makes it clear that the impact of these sites is coming as a shock to many small business owners...
Five years ago, an ambitious restaurant owner had to worry about the verdict of a handful of professional reviewers at magazines and newspapers. Now that owner faces the judgment of thousands of potential amateur reviewers.
"In this day and age, there's nowhere to hide," said Melinda Lucas, owner of Paneless Window Cleaning, a Seattle business that has attracted a significant number of customers through positive reviews on sites like Judy's Book and Angie's List. "Anyone can give you a review that can totally make or break your business. It's made it so you have to be A+ on the ball all the time."
With that in mind, not all small business owners are feeling a negative impact from this type of exposure...
Len Handeland, owner of Utopia Salon near Union Square, revamped his Web site to allow online appointment booking and started advertising on CitySearch in May. He estimates that the hair salon is getting five or six new clients every day from online review sites -- enough to hire three additional stylists.
"People see our ad on CitySearch, look at our 9.9 rating, and then at the user reviews," he said. "We have 36 reviews, and out of 36 there is not one negative comment. We have seen our revenues grow by three or four times the amount we budgeted on CitySearch advertising. It has really, really paid off. "
In fact, the article goes on and on with example after example of how small businesses are learning from these review sites. It's a fascinating article, one of the best done I've seen from a main stream media outlet.
The New York Times article focuses more on how larger retailers are making use of consumer generated reviews to add content and credibility to their web sites.
Sites like Shopping.com’s Epinions have other methods to bolster the credibility of reviews, like popularity ratings for individual reviewers, but others, like Shopzilla, lack such features.
Mr. Chen and other executives pointed out that retail sites tended to generate more product reviews than comparison sites and even sites like Epinions, where products like dog toys are barely represented. But that alone is not enough to entice Mr. Hurt, of Bazaarvoice, to try to compete with those sites.
While many of the methods used by these larger retailers require more staffing and cash outlay than many small businesses can manage, there are still valuable lessons to be learned from the article.
Blogger Bill Slawski who also mentioned the media coverage takes it a step further by putting together a list of some of the most common online review sites.
A number of these including restaurants only, but others have a wider range. If you’re a business owner, how would you feel about customers posting reviews of your business in sites like these? Hopefully good, because people will post reviews whether you want them to or not.
Slawski goes on to provide a nice round-up of sites that goes beyond the more popular options like Angie's List and Judy's Book.
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