Wednesday, May 21, 2008

The Impact of Online Reviews

Joseph Moran
Internet Marketing
Kevin Trainor
May 20, 2008

If you type “Los Angeles chiropractor” into the search field on the Google home page, you will be presented with almost 1.5 million results. In addition, Google Maps will display a map with ten local businesses, their locations, contact and review information matching your search. The goal of a business is to be in the number one spot. By leveraging new age word-of-mouth advertising, Dr. Michael Dorausch, a Los Angeles chiropractor, has succeeded in reaching this goal. The article I researched, “Online reviews can help grow a business” by Jefferson Graham of US Today, told Dr. Dorausch’s story.

Local listing sites with online reviews have become a popular destination for both individuals who are considering a product or service and those who want to share their experience with that product or service. An increasing number of consumers are turning to business listing sites including; Citysearch, Google, Yelp, Yahoo!local, MerchantCircle, etc. These sites provide location information and a forum for consumers to gather information about a company or product before they buy. Listing his company has dramatically increased business according to Dr. Dorausch, who reports that 80% of his new clients were referred from sites like those mentioned above. He posts signs in his office asking clients to share their experience, and occasionally solicits them to post reviews through personalized e-mailings.

The feedback and directions that potential clients receive is not the only benefit to businesses. Dr. Dorausch’s business is listed on a variety of popular local listing sites, increasing his exposure to the local community. Theses listings are then linked back to his site, which increase his site’s relevance to certain keywords. This has helped him to attain the coveted number one search result for “Los Angeles chiropractor”. It would seem that there is an immense opportunity for companies to increase their client base by utilizing the various local listing sites with review functionalities.

This topic is highly relevant to both marketers and consumers. Traffic on local listing sites have increased dramatically in the past few years, Google Maps grows 25% per year and Yelp is up 129% this year. This data screams to marketers, “LIST YOUR BUSINESS!” It is especially important for small, local businesses because of the low cost involved. Some sites charge to list, but it can be quickly earned back through the increase in business. The reviewing feature of these sites can be a double edged sword for marketers; some consumers will ignore overly flattering reviews, and then there is always the chance of getting a scathing review.

For consumers, you are given an opportunity to read up on the landscape of business offerings. You can determine if a product or service offered by a company is worth your hard earned cash. On the other hand, consumers must be careful of some reviews as the content is not always guaranteed to be the truth. Consumers also receive the benefit of getting a large listing of the businesses that offer what they are looking for in the local area, some of which they may not have initially considered. These functions allow consumers to compare businesses offering similar products/services and to offer insight into their experience with companies.

You can access the article I reviewed by clicking the following link: http://www.usatoday.com/tech/products/services/2008-05-20-online-reviews_N.htm

This post is also listed at:
http://northeastohiorambling.blogspot.com/

No comments: