E-Commerce Times

Saturday, May 8, 2010

Managing online Reputation - how do negative reviews affect businesses?

I regularly deal with unhappy clients that have received negative online reviews.  Most websites will allow reviews to be flagged for a determinate period of time, while the reviewers claims are investigated.  If a resolution is made between the business and the reviewer where either the reviewer is compensated for their experience or business owner is vindicated, say, due to hellish attitudes of prior management staff, the reviewer should be invited to leave a second review.  In any case, the website should allow the business to respond to a review, good or bad.  Back and forth communication makes content 'sticky', engages visitors and shows the web community that not only businesses do care about their overall image on the Internet, they are also ready to take necessary steps to rectify misconceptions/misrepresentations as well as own-up to poor/lower-than-average levels of service.

It's important to note that bad reviews that have responses against them builds online credibility.  While there is research (i'll post as soon as i find it...) that concludes positive correlation between number of reviews and click-thru rates, there is also research done on 100% positive reviews vs. <100% positive reviews - apparently it helps to have a few negative comments because it supposedly shows business is unafraid to be candid about their shortcomings.  I'll get this research article as well and post when I can.

 My advice to panicking clients is to first calm down, take a deep breath and read and re-read the bad review.  If they feel the bad review will affect them negatively, then to mark it as inappropriate while the webmaster / moderators attempt to contact the reviewer.  If the complaints are true, then come to an agreement to resolve the matter - i.e. public apology and compensation in some form, free product/service on their next purchase, gift voucher, etc.  If client is convinced complaints are baseless, I work with them to create a professional response along the following lines:

"Thank you for your comment.  Comments, postive or negative, are very important to our business.  It is unfortunate that you have experienced [this level of service from our staff member this llack of functionality from our product].  We take pride on our [service / product] and believe your experience is an exception to the rule.  We would like to discuss the matter further to understand how we can re-instate your confidence in us.  My name is [don't be afraid to use your real name and direct contact number, would be better if it comes from someone in management level like a supervisor or customer relationship manager]."

Everybody hates their complaints going on deaf ears, and the beauty of online forums, directories, etc. is that comments are NOT going to be deleted just because they are negative (perhaps if they are slanderous and derogatory, but that's another story), so SMEs, you must wake up and smell the coffee and re-engage.  Webmasters, understand this desire for SMEs to re-engage with customers, and give them time to find resolution by allowing them to flag comments/reviews pending investigation - always remind them negative comments are NOT going to be deleted.  And finally, reviewers, ALLOW yourself to be re-engaged because you never know what you might be walking away with :)

Check googleblogs post on online reputation management:
http://googleblog.blogspot.com/2009/10/managing-your-reputation-through-search.html









Friday, May 7, 2010

ROI Case Study 1 - Concrete Supplier - Ongoing

Client objective: Be number one ranked business for concrete supplies and concreting along a coastal area on various business directories.

Scenario: Client owns multiple mobile concrete readymixers located along the coastal area.  Client has no website, but wants a solution to manage their online exposure starting from implementation to reporting.

My assessment:
- client not a household name
- minimal understanding of the web, and possibly no particular requirement to have a website at this point in time.
- needs location-specific exposure and dominance on the Internet.
- catering to the building industry so ratio of Cost per Click (CPC) to Revenue per Sale will be relatively small - i.e. only a couple of jobs to justify ROI.

My solution:
Paid Placement - sponsored positioning on reputable, multi-channel online business directories that allows rich content uploads and have brand awareness.
Location-specific placement - multiple listings reflecting the locations of clients concrete supply readymixers.
ROI Reporting - provision of 1300 number to appear on their online ad that provides instantaneous email reports; useful to track phone leads.
Client-end ROI tracking - client to always ask caller the source of info; simple questions like 'did you hear about us from ad on newspaper or the Internet' is a good starting point to collect information, which can be later dissected into which particular Online source - client understands that ALL calls need to be screened.
Reputation Management - informed (and constantly reiterate) the importance of encouraging reviews from his customers; not only does it help increase click-throughs to his ad, local search directories like Googlemaps index the reviews, which assists in SEO, without having the need of a website.

Status:
Client so far satisfied with service and engagement.  They continue to receive reviews from happy customers.  Still in progrees.  I am, however, unsure as to whether or not they've received a job from their online spend.

How to determine ROI?

From my experience as a digital media consultant and account manager, most small to medium sized businesses/enterprises (SMBs/SMEs) 'waste' their online marketing dollars because they are unable to 'capture leads'. I deal with clients on a regular basis complaining about online marketing strategy with XYZ company not generating into enough click-throughs to their website and/or phone-based inquiries.

These clients usually call us after receiving their monthly bank/credit card statement that show deducted payments from various subscripting-based, online e-marketing providers, e.g. SEM resellers, business directories, etc. In light of the recent economic downturn (and possibly one that'll last for years to come), you have to understand this is very normal - think of a mom n pop small business start-up, struggling to make ends meet reacting to, say, their Google Adword spend as opposed to an Accounts Payable department of a large company having to merely get approval to pay outstanding invoices. The same company can consult with their, say SEM strategy, department to check if their monthly 6-digit Adword spend is justified (yeah, there are many out there!), while Finance department pays their 6-digit invoice amount. However, the small mom n pop shop, say corner shop for wedding gifts, is biting through their nails, hoping they won't be sent to a credit/mercantile/debt-collection agency for not being able to pay off their bills - simply because their e-marketing spend toward their, say online ad, had not even generated enough to pay for itself!

I see these cases every day of my digital account management career and it is frustrating to see these SMEs either jump on the band-wagon and dedicate too much dollars for online promotion, sales reps selling the equivalent of a vacuum cleaner that can in theory make you a martini and/or SMEs expecting their one dollar to bring in 100 dollar worth of return. All these scenarios are completely ludicrious, which is why I've decided to create this blog to share my e-marketing experience working for one of the worlds largest news and media companies for both SMEs and companies that provide e-marketing, online marketing, SEM/SEO services, etc to these SMEs.

I will skip the theoretical jargon and go straight through to actual case studies that I've worked or am currently working on. As I am degree qualified in e-Commerce, I may pull some theory in these studies, but will keep it very simple and interesting.

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