Local Business Reviews and Ratings

Local business reviews are written sentiment and star ratings left by customers online through platforms like Google. Local business reviews are vital for your business because so many people use them. A survey by Moz found that an overwhelming 96% of US consumers read local business reviews before making a purchasing decision.

Online reviews represent an ongoing, public conversation that customers are having about your business. While it might initially feel unsettling not to control this discussion, positive reviews build trust and credibility, leading to increased sales and revenue. Conversely, too many negative reviews can deter potential customers. Therefore, local businesses must proactively prioritize acquiring and managing reviews as a critical component of their local search marketing strategy to build a robust online reputation that attracts and retains customers.

While written sentiment provides readers with anecdotal insights, star ratings have a clear benchmark to achieve, most consumers will consider you if you have 4+ stars in Google reviews.

How do you actually manage them effectively, especially when they feel out of your control? 

First, it is important to understand where your business is receiving the most reviews from customers. 66% of review writers spend the most time writing on Google, but there are many other platforms that require monitoring, assessing, and responding. 

Local review management starts with a plan for receiving alerts about new reviews, a plan for responding to all reviews, positive and negative, and a plan for gathering sentiment to improve processes and review syndication on key parts of your website. 

If you're focusing on building a clear strategy for your team to encourage positive reviews and respond appropriately, our Moz Academy course Local SEO Tactics takes you through the process with videos, tasks, and quizzes.

Realizing that you don't control this discussion of your brand can feel a little worrisome at first, but thanks to consumer reviews and owner responses, you can take significant action to both influence and contribute to building the lasting, positive reputation your business wants to earn.

In this article, we'll outline the 6 components all local business owners must master to effectively manage their local business reviews, including Google reviews.

Building a positive local business reputation begins internally. Ensure your customer-facing staff are your strongest advocates:

• Prioritize Comprehensive Staff Training: Ensure every public-facing staff member receives initial and ongoing training in customer satisfaction policies, products, and services to represent the business well.
• Empower Staff for Immediate Resolution: Equip staff with the knowledge and authority to identify and rectify customer issues promptly at the point of service. Train them on your hierarchy of complaint resolution.
• Foster an Inclusive Work Environment: Incorporate principles of diversity, equity, and inclusion. Happy, valued employees (who are fairly reimbursed) are more likely to deliver outstanding service, with 63% of consumers writing positive reviews to express appreciation for brands that treat them well.
• Encourage Personal Initiative: Entrust employees with the responsibility to use their own initiative to address customer complaints and offer memorable personal service.

From Moz's consumer survey on local business reviews, we found that  65% of review writers have left negative reviews after experiencing bad or rude customer service, and an additional 28% say their negative reviews result from businesses failing to resolve their complaints at the time of service. One of the best paths to building a sterling local business reputation is to run an employee-centric company. Be sure every public-facing staff member receives initial and ongoing training in the brand's customer satisfaction policies, products and services so that they are equipped to represent the business well. Ensure that each staff member understands the hierarchy of complaint resolution so that customers' issues are identified and rectified at the time of service.

Being an employee-centric organization means that the business incorporates the principles of diversity, equity and inclusion so that all staff can participate equally at work, and all members are fairly reimbursed for their contributions to the business. Additionally, smart local business owners can take the visionary step of entrusting their employees with the responsibility of using their own initiative to address customer complaints and to offer memorable personal service. These approaches will go far towards the goal of earning an outstanding online reputation. 63% of surveyed consumers write positive reviews to express appreciation for brands that treat them well.

Catching a complaint before it turns into a negative review can save both your customer and your company significant trouble. While a mix of positive and negative reviews appears more authentic, proactively resolving issues is key:

• Display In-Store Complaint Invitation: Hang signage warmly inviting patrons to let you know right away if something isn't satisfactory.
• Provide Accessible Digital Complaint Forms: Offer a mobile-friendly complaint form on your website.
• Establish a Complaint Hotline: Post a text message and phone number for complaints in your store and on your website.
• Actively Listen to Social Media: Regularly monitor social media for brand discussions and offer to make things better for customers expressing negative sentiments.
• Implement Point-of-Service Check-ins: Ensure all staff dealing with the public ask, at the time of service, if anything wasn't perfect. Facilitate immediate documentation and resolution of any complaints.
• Leverage Complaints as Business Intelligence: Don’t overlook the valuable signals complaints provide. 38% of consumers write reviews to tell a business how it needs to improve, offering vital insights for operational change. Remember, it can cost 25 times as much to win a new customer as it does to keep an existing one happy. Swiftly resolving issues is critical, as only 2% of consumers consider a 2-star business and 1% will choose a 1-star rating.

Having both positive and negative reviews can appear more authentic to consumers, so don't lose faith if you get some lower star ratings. Focus on how you respond to negative reviews to win back customer trust. 

Claiming your business profiles on review platforms is essential for actively contributing to your brand's online conversation and utilizing the 'owner response' function.

• Identify Preferred Platforms: Search Google for your business name + "reviews" to compile a list of sites where your customers are leaving feedback. For new businesses, research local competitors.
• Claim All Relevant Profiles: Create logins and claim your business profiles on these identified platforms (e.g., Google, Facebook, Yelp, Foursquare, industry-specific sites). Some may require additional ownership verification steps.
• Prioritize Google Business Profile (GBP): Since 79% of the public reads reviews on Google and 66% write there, invest resources in mastering the fundamentals of creating and managing your GBP.

Numerous platforms that feature reviews also facilitate a function known as ‘owner response’. This provides an empowering opportunity to contribute to the online conversation that surrounds your brand. You’ll be able to thank customers who leave positive reviews and attempt to win back customers who leave negative ones.

In order to participate, you’ll need to claim your business profiles on the websites and platforms your consumers prefer to use most. You can do a simple search in Google for your business name and the word ‘reviews’ to start compiling a list of those websites that rank highly for your brand and feature reviews from your customers. If yours is a brand new business which has yet to build an online footprint, look up your local competitors to see where their customers are leaving reviews. Chances are good, those sites will be important for your company, too.

Busy business owners also use review management software to increase response time. For complete information on this key topic, read The Essential Local SEO Strategy Guide.

Getting more reviews is crucial, but it's even more important to play by the rules! Every review platform has its own set of dos and don'ts—for instance, Yelp isn't a fan of you asking for reviews, while Google is fine with it as long as you're not offering incentives. Plus, different countries have their own advertising laws to keep things fair and square.

So, here's the golden rule: never ever pay for reviews or try to fake them. That means no cash for positive words, no posting reviews yourself (or hiring someone to do it for you), and definitely no sneaky "review-gating" software that hides negative feedback. Reviews need to come straight from real customers, on their own devices. And remember, keep your team, friends, and family out of the reviewing game—and yes, that means you too!

Once you're clear on the rules, you can put together a smart strategy to encourage genuine feedback. Think about asking customers in person, sending polite email or text requests after a service, or even setting up a dedicated "Review Us" page on your website with links to your main profiles. Don't forget physical reminders too, like signs in your store or notes on receipts. The goal is a steady, natural stream of positive reviews across different platforms over time

For the life of your business, you will be aiming at earning a slow but steady stream of positive reviews over time on a wide variety of platforms.

So you got a negative review? All is not lost! 62% of negative reviewers would give a local brand a second chance after an owner's response solved their problem. 

Six words of advice for every business owner who will inevitably experience a negative review or two at some point: keep calm and have a strategy. Even the most complaint-friendly business with the best customer service policies is likely to receive at least a few negative reviews. A mistake can happen, or an employee or customer may be having a bad day. Know that a negative review is not the end of the world, but that it is, in fact, the last chance the business will likely be given to make amends and win back the customer. Remember, if it's 25 times more expensive to earn a new customer than to retain an existing one, you have all of the incentive you need to make a heroic effort to win back customers who are slipping away due to an unmanaged, negative experience.

Most customers will be expecting your response within two or fewer days. If you're having trouble keeping on top of incoming reviews, use software like Moz Local that notifies you so that you can respond quickly. Once you have a system set up for review monitoring, you simply need to know the do's and don'ts of responding to negative reviews:

Negative reviews can stem from multiple scenarios, with surveyed consumers citing these as the most common causes of their writing a negative review:

• Bad/Rude customer service (65%)
• Bad product (63%)
• Low-quality work on a job (38%)
• False information in the local business listing or reviews (29%)
• Failure of the business to resolve complaints in person (28%)
• Inadequate safety protocols (28%)
• Incorrect online info about physical addresses, phone numbers and hours of operation (23%)
• Having a negative opinion after having formerly worked for the business (11%)

When a bad review appears, it's time to remind yourself that only 13% of review readers expect companies to have flawless 5-star ratings with zero complaints, and that, in fact, a much larger 44% say they feel suspicious when a local brand has only 5-star ratings. Few customers expect perfection, and the good news is that skilled local business owners can become adept at using complaints to improve business operations while simultaneously utilizing the owner's response to customers to transform unhappy campers into delighted, loyal customers.

Negative reviews are an inevitable part of doing business, but they are also a crucial opportunity.

• Adopt a strategic mindset: View a negative review as the last chance to make amends and win back a customer. It's an opportunity to improve business operations publicly.
• Understand common causes: Be aware of the main reasons consumers write negative reviews (e.g., rude customer service, bad product, unaddressed complaints, incorrect business info, inadequate safety).
• Recognize authenticity's value: Only 13% of review readers expect companies to have flawless 5-star ratings; 44% are suspicious of brands with only 5-star ratings. Few customers expect perfection, and a skilled response can turn an unhappy customer into a loyal one.

Data Source: The Impact of Local Business Reviews on Consumer Behavior | SEO Industry Report - Moz

Once reviews start coming in, how you respond is just as important as the reviews themselves. Think of every response as a chance to shape your brand's story and show customers you care.

The Golden Rule: Respond Promptly!

Customers expect quick replies. In fact, 60% of consumers expect a response within just two days. Timely replies show you're attentive and value their feedback. Tools like Moz Local can really help here, notifying you when new reviews come in so you can manage responses efficiently from one central place.

Handling Negative Reviews: Do's and Don'ts

A negative review is never fun, but it's a powerful opportunity to turn a bad experience into a positive impression. Approach it strategically to show you're committed to customer satisfaction.

Do This When Responding to Negative Reviews:

• Offer solutions: Proactively suggest how you'll fix the problem and make things right. If you offer a resolution, 58% of consumers are more likely to seek out your business.
• Apologize sincerely: Use phrases like "I'm sorry" or "I apologize." A genuine apology can encourage 56% of consumers to consider your business again.
• Accept full responsibility: As the business owner, take ownership of the issue. If you do, 54% of consumers will be more likely to seek your company.
• Write custom responses: Skip the automated replies. Over half of customers (51%) prefer a personalized response, which makes them feel truly heard.

Avoid This When Responding to Negative Reviews:

• Don't ignore the problem: Failing to offer a solution means 54% of customers will actively avoid your business.
• Don't accuse or argue: Never blame the customer or get into a debate. This can cause 33% (for accusing) or 46% (for arguing) of customers to avoid your business.
• Don't miss the window: Responding too late can make your efforts ineffective.
• Don't engage with spam or illegal claims: For obvious spam, seek removal instead of responding. For reviews alleging illegal behavior, consult legal counsel immediately.

Responding to Positive Reviews

It's not just about managing the negative! Always take the time to express gratitude to customers who leave positive feedback. This builds a strong sense of active engagement within your community and reinforces their loyalty to your brand.

Effective owner responses can significantly transform negative perceptions and improve customer loyalty.

Need more help? Our dedicated learn center guide teaches you how to respond to reviews, regardless of the star rating.

No dedicated business owner needs to dread user reviews. While working with the public inevitably means encountering diverse customers, the majority simply seek fair treatment. View complaining customers as a valuable asset, as they often red-flag issues that need addressing before more patrons encounter them.

The smartest business owners empower their staff with thorough training in complaint resolution, ensuring consumers feel heard and appreciated. Even when a negative review slips through despite these efforts, you have considerable power to make amends. Every business would prefer zero negative reviews, but seeing the meaningful opportunity in these situations can make a world of difference. Develop a positive take on negative feedback, using it to shine on a public stage and build a community reputation for excellent customer service.

Mastering your local reviews isn't a one-time task; it's an ongoing commitment to building a thriving online presence. By consistently implementing the strategies outlined in this guide – from preventing issues to actively responding – you transform every customer interaction into a chance to strengthen your brand and improve your local SEO.

• Prioritizing Your Review Efforts
• The Local Review Ecosystem
• Implementing a Review Acquisition Strategy
• Understanding Review Guidelines
• Understanding Review Filters
• The Impact of Local Business Reviews on Consumer Behavior | SEO Industry Report - Our local business review survey outlines key takeaways regarding the impact of reviews on consumer behavior and local business success. Learn more about the fundamentally important inclusion of online local business reviews in any local SEO strategy.
• Local SEO Cheat Sheet [Free Download]
• The Ultimate Guide to Local Search Ranking Factors
• Local SEO Certification - In this six-part Certification, you’ll receive nearly six hours of on-demand, instructor-led content, covering the fundamentals, local competitor research, location data management, reputation management, and measuring and tracking success.
• In Real Life: Local SEO Tactics - In this course, local business owners learn how to get the most out of their SEO strategy using skills and knowledge they already have.
• The Essential Local SEO Strategy Guide - A comprehensive beginner's guide to SEO marketing for small businesses.

Updated by Chima Mmeje — November 21, 2024.