Introduction
With more and more home seekers (buyers and renters) starting their research online, good reviews can play a game-changing role in your success. And even though asking for and managing online reviews can be a time-consuming process, it can result in a substantial increase in your conversions and revenue.
Online reviews have rapidly become a pivotal determinant for potential buyers and sellers, affecting their decision-making more than one might initially assume. In fact, 98% of people read online reviews for local businesses. In comparison, a single negative review can drive away approximately 22% of customers, and four or more bad reviews can decrease customer acquisition rates by about 70%.
But why do online reviews affect people’s decisions, and how can you acquire and benefit from them? In this article, we will explore how buyers and renters use online reviews and the methods you can adopt to utilize them for the benefit of your business.
Why do online reviews affect buyers’ decision-making?
First, let’s examine why customer reviews wield such a powerful influence over buyers’ decision-making. Over the last few years, many industries utilized the benefits of influential marketing to increase brand awareness, recognition, and sales. However, as with many other marketing strategies, overuse led to a saturation in the market and resulted in the diminishing trust of the people toward the so-called influencers.
What buyers may not find from influencers anymore, though, they can find from each other. At the end of the day, who else could be better to provide you with valuable insights about a service or product than someone who has used it and has no benefit lying to you?
That being said, customer reviews serve as the perfect tool for consumers to evaluate their different market options and make informed decisions. Let’s dive deeper and examine the reasons behind our natural inclination to trust them.
Risk Reduction: Buyers want to mitigate potential risks, especially for high-stakes transactions such as a home purchase. Online reviews offer insights into the experiences of others with a realtor or a brokerage, allowing potential buyers to make informed decisions and minimize unexpected risks.
Quality Assessment: Reviews provide objective insights into the quality of a service. For example, reviews about a realtor or a brokerage can give potential buyers an idea of their reliability, responsiveness, professionalism, and market knowledge, all undeniably very important.
Validation of Choice: Uncertainty characterizes most of our decisions. Reviews help validate a choice, confirming that it was a sound decision. Positive feedback from others who have made a similar choice can reassure customers and increase confidence.
Social Proof: This psychological phenomenon refers to people’s reliance on the feedback and actions of others to decide what’s right. Buying or renting a home could be no exception. When buyers see many positive reviews, they may interpret it as a sign that the product or service is reputable and reliable.
What can be the benefits of good online reviews?
At this point, it must be clear that people trust and consult online reviews. What are the benefits, though, you can derive from acquiring positive reviews from your customers? Let’s take a closer look:
Building Trust and Credibility: The real estate sector is typically characterized by high-value transactions and long-term commitments, making trust a fundamental aspect and the primary decision-making factor. Online reviews:
- Provide insights into previous clients’ experiences.
- Help potential customers gauge the reliability and performance of a real estate agent.
Positive reviews and customer testimonials can showcase your unique value propositions and build the foundations of a trustworthy relationship between you and your customers.
Increasing Visibility and SEO Ranking: Online reviews can boost a business’s online visibility and enhance its SEO ranking. Google algorithms factor in online reviews, meaning companies with positive reviews will likely appear higher in search results, reaching a larger audience and generating more organic traffic. Essentially, good reviews can bring you more customers with zero or meager acquisition cost.
Constructive Feedback: Online reviews allow real estate businesses to receive and learn from their customers. Positive reviews highlight strengths, whereas negative reviews can accentuate areas needing improvement.
How to acquire and benefit from online reviews?
All that sound very good. What use can they be to you, though, without adopting the proper methods and strategies to capitalize on the benefits of good online reviews?
Acquiring and leveraging online reviews is an ongoing process and requires strategic planning and consistency. It might be a time-consuming and rather tedious task. However, there are specific and straightforward steps you can take.
Provide Excellent Service: Essentially, it all starts and ends with the quality of your work. Pay attention to the details and always focus on your customer’s experience, priorities, and needs. An effective practice starts with analyzing your buyer’s persona and diving deep into their unique characteristics, goals, and needs. Designing your buyer’s journey will also enable you to locate any areas of improvement in your internal processes as well as in the experience of your customers.
Request Reviews: The simplest way to acquire reviews is to ask for them. You can use email, SMS, or a follow-up call. After a transaction or interaction, request customers to share their experience online. Many tools can help you automate that process step and save valuable time. Depending on the size and scale of your business, it might be worth exploring this option.
Make It Easy: Many customers may be willing to leave a review but need help figuring out how. Streamline this process by providing direct links to your review page and step-by-step instructions, or even dedicate time to help clients leave a review.
Respond to Reviews: Show your customers that you value their feedback by responding to all reviews, both positive and negative. Thank those who leave positive reviews and address the concerns raised in negative ones. This demonstrates your commitment to customer satisfaction and encourages more customers to leave reviews.
Utilize Social Media: Platforms like Facebook, Instagram, and LinkedIn can be powerful tools for acquiring and sharing reviews. These platforms have built-in features for reviews, and sharing positive reviews on your page can further enhance your business’s reputation. Additionally, you can use customer reviews and testimonials to create engaging content for your social media pages.
Incentivize Reviews: While you must be careful to avoid influencing the content of reviews, incentivizing reviews can encourage more customers to leave feedback. This could involve a discount, a referral bonus, or entry into a raffle.
Highlight Positive Reviews: Feature positive reviews on your website, marketing materials, and social media. This promotes your business and motivates other customers to leave similar reviews.
Learn and Improve: Use the feedback in reviews to continually improve your services. Address any common issues identified, and remember to communicate these improvements to your customers.
Conclusion
The digital era has undoubtedly amplified the role of customer reviews. Given their impact on buyers’ decision-making and their undeniable benefits to businesses and consumers alike, online reviews are essential to your digital presence.
However, benefiting from online reviews goes beyond mere acquisition. It involves cultivating a customer-centric strategy for your service, proactively engaging with customers to gather feedback, and showcasing these reviews in your digital and offline marketing channels.
As you grow your real estate business, incorporate these strategies into your daily operations. Focus on the quality of your service and the experience of your customers, request reviews, and make leaving a review as straightforward as possible. Engage with the reviews you receive, show appreciation for positive feedback, and address any criticisms professionally. Finally, remember to use social media to your advantage, highlight your positive reviews, and continuously learn and improve from the feedback you receive.
The power of online reviews in the real estate sector is irrefutable, and with strategic planning and a client-centric approach, they can serve as a driving force for your business’s growth and success.