Understand the effect that online reviews can have on your business and what you can do to manage them, with information from the Inc.com article, “How Online Reviews Make (or Break) Your Business.” More and more consumers are going to the Internet for research on buying decisions, so it’s becoming increasingly important to keep track of online chatter and manage it as best you can. Consider the following research findings from Cone Communications.

• 89% of consumers view online product and service reviews as trustworthy.
• 80% have changed their minds about a purchase based solely on negative reviews they read.
• 85% said they’d be more likely to purchase if they could find additional recommendations online.
• A one-star difference in a restaurant rating impacts revenue between 5% and 9%.

The first step to managing online reviews is understanding what they mean. Michael Fertik, founder of Reputatation.com, classifies reviews in 3 categories:

• Trumpeting: Positive reviews that tell you you’re doing something right. Keep it up!
• The canary in the coalmine: Lukewarm reviews that tell you something is off. It’s important to pay attention to these and rectify your mistakes before it’s too late.
• Stop sign: Many negative reviews are an irrefutable indication that something is wrong with your business. You need to respond to these blasts online and offline and make corrections ASAP.

There’s no surefire way to prevent negative reviews, but, according to Fertik, there are steps you can take to protect your business:

• Make sure you have a website. This seems pretty obvious, but if you don’t present your own depiction of your business, outside opinions will carry more weight.
• Ask customers to review you online and suggest specific sites. There’s nothing dishonest about asking loyal customers to post some straightforward feedback.
• Don’t purchase fake reviews. Besides the fact that it’s unethical, eventually your tactics will be revealed, and you’ll never be able to regain trust.
• Watch the reviews and respond appropriately. For negative reviews, acknowledge that you didn’t meet their expectations, then give your contact information and offer to rectify the situation. For positive reviews, show your gratitude for their kind words and business.

Click here for more from Inc.com.