Bad Business Reputation Proves Deal Breaker for 90% of Online Shoppers

90% of Online Shoppers Don’t Buy If You Have a Bad Business Reputation

Good online reputation is a critical success factor for your business because your online reputation influences your customers’ minds.

A whopping 90% of online shoppers have chosen not to buy from a company because of its bad reputation, according to research conducted by Trustpilot.

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Small business owners often struggle to build a large customer base as they don’t have a big marketing budget to sway customers. Being perceived as unreliable or unfair can make it more difficult for small business owners to grow their customer base.

Need for Good Online Reputation

It takes time to build a brand. At the initial stage, your small business might not be a popular name in your industry.

When prospects or customers don’t know about your business, they try to find information about you.

In fact, 60% of online shoppers perform a search for the company when they are unfamiliar with it. What’s more, over 93% of customers read reviews before buying online, confirms Trustpilot’s research.

It’s not like that only online shoppers perform a search. 42% of in-store customers conduct research online while in a store, says Google research.

Won’t a customer will hesitate to place an order if he/she finds negative reviews on the first page of search results?

90% of customers who don’t buy because of a bad online reputation of a company, as found in the research, don’t stop there. These customers also tell other customers not to buy from the same company.

Image for bad reputation spreads

So having just a few negative reviews can cost your business a good number of customers eventually.

Big companies have a large base of loyal customers. They can afford to lose a few customers. For a small business owner like you, each and every customer counts.

So keeping a clean online reputation to build trust with customers is no more a passive tactic.

What You Can Do to Avoid a Bad Business Reputation

Customers lose interest in brands when they find brands are silent, secretive and project outdated online presence, as stated in the research. Also, deleting negative reviews has been found to be the biggest trust breaker.

Here are factors that decrease the trust of buyers, according to the research:

Image for factors that decrease trust

What can you do to manage your business’ online reputation to build trust with your customers?

Here are some effective ways:

  • Claim and optimize your profiles on reputed third-party business listing sites to build credibility
  • Proactively monitor your business’s reputation
  • Keep tabs on your business’s social media accounts
  • Respond constructively to criticism and never delete negative reviews/ comments
  • Keep your website secure and publish high-quality content that offers value

You should not wait for any negative review surfacing online to start online reputation management of your business.

As a small business owner, building a good online reputation should be your goal from day one because it is an important way to build trust with your customers.

About the Report

Zachary Pardes, Trustpilot’s advertising and communications director, says, “Small business owners continue to face the reality that larger companies are persistent in trying to take their customers. This report proves one of the most important ways to remain competitive and keep customer confidence high is by maintaining a good reputation. And a good reputation generates loyalty, which is priceless in an environment where consumers have many options.”

A good online reputation not only brings in more customers but also helps you compete with big companies. Customers choose to buy from an unfamiliar company over a reputed company known for a recent scandal. What’s more, customers find a strong brand reputation more important than price, the research confirms.

Online reputation management is a must-follow practice for small business owners in in today’s web-connected world.

What is your plan to manage your business’s online reputation?


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Sandeep Babu Sandeep Babu is a staff writer for Small Business Trends as well as a freelance writer. He regularly contributes to leading online publications and writes for his own blog Quick Scream.

5 Reactions
  1. This is because customers read reviews. If they see a bad review, they will dismiss the idea of transacting altogether.

  2. I would say the 90% claim in the title is a bit of a stretch… BUT I would say that reviews carry some serious weight in the modern consumer. Think of every time you go to purchase a product on Amazon… There’s typically two options, of the same brand and product, but one listing has a wildly better review rating than the other. Which would you buy?

    Otherwise, I like to take reviews with a grain of salt. For instance, Yelp… Everyone sort of understands that different digital environments have a different kind of user. JS

    My 2 cents…

  3. Hello Tanner, you have made a valid point. Thanks for the comment!

    • Thanks for sharing this information. I really like it very much. You have really shared a informative and interesting post with people