2020 online reputation management statistics

27 minute read

2020 online reputation management statistics

Online reputation statistics change regularly. This guide was last updated May 2020.

If you’re like many brand management professionals you might lie awake at night wondering when the next emergency will upset your well laid plans - take for instance COVID-19. We understand. The online reputation management world smolders with tales of tragedy, falls from grace, and salacious rumors that can destroy careers and entire businesses. As with any threat, a little online reputation marketing knowledge can go a long way. These facts and statistics should help. 

This report is not intended as a scare tactic. Instead, it is a clear-headed approach to making sense of online reputation management (ORM), what’s working, what’s not, and what to do about it.

Yes, the numbers can be disturbing, but with a careful marketing strategy and ORM best practices in place, it is possible to shape an online identity that conveys integrity, leadership, and trustworthiness. Let this guide serve as a primer on the current state of online reputation management, and how to use these statistics to your advantage.

Online reputation management statistics for 2020

Review management statistics

  • 85% of consumers trust online reviews as much as personal recommendations.
  • Nearly 3 out of 4 consumers trust a company more if it has positive reviews.
  • 60% of consumers say that negative reviews made them not want to use a business.
  • 49% of consumers need at least a four-star rating before they choose to use a business.
  • Consumers read an average of 7 reviews before trusting a business.
  • 97% of consumers search online for local businesses. 12% of consumers do so on a daily basis.
  • Every additional one-star Yelp rating causes an increase in the business’s revenue as high as 9%.
  • Reviews that only gave 1 or 2 stars failed to convert 86% of prospective customers. 
  • Americans report telling more people about poor service (15 people on average) than about good experiences (11).

Search engine optimization statistics

  • Only 5% of people look past the first page of Google.
  • 65% of consumers trust online search engines the most when conducting research on a business.
  • Google controls 75.34% of global desktop search traffic. Bing is number two at 9.94% of search engine market share.
  • The two most important factors used by Google to determine search rankings are: high-quality content and link building. 
  • “Best” and “right now” mobile queries have grown by over 125% in the last two years.

Wikipedia statistics

  • Wikipedia is on the first page of Google search results more than 50% of the time. 
  • Wikipedia ranks for as many as 99% of all search queries.
  • Wikipedia appears in Google's featured snippets 10 times more than any other website.

Recruiting and employment statistics

  • 95% of businesses use social media in their recruiting process.
  • Online social recruiting is on the rise in HR departments, having grown 54% in the past five years.
  • 73% of companies consider LinkedIn the most effective site for finding qualified candidates.
  • Up to 69% of job seekers reported they would reject a job offered by a company with bad reputation, even when unemployed.
  • If offered an increase in compensation of as much as 100%, 30% of the job seekers would still reject a job offer from a company with a bad reputation.

Social media statistics

  • The average consumer mentions brands 90 times per week. 
  • 87% of people do comparative shopping for every single purchase they make, and they shop on multiple channels.
  • 72% of adults now use at least one social media site.
  • The purchase decisions of 78% consumers are influenced by social media posts.
  • 54% of people use social media to research products.
  • 71% of consumers who have had a positive experience with a brand on social media are likely to recommend the brand to their friends and family.
  • 39% of customers only trust brands if they have interacted with them on social platforms.
  • Social media impacts purchasing decisions so much that 76% of American consumers purchased a product after seeing a brand’s social post.
  • Videos are the #1 branded content used by marketers. Nearly 93% of marketers say that they’ve landed a customer thanks to videos on social media.
  • 86% of B2B organizations prefer LinkedIn for social media marketing, while 98% of B2C companies report using Facebook.

Review management statistics

There are few places on the Internet that reflect a company's online reputation more clearly than review pages. Reviews on Yelp, TripAdvisor, BBB, and other sites represent the honest (and often emotionally-charged) opinions of customers. Reputation management mitigates the effects brands experience against the storm of public opinion. It is just as significant for businesses and organizations as it is for individuals. Most businesses lack an awareness of the risks of a compromised online identity and the degree to which online reputation predicts their success or failure.

Online reviews are more easily controlled than a full blown media problem though. A single misstep can result in the closure of a multinational organization. For example, Peloton recently lost about $1.5 billion in value due to a single holiday advertisement although the COVID-19 pandemic will probably turn that around.

One reputation crisis management fiasco, mismanaged, can hurl a company into a financial free fall. Sometimes damage control by PR professionals can make things even worse. 

A 2017 article in the Financial Times puts the issue starkly:

"Unexpected crises can destroy businesses and reputations. Boards, chief executives and their managers may believe they have a firm grip on the risks they face. They should think again."

All of us in the online world, from individuals to businesses to public organizations, have two identities — the one that exists in real life, and the one that lives online. Marketing professionals and scandalized CEO's realize this to the greatest degree. The Internet can be fickle, and your reputation can plummet overnight faster than a dissatisfied customer can strike the “submit” button on a review site.

85% of consumers trust online reviews as much as personal recommendations

The fact that 85% of consumers trust online reviews as much as personal recommendations should be an eye opener. Put another way, people trust strangers almost as much as good friends

This means that the overall sentiment of your online reviews can make or break your business. In fact, studies show that most people will not do business with a company once they read a single negative review. Online customer reviews and personal reviews are nearly equivalent in their trustworthiness.

Do you trust online reviews as much as personal recommendations?

Nearly 3 out of 4 consumers trust a company more if it has positive reviews

People trust a business more after reading positive online reviews. In fact, positive reviews make 74% of consumers trust a local business more. One study found that nearly 3 out of 4 consumers trust a company to a greater degree if the reviews for that company are positive. Conversely, research shows that 60% of consumers say that negative reviews made them not want to use a business.

One of the primary markers of trust is a business’s mere appearance in the search results. But a business can’t depend on their appearance alone. Here’s why:

  • 49% of consumers need at least a four-star rating before they choose to use a business.
  • Consumers read an average of 7 reviews before trusting a business.

If a person possesses a high degree of trust for a brand, then they'll buy from them. Online reviews can make or break that trust.

97% of consumers search online for local businesses. 12% of consumers do so on a daily basis.

Almost everyone is reading online reviews. According to research from BrightLocal, 97% of consumers search online for local businesses. 12% of consumers do so on a daily basis! As online reputation statistics go, this number shouldn’t be too surprising. It’s safe to say that using the Internet to find local businesses is a universal practice in the developed world. What is significant is the degree to which potential customers trust what they read.

When people research businesses online, they are not only reading customer reviews, but also business' responses to those reviews. Responding to reviews gives businesses a chance to demonstrate their customer service and can actually change a potential customer's mind if they were negatively influenced by a review they read. 

Every additional one-star Yelp rating causes an increase in the business’s revenue as high as 9%

Good Yelp reviews mean more business. According to a Harvard Business School Working Paper, every additional one-star Yelp rating causes an increase in the business’s revenue as high as 9%.

hbr-reviews-reputation

I want to make sure you understand how big of a deal this is.

First, we’re talking about those little stars on Yelp reviews. You don't have to try hard to find them. You can see them on Google’s search results page when you’re searching for a taco restaurant for example.

star-ratings-matter

You may also see these reviews on Yelp.com or within the Yelp app.

Second, we’re talking about a 5-9% increase in revenue for every additional star.

To put some numbers on that, let’s say that Speedy’s Tacos in Sunnyvale has an annual revenue of $1m and a 3-star Yelp rating.

The following year, they have a 4-star Yelp rating. (Great job, Speedy’s!) As a result, Speedy’s annual revenue is now $1,090,000. They made $90,000 more.

What changed? Who knows. A “Review us on Yelp” sign at the cash register? A “Please give us five stars!” on customers’ receipts. You'd be surprised at how much these small efforts can impact your reviews. 

review-yelp

The point is, Speedy’s is pulling down an extra $90k, because of the boost in reviews.

Related content: Improve your online reviews

The third point I want to make is the causal nature of the star ratings and revenue increase. Many times, statistics are merely correlative. The Harvard study, however, conveys a causal relationship. Here’s how the researcher, Michael Luca, reported his findings:

I can identify the causal impact of Yelp ratings on demand [i.e., customer demand or revenue] with a regression discontinuity framework that exploits Yelp’s rounding thresholds.  [Emphasis my own.]

It is logical to assume that a reduction of positive online reviews, such as a loss of a star rating, causes a decline in revenue. More stars, more revenue. Lower stars, lower revenue.

Let’s whittle this down to a fine point. A higher star rating puts more money in your business bank account.

Your business’s online reviews matter. A lot. Whether you own a small business, run a non-profit organization, or care about your online presence in any way, those little Yelp stars make a big difference.

Reviews that only gave 1 or 2 stars failed to convert 86% of prospective customers.

Bad reviews can damage conversion rates - a lot. So much so, that reviews that only gave 1 or 2 stars failed to convert 86% of prospective customers. Clearly, this scenario is a major potential loss, particularly for startups, which need the initial momentum to get their businesses off the ground.

Americans report telling more people about poor service (15 people on average) than about good experiences (11)

No matter how good a business's customer service is, there will always be someone who's expectations weren't met for whatever reason. And that person is more likely to share their experience in a review than someone who had a positive experience.  According to American Express "Americans across the board report telling more people about poor service (15 people on average) than about good experiences (11)."

This is why both businesses and consumers have become more skilled at reading reviews with a critical eye. Consumers are also getting better at sorting the real reviews from the fake reviews and they’re more likely to take a recent review seriously than an older one. Consumers will catch on when businesses hire people to write fake reviews, or resort to other automated, non-organic means of cultivating a positive reputation. Only authentic reviews will do.

Online reviews and reputation: risks and rewards

If online reputation management was an afterthought before reading this article, these statistics might change your disposition. A company that does not exist online does not exist at all in the view of the modern customer. And how that company appears — with or without stars, positive or negative reviews — is equally important.

Although the data above focuses on local businesses, the principle holds true for any business, regardless of their physical location or presence.

When trying to make sense of your online reputation it is important to realize this key truth: Your online reputation is your reputation. And if you don’t appear online, you don’t exist.

Search engine optimization statistics

Now more than ever people search online to find information and formulate opinions on people and businesses. Since people are constantly Googling your name, your business's name, or queries like "best breakfast near me," SEO is a key focus point of many reputation management campaigns. In light of the Internet’s power to make or break your reputation, here are some of the most significant SEO reputation management statistics.

Related article: How to repair a damaged corporate reputation

Only 5% of people look past the first page of Google

Only 5% of people look past the first page of Google, so first impressions are even more important online than in real life. Miss your chance to make a positive impact off the bat and you may never get another opportunity.

65% of consumers trust online search engines the most when conducting research on a business

People trust search engine results more than any other type of media. The Edelman Trust Barometer shows that 65% of consumers trust online search engines the most when conducting research on a business. You do it, so do most people.

traditional media

Image source  Edelman

The report dubs 2019 as the year of "Trust at Work." The report reveals that people have shifted their trust to relationships within their control, and with their employers specifically. However, there is an urgent desire for change as only one in five feels that the system is working for them.

This desire for change may be a result of last year's sentiments. The same report labeled 2018 as the year of “The Battle for Truth,” sparked in part by the rise in “fake news.”

Google Trends shows a spike in “fake news” interest during the early part of January 2018.

fake-news-trend-spike

As a result, the “informed public” has experienced an erosion in trust. And what is the nation with the greatest drop in overall trust? The United States of America.

trust-polarization

Americans lost trust in NGOs (non governmental organizations), business, government, and the media. The biggest victim of trust reduction has been the nation’s collective trust in government.

trust-crash

Against this backdrop of the 2018 “trust crash,” consider that statistic again:  65% of consumers trust search engine results. In spite of it all, the Internet is upheld as the first source of trustworthy information for news, general business information, or to confirm or validate rumors.

Google controls 75.34% of global desktop search traffic. Bing is number two at 9.94% of search engine market share

search engine market share Google Baidu

Google controls 75.34% of global desktop search traffic, according to NetMarketShare. Bing (9.94% of search engine market share) is number two and does not come close to Google’s dominance in the market. The third most popular search engine in terms of search volume is Baidu (9.34%), which primarily serves Internet users in China.

Among United States web users, Google’s gargantuan status is even starker. Google owns 90.77% of the American search engine market, dwarfing the runner-up (Bing).

Each search engine has its own unique algorithm that determines relevance, authority, and ultimately ranking for a given search query. The nuances of the algorithms are largely unknown (and the search engines make sure to keep it that way), but your best bet is to focus your efforts on improving your ranking with Google. That being said, you can't completely ignore the other search engines either.

The two most important factors used by Google to determine search rankings are: high-quality content and link building

Creating and distributing good content is just as important as eliminating the bad. But what separates high-quality content from all of the amateur content on the Internet? According to a 2014 LinkedIn Technology Marketing Community report, the top three things that make content effective are:

  • Audience relevance
  • Engaging storytelling
  • Writing that inspires action

Simply nixing the bad content simply won’t do. You also have to generate quality content to capture customer attention and keep your brand image positive and relevant.

One of the reasons why content marketing is so popular is because it works. The majority of survey respondents in a Content Marketing Institute study affirm that their organization’s content marketing is effective to some degree.

rating the effectiveness of content marketing

What works in online marketing works with online reputation management as well. Today’s consumers are information consumers living in the information age. As such, the most potent tactic for online reputation marketing is the publication of valid, trustworthy, high-quality information that helps inform consumers.

“Best” and “right now” mobile queries have grown by over 125% in the last two years

People are searching for "best of" lists, and your content marketing plan should reflect that. Mobile queries for "best" and "right now" have grown by over 125% in the last two years. Think of how many times you've searched for something like "best cell phone out right now" or "best credit cards to apply for right now." 

The view search engines reflect of the Internet is simply a reflection of human bias 

Although mistrust towards media and the institutions is at an all-time low, general trust in what we see in Google is at an all-time high. Convenience and speed, it would seem, are the arbiters of trustworthiness.

can-i-blelieve-google

Do Google Auto-Complete results affect brand reputation?

Reputation integrity goes beyond if and how you’re seen on the search engine results page. Something far less overt holds sway: Google autocomplete. Autocomplete responses populated in Google’s search can give new customers pause or inspire them to learn more about your brand.

ua-reputation

Autocomplete responses can even start to hurt you after just the first word. Just look at what happens when you simply type "Trump" into Google.

trump-google-autofill-1

So even if you were planning to search something along the lines of “Trump is amazing,” you will see the autofill results above, and maybe click on “Trump booed Florida.” Then you’ll see this:

google-results-florida

Wow. Looks pretty bad. This is just one example of the importance of your online reputation. Your Google search results can change people’s opinions of your brand, starting before they even finish typing their search phrase.

While you can certainly Google yourself to find out what your search results look like (and we do recommend doing so as a first step), it is much more effective to develop a targeted reputation management strategy to keep tabs on your reputation as it changes over time. There are both free and paid tools to help you manage this.

Related article: Tools to manage online reputation

It’s important to think (and search) like your customers would in order to determine what your online presence is really saying about you. Remember that online reputation management best practices are founded on the principles of online human behavior and the tactics of search engine optimization and content marketing.

The major player in the SEO world still stands — Google. When optimizing your brand’s reputation, understanding Google’s algorithmic principles is crucial, but understanding human behavior is even more important. 

Wikipedia statistics

Why is Wikipedia such a dominant force in the search engines? It has to do with technical performance and user experience. On the technical side, Wikipedia is fast and lean. When was the last time Wikipedia loaded slowly or was experiencing downtime? It's also frequently updated, since individuals are given the opportunity to update content. This keeps it fresh, and deserving of Google's blessing. The following statistics show just how prevalent Wikipedia is in search results. 

Note: See our Wikipedia editing case study here

Wikipedia is on the first page of Google search results more than 50% of the time

Wikipedia dominates search engine results so much so, that in one study, researchers found that Wikipedia appears on the first page of Google for as many as half of all search queries. Wikipedia ranks on the first page more often for commercial queries than informational queries, meaning that Wikipedia has ranking dominance regardless of query intent.

Wikipedia ranks for as many as 99% of all search queries

Researchers conducted a study published in the Journal of the American Medical Informatics Association and found that Wikipedia ranks for as many as 99% of all search queries. (The study is dated 2009, but informal research corroborates the current validity of those findings).  

Wikipedia appears in Google's featured snippets 10 times more than any other website

Google's position zero, or featured snippet, is an answer that appears right in search results that is pulled from relevant websites. It's displayed on top of Google's search results - above al other ranking pages for that search query. According to a study by Ahrefs, Wikipedia is the top ranked website in the U.S. by the number of featured snippets at 11.2%.

 

Do consumers trust Wikipedia?

Yes. On the user side, consumers have a general attitude of acceptance towards Wikipedia’s crowdsourced information. The alleged purpose of the website is to provide unbiased information on virtually any topic. It takes little time and effort to access this information. As an Internet user searches for anything from common cold (Wikipedia has position 3 in Google) to carburetor icing (Wikipedia has 1 in Google), Wikipedia is the most prevalent and convenient source of information and therefore trust.

What’s the takeaway, then? Any inaccurate or negative information about you or your company on Wikipedia is a major reputation risk. It is imperative that a reputation management strategy always has a Wikipedia plan woven into it.

Recruiting and employment statistics

95% of businesses use social media in their recruiting process


Online social recruiting is on the rise in HR departments, having grown 54% in the past five years.
73% of companies consider LinkedIn the most effective site for finding qualified candidates
Up to 69% of job seekers reported they would reject a job offered by a company with bad reputation, even when unemployed.
If offered an increase in compensation of as much as 100%, 30% of the job seekers would still reject a job offer from a company with a bad reputation.

 

What role does social media play in the hiring process?

95% of businesses use social media in their recruiting process

According to survey results and data from Jobvite, Capterra, and Career Profiles, a whopping 95% of recruiters rely on social media information in their recruiting efforts. Of course they do. Wouldn't you?

In the case of job seekers, online social recruiting is on the rise in HR departments, having grown 54% in the past five years, according to a SHRM report. Virtually all major companies are employing social recruiting in one form or another, and the momentum is not expected to slow down. As each year passes, it is predicted to occupy on an even greater role.

LinkedIn, Facebook & Twitter

While most social recruiting is done via LinkedIn (73% of companies consider it the most effective site for finding qualified candidates) companies aren’t just using career social networks. 66% of companies report that they recruit through Facebook, and 53% state they recruit via Twitter. As the statistics suggest, most companies recruit through more than one of these sites.

Hiring managers seek out negative content

Companies pass over potential employees based on things they see online, whether they're accurate or not. These days, hiring managers spend far more time online in the search for potential candidates, therefore, it is inevitable that they are likely to come across anything that may be negative or incriminating. This means that your personal Facebook, Twitter, Instagram, Pinterest, and YouTube pages need to be as polished and professional as your LinkedIn page should be if you wish to appeal to hiring managers.

Do HR departments reject job seekers on the basis of search results?

Yes. Unemployed job seekers would say no to the opportunity for a job if the offer came from a company with a bad reputation - especially in an economy where the unemployment rate is low. According to a Corporate Responsibility Magazine / Allegis Group Services survey, the percentage of rejections from job prospects could be as high as 69%!

Survey question:  Likelihood of accepting a job offered by a company with bad reputation if unemployed.

reputation-for-employers

Job seekers are confident in their decision to work for a company with a positive reputation. If offered an increase in compensation of as much as 100%, 30% of the job seekers would still reject the offer!

The cost of a bad reputation is enormous - companies with good reputations get better candidates while those with questionable ones get what's left. The separation of rich and poor companies continues apace. 

 

 

 

 

 

 

 

 

 

 

Most people understand how online reputation works from an individual perspective. Brands use social media in hopes of gaining social capital, a form of reputation. Social media can also drive views to important content, that will, we hope, convert into buyers. But social media is like a two-sided sword - it can cut both ways. 

 

 

 

 

 

 

 

How often do consumers mention brands?

The average consumer mentions brands 90 times per week. Social media has become a huge part of people's lives, and it is no longer dominated by young people because... well, they get older. It is popular with people of all ages. According to Pew Research 2018 numbers, 72% of adults now use at least one social media site.

how-many-americans-use-social

Due to this huge volume of social traffic, average consumers mention brands a colossal 90 times per week.

People pay attention to friends' opinions

There is conflicting information regarding whether consumers are more likely to share positive or negative experiences on Facebook, Twitter, and other social platforms. Research suggests it's about equal.

One thing is certain: people pay close attention to social posts from friends. And with the average consumer mentioning brands 90 times a week to their friends, family, and co-workers, you can never underestimate the necessity of providing positive experiences.

 

What percentage of consumers comparison shop?

A very large percentage of people always comparison shop. According to Mckinsey, 87% of people do comparative shopping for every single purchase they make, and they shop on multiple channels.

Cross channel marketing

Brand reputation development relies heavily on a business’s ability to reach customers with compelling content through a number of channels. It's not enough to simply launch a paid advertising campaign and wait for the masses to respond. Most companies use a blend of marketing channels in order to reach customers in the broadest way possible.

ecosystem-accommodation

You can improve your online reputation and reduce your reputational risk by reaching out to Internet users intelligently and across as many channels as possible.

Conclusion

Online reputation management statistics may be scary, but they are not misleading. More companies than ever before are facing crisis management issues, seeking reputation management services, scrambling for public relations agencies, and trembling at the cost of reputation risk.

Don’t get lost in the swarm of statistics. The truth holds. Digital marketing has changed. It’s no longer just the process of measuring click-through rates, tweaking case studies, and publishing infographics. All of those may be important tactics in the digital marketing universe. But there is an angle to modern marketing that is potentially more important than any of this — online reputation management.

Review sites, complaint sites, Wikipedia, news agencies, Facebook, Twitter, Google search results — all of it matters, and it matters more than it did even six months ago.

Online reputation marketing is the new PR. Reputation curation is the first step for most companies, whether it is a small business or a Fortune 100.

ORM companies do what most public relations agencies and digital marketing shops can’t do — defend a business’s online reputation against decline and repair your online reputation.

With an eye on the trends in user behavior and an experienced reputation management partner supporting you, you can cultivate ongoing trust and respect for your online identity.

Download the reputation x capabilities presentation

Call Reputation X at 1-800-889-4812 contact us for more information and a complimentary consultation.


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