A few weeks ago, we mentioned a study that quantified just much how good Yelp reviews are helping businesses (as well as how bad poor reviews can hurt). Apparently, this idea struck a chord.

A flurry of new statistics on the subject soon followed. According to Good Magazine, for example, a one-star increase in Yelp rating leads to a five to nine percent increase in revenue — for independent restaurants. Interestingly, there is no Yelp effect for chain restaurants.

In other words, for mom and pop joints, online reputation management matters. Significantly. That extra little half a star isn’t just vanity — it likely means profits as well. This is likely the same story for other digital status symbols (we’ll call it “digital currency”) like the number of Facebook friends or fans your business might have.

But let’s go back to the indie/chain distinction. It’s something, I think, that highlights one of the big potential advantages of interactive marketing strategies like social media marketing and online reputation management.

According to the Restaurant Finance Monitor:
Consumers go to chains in the first place because they know what they’re going to get. After all, nothing is worse than a disappointing visit to a restaurant. But consumers prefer going to independent restaurants, so positive Yelp ratings remove the uncertainty about an eatery’s quality, making the dining decision less of a gamble. It’s not difficult to imagine a well-reviewed independent getting more business.

Indeed, the study found that ratings have no impact on a chain restaurant’s sales. If anything, Yelp reviews take that business away.

Makes sense. When a friend recommends a local business in person, you’re much more likely to visit, right? The same is true online — hence why Facebook friends matter. And as these studies have shown, the digital opinions of strangers on sites like Yelp also help lessen risky unfamiliarity associated with a place. That fact that chains are relatively unaffected by review sites highlight just how much it matters for non-chains.

So how do you gain digital friends and improve your reputation on sites like Yelp?

The first step, of course, is to put out a killer product or service. Thankfully, this business fundamental has not changed. But the next step is to engage. Respond. Listen, and make the customer feel listened to and appreciated.

For example, studies show that people are less likely to shoplift from a store if they make eye contact with a friendly employee. I imagine that the same is true for negative reviews — it’s much easier to grind an axe behind the mask of internet anonymity. But customers are much more likely to be forgiving of little imperfections when they see the person who will be affected by their digital insults.

Here at Masterlink, many of the products and services we offer are designed to make your digital relationships with potential customers and clients as human as possible. And, increasingly, we’re seeing just how much humanity matters to business’s bottom lines.