Effective Online Reputation Management Boosts Business Performance
Treating Reviews As Business Infrastructure, Not Marketing, Drives Real Business Results
Image: Search Engine Journal
A study by researchers Eddie Inyang and Juliana White reveals that active online reputation management (ORM) is a stronger predictor of business performance than star ratings alone. The research highlights the importance of ORM practices, especially in competitive markets, where they can significantly enhance visibility and customer engagement.
- 01The study surveyed 251 U.S. small-business owners and found that active ORM practices correlate with improved business performance.
- 02Star ratings did not independently predict business success; instead, ORM was identified as a strategic resource.
- 03In competitive markets, the gap in performance between ORM practitioners and non-practitioners widens.
- 04AI tools are increasingly used for local business recommendations, with 45% of consumers now relying on generative AI for suggestions.
- 05Effective ORM requires structured systems and processes, particularly for businesses with multiple locations.
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Research published in the Journal of Small Business Strategy by Eddie Inyang and Juliana White challenges the assumption that higher Google star ratings directly correlate with better business outcomes. Instead, their study of 251 U.S. small-business owners found that active online reputation management (ORM) practices are a stronger predictor of performance. ORM practices are particularly crucial in competitive markets, where they can create a significant performance gap between businesses that actively manage their reputation and those that do not. The study also highlights the rising influence of AI tools in local business visibility, with 45% of consumers now using generative AI for recommendations. This shift underscores the necessity for businesses to implement structured ORM systems, especially those with multiple locations, to ensure consistent engagement with customer reviews and accurate information across platforms. The findings suggest that businesses must view ORM as an essential operational capability rather than merely a marketing tool.
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The findings emphasize the need for small businesses to enhance their ORM practices to improve visibility and engagement in competitive markets.
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