It was a handy tale of how not to do it reputation management. Skincare brand Sunday Riley was forced to settle with the Federal Trade Commission after its management ordered employees to post fake reviews on Sephora's influential website and doesn't like negative reviews to be removed. Revision manipulation is a growing phenomenon. In 2023, Amazon sued 44 bad actors in Europe, and this year won a civil case in Milan against a review broker that had tried to facilitate five-star ratings on Amazon's Italian store. At a time when trust among consumers is extremely low, manipulating online reviews can destroy public trust in a brand.

For the past 30+ years in the hospitality industry, perhaps the pioneer of online reviews, I have seen many good and bad reputation checking scenarios. As a social influence and social proof amplify traditional word of mouth and media influence, negative news and negative reactions can get out of hand – and quickly. However, with so many booking platforms and social channels today, it is nearly impossible to manually report individual reviews. Companies need a more positive, ethical and proactive approach to raising standards and addressing public concerns.

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Strive for authenticity

For better or worse, the “wisdom of the crowd” is influencing where people spend their money. After the Edelman Trust Barometer declared 2022 the “cycle of mistrust” among consumers, things hardly improved last year as economic optimism generally collapsed. Online reviews have increasingly filled this trust gap, with Tripadvisor finding that they are the biggest factor influencing purchase decisions for 66% of US consumers.

The flip side for businesses like hotels is a negative review that can trigger a chain of complaints that reduce new bookings, customer loyalty and revenue; and increase operating costs. Consumer confidence is not blind either. Tripadvisor found that 49% of consumers worldwide it was believed that the brands manipulated the reviewswhile Boston University research concluded that people were more likely to trust four-star reviews because they were perceived as more thoughtful and accurate. A separate study found that purchases peak in the 4.0-4.7 ratings band and then declined as they approached 5.0.

All of these findings boil down to the perception of brand authenticity, and in the sometimes fickle world of online reviews, that may be the most valuable currency of all.

Be your own influencer

Over the past few years, we've witnessed influencers reach a massive audience when they review almost anything – including hotels. Cleanliness issues lead to direct disagreements with staff, making any real or imagined wrongdoing painfully public. Virality on apps like Instagram, X (formerly Twitter) or TikTok increases their power disproportionately.

Tall Paris Fashion Week, influencers let the world know that local businesses, especially hotels, were infested with bed bugs. While the pest problem may have been on the rise long before the event, it wasn't until influencers posted about the issue that it gained traction. For retailers and brands, high-volume events like Black Friday, Cyber ​​Monday or Amazon Prime Day represent both risk and opportunity. If their websites, supply chains, and customer service aren't prepared, even a few hours of downtime can do major damage to their reputation.

The cost of negative publicity is staggering. The peloton saw almost $1.5 billion wiped off its value after a backlash against her ill-advised Christmas ad went viral. There is a small margin between success and failure, and according to internal research that a leading reputation management company in Europe showed me, hotels can expect a 20% drop in revenue if their online rating drops from 7.0 to 6.9 on Booking.com. The answer is actively monitor customer feedback and take immediate steps to correct negative feelings.

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How to better manage your online reputation

While businesses are extremely sensitive to negative online reviews, the opposite is also true with positive online reviews leading to improved reputation. This is confirmed by the “Very good 8+” criterion. one of the most used search filters on Booking.com. To increase the likelihood of positive reviews, practice these four strategies:

1. Perform service recovery: Ask for FEEDBACK across multiple touch points can help companies identify recurring issues. In an internal study by a luxury hotel brand, a customer's satisfaction score increased by 13.8% when they were asked to complete surveys during and after their stay.

2. Increase review volume: Invest in review generation programs that make it easy for customers to leave ratings and reviews immediately after an interaction or purchase.

3. Create targeted team responses: Segment feedback data and ensure the right teams receive actionable insights that match their roles and responsibilities.

4. Stay away from review manipulations: The short-term increase in revenue and visibility may seem great, but the risk is very high. Even if competitors are involved in review manipulation, it's never worth the risk.

5. Adopt data breach response strategies: With retail and hospitality so dependent on technology, a response plan for data breaches it is essential. It must ensure transparent communication with consumers about a breach and the steps planned to fix it.

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From investment to impact

UK hospitality management company RBH uses a third-party solution that collects and analyzes thousands of reviews and post-stay surveys to identify weaknesses and trends in feedback. With rich data available, the group found that just a one-point increase in the Global Review Index (GRI) score can lead to a revenue growth of £3 million ($3.8 million) in over 45 of its hotels.

Reputation management software helps brands understand which issues to address based on sentiment analysis in order to reduce negative reviews over time as this space continues to evolve. The review market share of Google, Yelp, Booking.com and Tripadvisor has changed a lot over the past five years – and if Instagram added reviews to its functionality, it would change again overnight. Businesses dependent on public ratings cannot afford to stand still. A proactive approach that leverages the latest data tools can maintain reputation as consumers continue to vote with their ratings.