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It was a wholesome story about how not to manage your reputation. Skincare brand Sunday Riley was forced to settle with the Federal Trade Commission after its leadership ordered employees to post fake reviews on Sephora’s influential website and to dislike negative reviews to have them removed. Review manipulation is a growing phenomenon. In 2023, Amazon took 44 bad actors to court in Europe, and this year won a civil case in Milan against a review broker who had tried to facilitate five-star ratings on Amazon’s Italian store. At a time when trust among consumers is precariously low, manipulating online ratings can destroy public trust in a brand.
Over the last 30+ years in the hospitality industry, perhaps pioneering online reviews, I have seen many reputation control scenarios both good and bad. As influence and social proof amplify traditional word-of-mouth and media influence, negative news and feedback can spiral out of control – and fast. However, with so many booking platforms and social channels today, it is almost impossible to manually flag individual reviews. Businesses need a more positive, ethical and proactive approach to raising standards and addressing public concerns.
Related: Don’t fall victim to a digital hitman: Here are 6 ways to protect your online reputation from fake reviews
Aim for authenticity
For better or worse, the “wisdom of the crowd” prevails over where people spend their money. After the Edelman Trust Barometer declared 2022 “the cycle of distrust” among consumers, things didn’t improve much last year as overall economic optimism plummeted. Online reviews have increasingly filled this trust void, so much so that Tripadvisor believes they are the primary factor influencing purchasing decisions for 66% of US consumers.
The downside for companies like hotels is that one negative review can trigger a chain of complaints that reduce new bookings, customer loyalty and revenue; and increase operating costs. Nor is consumer confidence blind. Tripadvisor found that 49% of consumers worldwide believe brands have manipulated reviews, while research from Boston University 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 rating range and then decline as they approach 5.0.
All of these findings revolve around perceptions of brand authenticity, and in the sometimes fickle world of online reviews, this may be the most valuable currency of all.
Become your own influencer
Over the past few years, we’ve seen influencers reach huge audiences when they review just about anything, including hotels. Cleanliness issues lead to livestream disputes with staff, making any real or imagined violations painfully public. Virality on apps like Instagram, X (formerly Twitter) or TikTok amplifies their disproportionate power.
During Paris Fashion Week, influencers let the world know that local businesses, especially hotels, were infested with bedbugs. While the pest problem may have been growing long before the event, it wasn’t until influencers posted about the problem that it gained traction. For retailers and brands, high-volume events like Black Friday, Cyber Monday or Amazon Prime Day represent both risks and opportunities. If their websites, supply chains and customer service are not prepared, even a few hours of downtime can do serious damage to their reputation.
The cost of negative publicity is staggering. Peloton saw nearly $1.5 billion wiped off its value after a backlash against its ill-advised Christmas ad went viral. There’s a thin margin between success and failure, and according to internal research shown to me by one of Europe’s leading reputation management firms, 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 to actively monitor customer feedback and take immediate steps to remedy negative sentiment.
Related: Being attacked online? An online reputation expert explains how to defend yourself
How to best manage your online reputation
While businesses are extremely sensitive to negative online reviews, the opposite is also true, as positive online reviews lead to improved reputation. This is confirmed by the fact that the “Very good 8+” criterion is one of the most used search filters on Booking.com. To increase the likelihood of positive reviews, practice these four strategies:
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Implement service recovery: Asking for feedback at multiple touchpoints can help companies identify recurring issues. In an internal study conducted by a luxury hotel brand, a customer’s satisfaction score increased by 13.8% when they were asked to complete surveys both during and after their stay.
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Increase review volume: Invest in review generation programs that allow customers to easily leave ratings and feedback immediately after an interaction or purchase.
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Create targeted responses for the team: Segment your feedback data and ensure the right teams get actionable insights based on their roles and responsibilities.
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Stay away from review manipulations: The short-term increase in revenue and visibility might seem great, but the risk is too high. Even if competitors are involved in review manipulation, it is never worth the risk.
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Adopt data breach response strategies: With retail and hospitality so dependent on technology, a data breach response plan is essential. It should provide transparent communication with consumers about a breach and the measures planned to resolve it.
Related: Why You Need to Monitor Your Online Reputation Before It Hurts You
From investment to impact
British hospitality management company, RBH, uses a third-party solution that collects and analyzes thousands of reviews and post-stay surveys to identify pain points and trends in feedback. Thanks to the wealth of data at its disposal, the group found that just a one-point increase in the Global Review Index (GRI) score could lead to a £3 million ($3.8 million) increase in revenue. in its over 45 hotels.
Reputation management software helps brands understand which issues to address based on sentiment analysis in order to reduce negative ratings 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 features, it would change again overnight. Businesses that depend on public ratings cannot afford to stand still. A proactive approach that leverages the latest data tools can safeguard reputations as consumers continue to vote based on their ratings.