Reputation is everything – this is not just true for individuals. A business’s reputation can make or break its success, as consumers are much more likely to spend their money on products and services they can trust. When the time comes to sell your business, consider searching the web to find out what customers have been saying.
It is difficult and unwise to disregard statistics that show that consumers are more likely to spend 31% more on products and services from businesses with good reviews. In fact, 86% of consumers read reviews and 40% can be driven away by a bad one. As expected, a positive review not only encourages consumers to spend more, but their trust is increased. The result is often increased revenue, customer loyalty and retention, and greater word of mouth. In fact, every star can translate to a 5-9% increase in business revenue. Today, 57% of consumers will not purchase a product/service from a business with less than four stars.
A business with excellent reviews is not only appealing to consumers but also potential buyers. Because reviews affect customer loyalty and revenue, a potential buyer is going to read online reviews to help determine if they should make an offer on a listed business. A single negative review can deter 22% of customers; therefore, a potential buyer is much more likely to make an offer if a business has riveting, positive reviews because negative reviews reflect the perception of the business in the community. And that could indicate the success of the business in the future.
Where to Find Reviews
As a business owner looking to list a business for sale, there are a number of sites to consider examining for customer reviews. For instance, Google, Yahoo, Yelp, TripAdvisor, and the Better Business Bureau are commonly used sites for reviews. Social media platforms such as Facebook also have a place for reviews and reviewing a business’s social media platforms for comments or posts about a business can be very informative. The best thing to do as a business owner is to encourage employees to offer excellent customer service and encourage customers to leave comments about their experiences. Encouragement to leave reviews is recommended as no reviews can often be as damaging as negative ones. Studies have shown that customers are hesitant to purchase from businesses with no reviews at all.
Time to Sell
When the time comes to sell a business, the accumulated positive reviews can make all of the difference. As a business’s worth goes beyond its financial documents and extends to goodwill and customer loyalty, good versus bad reviews can make or break a deal. Whether you are currently hoping to sell or have thought of it as a possibility for the future, it is never too late, or too soon, to see what your customers are saying about your company on the Internet. Taking constructive criticism from negative reviews or continuing to encourage the positive ones by thanking your reviewers can make all of the difference down the road in terms of your business sale.
Contact Transworld Business Advisors Houston if you are considering selling your business. Our team of experienced brokers will sit with you to review your options and guide you through the process when you are ready.