Startups and ROI

A recent piece in Forbes encourages business owners and entrepreneurs to think critically about return on investment (ROI) when it comes to online reputation management. According to the author, Ryan Erskine, many executives see reputation management as the icing on the cake, a low priority task that they’ll get around to when they have more time. But for Erskine, this is a potentially dangerous view to take since most leaders aren’t seeing the big picture.

The problem is that many don’t take into consider lost revenue. Most people can see that were they to put more effort into social media and web presence, they would have some sort of return on the investment. But this doesn’t take into consideration lost revenue due to negative reviews and articles online. Erskine estimates that a single negative article on your Google front page can result in a 22% loss in potential business. The number rises quickly with each additional negative search result, so for businesses facing a barrage of negative results online, online reputation management may be necessary to increase or restore profitability.

Negative reviews on sites such as Yelp or Google Reviews can likewise be devastating. Losing a star can be particularly bad for restaurants, which, on average suffer revenue losses in the neighborhood of 10% when they are downgraded. But in addition to negative online results, many entrepreneurs fail to grasp just how essential an online presence is to the pipeline. The impact on ROI can be absolutely amazing.

The Importance First Impressions

One of the most important lessons that people learn is that it is important to make a good first impression. With the internet, the first page of Google results is the first impression for many people that don’t know an individual or a business. This is why it is important for people to make sure that the first page of the search results is void of any bad news. When one sees something bad on the first page of the search results, they are going to run away from the business they were doing a search on. Therefore, one must make sure that there is no bad news.

 

It is also important to make sure that there is some good news about the company that appears on the front page of the search results. When people see good news, then they will be more inclined to visit the business or associate with the individual that is being searched. However, this is not the end of the battle. It is up to the individual to make sure that he keeps up the good impression.

 

One company that has made sure that there were good first impressions was Status Labs. It had to do that because it was one of the companies that handle the images of others. Therefore, it goes to show that people are going to want to do business with a company that does its job for itself. Status Labs has been so successful in what it is doing that it has started expanding to different territories including the west coast.

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