Why Are Google Reviews Important for Local Businesses? Challenges & Solutions

Did you know that the number of people researching for businesses using Google Reviews has gone up from 63% in 2020 to a whopping 81% in 2024?

That’s quite a significant increase, and it clearly signals the importance of Google reviews for businesses. While positive Google reviews can help businesses build social proof, bad reviews can quite literally make them non-existent.

This is because no matter what people are looking for, they highly depend on Google Reviews to make their purchase decisions.

So, whether you are a local business, a restaurant, or a doctor, you can’t afford to ignore them anymore. Your business must have great ratings and reviews on Google to grab the attention of your prospective customers.

Not just that, positive Google reviews can be a game-changer when it comes to attracting new customers and boosting your reputation.

Let us now dive into the importance of Google Reviews, discuss their impact, and enlighten businesses on leveraging them.

Why Are Google Reviews Important for Local Businesses: Top 5 Reasons

While the internet is flooded with review platforms, 57.5% of all online reviews globally come from Google.

Given this platform’s high usability and credibility, Google reviews can help businesses build trust and enhance their online visibility. Let us now talk about the benefits of Google reviews for local businesses:

1. Reviews are Trust Signals

Google reviews act like little trust signals for potential customers to engage with a local business. About 9 out of 10 users have confirmed that they have made buying decisions based on online reviews.

Think about the times when you read positive things about a brand and engaged with them when you were not necessarily looking for their products/services. Positive online reviews reassure us that a brand is worth checking out.

As per Google, “High-quality, positive reviews from your customers can improve your business visibility and increase the likelihood that a shopper will visit your location.”

Now, what if your brand has no reviews or negative reviews? This will deter your future customers and make them more skeptical about your offerings.

But remember that it is not just about collecting online reviews but also engaging with them, whether positive or negative.

By responding to Google reviews, businesses can demonstrate their care towards customer feedback. Whether it’s sending a simple “thank you” for a positive review or addressing the concern after negative feedback, your responses show that you are active, approachable, and committed.

This goes a long way in building customer satisfaction and trust with potential customers who might be on the fence. So, don’t just leave reviews hanging—respond to them and let everyone know you’re listening!

2. Enhance Customer Engagement and Loyalty

Did you know that 89% of consumers read businesses’ responses to reviews? This brings us to another significant benefit of Google reviews, i.e., building stronger customer relationships with existing ones and future prospects.

When businesses engage with reviews—be it to thank someone for their great review or address the concerns of an unhappy customer—it shows that they care. It also shows their willingness to improve.

There is enough research to show that responding to reviews and offering people an opportunity to engage and interact makes them feel heard and valued, thus enhancing a business’s relationship with them.

Richard Branson, the founder of Virgin Group, was once quoted saying, “The customer is always right, and it’s important to listen to their feedback. I always try to show customers that we care.”

Branson’s approach highlights how responding to reviews can help businesses build strong and lasting customer relationships.

If review responses go well, businesses can also turn their biggest critics into their loyal customers. Responding to Google reviews is not just about addressing feedback—it’s also about fostering loyalty and showing commitment towards your customers.

3. Help Businesses Improve Customer Service

Looking for a business reality check? Check your business’s online reviews on Google.

Yes, you read that right. The benefits of Google reviews are unfathomable, not just for your prospective buyers but also for your business. These reviews can greatly help all local business owners looking to improve their services. These reviews give you honest feedback on what’s working and what’s not.

Whether it’s about a product, a menu item, an employee, or even a specific experience, reviews can tell you everything. They give you real-time insights that can help you refine your product/service.

Think of them like a mirror reflecting the true performance of your business. If customers keep mentioning the same issue or expressing dissatisfaction about a certain area, it’s time you look into it and make the necessary improvements.

Reviews offer an opportunity for your business to tweak the operations, improve your service, and ultimately provide a better experience.

Here is an example of how businesses can address negative customer reviews efficiently.

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In the above instance the business owner took the right step by addressing the concern of the guest and offering them a chance to contact them for greater clarity on the issue. The owner can use this feedback to learn more about their ground-level staff and improve their service quality.

Such reviews help businesses understand how well they’re doing in their customer service efforts. They can do this by simply tracking their positive versus negative reviews. An uptick in positive Google reviews means they are on the right track while stacking negative reviews—is a bad sign. It tells them there are some areas that demand their attention.

Either way, reviews can offer a clear, actionable way to continuously improve and stay ahead of the competition.

4. They Impact the Rankings

Every business wants to make it to the top of the Google search results. And guess what? Reviews can help you get there.

Have you ever searched for a product or service on Google and noticed how it shows businesses with the best star ratings on the top? Businesses with higher and more frequent ratings often pop-up on the top in the Local Pack.

Just like the image below shows the best Mexican restaurants in Phoenix, Arizona.

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If your business is not making it to the Local Pack—you are probably missing out on some prime visibility. But remember, it’s not only about the number of reviews, the quality and relevance of reviews are equally important.

This typically means that reviews must contain the keywords that people are searching for. But how do businesses ensure that? They can subtly encourage more Google reviews with specific keywords. This can be done by crafting survey questions or feedback forms on review sites that nudge customers towards using those terms.

For example, asking specific questions like “How did our ‘food home delivery service’ meet your expectations?” can prompt customers to include the term “food home delivery service” in their response.

This will allow Google to use that review and boost your business visibility whenever someone searches for “food home delivery” near your area. Google refers to this process as “review justification.”

Beyond the direct feedback in reviews, User-Generated Content (UGC), such as photos or social media posts tagged at your location, can also significantly enhance your visibility online. Google and other search engines favor frequently updated and user-generated content, including reviews.

When customers share their experiences and include relevant keywords in their content, it enriches the quality of your reviews and strengthens your SEO efforts.

Essentially, this means that if your business has more user-generated content and reviews with relevant keywords that match the search query, it can get pulled into the Local Pack results, making your business stand out.

This is why Google reviews aren’t just about building your reputation—they’re also vital for improving your search rankings. Online reviews also ensure that your business gets the attention it deserves. The more authentic and relevant reviews you have, the better your chances of showing up in local searches.

5. Drive Sales and Business Growth

Did you know that businesses with positive Google reviews are 4 times more likely to be chosen by customers over their competitors? But why so? It’s because they serve as powerful endorsements that provide social proof and build customers’ trust in your business.

This literally means that the more glowing reviews your business has, the more likely it is to attract new customers. Additionally, it will also encourage your existing customers to keep coming back—ultimately boosting your revenue and bringing growth.

Here is what Jeff Bezos, the founder of Amazon, says about customer feedback and reviews, “Your brand is what other people say about you when you’re not in the room.” Favorable reviews can contribute immensely to creating a positive business reputation.

When businesses showcase their positive testimonials on their websites, review sites, and social media, it adds a layer of authenticity and credibility that sets them apart from their competitors. But that’s not all, 69% of consumers feel good about a business with user reviews describing a positive experience.

While one cannot underestimate the importance of Google reviews, it is also true that getting them can be challenging. Let’s look into some challenges that businesses might encounter when gathering Google reviews:

Challenges Local Businesses Face with Google Reviews:

Here are the five common challenges of the online review generation process that you may encounter as a business owner:

1. Lack of Customer Motivation

Getting people to review your business is often harder than it sounds. 70% of customers review a business only when asked to do so.

Not every happy customer will leave you a review. This could either be due to lack of motivation or forgetfulness, they simply go back to their busy lives without taking those few extra minutes to share their feedback.

This can create a significant gap between the potential for positive feedback and the actual reviews. To curtail this, businesses must look for ways to encourage customers to take action.

But what’s the solution? Businesses must make it easy for customers to leave reviews. Send them a direct link to review sites. Add these links in the follow-up email, or put a QR code at your physical address, as shown in the image below.

This will offer clear instructions to your customers to leave you a review. Also, given that most people these days are glued to their phones, offering them a mobile-friendly review process can significantly increase the likelihood of you getting feedback.

Simplifying the steps will mean less hassle for the customers and help businesses get more Google reviews.

2. Negative Reviews

Unfortunately, not all reviews are positive, and handling negative reviews can be a real challenge. A bad review may sometimes feel like a personal attack, but if addressed well, it can be an opportunity for businesses to learn and grow.

But how does one manage reviews on their Google business profile? To begin with, businesses need to reply to all negative feedback. 83% of customers feel more loyal towards companies that respond to and resolve their complaints.

Ideally, businesses must reply to all negative feedback within 7 days; however, the quicker, the better. Responding promptly can help businesses improve the customer experience, thereby reducing the chances of damaging their reputation further.

Take the example of United Airlines—they faced a PR disaster after a viral incident wherein a passenger was forcibly removed from a United Airlines flight. This incident was captured on video and spread rapidly across social media, causing significant public outrage and a PR crisis for the company.

The public perception of the airline plummeted due to the perceived mishandling of the situation and initial poor responses from the CEO, who was criticized for not showing enough empathy towards the affected passenger. However, the airline started actively responding to all their customer complaints online, which helped them slowly rebuild their eroded image.

Responding calmly and professionally can transform a negative review into a positive opportunity to show potential customers how much you care about their feedback.

3. Inconsistent Review Frequency

78% of people only trust reviews that are written recently, so businesses have to continuously struggle to maintain a regular flow of reviews. It’s not enough to get a handful of reviews every few months—consistency is key to staying visible in Google’s Local Pack.

If the reviews of a business are outdated or sparse, they might not show up in relevant local searches.

Google favors businesses with regular and fresh reviews (especially from the last 30 days) as this proves their ongoing relevance. So, getting a few reviews here and there but no consistent flow can affect your search engine rankings and visibility.

So, how can businesses combat this? They can automate their review requests to ask for feedback from all their customers. These requests can be sent at key moments, like after a sale or following a customer service interaction, when the experience is still fresh in the minds of your customers.

4. Managing Fake Reviews

Inauthentic reviews are a headache for many businesses. Whether it’s a competitor leaving a negative review or someone posting a fake glowing review to boost their own profile, dealing with such feedback is frustrating.

Not only do they hurt your reputation, but they can also skew your overall rating. About 30% of all reviews are fake, and about 82% of people have come across a fake review in the past year.

While Google has systems in place to detect fake reviews, some still slip through the cracks. But here’s the silver lining. Google allows businesses to flag reviews that appear fake, and you can ask Google to delete them if they violate guidelines.

So, how do you flag them? Whenever you spot a fake review, just click the three dots next to the review and hit “Flag as inappropriate,” as shown in the image below. Google will review it and take action if it violates its policies.

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Meanwhile, respond to the review to show your potential customers you’re engaged and paying attention. You can mention that you suspect the review might be fake but keep it professional.

5. Technical Issues

Sometimes, the challenge isn’t the customers but the platform itself. Businesses can run into issues with Google Reviews, like difficulty setting up or verifying their Google My Business profile, which is essential for collecting reviews.

If a business isn’t fully set up or verified, it can miss out on the ability to gather reviews altogether.

A common complaint businesses face is not knowing where their reviews are coming from or not being able to find their review page. Many small businesses face difficulties in managing their online presence.

The solution? Make sure your Google My Business profile is fully optimized and verified. Regularly check your reviews and update your business information. When customers search for you, it should be easy for them to find you and leave feedback.

If you’re unsure how to navigate these settings, there are plenty of guides online, or you could even hire an expert to handle it for you.

Let us now understand ways in which businesses can leverage these reviews:

How Can Local Businesses Leverage Google Reviews for Success

91% of people read business reviews before visiting a business, and 79% of consumers say that reviews help them develop trust in a local business. That’s a pretty big deal, right?

This tells us how important Google reviews are for local businesses.

Online reviews have become a “must-have” for small businesses looking to build credibility, attract more customers, and stay ahead of the competition. But how can these businesses make the most of their Google Reviews? Let’s break it down with some actionable tips:

1.Show Off Reviews on Social Media

Get those top-notch reviews out on your social platforms! It’s like showing off your gold stars. Bringing these reviews to public attention can help businesses build trust and credibility among their potential customers who might just be scrolling through.

But how can you do that?
Start by selecting the most impactful and relevant testimonials. Craft engaging posts that incorporate the review text, adding a personal touch with a thank you message or commentary to boost authenticity. Enhance these posts by attaching images or graphics that spotlight the reviewer’s words.

Share these crafted posts across your various social media platforms like Facebook, Twitter, or Instagram. Finally, keep the conversation going by responding to any interactions on these posts, maintaining engagement and showing appreciation for the feedback.

While it’s effective, this process can also be very time consuming. But wait, we have a quick fix, that will allow you to automatically share 5-star reviews on social media using SocialPilot Reviews.

Here’s how you can do it:

• Set Automation Rules: Configure SocialPilot to automatically identify and select 5-star reviews.
• Schedule Auto-Posts: Choose when and where these reviews are posted across your social media profiles.
• Customize Content: Tailor the post’s appearance and wording to match your brand’s voice.
• Monitor Performance: Track how these posts perform to see the impact of your review content.

These steps ensure that your best reviews are consistently shared, enhancing your online reputation without manual effort.

2. Respond to All Feedback—The Good and The Bad

Responding to reviews shows your customers that you care and value the feedback of your customer. Don’t just respond to the glowing five-star reviews—take the time to acknowledge and professionally address any negative ones too.

Here is how businesses can address the negative feedback of their clients:

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When you handle criticism well, it shows prospective customers that you’re committed to improving and care about their experience.

Plus, Google’s algorithm loves engagement, so responding regularly to all reviews not just helps boost your local SEO, but also your business becomes more visible in local searches.

3. Flaunt Them on Your Website:

Think of your website as your digital storefront. Placing gleaming reviews front and center can convert visitors into customers faster than you can say “checkout.” Use various formats like grids or carousels to keep things fresh and engaging.

Here are some benefits that businesses can get by posting glowing reviews on their websites:

• Build Trust with Potential Customers: Reviews act as social proof, reassuring visitors that your products or services are endorsed by others.
• Improve Conversion Rates: Positive reviews can influence buying decisions, leading more visitors to convert into customers.
• Enhance SEO: Reviews can increase your content’s freshness with regular updates, helping boost your site’s search engine ranking.
• Provide Valuable Customer Insights: Reviews offer direct feedback from customers, which can help you understand their needs and improve your offerings.
• Create a Community Feel: Showcasing customer reviews fosters a sense of community and encourages others to share their experiences, enhancing customer engagement.

But how does one share reviews on their website? It’s simple, use the SocialPilot Reviews Widget.

This tool lets you showcase your best reviews on your website with ease. With SocialPilot’s Review Widget, you can seamlessly display your top reviews, thus building credibility and boosting conversions.

Here are some key features of this tool:

• Multiple Widget Types: You can choose from a Grid, List, Carousel, Floating Slides, Review Button, or an Average Rating Badge to best suit your website’s design.
• Customizable Themes: Pick and choose from Light, Dark, or Custom themes, with the option to apply your own CSS for full design control.
• Seamless Integration: This tool automatically fetches and updates your latest reviews, so your site always showcases fresh, relevant feedback.

Overall, this is a go-to tool for businesses that helps them easily manage, customize, and embed their review widgets—all from one intuitive dashboard.

4. Use Reviews for Social Proof

Got some stellar reviews? Share them! Post snippets of positive reviews on your social media pages or your website. Social proof is incredibly powerful; it gives potential customers the confidence they need to trust your business.

When people see that others love what you’re offering, they’ll be more likely to try your business.

For example, let’s say a local coffee shop gets rave reviews about its cozy atmosphere and amazing lattes. Here is an image showing how the business can create a social media post saying something like, “Here’s what our customers are saying about us! Come grab your next latte and experience it for yourself!”

These posts can be a win-win for businesses as they show appreciation for customers, encourage others to leave good reviews and strengthen the business’s online reputation.

5. Use Reviews to Improve Your Business

Don’t just let reviews sit there—use them to learn and grow. If you’re noticing a trend, like many reviews mentioning slow service, it’s time to address that issue.

Customer feedback is the free market research you didn’t know you needed, so embrace it. Sometimes, the best way to improve your service is to listen to what your customers are already saying.

6. Leverage Reviews for Local SEO

Reviews don’t just build your reputation—they help improve your local search rankings, too. Google uses them to determine how relevant and trustworthy your business is. In fact, businesses with positive reviews tend to rank higher in local search results, which means more visibility without spending a fortune on ads.

The key here is to consistently get fresh reviews. Google loves new content, and when you have regular feedback rolling in, your business will show up in search results when potential customers look for businesses similar to yours.

7. Monitor and Track Your Reviews

Don’t just set it and forget it! Keep an eye on your reviews and track them time and again. This allows you to spot trends, address concerns, and celebrate wins.

As shown in the image below, tools like SocialPilot Reviews make it easy for businesses to track reviews by offering notifications when a new review comes in.

While leveraging Google Reviews is crucial, it can also be challenging, especially for small businesses with limited human resources.

But fortunately, using review management software like SocialPilot Reviews can be a game-changer.

How SocialPilot Reviews Helps Local Businesses Manage & Collect Google Reviews

Imagine you own a restaurant, a family visits your restaurant over the weekend, has a gala time, appreciates your food and service, and then returns home. They go back to their regular schedules the next day, completely forgetting about the experience they had last night.

But, the next evening a message pops up on their device, reminding them of the great experience they had and encouraging them to share the feedback.

Can you imagine what a difference it could make in helping you get a review? These gentle reminders can exponentially increase your chances of receiving feedback, giving your businesses an undue advantage in Google searches.

That’s exactly what’s possible with SocialPilot Reviews. Here are some things this tool will do for your business:

• It will help you set up automated email and SMS campaigns to request reviews from your customers.
• It helps you manage reviews from multiple locations and platforms, including Google, Facebook, Yelp, etc, all from a single centralized dashboard.
• Additionally, you can draft AI review responses to engage with your customer reviews.
• Its white-label feature allows you to customize the review management interface to align with your brand identity.
• And you can try all these features for free using the tool’s free 14-day trial.

This review management tool is everything you need to collect and manage Google reviews like a pro. Here is a step-by-step guide to help you get started.

Conclusion

Google Reviews often serves as a bridge between where your business is and where it deserves to reach.

This is more like your friend telling you that she loved the night repair eye cream by Estee Lauder. And the next thing you will be searching on Google is its formulation, you might as well order it without a second thought.

That’s exactly the kind of influence that reviews can create on a person’s psychology but in a digital space. People tend to trust your brand based on how others feel about it.

Positive reviews will not just convince people to try your product/services, but they will also convince search engines like Google and Bing of your relevance. The more positive reviews your business has, the higher it will rank on their local searches.

While all this may all sound quite overwhelming, this entire process can be made easy using a review automation tool like SocialPilot Reviews.

So, try out this tool today to create an online presence that reflects your business’s true value and helps you achieve your business goals.