Online Reputation Management Boosts Small Business Performance

Image credit: Search Engine Journal

Active online reputation management (ORM) significantly correlates with improved business performance for small businesses, especially in competitive and AI-driven markets, a recent peer-reviewed study reported.

The findings indicated that high Google star ratings alone are insufficient for success because AI-powered discovery platforms prioritize a broader range of reputation signals and data accuracy, creating selective visibility.

The study, published in the Journal of Small Business Strategy, reported that businesses actively engaged in ORM practices showed better performance compared to those relying solely on star ratings.

Eddie Inyang, CEO of Merchynt, a contributor to the research, stated that the positive effects of ORM on both business performance and Google ratings intensify in more competitive environments, widening the gap between businesses that practice ORM and those that do not.

AI-powered systems such as ChatGPT, Gemini and Perplexity display substantially fewer businesses than Google’s traditional local 3-pack, making visibility on these platforms highly selective, according to research from BrightLocal.

Joy Hawkins, owner of Sterling Sky, noted that strong local search rankings do not guarantee AI visibility, as AI platforms prioritize factors beyond star ratings, including data accuracy, comprehensive reputation signals and user engagement.

Robert Barrueco, CEO of SOCi, highlighted that multi-location businesses often face a significant “execution gap” in ORM, struggling to manage review volume and maintain consistent responses across numerous locations without automated solutions and organizational infrastructure.

Justin Silverman, CEO of Localogy, emphasized that businesses must view ORM as a strategic resource rather than just a marketing tactic to effectively compete in an increasingly complex digital environment.

Meg Clarke, CEO of Clapping Dog Media, added that the challenges of maintaining a strong online presence are exacerbated by the rapid evolution of AI search, requiring businesses to adapt their strategies to ensure they are discovered by potential customers.

Juliana White, a representative for Birdeye, explained that businesses need to integrate ORM into their operational framework to ensure consistent customer experiences and maintain a competitive edge as AI continues to reshape how consumers find local services.

The research underscores the necessity for businesses in the United States to invest in comprehensive ORM strategies to thrive amid the growing influence of AI on consumer discovery and purchasing decisions.

Source: Search Engine Journal