Analyzing the Impact of Consumer Reviews on Construction Companies: An In-depth Look
We provide marketing services for several construction companies. One of the first pieces of advice we give a company is to talk to past or ongoing customers that they have a great relationship with and ask for a 5-star review. For a marketer, it is very important that he or she asks themselves, “why do I believe what I believe.” That is to say, how does a marketing know if their own advice is any good. Beyond experience, which may suffer from selection bias, reviewing peer reviewed academic journals can be a great help. In September of 2021, Science Direct published an article called, “Does construction service provider’s response matter? Understanding the influence of anecdotal information on online consumer decisions.”
The summary of this research was,
When all reviews were either entirely positive or negative, i.e., consistent information, the service provider’s response did not influence the customer’s decision. However, when the reviews were inconsistent, the service provider’s response was influential.
This means, if a companies Google reviews were all positive, potential customers did care how the company being reviewed responded to those Google reviews. Likewise, if the Google reviews were all negative, there was noting the company could do to make the situation better – the construction company wasn’t getting any new business from the person reading all those negative reviews.
But what is a construction company had a mix of positive and negative reviews? Well, this is where the research gets interesting. Potential customers become very interested in how the construction company responded to those negative reviews. The research’s statement on this situation was, “For the neutral review condition, the participants were more likely to hire when they read an elaborate response compared to a standard response.”
The takeaway from this research, write a thorough objective review to any negative review – it really matters!
In our research review, we found a few other articles discussion this topic, but all seemed like advice out of a can:
- https://www.linkedin.com/pulse/make-customer-reviews-part-your-construction-marketing-wagner/ was generic advice.
- https://www.forconstructionpros.com/rental/article/21563470/do-online-reviews-really-matter started off with more canned advice but at about the half-way mark, gave some sound advice.
- https://blog.constructionmarketingassociation.org/the-importance-of-online-reviews-for-construction-brands/ was more shallow content of little value.
If you want the most detail possible on this topic, we recommend you read the science direct article. For a how-to of dealing with negative reviews for your construction company – read on.
In today’s digital age, consumer reviews have become increasingly important to businesses in all industries. Construction companies are no exception – the ability to read and respond to customer reviews can have a major impact on the success of a construction business. This in-depth look into the impact of consumer reviews on construction companies will explore how these reviews can influence the reputation and brand of a construction firm, as well as how they can shape future business decisions. Additionally, this analysis will delve into the strategies and techniques construction companies can use to ensure that their customer feedback is positive and constructive. By analyzing the impact of consumer reviews, construction companies can develop a comprehensive approach to customer service and satisfaction, allowing them to build a successful and sustainable business model.
What are consumer reviews?
Consumer reviews are an essential part of most online shopping experiences. Whether a consumer is researching a desired product or reading through reviews of a particular brand, reviews provide a wealth of information and can greatly impact purchasing decisions. If a consumer chooses a product or brand that has positive reviews, they can feel satisfied with their purchase decision and have a positive experience with the product or service. However, if a consumer chooses a product or brand with negative reviews, they may have a less than satisfactory experience and could be less likely to make a repeat purchase. Reviews can be submitted by customers in a variety of ways, including through online review platforms like Yelp, Trustpilot, and Facebook, in addition to email and social media.
How consumer reviews can impact construction companies
For construction companies, consumer reviews can impact all areas of business. Positive reviews can greatly benefit a company’s reputation and brand, showcasing a firm that delivers top-quality services and satisfies their customers. Additionally, positive reviews can increase the likelihood of future business, as consumers are often drawn to businesses with a positive reputation. Positive reviews can also help improve a company’s online presence, as they are usually found on top business review platforms. On the other hand, negative reviews can have a detrimental effect on a business’s reputation and brand, causing customers to question the quality of a company’s services. Negative reviews can also affect a construction firm’s online presence, as they are often displayed prominently on top review platforms.
Analyzing the impact of consumer reviews on the reputation and brand of construction companies
Based on an analysis of over 250,000 business reviews, the three industries with the highest rating are healthcare, restaurants, and education. On the other hand, the three industries with the lowest rating are contractors, health and fitness, and home improvement. While these ratings can be helpful for construction companies to understand the general sentiment of their industry, they are more beneficial when used to understand how specific companies are perceived. For example, a construction business with a high rating and positive reviews can benefit from their positive reputation and brand, as it can allow them to stand out in a competitive industry. However, a low-rated construction company can be negatively impacted by their poor reputation, as it can drive consumers away and make it difficult for the company to find new clients. Although a low-rated construction company may still have a few positive reviews, positive reviews can be difficult to obtain when a company’s reputation is low.
Strategies for responding to customer reviews
When responding to negative reviews, it’s important to keep in mind that customers are looking to be heard. Therefore, it’s essential that construction companies respond to negative reviews with a balanced response that empathizes with the customer while also explaining the company’s side of the story. It can be helpful for construction firms to outline a strategy for responding to negative reviews, ensuring that all reviews are responded to in a timely manner. If a customer leaves a positive review, it can be beneficial to thank the customer for their feedback. Additionally, it can be helpful to ask the customer for advice on how the company can improve. If a customer leaves a constructive review, it can be helpful to use the review as an opportunity to improve as a company and ask the customer for specific feedback.
The importance of customer feedback in the construction industry
Unlike other industries, construction companies rely heavily on positive reviews. Since the industry is cyclical, the vast majority of construction projects occur during a time of the year when the weather is less than ideal. Since consumers are typically more conscious of the weather, it can be extremely difficult to obtain positive reviews during this time. Therefore, it is essential that construction companies make an effort to obtain positive reviews throughout the rest of the year. The ability to obtain positive reviews during the rest of the year can be beneficial during the busy contracting season, as satisfied customers are more likely to leave positive reviews during the slower season.
Techniques for improving customer service and satisfaction
In order to improve customer service and satisfaction, construction firms must first understand how their customers feel about the company. Therefore, it is important for companies to conduct regular customer satisfaction surveys, allowing them to learn about their customers’ preferences and expectations. In addition to customer surveys, construction firms should also use an effective CRM platform to track customer service activities, allowing them to focus on improving customer satisfaction in specific areas. It’s important for construction companies to remain cognizant of the importance of customer satisfaction, as customer satisfaction is a strong indicator of future customer retention.
As the construction industry is cyclical and occurs during a time of year when weather conditions can be less than ideal, it can be challenging to obtain positive reviews. Therefore, it is essential that construction companies make an effort to obtain positive reviews throughout the rest of the year in order to benefit during the busy contracting season. When reviewing the impact of consumer reviews on construction companies, it can be helpful to think about how different types of reviews benefit businesses in different ways. Positive reviews are beneficial for a company’s reputation and brand, while constructive reviews are helpful for improving customer service and satisfaction.