How to Avoid the 5 Mistakes Contractors Make with Their Online Reputation (IBS 2023)

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IBS Education How to Avoid the 5 Mistakes Contractors Make with Their Online Reputation

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The material in this education session has not been reviewed, approved, or endorsed by the National Association of Home Builders (NAHB). The topics discussed and the materials provided herein are for informational purposes only, are not intended to be an exhaustive presentation of information on a particular subject, and should not be treated as such. The speaker or speakers are not acting on behalf of or at the direction of NAHB. NAHB specifically disclaims any liability, loss or risk, personal or otherwise, which may be incurred as a consequence, directly or indirectly, in the use or application of any of the materials presented in this or any other education session presented as part of the International Builders Show®. NAHB Disclosure

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Continuing Education Credit Each IBS education session provides .5-3 hours of continuing education credit toward NAHB professional designations. NKBA and AIA members may also earn continuing education credits by attending IBS education. Please refer to each session’s listing in the show guide, website or app to determine the organization providing CE credits and the number of hours you will receive. Directions for reporting your hours can be found in the IBS Show Guide.

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Courtney Stewart Denim Marketing Cartersville, GA Meet Your Speakers Brandon Schmidt YDOP Lancaster, PA

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• 90% of consumers read online reviews before visiting a business. • Online reviews impact 67.7% of purchasing decisions. • 84% of people trust online reviews as much as a personal recommendation. • 74% of consumers say that positive reviews make them trust a local business more. • Every one-star increase in a Yelp rating means a 5-9% increase in revenue. https://www.forbes.com/sites/ryanerskine/2017/09/19/20-online-reputation-statistics-that-every-business-owner-needs-to-know/#3118af34cc5c The Power of Online Reviews

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• Have you had a bad review? • Do you have a plan for getting reviews and testimonials? Crowd Participation

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Mistake #1: Not Monitoring Your Online Reputation.

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• When was the last time you Googled your company’s name? • Google it now! • Do you like what you see? Crowd Participation

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What Should You See?

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Results We Hope You Don’t See! • Google Your Name • Google Your Name + Reviews • Google Your Name + Sucks

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Other Ways to Monitor • Google Alerts • Sprout Social • Falcon.io • Hoot Suite • Native Sites

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Mistake #2: Not Responding to Reviews.

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Need to React + Fix Bad SERP Results Bad Reviews on an Individual Site No Reviews Bad Reviews on Multiple Sites

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• Is it a real problem you need to address? • Is it constructive criticism? • Did your company do something wrong? • Is it a troll or spammer? Responding to Negative Reviews

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Mistake #3: Not Asking for Reviews.

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Best antidote to bad reviews: Reviews from the rest of your customer base.

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What you cannot do: • Pay for reviews • Incentivize customers for reviews Dos and Don’ts when Asking for Reviews What you can do: • Incentivize employees • Create systems for asking for reviews • Be intentional about asking for reviews

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Can You Pay for Reviews?

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Not According to Google

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Nor the FTC

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TIP: Incentivize employees for reviews.

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Automate Your Request for Reviews

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Don’t Forget Physical Requests

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How many reviews do I need?

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Initial Threshold

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Nationwide study of 16,520 top-ranking builders & contractors Industry Standard

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Avg number of reviews: 48 Avg star rating: 4.6 Industry Standard

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Home Builder Avg number of reviews: 32 Avg star rating: 4.4 Industry Standard Bathroom Remodeler Avg number of reviews: 61 Avg star rating: 4.7

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Local Context 1. 26 Reviews / 5.0 avg 2. 8 Reviews / 5.0 avg 3. 14 Reviews / 2.7 avg

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Local Context 1. 21 Reviews / 4.5 avg 2. 103 Reviews / 4.9 avg 3. 20 Reviews / 4.2 avg

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Mistake #4: Not learning from reviews.

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Your reviews reflect your company.

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Quality Issues

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Process Issues

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Employee Issues

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Learn What Customers Value

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Mistake #5: Not Following Rules for Reviews.

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1. Employees (past or present) 2. Competitors 3. Mistaken Identity 4. Abusive, Hateful 5. Political 6. Off-topic 6 Reasons You Can Flag a Review for Removal on Google

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Rules for Customer Reviews

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• Created an Endorsement Guide to provide guidelines on how to use endorsements for a variety of industries. • Guides for advertising and marketing, endorsements, influencers, reviews, credit and finance, FinTech, and online advertising and marketing. • https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are- asking#intermediaries • Consumer Review Fairness Act (CRFA) protects people’s ability to share their honest opinions about a business. • https://www.ftc.gov/business-guidance/resources/consumer-review-fairness-act-what-businesses-need-know Federal Trade Commission (FTC)

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What is Review Washing/Review Gating?

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Review Washing This image is taken directly from the research company’s website where builders are encouraged to selectively post only positive reviews, while appearing to be validated by the research company.

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Review Washing

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Review Rules • If you share your reviews, all reviews (good and bad) must be public. • Sites like Facebook, Trip Advisor, Yelp, Google, etc. must comply with the all-or-nothing display of star ratings as well.

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Reviews vs Testimonials • Reviews are customer opinions • Testimonials are comments you solicit from your best and more appreciative customers. Paul Cardis with Avid Ratings states, “You are allowed to selectively post testimonials, but you are prohibited from selectively posting star ratings.”

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Bonus: Let Your Testimonials Work Double Time for You!

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• Website • Social Media • Flyers • Other ideas? Promoting Testimonials

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Courtney Stewart Denim Marketing [email protected] Cartersville, GA Speakers Contact Information Brandon Schmidt YDOP [email protected] Lancaster, PA