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Negative online reviews can have real consequences for small businesses.
According to a Small Business Expo Research Desk survey of 132 small business owners, 64.4% say a negative online review has at least a moderate impact on their business, while more than four in ten describe the impact as major or significant.
The survey also found that a majority of business owners view online reviews as an important tool for attracting new customers. At the same time, respondents drew a distinction between online reputation and customer trust, with personal referrals remaining the most commonly cited way that trust is built.
Highlights
- 64.4% say a negative online review has at least a moderate impact on their business.
- 43.2% say the impact is major or significant.
- 58.3% say online reviews are critical or very important for winning new customers.
- 77.3% say online reviews are at least somewhat important when attracting customers.
- 35.6% still believe customer trust is built primarily through personal referrals.
Negative Online Reviews Can Have a Lasting Impact
When asked how much impact a negative online review has on their business, nearly two-thirds of respondents (64.4%) said the effect is at least moderate.
Even more striking, 43.2% reported that negative reviews have either a major or significant impact.
Only 12.9% said negative online reviews have no impact on their business.
The findings suggest that many small business owners view online reputation as an important business asset that can directly influence customer behavior.
Why Online Reputation Matters
Consumers increasingly research businesses before making purchasing decisions, and online reviews are often one of the first signals they encounter.
Consistently earning positive reviews may help businesses establish credibility, while unresolved negative feedback can discourage prospective customers before they ever make contact.¹ ²
Although a single review rarely tells the whole story, the survey suggests that many business owners believe negative reviews can have meaningful consequences for customer acquisition and revenue.
Reviews Play an Important Role in Winning Customers
Business owners overwhelmingly recognize the value of online reviews during the customer decision-making process.
Nearly six in ten respondents (58.3%) say online reviews are either critical or very important for winning new customers.
When responses are expanded to include “somewhat important,” more than three-quarters (77.3%) acknowledge that reviews play at least some role in attracting new business.
The findings suggest that maintaining a positive online presence has become an important part of competing for customers, particularly as consumers increasingly research businesses before making purchasing decisions.
Trust Still Extends Beyond Online Reviews
Despite the importance of online reviews, respondents drew a clear distinction between helping customers evaluate a business and earning their trust.
When asked what now plays the biggest role in building customer trust compared with a few years ago, the most common response was personal referrals (35.6%).
Social media presence ranked second at 25.8%, followed by direct relationships with customers at 20.5%.
Only 11.4% identified online reviews and ratings as the primary driver of customer trust.
The results suggest that while reviews may encourage customers to consider a business, personal recommendations remain the strongest foundation for long-term credibility.
Final Takeaway
The survey suggests that online reputation has become an increasingly important part of running a small business.
Nearly two-thirds of respondents say negative online reviews have at least a moderate impact on their business, and while a majority also view reviews as an important tool for attracting new customers, the largest share of respondents still believe customer trust is built primarily through personal referrals.
For small businesses, the findings reinforce an important lesson: a strong online reputation can open the door, but lasting customer trust is often earned through the experiences that people are willing to share with others.
Footnotes
- BrightLocal. Local Consumer Review Survey. https://www.brightlocal.com/research/local-consumer-review-survey/
- Podium. Online Review Statistics. https://www.podium.com/article/online-reviews-statistics/
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