What is the True Cost to a Business of Not Taking Care of Their Reputation Online?

And Why it’s so important to take care of it ASAP

Failure to do so could mean a business spending advertising dollars on potential customers that end up buying goods / services from their competitors instead of them. How could this happen you might ask? The main reason is when a business has a poor overall rating and many negative reviews posted online about them, then unknowingly their advertising $ are likely sending their potential customers to their competitors who have a much better rating (see the example below for proof of this).

So how can we quantify this or better yet put a $ value on it? Let’s look at an actual example by using data from Google’s own search engine (via their keyword tool called the keyword planner to get an indication of the the average search volume for a given keyword phrase) and data from Home Advisor’s own website, to get an idea of the cost of the business services provided for.

For this we randomly selected the following keyword phrase for a local business service here in Chicago so typed the following keyword phrase into Google “landscaping Chicago”


Now, according to Google’s keyword planner tool there is an average of 1600 searches done monthly for this keyword phrase (see screenshot below) so that equates to 19,200 people searching for this in a year. Please bare in mind we are only giving you an example of a single keyword phrase here so there are likely plenty more searches on variations of this.


Below is a screenshot of the results from that exact search in Google. You can probably guess which of the companies is NOT going to get the new business and why – Yes ,that would be the company with the poorest reputation (company three in screenshot with rating of 1.0 & only 1 review) . But what’s the actual $ value of potential revenue lost to this business? Let’s work through some numbers below :


So according to Home advisor’s cost calculator, the cost of using landscaping services is somewhere between $1,382 – $5,323 , thus an average cost would be around $3,223. Lets dive into the math on this :

According to Brightlocal, 64% of people will go to the highest ranking website and visit the business or contact them. From our research Google has determined that on average 19,200 people search for this keyword a year, so simple multiplication (19,200 X 0.64) results in 12,288 visitors to the website from that search query alone. Now, if we give a conservative estimate of 5% of these visitors converting to leads / prospects, that is 615 targeted leads.

According to Hubspot the average close rate by industry is 22% so that is 135 new customers. If we take the average cost of services for landscaping (from Home Advisor) which is $3,223 and multiply it by the number of customers 135 that is a staggering $435,105 ($3,223 X 135) in lost revenue for business number 3.




While we have given an example of lost revenue for just a single keyword phrase, the figure is likely higher if you factor in variations on this example. Even if Business 3 could only manage to get 20% of this business by first managing their reputation online (as in get more 4.5+ star reviews), that is $87,021 in new revenue , which is a lot of money to a small local business.

So the reality is if you are not managing your Online Reputation, then you could be losing out BIG TIME on new Business!


If You Want Help Sorting Out Your Reputation Online So that You Are Not Loosing Out on Business to Your Competitors – Please Get in Touch by Clicking Here