- Feb 17, 2021
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- First Name
- Jake
This week I’ve developed a modeling tool you can use to estimate your reputation performance for the next 12 months.
The only information you need to have on hand:
- Monthly transaction volume
- Current Google rating
- Lifetime review volume
How the model works
Assumptions:
- Review request sent to every customer post-transaction using SMS and personalization
- Review request to review conversion rate of 20%
- 90% 5-star reviews, 10% 1-star reviews
- Looking at Widewail data (300,000+ engagements), 90% of reviews are positive. For simplicity, I’ve made the positive reviews a rating of 5 and negatives 1.
- Monthly transaction volume
- Lifetime Google review volume
- Lifetime Google rating
See an example
Inputs:
Rating: 4.2
Lifetime volume: 100
Monthly Transaction volume: 200
Results:
For a business with a baseline of 4.2 stars, 100-lifetime reviews, 200 transactions a month, and a 12-month review generation strategy, the model predicts an outcome of 580 reviews and a rating of 4.59.
What stuck out to me is the fast jump from 4.2-4.5 in the first 2 months.
Establishing a consistent frequency of good reviews has a significant positive impact on ratings.
You’ll notice the rating increase slows down from there, approaching 4.6 over the rest of the year. Given the rigid 90% 5-star review parameter, the best rating possible is 4.6.
But of course, your business is likely to see more variability than that. This is why I’ve put together the model into a spreadsheet that you can experiment with yourself.
Input your current star rating, lifetime volume, and monthly transaction volume. Experiment with different transaction volumes and 5-star percentages to see how different performance metrics impact your reputation over time.
Thanks for reading. I hope the model provides clarity. Gets you started in the right direction. Learn the rules like a pro, so you can break them like an artist.
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See you in 2 weeks - Jake, Marketing
Insider Alley
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