Online reputation management: Build trust and grow your small business
Your online reputation can make or break your business. Learn how to monitor, manage, and improve it.
Written by Jotika Teli—Certified Public Accountant with 24 years of experience. Read Jotika's full bio
Published Friday 24 October 2025
Table of contents
Key takeaways
• Monitor your online reputation consistently by setting up Google Alerts for your business name, regularly checking review sites like Yelp and Google Maps, and periodically searching for your business to see what appears on the first page of results.
• Respond professionally to all customer reviews, both positive and negative, by thanking customers for positive feedback and addressing issues in negative reviews with constructive solutions and apologies when appropriate.
• Generate positive reviews by delivering quality products and services that exceed customer expectations, including accurate product descriptions, clear shipping policies, quality control checks, and thoughtful packaging that creates positive first impressions.
• Build a systematic referral program by asking satisfied customers for referrals during project completion and regular check-ins, while creating positive experiences that naturally motivate customers to recommend your business to others.
What is online reputation management?
I’ve seen companies that quality-checked 100% of inventory before shipping, and companies that checked 10%. The guys that checked 10% had a lot more returns, which isn’t great for customer satisfaction.
Online reputation management is the practice of monitoring and influencing what customers say about your business online. This includes managing reviews, responding to feedback, and building positive brand perception across digital platforms.
Your business already has an online reputation – and you can shape it to work for you. Online reputation management focuses on three key areas:
- Review generation: getting positive reviews
- Response strategy: handling feedback professionally
- Referral systems: turning satisfied customers into brand advocates
Why online reputation management matters for small businesses
Your online reputation affects your bottom line. A strong presence builds credibility and helps customers choose you. Online reviews are today’s word-of-mouth.
Managing your online reputation helps you attract new customers and keep loyal ones. Proactively managing it helps you attract new business, retain loyal customers, and gain valuable feedback to improve your services.
How to monitor your online reputation
Tracking what people say about your business is simple. A few habits can make a big difference. Start by checking the platforms your customers use most.
Here are a few ways to get started:
- Set up alerts: Use free tools like Google Alerts to get notified whenever your business name is mentioned online.
- Check review sites: Regularly visit sites like Yelp, Google Maps, and industry-specific forums where customers might leave feedback.
- Search for your business: Periodically search for your business name to see what appears on the first page of results. This is what most potential customers will see.
How to get good customer reviews
You get good customer reviews by delivering quality products and services. When customers get what they expect, they are more likely to leave positive reviews.
For retail businesses, focus on accuracy and quality control. E-commerce consultants Marc McKeown and Shaheman Farid recommend these steps:
People need to feel seen and heard. I work hard on that. That means you over-deliver from time to time in your personal communication. I also use our social channels to give clients something extra – by putting additional free advice into our community groups.
I've seen companies that quality-checked 100% of inventory before shipping, and companies that checked 10%. The guys that checked 10% had a lot more returns, which isn't great for customer satisfaction.
- Put an accurate description with each item in your shop so people know what they're buying
- Give sizes in centimeters (or inches) instead of vague categories like small, medium, and large (or S, M, and L)
- Explain your shipping times and costs upfront
- Include a page with your return policy
- Run quality checks on items before shipping
- Package items so they arrive in good condition
"Put some of your story into the way you box things up," says McKeown of FortBrave. "Use recycled packaging. These touches help create a positive first impression and encourage good reviews and social sharing."
Service businesses often have more complex customer relationships. Being respectful and responsive helps you build a strong online reputation.
How to respond to reviews – good or bad
How you respond to reviews shapes how potential customers see your business.
Respond to all reviews – positive and negative. Use this approach:
- Thank customers for positive reviews and mention what they appreciated
- Acknowledge issues in negative reviews, apologize if needed, and offer a solution
- Keep your tone constructive and focused on solutions
"A constructive reply shows that you care and are committed to being better," explains consultant Shaheman Farid.
Responding to all reviews shows you care about your customers’ feedback.
When you start out, you may have only a few reviews and can respond to them yourself. As your business grows, software and professionals can help you manage your online reputation.
Online reputation management tools and strategies
You can manage your reputation manually, but tools and strategies make it easier. Many platforms help you track mentions, manage reviews, and engage with your audience.
Consider exploring these options:
- Use review management software to consolidate reviews from multiple sites
- Use social media listening tools to track mentions and conversations about your brand
- Create and promote positive content to improve your search rankings
How to get referrals
Referrals work for online businesses as well as for face-to-face networking. You can build a strong referral system even if you have little in-person contact.
Michael Yared’s app development agency, Echobind, meets most clients only twice in person. Referrals still drive their business growth.
"Some jobs can be traced back four generations of referrals," Yared explains. "Referrals are the biggest source of work for us."
Creating positive experiences
Positive customer experiences drive referrals. When you exceed expectations, customers want to recommend your business.
The strategy is simple: deliver more value than promised. This means:
- making customers feel heard and valued
- providing extra helpful content or advice
- creating spaces where customers can connect and learn
People need to feel seen and heard. I work hard on that. That means you over-deliver from time to time in your personal communication. I also use our social channels to give clients something extra – by putting additional free advice into our community groups.
Olivia Park provides fitness, nutrition, and wellbeing coaching online. She goes above and beyond for her clients.
The best way to get referrals
The best way to get referrals is to ask. Many satisfied customers want to help but need a prompt.
Make referral requests part of your standard process:
- ask for referrals when you finish a project
- include referral discussions in regular check-ins
- ask for introductions to colleagues or similar businesses
"Referrals are now part of the formal project closing process," says Michael Yared.
Take control of your business reputation with Xero
Build a great online reputation by delivering excellent customer experiences. When your finances are organized, you can focus on serving your customers and growing your business.
Xero simplifies your bookkeeping, automates routine tasks, and gives you a clear view of your finances. This means you can spend more time managing your online presence and growing your business.
FAQs on online reputation management
Here are some common questions small businesses might have about online reputation management.
What's the best online reputation management software for small businesses?
The best software depends on your needs and budget. Look for tools that monitor mentions, manage reviews from multiple sites, and integrate with your systems. Many social media and marketing platforms include these features.
How long does it take to see reputation management results?
Responding to new reviews can quickly improve customer perception. Building or repairing your reputation takes time. Consistent monitoring and engagement over several months gives the best results.
Can I do online reputation management myself or should I hire someone?
Many small business owners manage their own reputation by spending a few hours each week on feedback. If you face a reputation crisis or lack time, consider hiring a freelance specialist or agency.
How much should a small business spend on reputation management?
For do-it-yourself (DIY) efforts, the cost is minimal and mainly involves your time. Basic monitoring tools are often free or low-cost. If you hire a professional, costs can range from a few hundred to several thousand dollars per month, depending on the scope of work.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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