Customer Retention: Can Glassdoor Reviews Help?
happy employees collaborating

Customer Retention: Can Glassdoor Reviews Help?

Employee reviews are a great source of feedback. Containing candid insights, they’re an honest gauge of how your company culture is doing and a powerful tool for attracting top talent.

But there’s another reason to pay attention to employee reviews: they also have the power to influence customer satisfaction.

Seeing Employee Reviews In A New Light

In a recent study by The University of Las Palmas de Gran Canaria, researchers looking at worker satisfaction in the hotel industry found that employee reviews can influence guests’ opinions.

To establish the relationship, researchers started by asking study participants to complete a satisfaction survey. The participants – all of whom had stayed at a hotel within the last 12 months – rated quality of service, likelihood of recommendation, and intent to revisit on a scale of one to five.

They were then randomly shown three real-world Glassdoor reviews. The positive review described the hotel’s excellent benefits and opportunities, while the negative review talked about leadership problems and low pay. The intermediate review mentioned both good and bad points.

The researchers then asked participants to imagine they had recently seen this review or reviews like it about the hotel they had stayed at and instructed them to retake the survey.

Happy Employees, Happy Customers

The results were loud and clear. Participants who read the positive review showed an improved opinion, although overall satisfaction, likelihood of recommending, and intent to visit again didn’t change.

Participants who read the negative review gave significantly lower ratings for all areas. In fact, readers of the negative review said that it changed their plans of revisiting the hotel or telling their friends about it.

It All Comes Back to Culture

Turns out satisfied employees do translate to satisfied customers. And while the gains of a positive review seem relatively small, the severe effects of a negative one make nurturing and maintaining a healthy workplace worth it.

So what can you do? Cultivate a company culture that promotes employee happiness. Keep an attentive eye on what your employees are saying in their Glassdoor reviews. And know that every reply is one more opportunity to manage your company’s reputation.

Glassdoor’s How to Respond to Reviews Templates give you exactly what you need to turn your responses to reviews into a critical recruiting mechanism that will help you fill your pipeline with informed and engaged candidates.

And to read the full academic study, “Extending the Scope of Hotel Client Reactions to Employee Injustice: Hotel Employer Reviews on the Internet,” by Santiago Melián-González and Jacques Bulchand-Gidumal in the International Journal of Hospitality Management.