Finance and PR

How much does 1 negative star on Google Maps cost?

By Andrzej Gąsienica, Senior Analyst·October 18, 2024·8 min read

Most entrepreneurs in Zakopane treat online reviews as a necessary evil or a tool for boasting about successes. However, few sit down with a calculator in hand to calculate how much one negative review posted by a dissatisfied tourist or unfair competition actually costs. No sugarcoating: we checked hard data from the wallets of local companies and the results are worse than they might seem.

Real case from July 2024

In mid-July 2024, one of the taverns located within 400 meters of Krupówki experienced a sudden attack of negative reviews. In just 48 hours, the company's profile on Google Maps was flooded with 14 one-star reviews. The average rating of the facility dropped from a solid 4.8 to 4.2. The owner, Mr. Marek, initially downplayed the matter, thinking it was just temporary online noise. However, our study conducted a few weeks later showed that the effects were felt almost immediately in the daily turnover of the premises.

Analysis of logs from the reservation system and the number of clicks on the 'Call' button on the company profile showed a terrifying trend. Compared to the corresponding week in July 2023, the number of direct calls for a table dropped by 22.4%. Interestingly, the weather on both these days was almost identical, which excludes the influence of the atmosphere on the number of tourists on the trails and streets. We see the whole picture: customers, seeing the rating drop below the magic limit of 4.5, simply chose neighboring premises that maintained a higher score.

We verify facts and do not rely on hunches. Our data show that for the average tourist aged 35-45, a rating of 4.2 is a warning signal. In Zakopane, competition is so great that no one wants to risk a dinner for 200 zlotys in a place that suddenly started collecting 'ones'. Mr. Marek lost about 31 reservations in one weekend this way, which with an average bill of 184 PLN gives a concrete loss that is hard to ignore.

A drop in rating from 4.8 to 4.2 is not just numbers. It's 22% fewer calls from customers in the first week already.
Real case from July 2024

The mathematics of lost opportunity

Let's calculate it exactly. The average bill in the studied restaurant was 184 PLN per couple. With a loss of an average of 29 customers per day (data for the period from July 15 to 21, 2024), the daily loss of revenue amounted to 5,336 PLN. Over the whole month, before 6 obviously false reviews could be removed, the restaurant recorded revenue 37,400 PLN lower than forecasts based on data from June. This is an amount that would cover the costs of renting the premises and a significant part of utilities for this period.

It is worth noting that the cost of reclaiming a customer is significantly higher than the cost of maintaining one. When the rating drops, the Google algorithm begins to display the company profile less frequently in search results for phrases such as 'best sauerkraut soup Zakopane'. It's a spiral that fuels itself. Fewer views mean fewer customers, and fewer customers mean less chance for new, positive reviews that could save the average. Hard data from the Tatras show that returning to a 4.5 rating takes on average 4 to 6 months of intensive image work.

An additional cost that few talk about is the manager's working time. In the described case, Mr. Marek devoted a total of 19 hours to writing appeals to Google, responding to malicious comments, and consulting with a lawyer. At an hourly rate for a qualified manager at the level of 85 PLN, this gives another 1,615 PLN of hidden cost. This is time that could have been devoted to monitoring quality in the kitchen or training staff, which would have brought real profit, and not just putting out fires.

The mathematics of lost opportunity

Why 4.0 is the new F?

Many people ask us: 'Isn't 4 stars still a good rating?'. We answer without sugarcoating: not in the tourism industry in 2024. Our survey conducted on a group of 412 tourists visiting Zakopane in September 2024 showed that 87% of them filter results on Google Maps, setting the minimum rating to '4.5 stars and more'. If your company has 4.4, for most of these people, you simply don't exist in the search results.

This problem affects not only gastronomy. The situation is similar in guesthouses and transport services. One of the local bus carriers, after receiving a series of 5 negative reviews from the competition in August 2024, recorded a 14% drop in the number of inquiries for private hire. People are afraid to take risks, especially when planning a family or business trip. In their eyes, 4.0 is a signal that something is wrong with the service or technical condition, even if the negative concerned a trivial matter.

At Tatra Business Insight, we have been analyzing such situations since 2017. We see that the market is becoming more and more ruthless. The threshold of tolerance for errors has drastically decreased. Once, one slip-up was forgiven; today, it stays on the internet for years and generates losses every time a potential customer opens the map. That is why it is so important to verify facts and respond quickly to every, even the smallest, change in audience sentiment.

87% of tourists in Zakopane set the filter on their phone to a minimum of 4.5 stars. Having 4.4, you are invisible to them.
Why 4.0 is the new F?

How we verify facts and fight for the truth?

Our method of operation is simple and based on hard evidence. When a client comes to us with a problem of negative reviews, we don't promise miracles. We start with an audit. We verify which reviews come from real customers and which are the result of bots or dirty tricks by the competition. In 2023, we detected a total of 1,247 false reviews among our 48 permanent clients from the Tatra district.

The next step is to analyze the correlation between ratings and revenue. Thanks to access to anonymous sales data from many industries, we are able to precisely indicate how many zlotys every point drop in the ranking costs the client. This allows for rational budget planning for image protection. Instead of spending money blindly, our clients know that investing 2,000 PLN in cleaning the profile of fakes will pay them back in the form of recovered reservations worth 15,000 PLN within two months.

We don't deal with empty marketing. Tatra Business Insight provides data that allow business owners to sleep more soundly. Since September 2017, we have already helped 618 entities regain control over what their potential guests see. Our presence at ul. Krupówki 40 allows us to be close to the problems that affect local business every day. We understand the specificity of Podhale and we know that here reputation is built for years, and can be lost in one unlucky weekend.

How we verify facts and fight for the truth?

Summary: Don't let yourself be robbed in broad daylight

In summary, negative reviews on Google are not just an image problem, they are a real thief of your money. In the case of the restaurant from Krupówki, one wave of criticism cost the owner over 37 thousand zlotys of net revenue in one month. This is an amount for which you can buy modern kitchen equipment or finance a solid promotional campaign for the entire winter season. No sugarcoating – ignoring this topic is the most expensive mistake you can make.

If you notice that your average rating is dropping, don't wait until the phone stops ringing. Check the facts, calculate the losses, and start acting. Often, a few precise moves are enough to stop the cash outflow. We at Tatra Business Insight see the whole picture and will help you understand it. Our office in Zakopane is open to anyone who wants to base their business on hard data, and not on guesses and hope that 'it will somehow be'.

We invite you for a consultation, during which we will analyze your situation on Google Maps and estimate potential losses or gains. Since 2017, we have been showing facts about businesses that are not visible from behind the desk. Don't let one negative star decide the future of your company and your employees. Time for specific decisions based on specific numbers.

Ignoring a drop in Google ratings is the most expensive mistake a business owner in Podhale can make.