BrightLocal's annual Local Consumer Review Survey has tracked the same pattern for a decade: consumers read reviews before buying, and they weight recent reviews more than old ones. Google Local favors businesses that respond, Yelp favors businesses that respond, and so do the category-specific platforms (OpenTable, Healthgrades, Avvo, Houzz).
The second cost is that unanswered negative reviews compound. Every week that a two-star sits unanswered is a week of new customers reading it as representative. A thoughtful response, even a short one, reframes the review for every future reader. Research from Harvard Business Review found that responding to negative reviews materially raised subsequent ratings on the same platform.
The third cost is asking. Most small businesses have a review-asking strategy that is 'we ask when we remember'. Systematic asking (right moment, right customer, right channel) produces a 3 to 10x more reviews than ad hoc asking. The compounding over a year is the difference between 40 reviews and 400.