Customer feedback vs paid ads: What works best for small businesses?

If you’re a local business owner, chances are you’ve felt the squeeze: ad budgets rising, results shrinking, and a growing sense that you’re shouting into the void. You're not alone.

More and more small businesses across New Zealand and Australia are starting to rethink their approach. And one truth is becoming clear: customer feedback is doing what paid ads often can’t.

At betterbunch, we’ve seen it first-hand. Many of our customers have cut back on their paid advertising, not because they had to, but because they realised they didn’t need to spend big to grow.

Instead, they started focusing on what really works: building trust through genuine customer feedback and reviews.

Let’s break down why that shift makes so much sense and how it could work for your business, too.

Why prioritise customer feedback over paid advertising?

The marketing landscape is changing fast.

Small businesses once relied heavily on paid ads to drive traffic and gain online visibility. But lately, things have changed.

Ad costs are up, click-through rates are down, and customers are tuning out anything that looks like a sales pitch.

People want real. And they want to hear it from others, not from you.

That’s where feedback and reviews step in. They’re trusted, relatable, and ongoing, unlike a short-term ad campaign that disappears once the budget runs out.

Customer feedback is your best salesperson

Think about the last time you hired a tradie, booked a table at a new café, or bought something online. Did you check the reviews first?

Exactly.

Reviews are no longer just a “nice to have”; they're the first impression your business makes online.

In fact, 9 out of 10 consumers say they trust online reviews as much as personal recommendations. And when those reviews are consistently positive and recent, they can drive more action than any flashy ad.

We’ve had plenty of betterbunch customers say something like:

“Since using betterbunch, we’ve cut our Google Ads spend in half, because the reviews are doing all the legwork.

That’s the power of real feedback. It doesn’t just build trust, it sells.

Better search visibility

Here’s a bonus: Google loves fresh, relevant content. And guess what reviews and feedback are?

Fresh. Relevant. Content.

When a customer leaves a Google review, it often includes keywords without even trying: your business name, your services, the results they got, and how they felt about it.

That’s exactly the kind of language Google is now prioritising with its latest Deep Search update.

What is Google Deep Search? Google’s latest update prioritises helpful, human-first content. Reviews are now seen as valuable insights, not just ratings, which helps businesses rank higher when customers search in natural language.

Real feedback = Real business insights

It’s not just about attracting new customers either. The feedback you collect is full of gold.

You’ll start to notice patterns:

• What people love most about your service
• What needs improving
• What makes you stand out

Real feedback = Real business insights

To be clear: paid advertising can be useful. But it shouldn’t be your only strategy, especially if you’re a local business trying to get the most out of your budget.

Here’s the truth:

• Ads are temporary. Reviews are permanent.
• Ads feel salesy. Reviews feel trustworthy.
• Ads need constant funding. Reviews build momentum.

What betterbunch customers are doing differently

We’ve worked with hundreds of businesses, from plumbers to physios, mechanics to optometrists, and a pattern has emerged.

Before betterbunch:

• High ad spend
• Few reviews
• Limited online presence

After betterbunch:

• Consistent feedback
• More Google reviews
• Higher visibility, better conversion, and less reliance on ads

Our software helps you automate the feedback and review process so it runs in the background, bringing in results while you focus on running your business.

How to start prioritising customer feedback

Here’s how to get started:

• Ask at the right time: when the customer’s happy, not weeks later. Check out this article that details the best time to ask for feedback.
• Be consistent: don’t just ask once, build it into your process.
• Make it easy: remove friction with links or QR codes

Top tip: Use a tool like betterbunch! We help you automate and manage feedback and reviews without lifting a finger. Our ready-to-print materials (posters, flyers, cards, stickers, and more), called Shareables, make it easy for your customers to leave feedback and reviews.

You don’t need to beg for feedback or reviews. You just need the right system in place.

Final thoughts

Your customers are already your biggest asset. Their words build trust, boost your search rankings, and bring in new leads, all without burning through your marketing budget.

If you're spending thousands trying to get noticed, but ignoring the people who already love your business, you're missing a massive opportunity.

Start with feedback. Build your reputation. Let your customers do the talking.

Want to see how betterbunch can help?

Let’s chat about how we can turn your feedback into fuel for your business. Book an obligation-free chat with one of our experts.