Responding to customer reviews on Google is essential for several reasons. First, it demonstrates that your business values its customers and their feedback. This can build trust and foster a positive relationship with your customer base. When you respond promptly and appropriately to reviews, both positive and negative, it shows potential customers your commitment to customer service.

Second, it’s an opportunity to improve. Negative reviews, while challenging to receive, can give you valuable insight into where your business could improve. Responding to these can show a willingness to learn and adapt, which is a positive signal to future customers.

Lastly, it could improve your online visibility. Google's algorithm tends to favor businesses that interact with their customers, hence replying to reviews could help boost your SEO ranking. In a competitive online market, this could make a substantial difference in your business visibility and credibility.