Responding to reviews matters twice. Google treats an actively managed profile as a signal, and the customers comparing you treat it as one too. A reply to every review is the cheapest proof available that you show up.
The part most owners get wrong is the bad review, and it is usually a timing problem: it sits unanswered for three weeks, then gets a defensive reply written in a bad mood. With the draft ready the hour it lands, it gets the response it should get, and the exchange often ends up working in your favour with the only audience that matters: the person reading it next.
