reputation management
Develop a trustworthy online presence through managing reviews on your business.
Reviews Have an Observable Effect on Revenue
IT’s ALL ABOUT CREDIBILITY
One study published on Harvard Business Review found that for every one-star increase a brand gets on Yelp, that business sees a 5-9% increase in revenue.
A closer look at the study reveals even more important information. For starters, this effect was observed in independent restaurants. Ratings don’t affect chain restaurants.
Consumers are also more responsive to Yelp ratings if they contain more reviews, suggesting that the more detailed a review is, the more trustworthy it is.’
Consumers Are Influenced by Both Positive & Negative Reviews
According to a 2016 report by PowerReviews, 82% of shoppers specifically seek out negative reviews. But, the reasons might surprise you.
Accompanying research by social commerce specialist Revoo indicates that consumers spend five times as long on a site when they interact with negative reviews, with a 85% increase in conversion rate.
This aligned with other data that was reviewed. A near-perfect rating is less credible and leads to consumer skepticism if reviews are too positive.
91% of Young Consumers Trust Reviews
Capture the next generation
BrightLocal’s local consumer survey shows that 91% of consumers between the age of 18 to 34 are big believers of online reviews, trusting them as much as personal recommendations.
A closer look at the data, however, shows that this finding is more nuanced than it appears to be. For example, only 39% of young consumers always trust online reviews.
Meanwhile, 24% of respondents yes, but only if they believe the reviews are real. Another 20% said that they trust a review if it’s backed several other reviews.
Interestingly, only 8% said they’re conscious about the type of business when looking at reviews.
Three Stars Is the Magic Number
Synup’s recent State of Retail report analyzed 5 major retailers across 560 locations, and surveyed 837 consumer and 288 business executives to better understand how they find, trust, and choose retail brands.
They found 82% of shoppers won’t choose a retailer with less than 3 stars. So, while negative reviews can be helpful for discerning shoppers, too many and your risk losing business altogether.
The More Reviews,
the Better
Consumer Trust Is Built Through Quantity
BrightLocal’s research also found that, on average, consumers require a business to have 40 online reviews before they believe its average star rating.
This is up from 34 in 2017, which may suggest higher expectations among consumers when it comes to the veracity of reviews.
This is good news for new businesses, as it means that a few bad reviews are unlikely to dissuade consumers, provided they don’t derail your average star rating or score.
Most Consumers Don’t Trust Advertising
While online reviews are seeing a rise in consumer trust, the same can’t be said for traditional advertising.
According to Edelman’s Trust Barometer, fewer people are trusting advertising, with 3 in 4 consumers saying that they avoid advertising altogether.
If anything, this finding is a sign of the times. People are tired of ads being pushed on their faces, especially ads that believe the truth of the quality of the products and services they get from brands.
A Few Reviews Are Still Better Than None
Reviews impact the likelihood of a purchase
Research by the Spiegel Research Center reveals that the likelihood of a product getting purchased increases by 270% when it gets five reviews.
After a certain point, however, the number of reviews no longer translates to a higher likelihood of a purchase; the same study found that reviews have a much larger effect on purchase likelihood when it comes to more expensive items.
When reviews are displayed for higher-priced products, their conversion rate increased by 380%. In contrast, reviews shown for lower-priced products increased by 190%.
These findings are hardly surprising: the more money consumers have to spend on an item, the more likely they’re going to care about what people have to say about it.
Reviews Are Just as Important
Among Jobseekers
If you thought consumers were the only ones concerned about reviews, think again. A study published on Harvard Business Review found that employers with a bad reputation ended up spending 10% more per hire.
As competition for talent in certain industries gets tougher, companies will have no choice but to be more conscious about their employer brand if they wish to attract top talent.
The Average Business on Google Has
39 Reviews
The Google Standard
BrightLocal’s Google Reviews Study shows that the average local business that appears on Google has 39 reviews. This number, however, varies greatly between industries.
For example, among hotels, the average number is 309 reviews. This is followed by restaurants, at 220 reviews. Niche services, like legal, accounting, and construction, see much less, at 11, 7, and 3 reviews, respectively.
Recency & Consistency are Important to Travelers
The results of a TripAdvisor study uncovered the significance of reviews’ influence on booking decisions. 78% of respondents focus on the most recent reviews by fellow travellers.
Despite this focus recency, 39% of respondents say they ignore extreme comments reading, on average, nine reviews before making a decision on booking a hotel or a restaurant.
Shoppers Trust Text Over Images & Video
Despite the popularity of including photos in reviews, 43% of shoppers still say that text-based reviews influence their purchase decisions most vs. photos (33%) and video (24%).
Most People Do Not Leave Reviews
Despite their impact on purchase decisions, most people do not leave product reviews on a regular basis. In fact, according to Pew Research Center, a full 38% “never” leave reviews on products and services.
Even more surprising, despite all the social pics of what they are eating, 48% of customers do not leave reviews for restaurants. Only about 10 percent “always” or “almost always” leave reviews on products and services.
This reinforces how important it is to ask and encourage consumers to leave reviews on your products in order to pick up the momentum you need.
Elevate Your Business with Expert Review Management
Unlock the power of reputation management with our expert services today. From leveraging the impact of quantity to maximizing credibility, we specialize in helping businesses navigate the digital landscape.
We ensure your brand shines in the vast online arena, securing its place as a trusted authority.
What’s the Cost?
Invest in your business and reputation for just $36 a month—it’s a steal! We bill annually, but you can cancel anytime and retain access for the remaining period. Trust us, this will be the best $432 you invest this year!