How is this for a contradiction?
On the one hand, most small business owners report that they spend less than two hours per week on marketing. On the other hand, the same owners believe that generating new business is the biggest obstacle to success.
If business owners are only going to spend two hours on marketing each week, there is a strong case to be made for focusing a fair chunk of that time on online ratings and reviews. To prove it, here are 37 statistics that show how building positive ratings and reviews online is one of the most effective ways to spend your marketing time.
37 Online Ratings & Reviews Statistics
When learning about a new product, 60% of customers say they trust the reviews that come from friends, family and other customers.
About 95% of customers read reviews before making a purchase.
Purchase likelihood increases by 15% when buyers read verified reviews over anonymous reviews.
When a product gets five reviews, the likelihood of it being purchased increases by 270%.
When higher-priced items display reviews, the conversion rate increases by 380%.
Customers require a business to have at least 40 online reviews before they believe its average star rating.
Reviews account for about 15% of the method Google uses to rank local businesses.
Businesses that claim their free listings on at least four review sites earn an average of 46% more revenue.
Customers spend 31% more when a business has positive reviews.
About 50% of consumers need to see at least a 4-star rating to consider a business.
For every one star increase that a business gets on Yelp, they see a 5-9% increase in revenue.
93% of customers will read reviews of local businesses to determine its quality.
91% of customers from the ages of 18 to 34 trust online reviews just as much as personal recommendations.
About 85% of consumers consider any review older than three months to be irrelevant.
The likelihood of purchase peaks at a star rating of 4.0 to 4.7, then decreases as the rating gets closer to 5.0.
73% of customers place more value on the written review, rather than the star rating.
Given two products with similar ratings, consumers are more likely to buy the product with more reviews.
If a business has more than 9 current reviews, they earn 52% more revenue than the average.
If a business has more than 25 current reviews, they earn 108% more revenue than the average.
On average, 19% of reviews a business receives are negative.
82% of customers actively seek out negative reviews.
Negative reviews can stop an average of 40% of buyers from wanting to buy from a business.
72% of B2B buyers say negative reviews give depth and insight into a product.
40% of B2B buyers say negative reviews help build credibility for a product.
95% of customers get suspicious of a rating if there are no negative reviews.
75% of businesses don’t even respond to their reviews.
Businesses that respond to just one customer review earn 4% more revenue on average.
When a business replies to at least 25% of their online customer reviews, on average, they earn 35% more revenue.
89% of consumers read replies to reviews.
Seven out of 10 consumers changed their opinion about a brand after the company replied to a review.
People spend around 49% more money at businesses that respond to their customer reviews.
53% of customers expect a business to reply to their online review within seven days.
41% of customers say that when brands reply to their online reviews, it makes them feel the company really cares about their customers.
The risk of customer churn increases by 15% when businesses don't reply to customer reviews.
83% of people think a business with a user-generated review on their landing page is trustworthy.
68% of consumers have left a review for a local business after being asked to do so.
Up to 80% of reviews originate from follow-up emails urging shoppers to review their purchases.
I hope these stats helped you understand the importance of online ratings and reviews to your business.
Going further, I think these statistics highlight some areas of opportunity for most business owners. For example, spending time on amassing customer ratings and making sure that you respond to customer reviews, both good and bad.
Before you go...
We all know that small business is about doing the little things right.
The little optimisations, the high-impact tweaks and the 1% gains you can make to your business to make it a little better, a little more profitable and even a little bit more pleasant to run.
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