The Review Ecosystem is Converging
The above diagram was put together by the folks at LocalVisibilitySystem in 2012. Since then, the review ecosystem has only gotten more complex. Today, both company & product reviews are being syndicated across 100’s of platforms – all impacting a business’s online reputation & search engine rankings. When handled right, a single positive review can go a long way. At the same time, an un-moderated negative review, can cause irreparable damage. Reviews don’t come with an expiration date. They have the potential to last forever.
Online reviews are considerably more significant than you may think.
Your business supplies products & service to your clients, and those customers push their experience of it to the world via an online channel, generally online reviews. These opinions bring about the digital reputation of each company. Small business customers need to be collecting reviews now more than ever. Apart from building consumer confidence and aiding with SEO, Google’s markup of the organization or product in search results are now heavily impacted by user ratings & reviews.
More than 88% of online buyers consider ratings & reviews into their purchase decision.
Positive vs Negative Reviews
Whenever a business supplies a product or service, the consumer is either satisfied or disappointed. In the digital world, consumers typically take their experience directly to the internet. In the event the consumer conveys a positive experience, the review may be syndicated online and shared across social media to motivate others. However when the report is unfavorable, businesses must react swiftly. This must be done for the sake of buyer who left the review, as well as all future consumers reading the reviews (forevermore). It’s always a great feeling to see good reviews of your business, but unfavorable critiques should be considered an opportunity for your organization improve.
50 stats that show the importance of online reviews
- 92% of consumers now read online reviews vs. 88% in 2014
- 40% of consumers form an opinion by reading just one to three reviews vs. 29% in 2014
- Star rating is the number one factor used by consumers to judge a business
- 44% say a review must be written within one month to be relevant.This highlights the importance of recency in reviews!
- 68% say positive reviews make them trust a local business more vs. 72% in 2014
- 43% of consumers search a business by reviews at least one time per month vs. 38% in 2014
- 60% of consumers have searched a business at least six times per year vs. 56% in 2014
- There has been a considerable decrease in those that “never” search for a local business online, down from 22% to 9%, and an increase in those that search for a local business every day, up from 7% to 14%
- 73% have read online reviews on a desktop
- 38% have read online reviews on mobile internet vs 24% on a mobile app
- 29% have read reviews on a tablet
- 33% believe all local businesses should have websites designed for mobile vs. 25% in 2013
- 61% are more likely to contact a local business if they have a mobile optimized site
- 40% of consumers form an opinion by reading one to three reviews, vs. 29% in 2014
- 73% of consumers form an opinion by reading up to six reviews ,vs. 64% in 2014
- 88% of consumers form an opinion by reading up to ten reviews vs. 84% in 2014. This means it’s important to have a large body of reviews, as customers are reading more reviews now than in all years past.
- Only 12% are prepared to read more than 10 reviews vs. 16% in 2014
- 26% of consumers say it’s important that a local business responds to its reviews
- Only 14% of consumers would consider using a business with a one or two star rating
- 57% of consumers would use a business with a three star rating
- 94% of consumers would use a business with a four star rating
- 51% of consumers will select a local business if it has positive reviews
- 80% trust reviews as much as personal recommendations, vs. 83% in 2014
- 48% will visit a company’s website after reading positive reviews
- 23% will visit the business premises directly after reading positive reviews
- 9% of consumers will phone a business after reading positive reviews
- 95% of consumers suspect censorship or faked reviews when they don’t see bad scores
- Reliability (27%), expertise (21%) and professionalism (18%) remain the most important attributes to consumers
- More consumers are interested in “good value” than before, while less are concerned about the “expertise” of a business
- Word of mouth is still the most popular method of recommendation for consumers despite a 2% drop year over year
- On average, a consumer will look at over 10 information sources before making a purchase
- Over half of young people aged 18 to 34 say they trust online reviews more than the opinions of friends and family
- 88% of online shoppers incorporate reviews into their purchase decision
- Consumers who read reviews on a smartphone are 127% more likely to buy than those who read reviews on desktops
- Reviews are especially important for local searches as they influence up to 10% of the ranking
- Only reviews from friends and family are trusted more than online review. Reviews from experts and celebrity endorsements are less trusted than online reviews
- 30% of consumers assume online reviews are fake if there are no negative reviews
- The three online platforms dedicated to reviews with the most global traffic are: yelp, tripadvisor, foursquare
- 58% of consumers said they have recently (within the past five years) began leaving more and more online reviews based upon customer service
- 100% of customers who make over $150,000 annually claim to leave reviews when it comes to a poor customer service experience
- Reviews of 50 or more, per product can mean a 4.6% increase in conversion rates
- 63% of customers are more likely to make a purchase from a site which has user reviews
- 105% customers are more likely to purchase while visiting, when site visitors interact with reviews and customer questions and answers, and spend 11% more than visitors who don’t interact
- Reviews produce an average of 18% uplift in sales
- 64% of consumers would read online reviews when purchasing technology items
- 68% of consumers trust reviews more when they see both good and bad scores
- Between one and three bad online reviews would be enough to deter the majority (67%) of shoppers from purchasing a product or service
- 86% of people will hesitate to purchase from a business that has negative online reviews
- Number of reviews posted every minute by Yelp users is 26,380
- If a business resolve its issue quickly and efficiently, 95% of unhappy customers returns back to your business