Short answer? Yes, they do.
A lot has been said about the power of online reviews. You may even have read a couple of our articles about the same.
The fact is that customer reviews pack way more punch than some business owners are willing to give it credit for.
If you belong to that class, this article is for you. Here we have put together reports from several studies. They detail the findings about how online reviews impact local businesses.
To help this article make sense, we have categorized them into sub-topics. Each sub-topic covers an aspect of customer reviews and will help you better understand why reviews are important.
Let’s dive right into it…
Do Customers Read Online Reviews?
- Almost 95% of customers search for and read reviews before buying anything. (Spiegel Research Centre)
- 93% of local customers use online reviews to judge the credibility of local businesses. (Bright Local)
- 72% of customers will not make a purchasing decision until they have read online. (Testimonial Engine)
How Do Online Reviews Impact Businesses?
- Displaying customer reviews on your site or social media page can increase your conversion rates by 270%. (Spiegel Research Center)
- 97% of customers affirm that online reviews influence their buying decisions. (Fan and Fuel)
- 88% of consumers are influenced in their purchasing decision by online reviews. (Zendesk)
- Having five reviews results increases likelihood of purchase by a factor of almost four times. (Spiegel Research Center)
- If customers are presented with two products having similar ratings, consumers are more likely to purchase the product that has more reviews. (Psychological Science)
How Do Online Reviews Impact Customers?
- 85% of consumers rely on online reviews as much as personal recommendations from friends/family. (Bright Local)
- 73% of buyers trust a local brand more after reading positive online reviews. (Bright Local)
- 54% of shoppers will only visit a local business’s website after reading a positive online review. (Bright Local)
- 68% of shoppers will either search for information about the reviewer’s experience, or problems the reviewer experienced with the brand. (Fan and Fuel)
Why Should You Respond To Customer Reviews?
- Failing to reply reviews can cause an increase in customer churn by as much as 15% i.e. customers ceasing purchasing from or visiting a brand. (Chatmeter)
- 70% customers changed their view about a business after the company replied to an online review. (Bazaarvoice via Marketing Charts)
- 53% of shoppers expect brands to respond to their reviews within 7 days. (Review Trackers)
- 41% of customers affirm that they feel a brand cares about their customers when they reply to their reviews. (Bazaarvoice)
Which Online Review Platform Is The Best?
- A recent online reviews survey found that Google is currently the review site of choice for many brands and customers. (Review Trackers)
- 60% of consumers now visit Google for customer reviews before reaching out to the business. (Review Trackers)
- Recent studies show that Google dominates almost 60% of all online reviews. Plus, reviewers are more likely to write reviews on Google than on other platforms. (Review Trackers)
- With Google taking over the review space, customers today are most likely to search for local brands, find information about the brand, and visit them all without leaving Google listing. At the moment, it is more important than ever for brands to understand how that works. And to keep an eye on their local search and rating on Google.
Seeing all these reports, it is pretty difficult – or even foolhardy – to ignore the power of online reviews. They prove beyond reasonable doubt that reviews can turn things around in sales. Therefore, every smart business person should spend time collecting customer reviews.
One major benefits of actively collecting customer review is that it improves your conversion rates. Consequently, you will produce better marketing result and increase your ROI.POSTED ON January 14, 2020