Latest Online Reviews Statistics in 2024 – The Impact on Business

Let me ask you a question.

What fuels your business’s growth?

The answer is simple – your clients.

So, to make your company better, you should listen to their opinions.

As Dalai Lama once said – “When you listen, you learn something new.”

Today, the best way to listen to your clients is to read their reviews of your business, products, and services.

That’s why I’ve compiled a list of astonishing online reviews statistics – to help you improve your business and see why online reviews matter.

Ready?

Let’s jump right in.

Eye-Opening Online Reviews Statistics

First off, let’s back up the importance of the topic with some staggering online review stats to get the show on the road.

• 97% of people read reviews of local businesses.
• 90% of buyers read online reviews to decide on a product’s purchase.
• Almost half (49%) of users think the quantity of reviews matters. Back in 2016, that figure was 35%.
• When searching for a local business, 60% of customers check Google My Business for reviews.
• 78% of people trust online reviews as much as a recommendation from a friend or a family member.
• A study shows that online reviews influence 67.7% of purchasing decisions.
• 92% of B2B customers are more likely to buy after reading a trusted review.
• 85% of consumers believe online reviews older than three months are irrelevant.

So you can see online reviews matter. After all, it’s the customers who judge your business, so their opinion is of the utmost importance for your company.

Now let’s get back to the online review statistics to understand why they have such power.

Online Reviews Statistics and Facts for 2022

Before we analyze more deeply how online reviews impact the bottom line, get a taste with this savoury infographic:

Before we jump into more online reviews statistics in 2022, lets’s answer some of the pressing questions:

How many people look at online reviews?

• As of June 2020, 57% of US shoppers agree that “customer reviews on the Internet are very helpful”.
• In 2019, US online shoppers expect 112 online reviews on average before making a buying decision.

How do online reviews influence sales?

• A “verified buyers badge” increases the likelihood of purchase by 15%.
• About 7% of online users in the US reach out to blogs and podcasts when searching for more information about a product.

Coming up next is the complete list of up-to-date online reviews stats and facts. I selected them carefully and double-checked each one of them so that you could get the answers you were searching for.

The Importance of Online Reviews

In a nutshell – reviews are essential to how people look at your business and products/services. They can boost your SEO and guide potential customers to your business, instead of to your competitors’.

1. Consumers read an average of 10 reviews before they feel they can trust a business

(Source: Bright Local)

• Products with 5 reviews have a purchase likelihood of greater than 270% when compared with products with no reviews.
• Businesses ranking at 1 to 3 positions of Google’s local search engine have an average of 47 reviews.
• 60% of consumers consult social media and blog reviews on their mobile devices before shopping.
• 72% of customers will not buy anything until they read some reviews.

Even though a lot of customers dismiss making reviews, online reviews impact is large and widespread for a business. Positive reviews have the potential to increase business leads and conversions, helping it to grow its profit.

2. Only 6% of customers don’t trust other shoppers’ reviews at all.

(Source: Statista)

• 73% of users cite written reviews as more important than star and number ratings.
• 70% of consumers trust online reviews and articles more than advertisements when they want information about a business.
• Online reviews represent 10.3% of Google’s algorithm for page ranking.
• Two-thirds of Americans trust anonymous reviews more than a recommendation from their ex-girlfriend/boyfriend.
• 57% of online shoppers expect a business to have at least 11 consumer reviews.
• Nearly half (49%) of consumers believe the quantity of customer reviews is essential. Back in 2016, only 35% cared about the number of reviews.

3. The influence of online reviews – 90% of consumers check people reviews to decide whether to buy a product or not.

(Source: Marketing Land)

• 83% of shoppers don’t trust advertisements, but they trust online customer reviews.
• According to online reviews statistics, positive reviews encourage 68% of consumers to trust a local business.
• 72% of consumers read online reviews before engaging with a company.

Let’s be blunt – people don’t trust your business right from the start. However, they do trust their peers. That’s why other customers’ opinions are vital for your potential ones.

4. Online reviews as a touchpoint in the customer journey – 50% of millennials “always” read reviews of businesses by consumers.

(Source: BrightLocal)

• Almost all online shoppers who read online reviews do so early in the buying process.
• Less than 10 reviews are enough for 90% of users to form an opinion about a company.
• 85% of consumers define online reviews older than three months as irrelevant.
• Online reviews are “very important” to 67% of consumers when they search for a solution provider.

Consumer reviews can map your visitors’ customer journey better than anything else. They can even turn away a potential client. Still, they can achieve the opposite effect as well – to show that your business is trustworthy and attract new customers.

5. Mobile users and online reviews statistics – 89% of customers read reviews on smartphones.

(Source: Statista)

• 60% of mobile users turn to blogs and social media for consumer reviews before buying a product.
• Users have watched over 50,000 years of YouTube video reviews on their mobile devices for the last two years.
• Reading reviews on mobile devices increases the likelihood of a purchase by 127%, compared to reading on a PC.
• 93% of people who start their research on a mobile device end up purchasing the product or service.

For your business to be profitable and respected, you need to have a stable and positive online presence. Don’t be satisfied with positive reviews on business review sites alone. Go for it all – blogs, social media, YouTube, and niche review sites. Your mobile customers will appreciate it. So will you. You never know which way people will use to purchase goods/services from your website.

In case you are curious about the effects of social media and YouTube on your business, we have some outstanding stats to show you.

Online Reputation Statistics

6. How online reviews influence trust and online reputation management – 88% of executives believe reputation risk is the #1 business issue.

(Source: Deloitte)

• 78% of consumers trust online reviews as much as recommendations from friends and family members.
• How many people rely on online reviews? – 70% of all users need to read at least four reviews before trusting a business.
• According to online reviews stats for 2019, 15% of users don’t trust companies without reviews.
• People trust customer reviews of products 12 times more than the manufacturer’s description.
• 91% of companies say their online business ratings play a vital role when hiring or losing a potential employee.

Clients’ trust builds your reputation. For people to do business with you, they need to know you are reliable. So make sure you provide your clients with the best possible user experience. That’s the only way to gain a stellar reputation.

7. How online reviews affect user experience – 86% of customers quit doing business with a company because of bad user experience.

(Source: Oracle)

• More than half of US shoppers (53%) considered online ratings and reviews the most influential factor of their online shopping experience in 2018.
• One disappointed customer will share their negative experience with 9-15 people.
• 64% of US consumers say online reviews and comments improve their shopping experience.

These online reviews stats hint at something simple – make your clients happy. Be scrupulous with your customers, and they’ll repay you with trustworthy reviews. That way, not only you won’t lose clients but on the contrary – you’ll get more. But how helpful do you think fake online reviews are?

Positive vs Negative Reviews

8. 94% of people say bad online reviews have convinced them not to buy from a business

(Source: Review Trackers)

• Among customers who read reviews, 97% read responses to negative reviews.
• Research shows that negative reviews cost a business 10% more per hire.

(Source: Harvard Business Review)

Even though a few negative reviews are important for a business as they give it a genuine feel, on the whole, negative reviews can have devastating consequences for your business. That can cost you tens of thousands of dollars or even more in revenue and other expenses.

9. A 1-star increase in Yelp rating can result in an increase of 5% to 9% in revenue

(Source: Harvard Business School)

• A single business review can improve conversion by 10%.
• A hundred reviews can raise your conversion by 37%.
• Customers will spend 31% more on businesses with excellent reviews.
• 92% of B2B buyers will make a purchase decision after reading a trusted review.

As you can see, positive reviews value is such that it can be miraculous when it comes to conversion — and why not? The more reviews there are of describing a company in positive terms, the more people will trust it and be willing to pay for its products.

10. Negative reviews and their effects on businesses – 82% of consumers specifically search for negative reviews.

(Source: Spiegel Research Center)

• More than half (57%) of customers wouldn’t consider using a business if it has a consumer rating lower than 4 out of 5 stars.
• A single negative consumer review of a business is enough for 35% of people to decide not to buy from that company.
• According to online reviews stats, you need about 40 positive reviews to undo the damage of a single negative one.
• More than four negative reviews can decrease a company’s sales by 70%.
• Negative reviews influence the buying decision of 86% of consumers.

As you can see, negative reviews aren’t necessarily bad for your business. There is such a thing as too good to be true. Sure, no business owner likes negative reviews, but their absence makes all other reviews look paid for or fake. Plus, you can use the feedback from unhappy customers to improve your services.

11. Why replying to customer reviews matters – 89% of consumers read companies’ responses.

(Source: BrightLocal)

• Businesses which respond to online reviews increase the trust in their brand of 30% of their customers.
• 53% of customers believe a company should respond to a negative review within a week.
• Companies responding to their clients gain 12% growth in the number of reviews for their business. Not only that, but their Google review stars go up by 0.12.
• When companies email their clients a direct link to submit a review, their Google ratings improve.

So far, it’s clear as day that online reviews matter. Still, don’t leave your customers hanging.

Interact with them.

Show that you care.

Appreciate them.

The Impact of Online Reviews

12. The direct link between online reviews and conversion rates – a single review can increase conversions by 10%.

(Source: RevLocal)

• Online review statistics show reviews of a product increase its conversion rate by 270%.
• Combining positive and negative reviews can increase conversion rates by 85%.
• People are four times more likely to buy a product with at least five reviews.
• Consumers spend four times more time on a site and convert better when they read negative reviews.
• Higher-priced items convert better by 380% when they have reviews. Cheaper products’ reviews result in 190% increment in conversion rates.

There you have it – the specific benefits of having reviews. They can increase your sales, thus profits. Now, let’s break down the above online reviews statistics into more details.

13. The impact of online reviews on sales – online reviews influence 67.7% of the purchase decision.

(Source: Moz)

• 81% of people are willing to wait longer (shipping time) for a product with reviews.
• The same figure – 81% would pay more for a product with reviews.
• Best-sellers have an average of 4.2-4.7 stars rating. Consumers consider five stars “too good to be true.”
• Reviews written by verified shoppers increase the customers’ likelihood of a purchase by 15%.
• Online shoppers expect an average of 112 product reviews when they search for it online.

What have you learned from these stats?

Quality and quantity of reviews have a significant impact on your visitors in terms of sales. You can even make a more considerable profit from the same product compared to your competitors.

14. Online reviews increase companies’ profits – Online shoppers are willing to spend 31% more on a company with great reviews.

(Source: Martech Zone)

• 82% of customers visit consumer review sites because they already have a purchase decision in mind.
• According to online review statistics, customer reviews influence 98% of software buyers.
• A single star increase in your Yelp rating leads to between 5%-9% increase in restaurant revenue.
• Product and business reviews shared on Twitter increase sales by 6.46%.

People are usually ready to buy stuff when they start reading reviews. The question is whether these reviews will make them buy from you or anyone else. The better your reputation (read: reviews), the better your profit can be.

Local Business Reviews Stats

For local businesses, online reputation management is more important than ever. Spending more time and effort in responding to and resolving customers’ issues, is the way for marketers to gain an edge for their company.

15. Online reviews stats about local businesses – 97% of people read reviews for local businesses.

(Source: BrightLocal)

• Consumer reviews are the third most significant element in Google’s local pack algorithm.
• 54% of US shoppers pay the most attention to the stars rating of a local business.
• The average rating for 61% of local businesses is between 4 and 5 stars.
• The average local business has 39 Google reviews.
• Local businesses which appear on the top three positions on the first page of Google have an average of 47 reviews.
• 60% of customers read Google reviews for a local business.
• According to online review statistics, 74% of local businesses have at least one review on Google.

A simple act – like writing a review on Google – can make your business stand out. The more people leave reviews of your company, the better your SERP position will be. To get everything right, find a software for making business plans so you can have a plethora of visitors.

16. Your average local business has at least 39 reviews on Google My Business.

(Source: BrightLocal)

• Review signals account for 15% of Google Local search ranking factors.
• 74% of local businesses have at least one review on Google, with restaurants and hotels having the most company reviews by customers.
• An average marketer for a local business spends 17% of their time on online reputation management
• 76% of local marketers intend to spend more time improving their online reputation in the next 12 months.

17. The effects of online reviews on different industries – 92% of B2B are more inclined to buy after reading a trusted review.

(Source: G2 Learning Hub)

• 57% of millennials check out reviews of cafés and restaurants. 40% read reviews of clothing and grocery stores.
• 60% of online shoppers usually write at least one consumer review on Amazon.
• Positive reviews are the third most important factor (57%) for Amazon customers when forming their purchase decision in 2019. Price and low shipping cost are the only two factors which matter more than reviews.
• Reviews of home electronics were the most crucial element for 88% of US shoppers that made their purchase decisions.
• According to online reviews stats, 46% of customers post reviews of electronics.
• Strangely enough, 41.6% of people wouldn’t choose an insurance provider that has positive reviews.
• 36.6% of consumers would trust a local car repair center that has positive reviews.

In terms of reviews, many business owners wonder – how many people trust a business more after reading positive online reviews? Well, the answer varies for different industries, and the stats above shed some light on the question.

18. How to get consumer reviews? – 77% of users would write a review if asked.

(Source: Podium)

• Male and female shoppers are equally likely to write a review.
• Businesses asked 83% of millennials to post a review in 2018.
• What percentage of customers leave reviews? – More than 50% of consumers aged 25-34 wrote a review of a business or product in Q3 2017.
• Today, the average consumer review is 65% shorter than it was in 2010.
• 86% of people would consider writing a review of a product or business.

Nearly every one of your customers knows what an online review is and how to leave one. All you have to do is ask them to post one. You already know the benefits of that.

19. Popular business review sites statistics – Google reviews represent 57.5% of all reviews globally.

(Source: Review Trackers)

• 95% of travelers visit business rating sites to read reviews before booking.
• 71% of millennials search for at least one consumer review about a business when choosing a professional service.
• Almost every one of Yelp’s visitors (98%) made a purchase from a business listed on the site.
• Facebook reviews account for 50% of customers’ purchase decisions.

How to check a company’s reputation?

• 63.6% of users check Google reviews.
• 45.18% of consumers visit Yelp.
• 30.03% read reviews on TripAdvisor.
• 23.14% of customers visit Facebook to read reviews about a business.

If you were wondering what the best review site is – the stats show it’s Google. You should also pay attention to the business review sites in your niche. Try to make your business better and receive genuine reviews instead of paying for fake positive ones.

Why?

The answer to that is evident because of Amazon’s paid reviews fiasco.

20. 57% of consumers won’t use a business if it has less than a 4-star rating.

(Source: Bright Local)

• 82% of shoppers will not use a business with less than 3 stars consumer rating. (bright local)
• A business with a 5-star rating will get 39% more clicks from Google Local results as compared to a business with a 1-star rating.
• A business that improves from a 3-star rating to a 5-star rating will get 25% more clicks from Google Local.
• Improving your business’ user ratings by 1.5 can result in 13,000 + leads.
• Hotels that responded to reviews on TripAdvisor got 12% more reviews and an improvement on 0.12 star rating.

Now that news of customer satisfaction travels this far, it is now more important than for businesses to take into account their online rating stats. Ratings can play a huge part in decreasing or increasing your business’ profit. Even a change of a single star rating can impact your conversions in dramatic ways.

Customer Review Sites

What is the review sites’ impact on businesses’ reputation? What share of online reviews do they account for?

21. 63.6% of consumers visit Google to check business reviews

(Source: Review Trackers)

• Google accounts for 64% of all global reviews, followed by Facebook at 19% and TripAdvisor at 8.4%.
• Reviews on Facebook affect over 50% of consumer purchase decisions.
• Twitter reviews have been seen to increase e-commerce sales by 6.46%.

Although the presence of Google isn’t a surprise, you can see that social media reviews can exert a big influence on our purchase decision. Facebook is not to be neglected anytime soon.

Conclusion
In 2020, the expression word-of-mouth has a whole new meaning.

A single customer’s opinion can reach thousands if not millions of people.

That’s why the aforementioned online reviews statistics matter – in terms of reputation, conversions, profit, and the overall success of your business.

For your business to stand out – ask your consumers to leave reviews – no matter if they are positive or negative. You can achieve better results with both.

Good luck, and I’ll see you next time!