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.
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 2020
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 2020, 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.
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 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.
60% of mobile users turn to blogs and social media for consumer reviews before buying a product.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.