Nowadays, we live in a digital world where online reviews have become an essential part of our decision-making process. Whether we are searching for a new restaurant or purchasing the latest gadget, one of the first places we go to conduct research is an online review platform. Reviews do more than show people’s ratings on a particular product or service. They offer us valuable insights that shed light on the experiences of others, helping us reach a final decision.
With the year coming to a close, it’s important for businesses to assess how they can maximize their ROI in 2023 and beyond. One of the ways we recommend doing that is looking at the power online reviews hold through leveraging statistics. Statistics offer a wealth of data that can help us better understand the intricacies of this influential facet in the digital realm.
In this blog, we'll embark on a journey to explore the important statistics in online reviews and share how you can use this data to take your own business to the next level. So, without further adieu, let's dive in.
1. Consumers turn to online reviews when purchasing a product online
Online reviews is a crucial part of the customer journey, as consumers hold another individual's opinion about a product or service in high regard. In fact, 88% of consumers take the time and effort to look into online reviews when discovering a local business. In other words, that is 9 out of 10 consumers.
Online reviews provide local businesses with the opportunity to scale up and acquire more reach. Since the pandemic, 33% of consumers have found a new local business near their homes.
2. Where do consumers read online reviews?
The Internet is a vast place, and to be fair, most platforms provide an opportunity to put down a review, whether that be under a dedicated section, such as Amazon, or as a comment under a social media post. However, it's important for a business to know where the majority of consumers are putting up reviews so that they can be acknowledged or replied to.
So, where do consumers go to read online reviews?
According to Bright Local, 87% of consumers turned to Google as a source of reviews, followed by Yelp with 48% and Facebook with 46% in 2022. These statistics show that having a business presence on these platforms is vital to diversify the places where consumers read reviews.
3. How many people leave online reviews?
Brightlocal reveals that 3 in 4 (74%) consumers have left an online review for a local business in the past year. 61% of consumers are also more likely to leave a review if a business has provided them with a seamless service. For this reason, it is pivotal for businesses to give consumers a smooth experience to ensure that they are behind a good review.
If you are hesitant to ask customers for reviews, you should not shy away from it. 16% of consumers say they are likely to review a business if a staff member requests them in person or through digital means such as e-mail.
4. Credibility of online reviews
What is the level of trust consumers have in a business after reading a review?
Being credible and transparent is vital when it comes to reviews. 60% of consumers would stop using platforms that they knew were censoring legitimate reviews.
Censoring reviews is a major no for businesses that want to build credibility. If you’re concerned about receiving negative reviews, you need to take an alternative approach to filtering them out. Instead, you can graciously respond to the customer’s review, thanking them for their feedback and saying you will share it with your team to improve your products or services.
If you think that negative reviews will lead your business to lose customers, you should think again. Consumers spend four times as long on a website when interacting with negative reviews, increasing your conversion rate by 67%. Now, that's one positive thing to come out of a negative review.
5. Businesses need to respond to online reviews
Online reviews are not just about ratings. Interaction between the business and the consumers is needed in order to build a strong foundation for trust. Furthermore, you don't need to achieve a 5-star rating all the time. 3.4 is the average rating consumers require to engage with a business.
56% of consumers say that a response from the business has changed their perspective of the brand. This goes to show how far being responsive can go in influencing customer loyalty towards your business.
Podium shares that 79% of local businesses say they are somewhat proactive about their online reputation, with 30% saying they are very proactive. However, this percentage is not adequate. Businesses have to take their online reputation seriously if they want to prioritize growth and reach the goals they want to achieve.
PRO TIP: Business responses offer consumers awareness of how responsive and caring the business is. So, the next time your business receives a review, make sure to reply, regardless of whether it is positive or negative.
6. Business responses to online reviews
As we know by now, it is pivotal for a business to respond to online reviews. However, it’s equally important not to just provide an automated reply; how you respond and the points you convey in your response are just as important.
97% of prospective consumers who read online reviews also read responses from businesses.
When dealing with angry customers, the business has to make extra effort to ensure that their concerns are addressed and a solution is found. After all, 45% of consumers are more likely to support businesses that have responded to their negative reviews.
7. The importance of online reviews for local businesses
According to a recent study by Finances Online, 73% of consumers say online reviews helped increase their trust in a local business. Moreover, 82% of consumers make use of online reviews as a mode to learn more about local businesses.
Now, if we look at the data majority of consumers, 52% fall under the age bracket of between 18 and 54. This goes to show that a huge chunk of consumers within that demographic are likely to read online reviews of local businesses.
8. On-page customer reviews = Sales
In order to take complete advantage of online reviews, businesses should not just rely on review platforms. We highly recommend that every business include a section for online reviews on their website.
If you still don’t see the point in incorporating online reviews into your website, you should know that product pages that include them showed a 3.5x increase in conversion rates.
Moreover, online reviews are a great way to improve SEO on the website and help skyrocket the website's visibility on the results page.
Conclusion
The world of online reviews offers valuable insights into consumer experiences, and has significant influence over businesses, reputations, and customer choices. Consumers rely on online reviews for decision-making, leading businesses to depend on these reviews to establish trust and achieve success.
As we move forward in this digital era, online reviews will continue to shape our interactions with products, services, and businesses. Without a doubt, harnessing its power will remain a crucial aspect of navigating the digital marketing world. In order for businesses to stay ahead of the game, they need to embrace the insights that reviews have to offer and leverage their power to scale new heights.
Are you interested in learning more about digital marketing? Check out our weekly blogs here. To speak with one of our experts, call (416)-410-7090 or contact us here.
