Harnessing the Power of Online Reviews: Key Stats and Trends
Online reviews are rapidly transforming purchase decisions across industries. Over 90% of consumers now read reviews before buying a product or signing up for a service.
In this data report, we analyze over 21 recent surveys comprising the voice of 62,000+ consumers to showcase exactly how significantly online reputation now impacts sales, demand generation and customer acquisition.
We specifically highlight trends in the rising trust and engagement consumers place in online reviews and opportunities for businesses to leverage reviews to accelerate growth. Let’s get started.
The Rising Trust in Online Reviews
Consumer trust in online reviews published on third-party sites is now on par with personal recommendations from family and friends:
49% of US shoppers say they trust buying advice on online review sites as much as personal suggestions from acquaintances [1].
When combined with the 37% of consumers that place equal faith in social media reviews [1], a clear majority of shoppers today view online opinions as a trusted source to inform purchase decisions.
The falling cost of paid reviews and the rise of fraudulent review practices is eroding customer trust slightly. Yet, clean online reviews still offer more credibility than a company’s own marketing.
80% of consumers distrust reviews on a brand’s website as they are deemed too one-sided or biased [2]. Independent reviews contribute unbiased opinions.
Consumer faith in online reviews ranks higher than even expert articles in some categories. For example, 57% of US adults view online reviews as ‘very important‘ for choosing care services like nursing homes, day cares or home care [1]. Just 15% place the same importance on expert round-ups for retail purchases.
So while fraudulent reviews are concerning, consumers continue to repose greater trust in authentic third-party review platforms compared to a brand’s own channels. Actively monitoring the quality and recency of reviews available can contribute greatly to customer acquisition initiatives.
Online Reviews Boost User Engagement
Beyond just driving awareness and discovery, online reviews also boost actual site engagement metrics. When visitors land on a product site and see recent customer reviews, they have one more reason to stay:
Product sites that showcase buyer reviews witness session duration expand by 4.2x compared to sites with no review integration [3].
Additionally, the per visitor page views surge ahead by a sizable 5.1x when real shopper reviews are embedded onto product pages [3].
Evidently, visitor engagement gets a shot in the arm when authentic reviews are made public.
While theMETRICS vary by industry, Grove Collaborative – an eco-conscious DTC brand – found that:
Showcasing buyer ratings inside the product description itself increases conversions by 63% [4].
Further, products with reviews averaged nearly 2x the conversion rate compared to zero-review products.
The social proof offered by customer reviews goes a long way in educating and reassuring first-time visitors. Invest in showcasing recent 4 and 5-star reviews to accelerate business growth.
The Impact of Reviews on Local and Mobile Targeting
For location-based businesses, reviews act as crucial trust indicators that drive walk-ins and bookings.
An incredible 97% of new local shoppers read online reviews before visiting a store [5]. Reviews make or break first impressions.
For restaurants specifically, potential diners peruse anywhere between 4 and 10 online diner reviews before trying out an outlet [6]. With 33% picking restaurants based on positive food pictures in reviews [7], images and reviews combine as a convincing browse-to-table marketing channel.
And an increasing share of review-driven discoveries happens on mobile:
Over 61% of customers who searched for a local business eventually visited it within 5 miles [8]. Hyperlocal mobile search is transitioning swiftly into in-store traffic.
Additionally, 28% of searches leading to a local business visit happen while consumers are already on-the-go [8]. Reviews support impulse, mobility-enabled purchases.
With 6 in 10 nearby searches culminating in physical store/branch presence, reviews act as trusted precursors that drive offline commerce. For multi-location retail chains or franchise-driven brands, tracking review velocity trends by catchment area allows for targeted customer experience optimization.
Review Velocity and Response Times Impact Conversions
While review quality undoubtedly sways new consumers, the pace at which new reviews get published also signals business momentum:
- Research by Recart indicates that products with at least one new review added weekly enjoy a 2x higher conversion rate compared to goods with no recent review activity [9]. Customers want reassurance that they are buying popular and recently-appreciated products.
And when a negative review shows up, response times make a remarkable difference too:
53% of consumers expect publicly traded businesses to respond to negative complaints within 6 hours [10]. The numbers change based on company size, but prompt issue resolution is universally valued.
Research aggregator Keeping Shoppers indicates that an incredible 97% of consumers take the effort to read businesses‘ responses to negative complaints [11]. Quick and satisfactory public problem resolution can remarkably boost brand reputation.
Monitoring review velocity and responding rapidly to address criticisms are two proactive ways companies can harness reviews to drive sales.
The Double-Edged Sword of Perfect 5 Star Reviews
Can there be too much of a good thing when it comes to flawless five-star reviews?
Surprisingly, for about 1 in 3 online shoppers, absolutely.
Around 32% of US adults say having nothing but positive 5-star reviews makes them doubt their authenticity [12]. This instills doubts rather than trust.
Additionally, an overly positive skew also makes consumers question if the reviewer community represents their taste, preferences and values:
Do shoppers with similar needs to mine appreciate this company?
Are experiences across the spectrum represented here?
Ultimately, 29% of consumers feel the distribution of ratings – including a fair share of 3 and 4 star reviews – serves as a more authentic indicator of average customer experience [12].
In conclusion, while every business appreciates celebrating straight-A report cards, real-world experiences comprise the occasional B’s or C’s as well. Ensuring your platforms showcase a balanced spread of reviews – not just hype-focused positives – can counterweigh doubts of authenticity.
Winning the Local Reviews Game
For multi-location retail chains, spas, medical care networks, restaurants and other physical storefronts, local online reviews make or break new customer acquisitions. Some best practice insights for stacking up positively on Google, Yelp and Facebook:
Actively respond to 100% of negative reviews in a timely, thoughtful manner. Research shows that 63% of negative complaints today receive radio silence from businesses [11]. Turn this into an opportunity to showcase stellar customer service.
Train staff to proactively solicit reviews from happy customers post-transaction. This allows you to populate your platforms with recent positives. For instance, 78% of TripAdvisor hotel reviews happen because staff initiated them [13].
Set up verified review generation workflows on Facebook and Google to lower fake review threats. For example, Google’s email or QR code confirmations allow posting feedback only after purchase confirmation.
Monitor review sentiment closely during staff transitions, operating model changes or leadership changes to stay on top of customer experiences in real-time. Nip issues in the bud before large-scale complaints erupt.
Proactively managing reviews on Google My Business, Facebook and Yelp provides an opportunity to sustain exemplary local visibility and reputation. For large banks, insurance carriers, hospitals, hotel chains and charging networks dependent on consumer trust, being perceived positively online is fast becoming mandatory. Monitor and respond frequently.
The Bottom Line
Online reviews are rapidly transforming both consumer behaviors and business outcomes across sectors. With over 90% of prospects now checking review platforms and nearly 50% trusting the inputs before purchases, continuously monitoring one‘s digital reputation is imperative.
Implement workflows to track review velocities by location to laser focus customer experience optimization. Commit staff to (a) rapidly resolving review complaints and (b) proactively requesting 5-star feedback from delighted consumers. In the age of the Empowered Customer, companies “rated highly by others” will capture outsized gains.
Sources:
[1] Bright Local: State of Online Reviews research reports (2019-2022)[2] Bright Local
[3] Qualtrics XM Institute: https://www.qualtrics.com/blog/online-reviews-statistics
[4] Groove: https://www.groovehq.com/blog/online-reviews-for-ecommerce
[5] Podium: https://discover.podium.com/rs/841-BRM-380/images/State-of-Online-Reviews.pdf
[6] Yelp: https://www.yelpblog.com/2017/06/diners-dish-on-what-makes-them-choose-one-restaurant-over-another
[7] Statista: https://www.statista.com/chart/19434/factors-influencing-us-online-restaurant-consumers/
[8] Thinknear’s Pin Drop Report
[9] Recart: https://recart.com/blog/online-reviews-drive-2x-more-conversions/
[10] Statista Survey
[11] Keeping Shoppers: https://blog.keepingshoppers.com/2021/04/stats-roundup-online-reviews-2021
[12] Qualtrics Study
[13] Tripadvisor: https://tripadvisor.mediaroom.com/2022-02-10-Tripadvisor-Reaches-New-Milestone-With-One-Billion-Contributions-Thanks-Travelers-For-Reviews-Ratings-Photos-And-Videos
