Humans are social creatures, and word of mouth is one of the best forms of advertising a small business can have in its arsenal. Before making a purchase, many customers will try to find ratings of your business to see what they can expect. Customer reviews build trust, add business credibility, and increase sales. Here are eight customer review statistics that demonstrate the power of online ratings.
1. Nearly 91% of all 18-34-year-olds trust online reviews
Not only do those in this demographic trust online ratings, but they trust them as much as a personal recommendation. This means that when you have a positive customer interaction, it pays off to make an effort to collect a review. For businesses that target a younger crowd, these ratings are especially important. (Qualtrics)
2. About 93% of all consumers said online reviews influenced their purchase decision
We now know that when consumers want to make a purchase, they first search for it online. Then, they seek out honest ratings about the service or product. Managing your ratings by soliciting good ones and responding appropriately to negative ones is one of the best things you can do to increase sales. (The podium)
3. Approximately 97% of all consumers now use online media to research products or services
Traditional forms of media, like print, radio, and television, are not completely dead, but it would be fair to say that online media outpaces them by a long stretch. To get ahead, businesses need to take advantage of online advertising channels as much as possible. For big-ticket items, consumers will spend a considerably longer amount of time looking up information about the product or service. (Qualtrics)
4. Only 47% will leave a review about a positive experience, but 95% will complain about a negative experience
This statistic makes it essential to respond to and handle negative ratings as quickly as possible. You should take any opportunity to transform a negative review into a positive one. It also means you need to actively work to engage people and get them to leave positive reviews. (Dixa)
5. Approximately 92% of all consumers said they will hesitate to pick the business if it has no reviews.
This statistic says it all when it comes to turning visitors into customers. People want to know what others have to say about you. Ratings turn those who are just looking at your products into customers. (Fan and Fuel)
6. Five-star reviews increase the likelihood of a service being purchased by 270%
This statistic ties in with the last one and shows how ratings turn into real dollars in your bank account. You should work on achieving a five-star review and maintaining it. This is the best advertising your small business could have when it comes to increasing sales. (Spiegle)
7. When two products/services are equal, consumers are more likely to pick the one with the most reviews
This means that consumer ratings can help you beat the competition and maintain a competitive advantage. The more ratings you get, the easier it will be to make sure your product/service is the one that consumers choose. (psychological science)
8. About 85% of consumers consider a rating that is over three months old to be irrelevant
Maintaining your status, as far as ratings go, is a never-ending job. You need to continually work to get new ratings. Old ratings quickly become irrelevant in today’s world. It pays to keep them fresh. (Review42)
Now, you have these important statistics that show why your business needs to collect customer ratings and do everything possible to make sure they are good ones. Reviews are quickly becoming one of the most important tools in your advertising arsenal, and you have more reasons than ever to ask for them.