How Online Reviews Will Impact Your Business

Do people trust online reviews?

Research shows that 84% of people who regularly read online reviews trust them just as much as a personal recommendation. This is followed by a quick decision where 68% of these people form their own opinion after reading anything between one and six online reviews.

What percent of web users actively write online reviews?

The percentage of web users who actively write online reviews is surprisingly low. Less than one percent of people who use a product write a review about this. If you are selling your own products online or you are a company that provides a service you may be able to increase this by 10-15% if you send a post-purchase email asking for a review in exchange for offers or rewards. Local businesses on the other hand can receive up to 70%! 

How much do online reviews affect your decisions?

Online reviews of products can affect purchasing behavior of customers by quite a powerful margin. The importance of said reviews and how often customers rely on them is dependent on what is being sold. Research shows that 60% of people are likely to read a restaurant reviews whereas only 31% of people are likely to read a grocery shop review and 70% are likely to read technology reviews. It is also shown that depending on what age group people are from also affects what reviews they read and therefore what decisions they make when purchasing things online. For example, young adults are more likely to choose higher-rated products and this could be from just as little as one review! On the other hand, older adults are more likely to be put off by as little as one negative review and also take in considerations from the attributes of the products themselves. Older adults also tend to focus on the experiences they’ve had with the products in the past. They may also be more focused on what brand the product is as they may prefer a certain one.

Why do 82% of customers check your reviews first?

This is because people want to know what other people’s experiences are so that they don’t have a bad one themselves and so that they are sure that they are getting what is being advertised. Also, people want to share their own opinions too or use the review section to get their issues solved if they have any. 

How do online reviews impact your business?

Having reviews that are displayed for everyone to see can actually increase the conversion rate by up to 270%. Also it is roughly reported that between 88% and 97% of consumers have their buying decisions influenced by online reviews. Having more than five reviews on a product will likely also increase the likelihood of people purchasing a product. If you have low ratings on your reviews then this can impact your business. 57% of customers won’t use a business that has fewer than 4 stars which can have a big impact on sales for businesses. Also, having higher than these ratings can also increase the trust of your customers and encourage them to consider you. On top of this, having even just a few negative reviews can be damaging to the trustworthiness of your business and therefore can be damaging to the amount of sales. On average, a single negative review could cost a business approximately 30 customers. 

Are Ratings and Reviews still relevant for eCommerce?

Reviews are essential for a successful e-Commerce business as they have become the standard for researching most items and are used on every reputable selling and buying sites. This is because the majority of consumers nowadays rely on reviews to make their purchases. Having good ratings and reviews can really separate a business from the crowd and mean that more purchases are made. New businesses especially depend on reviews to help grow their customer base and make sure that they are known. Reviews and ratings are also incredibly important for the SEO of you business as having plenty of reviews can higher your ranking so you show higher in the search engine of your choice.

How do reviews impact conversion rate?

First of all, for those who do not know the conversion rate is calculated by dividing the total number of conversions/total number of visits. This definition may vary depending on what web page is being used but overall conversion is what you want your potential customers to do. This can be anything from a sign-in on the website, a download, or a subscription to one of your services. The conversion rate can be impacted by reviews as positive reviews may encourage people to sign up and use your services. On the other hand, negative reviews will also affect it as it will make the conversion rate of you site much lower as less people will want to use your business.

What is the best way to show customer reviews on a website?

There are quite a few ways to show customer reviews on your website actually. For example, one good way to show reviews on your website is to highlight a good review in your header and change it weekly or so. Another good way to show customer reviews on your website is to list a few of you recommendations in the sidebar of the about page so that potential customers can see them when learning more information about your company. You could even dedicate a whole page for your best reviews to make them even easier to find. 

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