Mind-Blowing Online Review Statistics (2024)
Customer reviews are an incredibly valuable (and highly underrated) lead-generating tool.
When leveraged correctly, online reviews have the power to establish you as the leading industry expert and help attract high-quality clients who are excited to work with you.
Online Reviews increase revenue of local businesses, have a direct impact on purchasing decisions, and heavily influence the way customers find and choose which businesses to buy from.
Read on for mind-blowing Online Review Statistics every business owner (both online and brick and mortar) needs to know.
Table of Contents:
1. Key Takeaways
2. The Powerful Impact of Online Reviews
3. The Positive Effect of Online Reviews
4. The Negative Effect of Online Reviews
5. How to Handle Fake Reviews
6. How to Get More 5-Star Reviews
7. Build Online Reputation and Increase Sales
Key Takeaways:
Review sites (Google, Facebook, TripAdvisor, and Yelp) play an integral role in how potential customers view our business
Businesses with online reviews have higher search engine rankings
Positive reviews entice customers to spend more money
Google is the most utilized website for online business reviews
Both positive and negative reviews impact a business's bottom line
Most consumers will not consider a business with a low average rating
Replying to customer reviews increases positive brand awareness and the likelihood of getting more business reviews (and more business!)
The powerful impact of online reviews
In order to thrive in today’s digital world, it’s increasingly important to manage your online business reputation while building trust and credibility through positive customer experiences.
Reviews establish social proof, which builds trust, which then leads to increases in sales.
Review sites like Google, Facebook, TripAdvisor, and Yelp play an integral role in how potential customers view our business.
In the last 20 years, Google has drastically changed how we live our lives from how we communicate and navigate, to how we do business—even influencing our purchasing behavior.
Today, consumers can (and do!) research products and services online prior to making a purchase. Ratings are the most powerful filter that influences these consumers in choosing one business over the other.
The following Online Review Statistics show that what we read online has a HUGE impact on our purchasing decisions.
Check out these stats:
97% of consumers use online resources when researching products or services in their area (qualtrics.com)
The number of consumers using Google to evaluate local businesses is increasing faster than ever, jumping from 63% in 2020 to 81% in 2021—an 18% increase in just one year (brightlocal.com)
88% of all online reviews come from Google, Facebook, Yelp, and TripAdvisor (reviewtrackers.com)
Businesses with online reviews have higher search engine rankings; online customer reviews hold 15% more weight in organic searches (findstack.com)
Here’s the deal:
Customer reviews impact a business’s bottom line. Period.
A strong online presence on the top four review sites (Google, Facebook, Yelp, and Tripadvisor) has a bigger impact on search engine results than Chamber of Commerce websites and other online directories combined.
The more reviews a business has online, the higher the conversion rates will be for sales.
And good reviews are important.
A Harvard Business School study found that for every 1-star increase on Yelp businesses saw a 5-9% increase in revenue.
That’s not all...
91% of people between the ages of 18-34 trust online reviews as much as they do personal recommendations (qualtrics.com)
93% of consumers revealed online reviews influenced a purchase decision (qualtrics.com)
92% of B2B buyers are more likely to make a purchase after reading a trusted review (qualtrics.com)
Businesses with at least 200 reviews generate twice as much revenue as those who have fewer reviews (findstack.com)
The results are in. Online reviews matter.
Reviews establish social proof, which builds trust, which then leads to increases in sales.
We’re influenced by the behavior of those around us and the statistics prove it.
It begs the question, why do customers leave online reviews?
For two reasons, actually:
Because they’ve had a really GREAT experience
Because they’ve had a really BAD experience
You rarely see an online review from someone who has had a completely mundane and non-remarkable interaction with a business.
Take Spirit Airlines, for example.
They're a popular discount airline service that offers low fares in exchange for bare-bones services.
You may be able to fly to your favorite tropical destination for dirt cheap, but you'll pay for extras from carry-on bags to beverage services.
Spirit Airline’s TripAdvisor rating is 3 out of 5.
While their score falls right in the middle, “excellent” and “terrible” are overwhelmingly the most chosen rating options.
People either love them or hate them, but not many fall in the middle.
Think about the last time you received excellent customer service at a business. The interaction probably sticks out in your mind.
Now think about the last time you received terrible customer service. That interaction probably holds a spot in your memory, too.
And when customers have a memorable experience, they're more likely to share it with others.
The Positive Effect of Online Reviews
Customers are willing to spend 31% more money on a business that has excellent reviews (qualtrics.com)
An increase from 3 to 5-star rating results in an average of 25% more clicks on a Google Business Profile (review42.com)
67% of local businesses maintain an average star rating of four out of five or higher (findstack.com)
67% will leave a review for a positive experience (brightlocal.com)
Responsive industry leaders get higher ratings; faster review response times are closely linked to having a positive reputation (reviewtrackers.com)
Hotels that respond to reviews on TripAdvisor generate 12% more reviews than the ones that don’t (Harvard Business Review)
According to research by BrightLocal, consumers are more likely to trust businesses with positive online reviews.
Getting the coveted 5-star rating makes a big difference in how consumers perceive a brand’s products and services.
In fact, businesses that increase from 3 to 5-star ratings see an average of 25% more clicks on their Google Business Profile.
For a small business, a single review can make a large impact on a future customer’s first impression.
Social proof generated from authentic reviews outweighs what a business has to say about its own products and services.
Consumers are more likely to trust review platforms than what a business has to say about itself online.
After all, which would you be more likely to trust?
Reviews a business chooses to feature on its website or authentic reviews left by real people on sites like Google and Facebook?
Most would choose the latter.
The Negative Effects of Online Reviews
94% of consumers chose not to purchase from a company due to a bad review (findlocal.com)
87% of potential customers won't consider a business with too many bad consumer reviews (searchengineland.com)
57% say they would not likely use a business that doesn't respond to reviews at all (brightlocal.com)
53% of customers expect businesses to respond to negative reviews within a week (reviewtrackers.com)
33% of customers expect businesses to respond to negative reviews in three days or less (reviewtrackers.com)
21% of consumers will leave a review for a negative experience (findlocal.com)
Let's address the implications of negative reviews.
If you've been in business long enough, it's inevitable you'll receive a bad review at some point. After all, it's impossible to please everyone and no business (and all its employees) is perfect.
But hear this.
How you handle the negative feedback says more about your business than the actual review itself.
It’s your professional public response to these mistakes that determines how customers perceive your brand.
Being transparent is always the best course to take when responding to a negative review.
In fact, research shows over 90% of Americans say brand transparency is an important factor when making purchasing decisions (hubspot.com).
So when you’re confronted with an unhappy customer that leaves a negative review take the time to thoughtfully respond to their feedback.
And then fix it!
When you receive a negative review it’s time to up your game and refine your process. It’s an opportunity to do better and be better.
Responses to reviews (both positive and negative) show that the business cares what its customers think and that the business owner takes feedback seriously.
When crafting your reply to a negative review ensure you’re clearly invested in your customer’s experience by replying in a way that showcases your sincerity in transforming their negative experience into a second chance and a future of lifetime loyalty.
How to Handle Fake Reviews
Here’s the problem.
Not all reviews are authentic. Some write fake reviews out of spite or to slander a brand. There are even companies that go as far as posting fake reviews about their competitors (we’ve seen this happen).
And while it’s easy to tell a fake review if you’re the business owner it’s not as easy for your customers to distinguish the difference.
Responding to genuine customer reviews who’ve actually interacted with your business is an obvious step, but what about responding to fake reviews?
Should a business respond to those, too?
Most definitely!
Just like when responding to a negative review, it’s an opportunity to showcase your professionalism.
When drafting the response, remember, you’re not writing to the person who left the fake review.
Instead, you’re writing the response for all your future customers to read.
All you have to do is simply state that you take all customer concerns seriously, that there is no transaction history of their patronage, and to contact your team directly to resolve the situation for all parties involved.
Once you respond it’s important to take steps to have the fake review removed.
This guide will walk you through exactly how to spot a fake review and have it flagged or removed from your Google Business Profile entirely.
How to Get More 5-Star Reviews
Now that we’ve established how important building your Online Reputation is, it’s time to get more 5-star reviews you deserve.
Unfortunately getting genuine reviews from your customers can sometimes feel like pulling teeth.
Unless someone owns their own business they probably don’t know how much weight leaving a review carries.
Even the most satisfied customers may not leave a review simply because they forget or are too busy.
Here are five actionable steps you can implement today to increase online reviews for your business:
1. Make it Easy for Customers to Leave Reviews
Make it easy for customers to leave reviews because they’re not going to search for the right place to post them.
Consider putting a QR code on product packaging, receipts, or a small thank you card so customers can easily scan and submit their reviews.
2. Focus on One Online Review Platform at a Time
Rather than asking customers to leave reviews on multiple sites, focus your marketing strategy on one platform at a time.
Creating a Google Business Profile and generating reviews on the platform will positively impact your SEO so we always recommend starting there.
Regardless of what platform you target, Google will pull reviews from everywhere online so Facebook, Yelp, and TripAdvisor are all great options, too.
3. Ask Customers to Leave Reviews
This may sound obvious, but asking your customer to leave a review makes a big difference.
Part of Be Aligned’s workflow includes sending a review link but even before we hit the send button we’ll call our client and ask if they’ll leave us a review.
During this conversation, we thank them for allowing us to be of service and stress how important it is for future leads to read about their experience working with us.
We’ve found this one simple step helped increase our five-star ratings more than anything.
4. Build Out a Funnel with a Dripped Email Campaign
Building out a funnel with a dripped email campaign will help you generate more five-star reviews. These emails should be short, friendly reminders prompting your customers to leave a review. When done correctly, it's a simple and proven way to increase conversions.
5. Respond to ALL Reviews
Responding to reviews is imperative for an effective online reputation management campaign.
Taking the time to respond to both negative and positive feedback will show future customers you’re proactive in addressing concerns and committed to exceeding expectations. Plus, it shows others you value your customers’ feedback.
Manage Your Online Reputation and Increase Sales
Online reviews are one of the most powerful tools available to businesses today. They give consumers insight into what your company does well and where it needs improvement.
And when done right, reviews can help boost sales by increasing customer loyalty and word-of-mouth referrals.
It’s proven that consumers trust online reviews as much as personal recommendations so it's incredibly important to monitor your reviews closely and respond quickly to issues, real or perceived.
With 88% of small businesses actively monitoring their reputation (findlocal.com), Reputation Management should be part of every business owner's marketing strategy including soliciting, monitoring, and responding to online reviews from customers.
If you find the idea of keeping up with your online reputation overwhelming, or you aren't sure where to start, reach out to us today.
We offer full-service Search Engine Optimization for our clients including setup, monitoring (and responding) to reviews, and monthly reporting so you can track the effectiveness of your campaign.