Over the past few months I’ve changed around my business model to include reputation and even make it the main focus. Why?
Remember 20 years ago when you didn’t have credibility unless you had a website? Now, it’s reputation.
By the end of the year and in 2021. I plan on getting back to blog writing on my website and on LinkedIn to let people know how VITAL this is for the growth of their business.
I’m not getting into major details on this initial blog post other than the statistics. Most of these I can write individual blog posts on myself.
With that said, let’s get on with the stats and start with the basics (I will put in my take on some of them with a NOTE FROM MATT) .
Are reviews important to customers?
1) 74.6% of people have looked online to find out about a doctor, a dentist, or medical care.
2) 66% of consumers stated many online reviews make them trust a brand online.
3) 27% of people that look for local information are actually looking for reviews about that particular store.
4) When choosing a restaurant, Gen Z and Millennials are 99% more likely to rely on social media and online reviews than are Gen X and Boomers.
5) Buyers require an average of 40 online reviews before believing a business’s star rating is accurate (up from 34 in 2017)
6) 85% of consumers think that online reviews older than 3 months aren’t relevant (NOTE FROM MATT: If there is one state you need to focus on, THIS ONE IS IT.)
Should businesses request reviews?
7) Businesses with more than 9 fresh reviews (posted within the past 90 days) earn 52% more than average and those with more than 25 earn 108% more than average.
8) After having a positive experience with a company, 77% of customers would recommend it to a friend.
9) Brands can expect their average star rating to increase after emailing buyers a direct link to submit reviews.
10) 57% of buyers expect a business to have more than 11 reviews.
Do consumers read reviews?
11) 91% of 18-34-year-olds trust online reviews as much as personal recommendations.
12) 86% of consumers read reviews for local businesses (including 95% of people aged 18-34)
13) 60.9% of shoppers use Google to find local businesses and 11.4% use Yelp
14) Over 58% of customers use reviews to help make a restaurant selection at least one quarter of the time, with 36% using reviews to inform their decision half of the time or more.
15) 73% of customers value the written review over the overall star rating.
16) Overall rating is most important to 41.4% of consumers when reading reviews to select a restaurant.
How do reviews and star ratings impact sales?
17) Locations that move their Google My Business profile’s rating from a 3.5 to 3.7 stars experience conversion growth of 120%.
18) Businesses with more than 82 total reviews earn 54% more in annual revenue than average.
19) Low ratings on Google and TripAdvisor have the largest negative impact on revenue for small businesses.
20) The likelihood of purchase peaks at a star rating of 4.0 – 4.7, then decreases as the rating gets closer to 5.0. (NOTE FROM MATT: This is because if every review is glowing, people are going to naturally doubt the authenticity of the reviews)
21) The purchase likelihood for a product with five reviews is 270% greater than the purchase likelihood of a product with no reviews.
22) Reviews account for 15.44% of how Google ranks a local business. (NOTE FROM MATT: This means if you’re asking for reviews and your competitor does not, Google might put you higher on the list of businesses in the area on Google Maps.)
23) 83.5% of shoppers would not consider a business with a 3-star rating or below
24) 49.7% of consumers need to see a 4-star rating or higher to consider a business
25) 88% of buyers are influenced in their buying decision by reviews.
26) Positive reviews make 68% of buyers more likely to use local businesses.
27) Businesses that don’t reply to any reviews earn 9% less revenue than average.
28) Businesses that reply to their reviews at least 25% of the time average 35% more revenue.
29) 75% of businesses don’t respond to any of their reviews. (NOTE FROM MATT: Don’t be that guy!)
30) A 30% reply rate is the benchmark for conversion growth to outstrip your competitors. When enterprise locations increased their reply rate for Google reviews from 12% to 32% of reviews, they achieved 80% higher conversion rates in local search then direct competitors. (NOTE FROM MATT: Respond to all reviews good or bad.)
31) People spend up to 49% more money at businesses that reply to reviews. (NOTE FROM MATT: See NOTE FROM MATT # 30)
32) For renters, 51% of potential residents expect to see management responses to all online reviews.
33) 89% of consumers read local businesses’ responses to reviews.
What is the impact of negative reviews?
34) 19% of the reviews the average business receives are negative.
35) Employers with a bad reputation ended up spending 10% more per hire.
36) A complaint can be a buying signal that a customer wants to continue to do business with you but is feeling so much pain they are not sure they can.
If you are skeptical about the truth to any of this, trust me I get it. Ask yourself this.
You are looking at three equal businesses, one with 5 reviews with a 3 star rating, another with no ratings, and a third with 46 glowing ratings.
Which one are you going to do business with?