Today we live in a digital world where online reviews have become an essential part of our decision-making process. Whether we’re looking for a new restaurant or buying the latest gadget, one of the first places we research is an online review platform. Reviews do more than just show people’s ratings of a particular product or service. They provide us with valuable insights that shed light on the experiences of others and help us make a final decision.
As the year draws to a close, it is important for companies to assess how they can maximize their ROI in 2023 and beyond. One of the ways we recommend doing this is by looking at the power that online reviews have by using statistics. Statistics provide a wealth of data that can help us better understand the intricacies of this influential facet in the digital world.
In this blog, we go on a journey to explore the important metrics in online reviews and share how you can use this data to take your own business to the next level. So, without further adieu, let’s dive in.
1. Consumers use online reviews when they buy a product online
Online reviews are a crucial part of the customer journey because consumers highly value someone else’s opinion of a product or service. In fact, 88% of consumers take the time and effort to read online reviews when discovering a local business. In other words, that’s 9 out of 10 consumers.
Online reviews offer local businesses the opportunity to scale and gain more reach. Since the pandemic 33% of consumers have found a new local business close to home.
2. Where do consumers read online reviews?
The internet is a huge space, and to be fair, most platforms offer the option to post a review, whether that’s under a dedicated section like Amazon, or as a comment under a social media post. However, it is important for a business to know where the majority of consumers post reviews so that they can be acknowledged or responded to.
Where do consumers go to read online reviews?
According to Bright Local 87% of consumers turned to Google as a source of reviews, followed by Yelp 48% and Facebook with 46% in 2022. These statistics show that a business presence on these platforms is essential to diversifying where consumers read reviews.
3. How many people leave online reviews?
Brightlocal reveals that 3 out of 4 (74%) consumers have left a review for a local business online in the past year. 61% of consumers are also more likely to leave a review if a company has provided them with seamless service. For this reason, it is crucial for businesses to provide consumers with a smooth experience and ensure they support a good review.
If you’re hesitant to ask customers for reviews, don’t shy away. 16% of consumers say they are likely to review a company if asked to do so by an employee in person or through digital means such as email.
4. Credibility of online reviews
How much trust do consumers have in a company after reading a review?
Being credible and transparent is crucial when it comes to reviews. 60% of consumers would stop using platforms that they knew were censoring legitimate reviews.
Censoring reviews is a big problem No for companies that want to build credibility. If you’re concerned about receiving negative reviews, you should take an alternative approach to filtering them out. Instead, you can respond kindly to the customer’s review, thank them for their feedback, and say you’ll share it with your team to improve your products or services.
If you think negative reviews will cause your business to lose customers, think again. Consumers spend four times as long on a website when exposed to negative reviews, increasing your conversion rate 67%. That’s a positive thing to come out of a negative review.
5. Businesses should respond to online reviews
Online reviews are not just about ratings. Interaction between the company and the consumers is necessary to build a strong foundation for trust. Moreover, you don’t always have to achieve a 5-star rating. 3.4 is the average rating consumers need to interact with a company.
56% of consumers say a company response changed their view of the brand. This shows how far being responsive can go in influencing customer loyalty to your business.
Podium shares that 79% of local businesses say they are somewhat proactive about their online reputation, while 30% say they are very proactive. However, this percentage is not sufficient. Businesses must take their online reputation seriously if they want to prioritize growth and achieve the goals they want to achieve.
PRO TIP: Responses from companies make consumers aware of how responsive and caring the company is. So the next time your business receives a review, make sure you reply, whether it’s positive or negative.
6. Business responses to online reviews
As we now know, it is crucial for a business to respond to online reviews. However, it is equally important not to just provide an automated response; How you respond and the points you make in your response are just as important.
97% of potential consumers who read online reviews also read responses from companies.
When dealing with angry customers, the company must go the extra mile to ensure that their concerns are addressed and a resolution is found. Finally, 45% of consumers are more likely to support companies that have responded to their negative reviews.
7. The importance of online reviews for local businesses
This is evident from a recent study by Finances Online. 73% of consumers say online reviews have increased their trust in a local business. Moreover, 82% of consumers use online reviews as a way to learn more about local businesses.
Now if we look at the data of the majority of consumers, 52% fall into the age category between 18 and 54 years. This shows that a large portion of consumers within this target group are likely to read online reviews of local businesses.
8. Customer reviews on the page = Sales
To take full advantage of online reviews, companies shouldn’t rely solely on review platforms. We highly recommend that every company include an online reviews section on their website.
If you still don’t see the point of including online reviews in your website, you should know that the product pages that contain these reviews have a 3.5x increase in conversion rates.
Moreover, online reviews are a great way to improve website SEO and skyrocket website visibility on the results page.
Conclusion
The world of online reviews provides valuable insights into consumer experiences and has significant influence on businesses, reputations and customer choices. Consumers rely on online reviews for their decision-making, which means businesses depend on these reviews to build trust and achieve success.
As we move forward in this digital age, online reviews will continue to shape our interactions with products, services and companies. Harnessing its power will undoubtedly remain a crucial aspect of navigating the digital marketing world. If companies want to stay ahead, they must embrace the insights that reviews have to offer and leverage their power to reach new heights.
Do you want to learn more about digital marketing? Check out our weekly blogs here. To speak with one of our experts, call (416)-410-7090 or contact us here.
Reference By: www.techwyse.com
