Online reviews play a significant role in shaping your business in the digital marketplace.
They can help you develop your brand, attract new leads, increase revenue, and educate you on strategies to grow and improve your business.
They really are an important resource for your business and are becoming more important by the day.
However, some entrepreneurs do not pay attention to online reviews.
There is a certain degree of apathy they feel toward customer feedback.
For them, customers can expect whatever they want to expect from their business, and that’s it.
Others are open-minded.
They know for a fact that online reviews can attract new customers, but they consider it one of the marketing tactics they are too busy to think about.
Whether this stems from fear of receiving negative reviews or even suspicion about their trustworthiness, they are not too concerned.
Even worse is that many entrepreneurs see online reviews as a waste of time.
In reality, nothing could be further from the truth.
All of these reasons or excuses are a recipe for disaster.
The biggest mistake a business can make is neglecting the vital element that are online reviews.
They can literally make or break your online presence.
And in today’s increasingly saturated and competitive digital world, you can’t afford to neglect them.
Here are the facts with related statistics that prove the value of online reviews.
Consumers read online reviews before they buy
Reviews have become a primary source of information that consumers use to decide where, what and when to buy.
According to a study conducted by the Spiegel Research Center in collaboration with PowerReviews, 95 percent of consumers read online reviews before making a purchasing decision on products and services.
In fact, 30 percent of respondents from a survey conducted by PowerReviews reported reading reviews before each and every purchase they make.
In addition, Testimonial Engine found that 72 percent of customers will not take any kind of action when it comes to making a purchase decision until they have read online reviews.
Reviews are the digital equivalent of a word-of-mouth recommendation.
Potential customers will listen and trust current customers more than your brand.
We are inherently skeptical creatures and do not just take a brand’s word for it.
It is clear, then, that a lack of online reviews will be a major hindrance to your brand.
Collect more reviews and your sales will increase. Point.
Customers rely mostly on reviews before making big purchases
The higher the price of the product , the more importance customers place on reviews.
This is because expensive products such as personal gadgets, home appliances and even cars are based on personal preferences.
Consumers are more demanding in terms of requirements and expectations when they pay more for a particular product or service.
They want to be able to match their expectations with the level of satisfaction of other customers who have experienced using a brand.
The initial investment is greater for the buyer, which means the risk is as well.
Therefore, they want to stack the odds in their favor as much as possible. This is where online reviews come in.
Asking people for online reviews after they have purchased from you and had time to use the product/service will be critical to your success.
Reviews increase trust in your brand for potential customers
A study conducted by Brightlocal’s annual Consumer Review Survey found that 87 percent of U.S. consumers need a company to have an average rating of three to five stars in order to use it.
Interestingly, 11 percent looked only for companies with a perfect five-star rating. Womply also found that five-star companies earn less than companies with a rating of 1 to 1.5 stars.
Although this seems ironic, excellent ratings actually lead to consumer skepticism.
Having a perfect or near-perfect rating makes consumers suspicious and gives them the impression that reviews are too good to be true.
This finding is in line with ReviewTracker’s survey that an average rating of 4.5 to five stars is actually more appealing to customers.
None of this means that you should intentionally try to manipulate your ratings.
However, it should give you some comfort because being perfect is not necessary. Instead, focus on creating fantastic products and services and then on getting rave reviews from your customers.
Negative reviews can be a good thing
Although negative reviews are inevitable, they can actually work in your favor.
According to Reevoo , negative reviews can increase conversions by up to 85 percent.
And more than two-thirds of customers trust businesses more when they see a mix of positive and negative reviews.
This is good news for your business! A few negative reviews won’t derail your average score as long as you have a steady stream of (mostly positive) reviews.
And again, we really mean it when we say that negative reviews happen to everyone.
It will never be possible to please everyone.
The most popular brands and products in the world have people who hate them.
So, don’t lose sleep over people who have not-so-flattering opinions about your brand, as long as those reviews are the exception, not the rule.
The number of reviews affects credibility
In addition to the overall star rating, the number of online reviews is also an important factor that customers consider when evaluating a business.
How many reviews are enough? Salsify revealed that an average of 112 reviews would make consumers trust a business.
This indicates that since consumers prefer businesses with a higher volume of reviews, business owners like you should actively and consistently encourage customers to share their experience about your business.
The more reviews your business has, the more credible you appear to consumers.
You can easily ask for reviews by hanging a sign in your store.
You should also ask for reviews via e-mail and also on your social media channels.
Facebook, Yelp and Google My Business are all important places to collect reviews.
Online reviews can increase sales
Reviews do more than build trust.
They can make or break the growth of your business.
Statistics released by Reevoo found that 50 or more reviews per product can mean a 4.6 percent increase in conversion rates.
The Spiegel report backed this up by showing that the top five reviews increase sales by nearly four times. These are not numbers to mock and can mean a serious increase in your revenue.
With more favorable reviews, customers are more likely to return and prefer you to your competitors.
In addition, a study published by the Harvard Business Review showed that simply achieving a one-star increase in the overall rating of online reviews can increase revenue by up to 9 percent.
A closer look at this study reveals that reviews result in increased sales and overall business growth.
Think one more review won’t make a difference?
Reviews create customer engagement
One of the biggest challenges for businesses is actively encouraging customers to leave reviews.
A Podium report suggests that companies overlook a major opportunity when they do not interact with customers to leave reviews.
According to the report, 77 percent of consumers agreed to leave an online review if given the chance.
Companies need to look for ways to make it as easy as possible to encourage customer reviews.
To collect reviews, you can share customer experiences via social media, have a special feedback button on your website, incentivize reviews through loyalty programs, send an email request after their purchase, and run communities or forums dedicated to customer feedback .
You can also use reviews to correct poor customer experience.
By simply responding to a negative review, you can restore your customers’ trust and improve the customer experience.
Statuslabs has found that by simply responding to online reviews, 30 percent of consumers become optimistic about a brand.
This is also an opportunity to learn something about your brand, product or service.
When people leave negative feedback, listen up! This information is as insightful and informative as positive feedback, if not more so.
Use it to improve your brand.
Build your reputation and expand your customer base.
As Warren Buffet says, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about it, you will do things differently.”
Creating and maintaining a good reputation is not an overnight accomplishment.
According to Zendesk’s Dimensional Research , 95 percent of customers are more likely to share their negative experiences with colleagues.
This is why it is critical to reach out to disgruntled customers and address the situation immediately.
Sometimes, all it takes is to offer quick excuses to turn a dissatisfied customer into a loyal one.
Ultimately, a good brand reputation leads to referrals.
To achieve this, it is necessary to amplify the voice of customers and create a culture in which reviews are considered valuable.
It is clear why getting more online reviews should be an aspect of your digital marketing strategy.
And an easy way to request them is to post about them on your social media channels, along with a link that people can visit to leave their feedback.
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