Things to know about online reviews
If you run a business today, the most important thing to attract new customers is to check your online reviews on sites like Google, Facebook, Trustpilot, and so on. Here we would like to illustrate how technology can transfer the classic small business storefronts to the Internet.
Effects of ratings
- For every star a company receives, there is approximately 5 - 9% more revenue.
- Consumers are 31% more likely to buy from a company with excellent ratings.
- 72% of consumers say they have more confidence in a company because of positive reviews.
- According to Google, business listing that had at least 3+ star ratings received 41 to 47 more clicks.
- Given the same pricing, guests are 3.9 times more likely to choose hotels with higher ratings than lower ratings
When consumers use review platforms like Google or Facebook, the decision and urgency to buy is what motivates the person to search. If traditional advertising is a megaphone for businesses to shout and see who is listening, then review platforms are bandwagons that lure them into actively consuming local businesses. This is a valuable opportunity for small businesses with tight or non-existent market budgets. Think about it. What should you do if you want to try a new restaurant or find a plumber? You may get recommendations from friends or family, but you may also search for "near me" on Google or Facebook. This is the new normal: 97% of consumers use the Internet to find local businesses, and one in eight consumers search for nearby businesses online every day. The comments page is at the heart of the search.
Influence of reviews by industry
The 5 industries most influenced by negative online reviews
90% of customers said the goods they chose were influenced by positive online reviews, and 94% of people will use at least one four-star company. If you run a business, the best way to attract more customers is to get a high star rating on the most popular review sites. Small businesses have more control over their online star ratings than they realize. First, they can actively encourage customers to write comments about their experiences. This can activate the company's happiest customers, cover up unfair negative reviews, and ensure that the company's "comment rate" is healthy. Second, small businesses can turn negative reviews into second chances. Everyone's life is difficult, and business owners should know when something is going wrong. In the past, dissatisfied customers may not have even filled out a review card - they simply disparaged the business through word of mouth, and the owner may never have known what was going on.
Companies can use online reviews to identify blind spots and make sincere actions visible to all members of the public. Interactions in online review forums with dissatisfied customers can actually lead to repeat customers. When their doubts are resolved, up to 70% of complaining customers will give the company a second chance.
If you run a business, it's time to take advantage of online review sites and use them to your advantage. Word of mouth is now happening online, and businesses can finally express their voice in conversations. Even better, these days, entering the world of online reviews may be the only marketing plan small businesses need.