Online Review Statistics

In the highly competitive world of Online Reputation, it is crucial to make your each and every effort count. These statistics can help you narrow down your strategies. Go ahead use them wisely..

How many people read online reviews?

  • Positive reviews make 68% of consumers more likely to use local businesses
  • Negative reviews stop 40% of consumers wanting to use a business
  • 69% look online for local businesses monthly (up from 54%)
  • 56% search for local businesses weekly (up from 41% last year)
  • 86% of consumers read reviews for local businesses
  • 50% of 18-34-year-olds always read online reviews
  • Just 5% of 18-34s never read reviews
  • 61% of over 55s want businesses to have 4 or more stars (compared to 52% of 18-34 year olds)
  • Consumers require an average 40 online reviews before believing a business’s star rating is accurate (up from 34 in 2017)
  • 6% of consumers need businesses to have more than 200 reviews
  • 57% expect more than 11 reviews (51% in 2017)
  • Consumers read an average 10 reviews (up from 7 in 2017)
  • 70% read 4 or more reviews, with 20% looking at more than 11
  • Older consumers are more likely to be skeptical about online reviews
  • 33% of consumers spotted lots of fake reviews in 2018 – up from 25%
  • Fewer consumers saw fake reviews than last year
  • 89% of 18-34-year-olds and 74% of 35-54s saw fake reviews
  • Review readers are most likely to value local businesses’ average star ratings
  • 49% value the quantity of reviews – up from 46% last year, and 35% in 2016
  • 13% contact a business after reading positive reviews
  • 21% of 18-34-year-olds visit the business
  • When consumers compare two items with similar ratings, they are more likely to purchase the product with the most reviews (Association for Psychological Science)
  • 87% of individuals comparison shop for every purchase they make. (Mckinsey)
  • 88% of consumers report being influenced by a customer service review when deciding to buy something. (ZenDesk)
  • 64% of people trust search engines the most when researching a business. (Edelman Trust Barometer)

How do online reviews impact my revenue?

  • Every one-star increase in Yelp rating causes a 5-9% increase in revenue (Harvard Business)
  • 96% of businesses believe brand and reputation can affect revenue, yet only 44% monitor that impact. (CareerArc)
  • A company’s reputation is responsible for at least half of a company’s market value. (Zignal Labs)
  • Negative online comments can lower stock prices. Researchers at USC’s Marshall School beat the S&P 500 by 7.9% with this data. (Science Daily)
  • Consumers are willing to pay more for a product if the company selling it has a good reputation. (University of Technology Sydney)
  • Online reviews impact 67.7% of purchasing decisions. (Moz)
  • 41% of companies that experienced a reputation crisis lost revenue. (Deloitte)
  • A single point increase in a hotel’s Global Review IndexTMI causes up to a 0.89% rise in price, a 0.54% growth in occupancy, and a 1.42% jump in revenue per available room (RevPAR). (Cornell University)
  • Displaying reviews on your website can increase a company’s conversion rates by 270%. (Spiegel Research Center)
  • 67% of B2B buyers consider peer reviews a very important part of their decision-making process. (Demand Gen Report)

Do people care about responses to reviews?

  • 89% of consumers read local businesses’ responses to reviews
  • 29% always read review responses
  • Nearly all (96%) of 18-34-year-olds read review responses
  • 86% of consumers would consider leaving reviews for businesses
  • 80% of 18-34-year-olds have left businesses reviews
  • Over 55s are least likely to have left reviews
  • 66% of consumers have been asked to leave a review (down from 74% last year)
  • 83% of 18-34-year-olds have had requests to review local businesses
  • 50% of over 55s have been asked to leave a review
  • 30% of consumers highly value businesses’ responses to reviews

Where consumers are reading reviews?

  • Fewer consumers used PCs or Macs to read reviews in 2018
  • 78% of over 55s read reviews on PCs or Macs
  • 75% of 35-54-year-olds read reviews on mobile browsers
  • 50% of consumers visit local businesses’ websites after reading positive reviews (including 69% of 55+)
  • Google owns 74.54% of the world search engine market share

How much do consumers trust reviews?

  • 91% of 18-34-year-olds trust online reviews as much as personal recommendations
  • 74% of consumers have greater trust in a company if they read positive reviews
  • More consumers require multiple reviews to trust reviews
  • 18-34-year-olds read 11 reviews before feeling able to trust a business
  • 64% of consumers trust online search engines the most when conducting research on a business

What are other business owners saying about online reviews?

  • 97% say online reputation management is important to their business 98% say online reviews are important to their business
    92% say social presence is important to their business
    89% say that keeping up with online marketing important
    80% of respondents said that working with the right online marketing service is important

What is the weight of online reviews?

  • 57% of consumers won’t use a business that has fewer than 4 stars (up from 48% in 2017)
  • 11% want a perfect 5 stars
  • It takes nearly 40 good customer experiences to reverse the damage of one negative review. (Inc.)
  • One bad review can cost you up to 22% of potential customers. The risk increases to 59.2% for three bad reviews. Four or more negative posts drive this number to 70%. (Moz)
  • 4 out of 5 individuals have decided against a recommended purchase due solely to negative information they discovered online (Cone Online Influence Trend Tracker)
  • 78% of consumers trust recommendations from their friends and family vs. In contrast, only 14% trust company advertising. (Nielsen)
  • 74% of consumers use social media to inform their buying decisions. (Sprout Social)
  • 45% of consumers reported finding something online that caused them to not do business with someone. (Denver Post)

Recency effect of online reviews

  • 85% of consumers think that online reviews older than 3 months aren’t relevant
  • 40% of consumers only care about reviews submitted within the last two weeks (18% last year)
  • 64% of 18-34-year-olds are only impacted by reviews from the past two weeks

Sources
https://www.brightlocal.com/learn/local-consumer-review-survey/
https://www.screamingtreemedia.com/consumers-trust-online-reviews-much-personal-recommendations/
https://www.hbs.edu/faculty/Pages/item.aspx?num=41233
https://www.careerarc.com/blog/2017/11/employer-branding-study-infographic/
https://www.apnews.com/ca40da2be0c18d9d45a9d2246559396d
https://www.inc.com/andrew-thomas/the-hidden-ratio-that-could-make-or-break-your-company.html
https://www.sciencedaily.com/releases/2012/04/120419153845.htm
https://moz.com/blog/new-data-reveals-67-of-consumers-are-influenced-by-online-reviews
https://www.sciencedaily.com/releases/2018/12/181212104635.htm
https://www2.deloitte.com/au/en/pages/media-releases/articles/reputation-at-risk-survey-finds-revenue-brand-take-biggest-hits-and-customers-are-key-201114.html
http://blogs.denverpost.com/tech/2012/10/12/adults-google-results/6712/
https://www.edelman.com/research/2017-edelman-trust-barometer
http://www.conecomm.com/research-blog/2011-online-influence-trend-tracker
https://www.zendesk.com/resources/customer-service-and-lifetime-customer-value/
https://www.nielsen.com/eu/en/press-room/2015/recommendations-from-friends-remain-most-credible-form-of-advertising.html
https://sproutsocial.com/insights/social-networks-influence-buying-decisions/
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-new-battleground-for-marketing-led-growth
https://scholarship.sha.cornell.edu/chrpubs/5/
https://spiegel.medill.northwestern.edu/online-reviews/
https://journals.sagepub.com/doi/full/10.1177/0956797617711291
https://www.demandgenreport.com/resources/research/2017-b2b-buyers-survey-report

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