- Small Business Statistics
Research Summary: As you browse through online retail platforms, you may notice that products with ratings below four stars often go unnoticed. The influence of online reviews on purchasing decisions remains profound, shaping consumer behavior significantly.
To grasp the critical role of online reviews in today’s market, here are some vital insights from our recent research:
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95% of online shoppers consult online reviews before making a purchase.
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91% of consumers aged 18-34 regard online reviews with the same trust as personal recommendations.
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93% of shoppers acknowledge that online reviews have influenced their buying choices.
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81% of consumers check online reviews prior to visiting a business in person.
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Products with a minimum of five reviews see a 270% increase in conversion rates.
For more detailed analysis, we have categorized the data into the following sections:
Consumer Decision-making | Consumer Trust | Benefits of Online Reviews | Negative Reviews | Customer Reviewers
Reviews and Consumer Decision-making
Online reviews significantly affect customer decision-making, as evidenced by the following statistics:
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67% of weekly online shoppers always read online reviews before making a purchase.
This is in contrast to 54% of monthly online shoppers and 38% of those who shop online infrequently.
Share of Online Shoppers Who Always Check Reviews
Online Shopping Frequency Share of shoppers who always check reviews Weekly 67% Monthly 54% Rarely 38% -
Customers typically spend 31% more at businesses with positive reviews.
A positive review experience can lead to a customer spending up to 140% more than one who has had a negative experience.
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54.7% of online shoppers will read at least four reviews before purchasing.
Additionally, 31% will read more than ten reviews, underscoring the importance of requesting customer feedback.
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80% of reviews are generated from follow-up emails.
Without a prompt for feedback, customers may forget or feel unsure about leaving a review, highlighting the importance of follow-up communications.
Reviews and Consumer Trust
Online reviews enhance brand trust among customers. If a previous buyer had a positive experience, potential customers are likely to feel similarly. To better understand this dynamic, consider the following statistics:
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49% of customers trust online reviews as much as personal recommendations.
With at least 88% of consumers trusting personal recommendations, online reviews serve as a powerful trust-building tool.
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46% of shoppers are skeptical of products with only 5-star ratings.
This skepticism increases for products with very few reviews; shoppers tend to trust high ratings more when there are at least ten reviews available.
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52% of customers distrust star ratings that lack accompanying review content.
Without detailed descriptions or images, customers are more inclined to suspect reviews may be fake, which can erode trust.
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People trust customer reviews 78% more than direct marketing.
Online reviews are not only cheaper than ads, but they are also more effective, as customers place greater trust in them than in conventional advertising.
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96% of customers express distrust in advertising.
This raises questions about why companies invest heavily in ads that often go ignored.
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85% of shoppers believe reviews older than three months are irrelevant.
Among those who consider recency important, 34% prioritize reviews from the past week to month.
Benefits of Online Reviews
A substantial number of online reviews, especially positive ones, can significantly enhance sales, build trust, and attract new customers. Here are some key benefits:
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Having 50 or more reviews on a product boosts its conversion rate by 4.6%.
Moreover, a mere 0.1 increase in ratings can elevate a product’s conversion rate by up to 25%.
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32% of customers identify online reviews as the most critical factor driving their purchases.
This positions online reviews ahead of free shipping (24.5%), coupons and discounts (22.1%), and loyalty or rewards programs (6.5%).
Top Factors That Motivate Online Customer Purchases
Factor Share of customers who say it’s important Online reviews 32.0% Free shipping 24.0% Coupons and discounts 22.1% Loyalty/rewards programs 6.5% -
Businesses that respond to 25% of their reviews earn 35% more on average.
Furthermore, responding to at least one review can result in an average earnings increase of 4%. Consumers also perceive businesses that respond to reviews as 1.7 times more trustworthy.
Negative Reviews
Negative reviews can have a severely detrimental impact on businesses, leading to decreased sales and profits, while driving potential customers away. Consider the following statistics:
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96% of shoppers actively seek out negative reviews.
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97% of consumers read how a business responds to negative reviews.
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53% of shoppers expect a business to respond to negative reviews within a week.
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45% of consumers are more inclined to visit a business that responds to negative reviews.
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95% of consumers are more likely to leave negative reviews than positive ones.
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Just one negative review can deter 22% of interested customers.
Customer Reviewers
While not all customers leave reviews, those who do can significantly influence a business’s reputation. Here are some key insights into customer reviewers:
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Only 5%-10% of customers typically leave online reviews.
This percentage increases dramatically for local businesses, where up to 74% of customers may leave reviews, demonstrating the concentrated impact of a small segment of consumers.
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“Verified buyer” reviews increase the likelihood of making a sale by 15%.
With many customers concerned about the authenticity of reviews, verified reviews carry significantly more weight than unverified ones.
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22% of travelers will post an unsolicited online review of a hotel.
This number rises substantially when guests are prompted by hotel staff to leave a review, with 80% of consumers agreeing to post a review when requested.
Online Reviews FAQ
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How effective are online reviews?
Online reviews are highly effective at increasing sales and fostering customer trust. For instance, products with at least five reviews can see their conversion rates surge by 270%, leading to enhanced sales and revenue.
This surge in conversion rates is primarily driven by increased consumer trust, as 91% of consumers aged 18-34 and 49% of all consumers trust online reviews similarly to personal recommendations.
In conclusion, online reviews present an economical and impactful strategy for businesses aiming to improve their outcomes.
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What percentage of people use online reviews?
95% of consumers consult online reviews prior to making a purchase. Additionally, 81% of consumers utilize Google to research local businesses in the US, highlighting the value of online reviews for both online and physical stores.
Globally, the percentage of individuals relying on online reviews is lower, with only 36% of internet users aged 25 to 34 utilizing reviews for product research.
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Do online reviews increase sales?
Yes, online reviews do boost sales. On average, product reviews can increase sales by up to 18% and enhance conversion rates as well.
For instance, if a business typically generates $200,000 in sales annually, through online reviews alone, this figure could rise to $236,000.
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Are online reviews trustworthy?
Online reviews are generally considered trustworthy, with 78% of consumers placing greater trust in reviews than in direct marketing. However, apprehensions about the authenticity of reviews remain prevalent, making verified reviews especially valuable. Verified reviews can increase the likelihood of making a sale by 15% on average.
Factors that may undermine consumer trust in reviews include:
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Products with low ratings
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Products featuring only 5-star ratings
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Products with minimal reviews
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Reviews lacking detailed content
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Older reviews
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Conclusion
Online reviews are integral to a business’s success in today’s digital landscape, whether the business operates online or offline. With 95% of online shoppers consulting reviews before making a purchase, and the presence of reviews leading to an average 270% increase in conversion rates, their significance cannot be overstated.
While fostering customer trust through authentic reviews is essential, attempting to utilize fake reviews can backfire, leading to mistrust and damage. Thus, excellent customer service remains crucial in maintaining a positive reputation.
Ultimately, it is imperative for businesses—regardless of their size—to proactively cultivate online reviews, utilizing follow-up strategies like email requests to encourage customer feedback. These efforts are a cost-effective investment that can yield substantial returns.
References
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Channel Signal – 78% More People Trust Reviews Than Ads. Here’s Why.
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Bizrate Insights – The Impact of Customer Reviews on Purchase Decisions
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WP – Impact of Negative Reviews: How Negative Reviews Affect Your Business Revenue
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Cobalt – Let’s Face It: Negative Reviews Drive Customers Away
- Small Business Statistics
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
