Key Facts About Online Reviews that every Business should know

Reviews are a solid mind-maker for decisions for any purchase. But, this is not only an opportunity for promotion but could be a problem for business owners. What should businesses know about reviews?

12 facts about online reviews

Even a bad review is suitable for your conversion rate.

According to a Power Reviews report in 2016, 82% of shoppers are explicitly looking for negative feedbacks. Related research from Revoo shows that consumers spend five times as much on a site when they interact with negative reviews. At the same time, the conversion rate increases to 85%. But that doesn't mean that a terrible rating is good for business.

The idea is that the diversity of your ratings tends to be trusted with more than 100 % positive feedbacks. Having some negative reviews actually increases the conversion rate, especially if these negative reviews inform the consumer more about the product since buyers have different tastes.

A BrightLocal consumer survey shows that 91% of respondents aged 18 to 34 believe in online reviews as much as personal recommendations. It's also interesting that only 8% said they consider the type of business when they look at comments.

Reviews have a noticeable impact on revenue.

A study published by the Harvard Business Review found that a business has a 5-9% increase in revenue with every new Yelp rating. It has also been observed that buyers find that the more detailed the review, the more reliable it is.

A few reviews are still better than none at all.

A study by the Spiegel Center shows that a product is 270% more likely to be bought when it receives at least five reviews. However, after a certain point, the number of comments (one less or more) will not affect the high purchase probability.

The importance of the review increases with the price of the product.

The Spiegel study also showed that the more money consumers spend on a product, the more likely they will read what people say about it beforehand.

Reviews on the Internet replace recommendations from a friend.

According to research, 88% of consumers trust online reviews as well as recommendations from their friends.

Actual comments are a priority for the buyer.

44% of buyers trust reviews only if they are less than 1 month old. Of course, it all depends on the type of business, but in most cases, it really works.

Not all people leave comments.

Some people don't have the habit of leaving feedback. According to the Pew Research Center, 38% of customers don't write reviews for products and services ever. And at the same time, the data suggests that about 10% always leave reviews. That is, deliberately asking buyers for their feedback is really important and necessary. Only in this case the store will be able to get them.

The number of reviews outweighs the quality.

According to a study published in Psychological Science, people choose products based on quantity, not quality. That's why sometimes a business needs to mind not only positive reviews but also respond to any customers' questions and requests from that section.

Do not leave comments without answers.

According to TripAdvisor surveys, 78% of customers think that answers for every review are critical because they show that they care about customers.

Most people always read feedbacks.

According to Pew, most people under 50 always check online comments. And only 16% never do this before making a purchase.

The subject line of an email that requests feedback influences customer response.

Most companies send an email after purchase to ask for a review.

Research Yotpo has studied that an email's subject influences buyers' response. Some tips for naming a subject and getting feedback: Try to use the store's name, offer bonuses, ask questions, and avoid the word with capital letters.

Rating matter.

According to the research, there are less sales with fewer ratings. 94% of buyers consider an online store or a service company with 4 stars, but only 57% will take a look at a business with 3 stars rating.

Conclusion

Online reviews don't always influence consumer behaviour in the way we expect. And it would help if you were ready for this. It may not surprise you that with the rise of online shopping, online comments have more impact on consumers than they did in the past. And now, when you have this information about reviews, it's time to start creating a new marketing strategy.