Websitebuilder.org recently released some stats on online reviews and online reputation management, and the results were staggering.
Online reviews play a pivotal role in whether or not a potential customer will buy goods or services from a particular business. Service companies – such as restaurants, hotels, salons, etc. – are particularly susceptible to the impact of online reviews. Take a look at these 5 facts that might change the way you view online reviews:
1. Positive reviews can create an 18% average increase in sales.
Why? Because customers trust businesses with 5 and 4 star ratings more than those with negative feedback or no feedback at all. Seeing that others have tried your products and services and were pleased is huge in creating new sales – particularly if you are in the restaurant, hotel, or other service field.
2. Customers trust online reviews nearly 12 times more than other advertising messages.
It’s important to have strong branding messages, but remember the value of online reviews! Consumers trust other consumers to be truthful far more than corporate advertising. If your business focuses on millennials, then this stat is even more critical because merely 34% of millennials said they trust television advertising, as opposed to 68% who trust online reviews.
3. With every added “star” your business has by it’s name, sales are proven to increase by 5-9%.
Incentivize customers to review your business, particularly if they had a positive experience. Again, the more reviews you have, the more likely people are to trust your company, and positive reviews are priceless in terms of conversion. And bonus: content can get picked up by search engines and lead to richer SEO.
4. Customers will spend 31% more with companies that have excellent reviews.
Not only will positive online reviews bring in more customers, but they can also increase the ticket size. Again, customers trust online reviews enough to put their money behind businesses other people like.
5. Negative reviews aren't all bad.
While negative reviews do impact your business, there is a silver lining. For one, negative reviews generate buzz, which in turn, generates awareness around your products and services. This had been shown to actually increase sales – as opposed to decrease them. Also – if your company responds to a negative review in a professional, helpful, and courteous manner, consumers generally negate that negative review from their decision making process.
Bottom Line: Closely monitoring your online reviews is critical to the success of your business. Luckily for you, 214 Interactive is an expert in online reputation management in Dallas, Texas, and we can do all the heavy lifting for you! Call us today for a consultation!
Want to read more? View full infographic from WebsiteBuilder.org below: