Online reviews have become an increasingly important aspect of running a successful business. With the majority of consumers reading reviews before making a purchase, it's crucial for businesses to stay on top of the latest online review statistics.
In this article, we will be discussing 10 statistics that businesses should know in 2023 to understand the impact of online reviews on their bottom line.
From the importance of positive reviews to the long-term effects of negative reviews, these statistics will provide valuable insights into how online reviews can help or hurt a business.
What are online reviews?
Online reviews are evaluations or comments written by customers about their experiences with a product or service. These reviews are typically found on websites or apps that allow customers to rate and review businesses, such as Yelp, Google, or Amazon.
Online reviews can include a wide range of information, such as a rating on a scale, a written description of the experience, and photos or videos. They can also include information on the specific product or service that was reviewed, such as its features, price, and quality.
The importance of online reviews for businesses
Online reviews are essential for businesses for several reasons:
- Online reviews help increase visibility and credibility: Online reviews can help increase a business's visibility and credibility by giving it a strong online presence. Positive reviews can help to attract new customers and build trust with potential customers.
- Online reviews and user-generated content may help with SEO: Online reviews can also help to improve a business's search engine optimization (SEO) by including keywords and phrases that customers use to search for products or services. This can help a business to rank higher in search engine results, making it more likely for customers to find it.
- Online reviews are a valuable source of insightful customer feedback: Reviews can provide valuable feedback for businesses on how to improve their products or services. They can help businesses identify areas that need improvement and make changes accordingly.
- Reviews allow you to manage online reputation: Negative reviews can have a detrimental effect on a business's reputation. Online reviews give businesses the opportunity to respond to negative reviews, address customer concerns, and mitigate any potential damage to their reputation.
- Online reviews can be used as a marketing tool: Reviews can also be used as a marketing tool. Positive reviews can be shared on social media or used in advertising to attract new customers.
- Reviews can help increase sales: Online reviews can also increase sales. Studies have shown that businesses with positive reviews are more likely to convert potential customers into actual buyers. We will see actual statistics later in this article regarding how reviews can help increase (or decrease) sales.
- Online reviews lead to personalization: Online reviews allow businesses to personalize their services or products to the specific needs of their customers, which can lead to repeat business and customer loyalty.
10 online review statistics businesses should know
Now that you understand what online reviews are and why they are important for businesses online, let's check out 10 online review statistics you should know in 2023.
1. Negative reviews can damage a business's reputation
Negative reviews can have a detrimental effect on a business. A single negative review can cost a business up to 30 customers, according to a BrightLocal survey.
2. Most people read multiple reviews before a purchase
A study by Spiegel Research Center found that most people read at least 10 reviews before forming an opinion about a business. This highlights the importance of having a large number of reviews.
3. Positive reviews increase buying intent
A study by PowerReviews found that 63% of consumers are more likely to purchase from a site with user reviews.
4. Online reviews have an impact on local SEO
According to a study by Moz, online reviews are one of the most important local SEO ranking factors, with review signals accounting for 13% of how Google ranks local search results.
In our experience, reviews have become an even more important local search engine ranking factor in recent years.
5. Online reviews are trusted as much as personal recommendations by consumers
A survey by Dimensional Research found that 90% of consumers trust online reviews as much as personal recommendations.
This is interesting because it tells us that personal recommendations are not as important to online consumers — as long as they can see online reviews from verified buyers online. That can adequately help them form their purchase decision.
Strangers aren’t really strangers online — as we will see in the next statistic.
6. Consumers are more likely to trust reviews from strangers
A study by BrightLocal found that 70% of consumers trust online reviews more when they see positive reviews from strangers.
7. Positive reviews improve click-through rates
A study by Search Engine Land found that online reviews can improve click-through rates by up to 35%.
A higher CTR usually has a direct impact on search engine rankings, which can lead to potentially higher search engine rankings and traffic down the road. In addition, a higher CTR also directly translates into higher traffic, which increases total revenue potential.
8. Negative reviews can have long-term effects
As we just saw, there are numerous benefits of positive reviews. However, negative reviews can be just as harmful.
A study by ReviewTrackers found that negative reviews can have a long-term effect on a business. 42% of consumers say they would avoid a business for up to a year after reading a negative review.
9. Positive Reviews Increase Sales
According to a survey by BrightLocal, 84% of people trust online reviews as much as personal recommendations. Positive reviews can significantly boost a business's sales and increase customer loyalty.
10. Reviews Impact Purchase Decisions
A survey by Invesp found that 72% of consumers say that positive reviews make them trust a business more and that they are more likely to make a purchase.
So even if a review doesn’t directly lead to a purchase at that moment, it positively impacts a consumer's mindset and makes them trust a business more. That positive impression is more likely to make them convert and become a customer down the road.
In conclusion, online reviews will be a crucial aspect of any business in 2023.
The statistics presented in this article highlight the importance of positive reviews for increasing sales and building trust with customers, as well as the potential negative effects of negative reviews on a business's reputation.
By understanding these statistics and using them to guide their online review strategy, businesses of all types and sizes can take benefit from online reviews and improve their bottom line along with building a strong, reputable brand.