Until recent years, there was a general discussion on what the actual impact of online reviews were for converting potential customers into paying customers.
Some businesses thought positive online reviews were worth pursuing, sometimes even budgeting some marketing funds toward review gathering activities. Other businesses ignored the entire online review discussion thinking either consumers didn’t trust or use reviews, or other factors drove new customer decisions to become customers.
In fact, consumers not only want to see reviews on your products and services, but they also look for nitty-gritty details in your customer reviews, according to research published by Fan & Fuel. Consumers, your prospects, are interested in learning about problems and experiences customers have had the research says. Further, prospective customers are interested in how you have responded to complaints, whether your product lived up to claims and the overall performance of your company.
According to their data, consider the following:
- 97% of participants said customer reviews factor into their buying decisions
- 92% of consumers hesitate to make a purchase when there are no customer reviews
- 94% read reviews when available
Consumers Trust Online Reviews more than Ever
The acceptance of reviews is significant. To most people involved in a purchase decision, reviews are very important. The question is how do they influence purchasing decisions?
Consider the following before dismissing the process of review development:
- 88% trust online reviews as much as they do on personal recommendations.
Word-of-mouth has historically been a critical consideration when it comes to the credibility of a business. Now, the widespread accessibility of the internet makes online reviews as credible as a personal recommendation from someone you know. The reality is the number of online reviews coupled with the variety of comments make reviews even more useful to the buying decision. The significant factor to remember is consumers trust an authentic review with high-quality information. If a review seems scripted or if it is paid for, it will appear spammy and will likely have an opposite effect, turning prospects off.
- Online reviews produce an 18% Increase in sales (on average)
Consumers are more likely to purchase from a company with reviews than one with none. A website Displaying reviews will provide potential customers with more confidence in their purchasing decisions. A variety of positive comments and insights reduces doubts. Less doubts equate to a higher conversion rate. Additionally, positive reviews strengthen your brand credibility and implies reliability for consumers. Trusting your company, the brand, the product and the services results in more sales. Your conversion rates will increase from a combination of repeat sales, Referral sales and often a larger average order size. Trust does a lot – online reviews build conversions and repeat sales.
- 86% of buyer hesitate to do business with a company if it has a disproportionate number of negative online reviews.
Unfavorable online reviews can reflect negatively on your business relative to your product or service’s quality and reliability. But, keep in mind, the complete lack of negative reviews on a product or service page can call its credibility into question as well. All positive reviews may make the entire page is inauthentic. However, a negative review or two can confirm you are a real business. After all, no one is perfect all the time. Answering negative reviews can show commitment and proper concern for best possible outcomes.
Looking forward, consider the less than positive reviews as an opportunity to show your customer service skills. Resolving issues in negative customer reviews can have a very positive effect on potential customers. Going the extra mile to “fix” the problem shows you care about your customers. However, leaving them unanswered can hurt your reputation and your relationship with your customers.
Online Reviews Empower Consumers & Power Word Of Mouth Marketing
Online reviews are an important factor for many consumers researching or shopping online. Reviews help build trust between the consumer and the business. Further, larger volumes of reviews coupled with positive, detailed comments will help build immediate trust. Trust will convert casual online visitors to paying customers.
Beyond Yelp Reviews
The example of Yelp reviews helps business owners understand how positive feedback, or more Stars, can impact the bottom line. The challenge is having the discipline needed to encourage satisfied customers to provide reviews.
A business’s online reputation relies customers first getting online, finding your listing and finally publishing a review well after the actual service. The reality is, no matter how well intentioned, most customers don’t do it.
Despite this reality. it is important for businesses to start capturing reviews as part of your online reputation management plan. Consider the following –
- 71% of consumers seek out reviews for every/almost every purchase
- 70% of customers trust businesses with 6 to 10 reviews
- 72% of consumers say they trust good online reviews
- Anonymous posters are trusted as much as personal recommendations
Online Reputation Management Relies On Directory and Citation Sites
Positive online reviews is needed now more than ever. Further, the minimum of 6 – 10 reviews should be recent reviews. Online reviews from a year ago will have a limited impact.
Reputation management is a business practice successful businesses will master to enhance their competitiveness. They will be disciplined and consistent to ensure their efforts will create flow of newer, more relevant reviews. People will see the dates of the reviews and so will search engines.