It’s no secret that online ratings and reviews of businesses have become critical to entrepreneurial success. But what matters most about online reviews is the opinions of prospective customers. In a new survey, 98 percent of people read online reviews for local businesses. This can either motivate them to purchase or discourage them, depending on the type of review being read.
In addition, positive customer reviews are the number-one influence on whether customers purchase a product or service — above other factors such as location and price.
Four Things Customers Consider in Online Reviews
But not all reviews are created equal. Here are the four things customers care about most:
1. Stars
The star rating of online reviews is the number-one factor customers consider when evaluating a business. About 87 percent of consumers will not consider a business with less than 3 stars. However, 38 percent also say a four-star rating is the minimum they will consider.
There are also six percent of consumers who don’t look at the average rating when considering a business.
Don’t skim your reviews to watch out for negative ones — read them and act on them. Even in positive online reviews, are there comments that suggest ways you can improve? If you’re getting a lot of three-star ratings, how can you bump it up? Boosting your review to four stars can nearly double the number of customers willing to patronize your business. Ask your customers and conduct surveys through email, whether in your business establishment, on your website, or on social media about what they’d like you to do differently.
2. Quantity
The quantity of reviews is the second most important factor in making a decision. However, just because you have a lot of reviews doesn’t mean consumers will take the time to read them all. According to Oberlo, 54.7 percent of consumers read at least four reviews before purchasing a product. However, this doesn’t automatically translate that the more reviews you have, the more consumers trust your business.
The same study shows that 26.8 percent of consumers have a higher level of trust for products between 11 and 50 reviews as compared to the five percent of consumers who trust a product that has between 501 and 1,000 reviews.
To achieve the desired number of online customer reviews, you must encourage your customers to leave reviews on your website, social media, Yelp, Google Reviews, or any other platform, site, or app where they can give feedback about your business. You can motivate them to leave reviews by giving incentives or discounts on their next purchase.
3. Recency
According to Power Reviews, 64 percent of consumers said that they would be more likely to buy a product that has fewer but more recent reviews compared to products with large volumes of reviews that are older than three months. On the other hand, 44 percent of consumers prefer products with reviews that were written within the last month.
Once you’ve got 10 reviews, don’t be complacent and satisfied. Depending on your industry, you need to ensure those reviews stay fresh — especially if you’re in a business such as restaurants, where potential customers expect to see a lot of activity. Continue encouraging your customers to review you on whatever ratings and review sites your business is listed on.
4. Authenticity
Consumers are losing trust in reviews to some extent. According to Oberlo, 62 percent of consumers say they won’t buy from businesses that censor online reviews. This makes it harder for consumers to make informed buying decisions because the negative reviews are being hidden.
Takeaway: Consumers value authenticity and transparency. So, monitor your reviews from time to time to spot positive fake reviews (a perfect rating with glowing praise from people who have never used the product) and negative fake reviews (a negative review from people who are aiming to tarnish your reputation). Moreover, you must never engage in paid reviews, review bombing, and review manipulation. Being involved in these practices could affect your credibility as a brand.
Benefits of Online Reviews for Businesses
Online reviews offer numerous advantages to your business, such as increased visibility and reputation, enhanced customer engagement, and loyalty. They play a role in boosting your business’s visibility and contributing to improved search rankings; therefore, making your business more discoverable.
When potential customers see positive reviews, it builds trust in the quality of products or services you offer, which influences their purchasing decisions, which then leads to more sales for you.
Furthermore, online reviews provide direct, valuable feedback and insights into your business. This feedback is a valuable resource for identifying areas of improvement and implementing changes to enhance customer satisfaction. That’s why it’s important to encourage customers to leave an online review after they’ve made a purchase.
Factors That Make Online Reviews Important
Online reviews hold significant importance due to their authenticity, transparency, impact on SEO (Search Engine Optimization), and word-of-mouth marketing.
The authenticity and transparency of online reviews are highly valued since they’re written by customers who share their genuine opinions and experiences. This helps potential customers make informed decisions based on the experiences of previous customers.
Online reviews have a notable impact on SEO and word-of-mouth marketing. Positive reviews contribute to higher search engine rankings; therefore, enhancing your visibility in online search results. This is because search engines consider reviews as a vital factor in determining the relevance and credibility of a business.
Furthermore, online reviews serve as a form of digital word-of-mouth marketing. Satisfied customers share their positive experiences and recommendations, acting as testimonials that influence potential customers.
Overcoming Challenges and Handling Negative Reviews
Dealing with negative feedback and criticism can be daunting, but it presents you with a chance to showcase your dedication to customer satisfaction. When faced with negative reviews, it’s crucial to maintain composure and respond in a professional manner. Don’t get carried away with your emotions.
Take the time to understand the customer’s perspective and show empathy toward their experience. By acknowledging their concerns and validating their feelings, you can demonstrate your commitment to addressing their issues. This can put your brand in a positive light despite their unsatisfactory experience.
When responding to customer concerns, time is of the essence. Responding in a timely manner shows that you value their feedback and are committed to finding a solution. Provide practical solutions or options to resolve the problem, highlighting your dedication to customer satisfaction.
By going above and beyond and offering additional assistance or incentives, you can showcase your commitment to resolving the issue and providing an exceptional customer experience. Embrace negative feedback as a chance to learn and improve so that it becomes a positive experience for both you and the customers.
Use online reviews as your stepping stone to become better than ever
Positive and negative reviews are both good for your business whether you can see it or not. The former is good as sometimes it comes with suggestions on how you can improve your products or services in the future. The latter, however, can serve as your constructive criticism. By taking note of your customer’s sometimes unpleasant concerns and feedback, you can use this to serve them better in the future.
Without reviews, you wouldn’t be able to gauge how your business is resonating with the consumers. So, take these with a grain of salt and see them as your opportunity to serve your customers better in the future.
