During the last couple of years, the popularity of online reviews has grown significantly. Reviews help people decide which products or services they should buy, where they should travel and even where they should eat. Over time reviews have slowly become an integral part of business on the internet.
Numerous studies have been carried out to help determine the exact impact that both positive and negative reviews have on the popularity, number of sales, product awareness, conversion rate and profitability of businesses selling products or services.
The Positive Impact of Reviews on Businesses
- The increased likelihood of consumers spending more money
- Having numerous positive reviews increases the likelihood of convincing customers to pay more money for products or services. In fact, studies have shown that consumers are likely to spend around 31% more on products and services from businesses that have excellent reviews backing them up.
- Increase in business revenue
- Having negative reviews will surely affect your business, yet for every star that a business gets, chances are that a business’ revenue will increase by anywhere between 5%-9%.
- The customers’ trust is increased
- 57% of consumers won’t use a business that has fewer than 4 stars (up from 48% in 2017)