Table of Contents
- What Is Online Reviews?
- The Importance of Online Reviews for Consumers
- Why Do People Leave Online Reviews?
- The Impact of Online Reviews on Businesses
- 9 Major Benefits Of Online Reviews For Businesses
- 1. Consumers Refer to Online Reviews Before Making Any Purchasing Decisions
- The Power of Social Proof in Building Brand Trust
- 2. Customers Especially Rely on Reviews Before Making Big Purchases
- Reducing Perceived Risk for High-Ticket Purchases with Online Reviews
- 3. Reviews Increase Confidence in Your Brand for Prospective Customers
- The Appeal of Imperfection: Why a 4.5 Rating is More Trustworthy Than 5 Stars
- 4. Negative Reviews Can Be a Good Thing
- Embracing Negative Feedback: Why a Few Bad Reviews Can Strengthen Credibility
- 5. Higher Review Quantity Affects Credibility
- Building Credibility Through Volume: Effective Ways to Request More Customer Reviews
- 6. Online Reviews Can Drive More Sales
- 7. Reviews Create Customer Engagement
- Turning Negative Feedback into Opportunity: Responding to Reviews to Boost Trust and Improve Service
- 8. Reviews Build Your Reputation and Expand Your Customer Base
- Encouraging Referrals through Review-Driven Social Media Campaigns
- 9. Online Testimonials Impact Business Visibility
- Build Trust and Credibility with Testimonial's Wall of Love
- Related Reading
- How To Get Online Reviews For Your Business?
- Speed Up Customer Testimonial Collection with a Tool
- Showcase Testimonials with Testimonial's Wall of Love
- Use Email Requests to Collect Customer Reviews
- Increase Testimonial Volume with Automated Requests
- Text Messages Make Asking for Reviews Personal and Direct
- Collect from Your Website Header or Footer
- Social Media Is a Gold Mine for Client Testimonials
- Don't Underestimate the Power of Asking in Person
- Be On Review Platforms to Collect Customer Feedback
- Follow Up With Customers After Recent Purchases or Interactions
- Simplify the Review Process for Your Customers
- Related Reading
- How To Respond To Online Reviews
- Thank Positive Reviewers: They Deserve It!
- Address Negative Reviews with Empathy and Solutions
- Keep It Short, Sincere, and Professional
- Encourage Further Engagement if Needed
- Showcase Your Brand’s Values and Personality
- Be Prompt, but Avoid Rushing
- Thank Constructive Critics, Too
- Respond to Reviews Consistently
- 6 Best Online Review Sites For Businesses
- 1. Google: Your Best Friend for Business Reviews
- Improve Your Online Reputation with GMB
- 2. Facebook: The Social Media Giant’s Review Platform
- 3. Yelp: The Review Site for Local Businesses
- 4. Amazon: The E-Commerce Review Powerhouse
- 5. Trustpilot: The Online Business Review Site
- 6. G2 Crowd: Business Reviews for Software
- Build a Wall of Love for Free Today with Testimonial
- Increase Conversions with Authentic Customer Testimonials
- Related Reading
Title
9 Major Benefits Of Online Reviews For Businesses
Date
Nov 14, 2024
Description
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Current Column
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Picture this: You’re looking for a new place to eat, and you have two options: One restaurant has a solid online reputation, with dozens of reviews detailing their service, food, and atmosphere. The other has no reviews. Which one are you more likely to choose? If you’re like most people, you’ll choose the first restaurant without hesitation. This scenario illustrates the significance of online reviews to businesses in today’s digital world. The current climate challenges companies with poor ratings or few online reviews. If you find yourself in this position, you can improve your business’s online reputation with this article’s insights on the benefits of online reviews.
Testimonial software is one of the best customer feedback tools for helping businesses to collect and manage customer reviews. It can automate the review collection process, making it easier for both you and your customers.
What Is Online Reviews?
Online reviews are user-generated assessments that people voluntarily share after purchasing or using a business’s products or services. These evaluations serve as feedback, giving other potential customers insights into the quality, usability, and overall satisfaction levels of the item or service. Reviews are commonly posted on dedicated review platforms, like:
- Yelp
- Google Reviews
- Amazon
It often includes a written evaluation and a rating, typically on a numerical or star-based scale.
The Importance of Online Reviews for Consumers
Consumers place significant value on online reviews when shopping online. As of 2019, U.S. online shoppers expected an average of 112 reviews per product, reflecting the high demand for user feedback to validate purchase decisions.
Younger consumers, in particular, tend to expect more reviews than older shoppers. Reviews are a powerful influence on purchasing behavior, with 62% of U.S. online shoppers in 2019 stating that customer reviews were a beneficial factor when deciding where to shop online.
Why Do People Leave Online Reviews?
People generally leave reviews to share their experiences, both positive and negative, to help others make informed decisions. Product performance and overall customer satisfaction are often seen as the most valuable information for readers.
Given their high utility, reviews have become a cornerstone of online shopping, affecting buyer confidence and purchase choices.
The Impact of Online Reviews on Businesses
Review platforms, like Yelp, have seen substantial engagement and profitability from this trend. In Q3 of 2019, Yelp generated over $262 million in revenue and attracted over 100 million unique mobile visitors, highlighting the impact and reach of online reviews in today’s digital economy.
9 Major Benefits Of Online Reviews For Businesses
1. Consumers Refer to Online Reviews Before Making Any Purchasing Decisions
Reviews have become a primary source of information consumers use to decide to buy on:
- Where
- What
- When
According to a study conducted by:
- Spiegel Research Center, in partnership with PowerReviews, 95% of consumers read online reviews before purchasing products and services.
- 30% of respondents to a PowerReviews survey reported reading reviews before making any purchase.
- Testimonial Engine found that 72% of customers won’t take any action when making a buying decision until they’ve read reviews online.
The Power of Social Proof in Building Brand Trust
Reviews are the digital equivalent of a word-of-mouth recommendation. Potential customers will listen to and trust current customers more than your brand. We're inherently skeptical creatures and don't simply take a brand's word for it. It's clear, then, that a lack of online reviews will be a huge obstacle for your brand. Collect more reviews, and your sales will go up. Period.
2. Customers Especially Rely on Reviews Before Making Big Purchases
The higher the product price, the greater the importance customers place on reviews. This is because high-priced products such as:
- Personal gadgets
- Appliances
- Automobiles are based on personal preference
Consumers are more demanding regarding their requirements and expectations when paying more for a particular product or service. They want to match their expectation to the level of satisfaction of other customers who have experienced using a brand.
Reducing Perceived Risk for High-Ticket Purchases with Online Reviews
The upfront investment is more significant for the shopper, which means the risk is too high. Thus, they want to stack the odds in their favor as much as possible. That's where online reviews come in.
So, if you're selling something at a higher price, you’ll want to take extra care here. Asking for online reviews from people after they've purchased from you and have had time to use the product/service will be crucial to your success.
3. Reviews Increase Confidence in Your Brand for Prospective Customers
A study conducted by Brightlocal’s annual Consumer Review Survey found that 87% of American-based consumers need a business to have an average rating of three to five stars to use it. Interestingly, 11% looked only for companies with a perfect five-star rating.
Womply also found that five-star businesses earn less in revenue than businesses with a one—to 1.5-star rating. While this seems ironic, excellent ratings lead to consumer skepticism.
The Appeal of Imperfection: Why a 4.5 Rating is More Trustworthy Than 5 Stars
Having a perfect or near-perfect score makes consumers suspicious and gives them the impression that reviews are too good to be true. This finding aligned with ReviewTracker’s survey, which found that an average rating of 4.5 to five stars appeals more to customers.
None of this says that you should intentionally manipulate your ratings. It should comfort you that perfection isn't necessary. Instead, focus on creating excellent products and services and getting glowing customer reviews.
4. Negative Reviews Can Be a Good Thing
Though negative reviews are inevitable, they can work in your favor. According to Reevoo, negative reviews can increase conversions by up to 85%. And more than two-thirds of customers trust businesses more when they see a mix of good and bad reviews. This is good news for your business!
Embracing Negative Feedback: Why a Few Bad Reviews Can Strengthen Credibility
A few bad reviews won’t derail your average score if you have a steady stream of (predominantly positive) reviews. And again, we mean it when we say that negative reviews happen to everyone. It will never be possible to please everyone.
The most popular brands and products worldwide have people who hate them. So, don't lose sleep over people who have not-so-flattering opinions of your brand, as long as these reviews are the exception — not the rule.
5. Higher Review Quantity Affects Credibility
Besides the overall star rating, the number of online reviews is also a decisive factor that customers consider when evaluating a business. How many reviews are enough? Salsify revealed that an average of 112 reviews would make consumers trust a company.
This indicates that as consumers prefer businesses with higher reviews, business owners like you should actively and consistently encourage your customers to share their experiences about your business.
Building Credibility Through Volume: Effective Ways to Request More Customer Reviews
The more reviews your business has, the more credible you appear to consumers. You can easily ask for reviews by hanging a sign in your store (if you have a brick and mortar). You should also ask for reviews via email and your social media channels. These platforms are essential for collecting reviews:
- Yelp
- Google My Business
6. Online Reviews Can Drive More Sales
Reviews do more than build trust. They can make or break your business growth.
- Statistics published by Reevoo found that 50 or more reviews per product can increase conversion rates by 4.6%.
- The Spiegel report supported this by showing that the first five reviews increased sales fourfold. These aren't numbers to scoff at and can seriously boost your revenue. With more favorable reviews, customers are more likely to return and will prefer you over your competitors.
- A study published by the Harvard Business Review showed that simply achieving a one-star increase in your overall online review rating can increase revenue by up to 9%. A closer look at this study reveals that reviews increase sales and overall business growth.
7. Reviews Create Customer Engagement
Engagement is not a one-way street. One of businesses’ most significant challenges is actively encouraging customers to leave reviews. A report by Podium suggests that businesses overlook a considerable opportunity when they do not engage with customers to leave reviews.
According to the report, 77% of consumers agreed to leave an online review if given the chance. Businesses must look for ways to encourage customer reviews as quickly as possible. To collect reviews, you can:
- Share customer experiences via social media
- Have a special feedback button on your website
- Incentivize reviews through loyalty programs
- Send an email request after their purchase
- Manage group engagement posts & feedback
Turning Negative Feedback into Opportunity: Responding to Reviews to Boost Trust and Improve Service
It’s also possible to use reviews to rectify poor customer experience. Simply responding to a negative review can restore your customer’s trust and improve customer experience. Statuslabs found that 30% of consumers become optimistic about a brand by merely replying to online reviews.
This is also an opportunity to learn about your:
- Brand
- Product
- Service
When people leave negative feedback, listen! This information is as insightful and informative as positive feedback, if not more. Use it to improve your brand.
8. Reviews Build Your Reputation and Expand Your Customer Base
Creating and maintaining a good reputation isn’t an overnight achievement. According to Zendesk’s Dimensional Research, 95% of customers are likelier to share their bad experiences with peers.
You must contact disgruntled customers and address the situation immediately. Sometimes, a quick apology is all it takes to turn an unhappy customer into a loyal one.
Encouraging Referrals through Review-Driven Social Media Campaigns
Ultimately, a good brand reputation leads to referrals. To accomplish this, you need to amplify customers' voices and build a culture where reviews are considered valuable. It's clear why getting more online reviews should be one facet of your digital marketing strategy.
A straightforward way to ask for them is to post about them across your social media channels, along with the link people can visit to leave feedback.
9. Online Testimonials Impact Business Visibility
Another power factor of online reviews is that they can influence the visibility of your website online. Internet algorithms run by Google, Facebook, and other major search engines know that people searching for businesses online are influenced by reviews.
So, they’ve implemented these reviews into their algorithms to help showcase businesses with the most positive reviews first. So, if you have many positive reviews, you can have a better chance of being competitive in search results for your industry. For more information on how to impact your business with online testimonials, visit Power Reviews.
Build Trust and Credibility with Testimonial's Wall of Love
Testimonial simplifies the process of building trust and credibility for businesses. Our testimonial software allows an accessible collection and display of authentic client testimonials featuring:
- Video and text options
- An embeddable ‘wall of love’ widget
- A clever Email Assistant
- Third-party review imports
This is ideal for:
- Content creators
- Agencies
- eCommerce
- SaaS companies
Testimonials help boost their credibility and conversion rates by showcasing real customer experiences. Build a wall of love for free today with Testimonial.
Related Reading
How To Get Online Reviews For Your Business?
Speed Up Customer Testimonial Collection with a Tool
Gathering testimonials manually, such as through email requests, can be slow and labor-intensive. You must draft messages and follow up with customers, and you often face delays while waiting for responses. This can lead to missed opportunities to showcase positive feedback that could help potential customers make informed decisions.
Tools like Testimonial streamline collecting and displaying customer feedback, making it faster and more efficient. With platforms like this, you can:
- Send automated requests
- Capture testimonials in various formats
- Text
- Video
- Even import reviews from third-party sources
Showcase Testimonials with Testimonial's Wall of Love
Testimonial also provides features like an embeddable “wall of love” widget, allowing you to showcase customer experiences directly on your site without hassle. This simplifies the collection and presentation, making building trust and credibility with new visitors easier.
Testimonial allows you to import testimonials from review platforms like:
- G2
- From social media sites like:
- Twitter (X)
Some even have built-in invite systems so you can automatically invite people and track the status of their testimonials.
Use Email Requests to Collect Customer Reviews
Email requests remain one of the most effective channels for collecting customer testimonials because it's a straightforward and scalable approach. Later in this post, you'll find testimonial email templates that simplify collecting testimonials via email.
You can ask for positive feedback in bulk by emailing your email list, or you can send an individual testimonial request by sending a direct message to your customer's email address.
Increase Testimonial Volume with Automated Requests
You can even set up automation so happy clients receive an automatic email when they complete an action. For example, ask for a testimonial two days after buying my product. After a positive customer service interaction, ask for a testimonial. That way, your customer success team will only need to remember to do this occasionally.
Text Messages Make Asking for Reviews Personal and Direct
Text messages (or SMS) offer an intriguingly direct and personal channel for requesting customer reviews. Customers receive dozens, and sometimes hundreds, of emails per day, and in an age of cluttered inboxes, a text message can gracefully cut through the noise.
Because text messages are so direct, they carry a higher risk of intrusion or annoyance if not done thoughtfully. Make your request respectful, clear, and to the point, ideally integrating it as a seamless part of an already positive customer experience. This way, you encourage valuable testimonials while maintaining the sanctity of personal space.
Collect from Your Website Header or Footer
The header or footer of your website serves as prime real estate for collecting valuable feedback. It's an area consistently visible to your audience, often catching their eye right before they navigate away or complete an action on your site.
Strategically placing a simple but engaging call-to-action (CTA) here can encourage loyal customers to share organic feedback. Since they’re already on your platform, this minimizes friction, making it exponentially more accessible for them to participate. It's convenience coupled with visibility!
Pro tip: When collecting testimonials passively, use incentives like discount codes and gift cards to encourage more people to leave testimonials.
Social Media Is a Gold Mine for Client Testimonials
If you've already built a social media following, you're sitting on a gold mine for collecting testimonials. Your audience is engaged, they know your brand, and they're likely to have positive experiences they're willing to share. A single well-crafted post asking for reviews can generate immediate and numerous client testimonials and, sometimes, even traffic via public social media posts.
Don't Underestimate the Power of Asking in Person
If you’re new to this and don’t have an established email list of customers, asking in person can also be effective. Whenever your customers come to your shop, you can kindly ask them for a written or video testimonial. This way of asking is convenient for business owners who nurture face-to-face relationships.
Be On Review Platforms to Collect Customer Feedback
It can be difficult for customers to leave you reviews if your business doesn’t have an online presence. For this reason, it’s essential to have active accounts on review platforms so customers can review you. Some of the most common review platforms are:
- Yelp
Follow Up With Customers After Recent Purchases or Interactions
Don’t leave your customers to the wind after they purchase or interact with your business. Instead, allow them to immediately connect with your company through surveys, social media, and more. Increase customer engagement by:
- Automating these follow-up messages
- Quickly responding to comments and questions
- Using AI agents for 24/7 support
Simplify the Review Process for Your Customers
Show you appreciate your customers’ business and time by simplifying how and where they can leave reviews. A complicated review process is less likely to result in positive reviews or feedback of any kind.
Here’s how to make it easy for clients:
- Link review site pages in social media bios and email newsletters.
- Set up messaging software so customers can leave reviews directly through their preferred channels.
- Meet customers where they are by being available on various sites, channels, and mediums.
- Make links clickable and guarantee they lead to the correct pages.
Whether you’re requesting reviews about your social media customer service, a specific product, or something else, respect the time and energy clients spend leaving detailed, helpful feedback.
Related Reading
How To Respond To Online Reviews
Thank Positive Reviewers: They Deserve It!
When a customer leaves a positive review, express genuine gratitude. A simple "Thank you for your kind words! We're thrilled to hear you enjoyed [product/service]" acknowledges their effort and reinforces the positive experience they shared. You can personalize your response by mentioning specific details from the review, like a particular feature they loved.
Address Negative Reviews with Empathy and Solutions
Negative reviews are an opportunity to demonstrate your professionalism and dedication to customer service. Start by apologizing for the experience and empathizing with the customer’s frustration, even if you feel it was unfounded.
If possible, address specific complaints and offer a solution or next step, like inviting them to contact me directly for a resolution. This approach shows that you care and are willing to improve their experience.
Keep It Short, Sincere, and Professional
Long, defensive, or overly complex responses can turn off potential customers. Aim to keep responses:
- Concise
- Polite
- Straightforward
Avoid getting defensive, even if the review seems unfair, and address the feedback professionally.
Encourage Further Engagement if Needed
In cases where a situation requires further discussion, invite the reviewer to reach out privately. A message like, "We’d love to help make this right. Please contact us at [contact info]," shows you’re open to fixing issues without continuing a conversation in a public forum.
Showcase Your Brand’s Values and Personality
Responses are a chance to communicate your brand's personality and values. Whether you’re professional and reserved or friendly and upbeat, maintain a tone that consistently reflects your brand. For instance, if you’re a local coffee shop, a light, conversational tone might be more fitting than a formal one.
Be Prompt, but Avoid Rushing
A timely response is ideal, showing you're attentive to customer feedback. Aim to reply within a few days, but avoid rushing; take the time to craft a well-thought-out reply that addresses the feedback.
Thank Constructive Critics, Too
Not all critical feedback is negative. Some customers may offer constructive criticism intended to help improve your product or service.
- Thank them for their insight
- Acknowledge the specific suggestion
- Mention any steps you’re taking to address it.
This shows you value all feedback and are committed to improvement.
Respond to Reviews Consistently
Responding only to a few reviews can give the impression that you’re selective. Regularly engaging with customer feedback, even a simple thank-you for positive reviews, shows you’re present and listening.
6 Best Online Review Sites For Businesses
1. Google: Your Best Friend for Business Reviews
Google My Business (GMB) is a powerful tool for local businesses. Customers can find reviews on this platform through Google search results and maps. So, when someone searches for a local business, your GMB listing appears front and center if it is relevant to their search.
Getting business reviews on Google is crucial because they impact local SEO. The more quality reviews you have, the better.
Improve Your Online Reputation with GMB
Not only do they help you rank higher in local searches, but they also increase visibility by enhancing your Google listing. GMB is also more than just a review platform. It’s a hub for managing your business’s online reputation.
You can interact with customers by responding to reviews, answering their questions, and sharing updates. Use this space to build customer relationships and foster community around your brand.
2. Facebook: The Social Media Giant’s Review Platform
Facebook is also on the customer review websites list. As the world’s largest social network, it has become an essential platform for businesses to engage with customers. With a vast reach and social influence, it is a critical tool for building brand awareness and customer relationships.
The strength lies in its social impact. It’s where people connect, share experiences, and seek recommendations. Businesses can leverage this social dynamic to their advantage, turning their Facebook page into a place for review collection. Facebook allows businesses to respond to reviews, answer questions, and address concerns. So, take this opportunity to use the power of word-of-mouth marketing.
3. Yelp: The Review Site for Local Businesses
Yelp focuses on local discovery, too. When you look for a restaurant, coffee shop, mechanic, or any service-oriented business in your area, it is often one of the first places you turn. Being a community-driven platform, you can refer Yelp to the business review sites.
It’s a chance to showcase your:
- Offerings
- Respond to reviews
- Build a loyal customer base in your area
The algorithm prioritizes user-generated content, meaning positive reviews can significantly impact your visibility. Become open to users sharing their honest opinions and helping others make informed decisions.
4. Amazon: The E-Commerce Review Powerhouse
Amazon, the top e-commerce platform, is more than just a marketplace for goods; it’s a powerful influencer of purchasing decisions. Its vast product review system is a goldmine for consumers:
- Feedback
- Shaping how shoppers research
- Compare
- Ultimately buy products
A product with a high average rating and numerous positive reviews is more likely to attract buyers, while negative reviews can deter them. Customers can also leave:
- Reviews for sellers
- Highlighting their experiences with the service
- Shipping
- Overall customer satisfaction
It adds another layer of importance to managing Amazon reviews and promptly addressing negative feedback.
5. Trustpilot: The Online Business Review Site
Trustpilot stands out as a global platform where companies can gather honest feedback from real customers, creating a transparent and reliable space for online business reviews. It aims to:
- Build trust in the online marketplace
- Helping people showcase their strengths
- Address customer concerns
It operates globally, making it ideal for industries with a worldwide audience that work on a massive scale. You can trust this platform because Trustpilot uses a sophisticated system to identify and remove fake reviews.
6. G2 Crowd: Business Reviews for Software
G2 Crowd is a platform designed to help businesses find the perfect software solutions for their needs. Think of it as a trusted advisor for software selection. It provides a vast collection of reviews and ratings from real software users, offering strengths and weaknesses of different products.
G2 Crowd encourages user-generated content, including detailed reviews and comparisons. The platform categorizes software into specific industries and functions, making it easier for businesses to find relevant options.
Each software product has a dedicated profile with details about its:
- Features
- Pricing
- Integrations
- User reviews
Build a Wall of Love for Free Today with Testimonial
Trust creates sales. The more you have, the easier it is to convert strangers into loyal customers. Customer reviews and testimonials help boost your credibility, increasing your conversion rates.
Increase Conversions with Authentic Customer Testimonials
Testimonial simplifies the process of building trust and credibility for businesses. Our software allows an accessible collection and display of authentic client testimonials featuring:
- Video and text options
- An embeddable wall of love widget
- A clever Email Assistant
- Third-party review imports.
This testimonial software is ideal for content creators, agencies, eCommerce, and SaaS companies, Testimonial helps boost your credibility and conversion rates by showcasing real customer experiences. Build a wall of love for free today with Testimonial.
Related Reading
- Review Management System
- Trustpilot Alternatives
- Capterra Alternatives
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