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  • 45 Customer Reviews Statistics You Must Learn: 2019 Market Share Analysis & Data

45 Customer Reviews Statistics You Must Learn: 2019 Market Share Analysis & Data

Category: B2B News

User reviews are barometers of how your business is faring with customers and the general public. It gives you the opportunity to directly respond to customers, either to thank them for their loyalty or address their concerns.

Should you need proof to convince others (or yourself) of the importance of customer reviews, here are 45 compelling reasons. We’ve gathered facts, data, and numbers to give you customer review statistics so you know what to do, what to expect, and what to prepare for when it comes to user and customer reviews.

customer review statistics

General Online Customer Reviews Statistics

Almost 9 out of 10 consumers read reviews before making a purchase, making reviews critical factors for buying decisions. And where else does a world of connected people find reviews but online? Here’s what you need to know in the world of online customer reviews.

  • 97% of the consuming public read reviews online to search for local businesses and 12% do so daily. (BrightLocal)
  • An average of 10 online reviews is read by consumers before they feel they are able to trust a local business. (BrightLocal)
  • It takes an average of 40 online reviews before consumers start believing the accuracy of a business’ star rating. (BrightLocal)
  • 65% of shoppers trust products more when reviews have user-generated content such as photos and videos. (PowerReviews)
  • 91% of consumers in the 18 – 34 age group trust online reviews as much as recommendations from family, friends, and other personal acquaintances. (BrightLocal)
  • 89% of consumers read the responses of businesses to reviews and 29% always read these responses. (BrightLocal)
  • 93% of consumers reported that online reviews affect their purchasing decisions. (Podium)
  • 63.6% of consumers are likely to check Google online reviews before visiting a business’ website. (ReviewTrackers)
  • 15.44% or 3 of 8 factors that make up Google’s algorithm pie are Review Signals (review quantity, review diversity, review velocity, etc.), making online reviews a vital search ranking factor. (Moz)
  • 85% of consumers think that online reviews older than 3 months are not relevant and 40% care only about reviews that are 2 weeks old. (BrightLocal)
  • It is estimated that 10% to 30% of all submitted reviews are fake. (100 Reviews)

How many Consumers Read Online Reviews

Reputation & Customer Reviews Statistics

For businesses, reputation is a critical matter and reviews or content posted online is a great concern. More so since unfavorable reviews can damage company reputation and can be costly. If you want consumers to come to you, one way to attract them is to have real and positive customer reviews which can build trust. The use of reputation management software wouldn’t hurt, as well.

  • 50% of a company’s market value can be attributed to reputation. (PRWeek/Zignal Labs)
  • 97% of business owners say that online reputation management is important to their business. (TripAdvisor)
  • 78% of corporate communications leaders pick consumers as the top stakeholder group whose sentiment is most important to an organization’s brand health. (PRWeek/Zignal Labs)
  • 91% of SMBs consider a trustworthy vendor as 6th among the 12 most important factors when looking for new technology. (Salesforce)
  • 83% of consumers believe that a business with a user-generated review on its landing page is trustworthy. (BrightLocal)
  • 74% of consumers said they would contact a business with reviews in its landing pages. (BrightLocal)
  • 75% of businesses believe reviews, forum posts, and comments are extremely important to the financial and reputational status of their business. (igniyte)
  • 74% of consumers say that reviews increase trust in a company. (reputation x)
  • In the UK, 1 in 20 companies revealed that they lost £500K because of damaging content while 5% of companies say that a damaged reputation costs them from £100K to £500K. (igniyte)
  • About 40 positive customer experiences are needed to undo the damage of 1 negative review. (Inc.)

What SMBs Look for in New Technology as of 2017

Ease of use

%

Price

%

Ease of setup

%

Simplicity of maintenance

%

Speed

%

Trustworthy vendor

%

Compatibility with existing systems

%

Mobile capabilities

%

Scalability

%

"Best-in-class" vendor

%

Automation capabilities

%

AI capabilities

%

Source: Salesforce, SMB Trends Report

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Positive & Negative Customer Reviews Statistics

Positive and negative customer reviews can spell the difference between business success and failure, or so we thought. While positive customer feedback and reviews can mean more customers, recent studies have shown that the popular star rating system doesn’t necessarily mean that if you get 5 stars you’re automatically a winner in the review and rating game. People will actually seek out negative reviews to get a balanced view of a product or business. Let’s take a look at the important customer reviews statistics when it comes to the plus and minus equation.

  • 90% of respondents said that positive online reviews influenced buying decisions, while 86 percent said buying decisions were affected by negative online reviews. (Dimensional Research)
  • 5% to 9% increase in revenue can be the result of a 1-star increase in Yelp rating. (Harvard Business School)
  • The rating benchmark has gone up from 3.3 in 2017. 57% of consumers will only use a business if it has 4-star rating or more. (BrightLocal)
  • Only 13% of consumers will consider a business that has a 1 or 2-star rating. (SearchEngineLand)
  • 80% of consumers say they trust the most are ratings that have 4.0, 4.5, and 5 stars. (ReviewTrackers)
  • However, a near or perfect 5.0 rating is considered “too good to be true” and is viewed with skepticism so much so that 82% of shoppers specifically look for negative reviews. (PowerReviews)

People also Read Negative Reviews

  • On average, 4.2 to 4.5 is the ideal star rating for the probability of purchase. (PowerReviews)
  • A business with excellent reviews can result in 31% more spending by customers. (Invesp)
  • 94% of respondents say an online review has led them to avoid a business. (ReviewTrackers)
  • 4 out of 5 consumers have changed their minds about a recommended purchase after reading negative reviews online. (Cone Communications)
  • 31% of businesses say negative content has damaged their business. (igniyte)
  • 41% of businesses admit that negative feedback and reviews are a big cause for concern. (igniyte)
  • 73% of consumers trust a local business more if it has positive reviews. (BrightLocal)
  • 1 in 3 businesses feels that negative social media post is the greatest threat to their reputation. (igniyte)

How Online Reviews Influence Consumer Decision, 2018

Positive reviews make me more likely to use a business

Negative reviews make me not want to use a local business

I tend to select a business based on other factors such as location & price

I read reviews but they don't influence my decision

Source: BrightLocal, Local Consumer Review Survey

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Impact on Sales Statistics

Sales, earnings, revenues – every business aspires to make a profit. As you’ve noticed in the earlier sections, the probability of purchase greatly improves with positive reviews and is affected by negative reviews. It’s a simple equation with far-reaching consequences. Here’s how customer reviews impact sales and company bottom line.

  • 18% average increase in sales is produced by reviews. (Econsultancy, from Reevoo study)
  • There is a 270% likelihood of purchase for a product with at least 5 reviews compared to a product with no reviews. (Spiegel Research Center)
  • The probability of purchase by consumers increases by 15% when reviews are made by verified buyers. (Spiegel Research Center)
  • 190% increase in conversion rate resulted when reviews were displayed for a lower-priced product, while for a higher-priced product the conversion rate increased 380%. (Spiegel Research Center)
  • Between similar product lines, 35% of consumers have been driven to spring for a higher-priced option with better reviews. (Salsify)
  • 82% of consumers reported that a review’s content has convinced them to make a purchase. (Podium)

Factors That Affect Purchasing Decisions in 2017

Consumers that say online reviews impact purchase decisions

Consumers that said content of a review convinced them to make a purchase

Consumers that say they are willing to pay up to 15% more for a better experience

Source: Podium/Survata, State of Online Reviews

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Direction of Customer Reviews Statistics

Customer reviews are transforming and the traditional platforms for reviews are changing. People will look more for reviews on social media and search engines. There will be no let-up in online customer reviews as consumers are inclined to share and tell good experiences about products, services, and brands with others. This scenario also resulted in making the customer review market size an important technology niche for vendors.

  • Reviews are getting shorter, simpler, and straight to the point. The average review is 65% shorter than it was in 2010, now comparable in size to a tweet. (Review Trackers)
  • More positive reviews are emerging. Review platforms are shifting from being venues for airing consumer complaints to being sites for recommending businesses after a positive experience. (Review Trackers)
  • Google and Facebook are increasingly being used for online reviews, currently holding the top 1 and 2 spots for review platforms. Dedicated review sites like Yelp and  TripAdvisor have been overtaken by Google and Facebook. (Review Trackers)
  • More consumers (53.3%) expect quicker responses by businesses to their reviews and do look forward to those responses within 7 days. (Review Trackers)

Most Popular Review Platforms

The Tools to Earn Customer Trust

There are feedback and reviews management solutions that are offered as standalone tools or as modules and add-ons to any of these leading CRM systems that your team can use to gather public sentiment about your business. These will help you generate your own customer review report or conduct customer review research.

There is also social media management software for getting the pulse of customers on social media platforms. Whatever solutions you use, these can help you manage customer comments and reviews, and respond promptly.

The takeaway from our customer review data is that people will seek out the opinion and experiences of others, even from people they don’t know, in order to get information on a business. That becomes the starting point for consumers to engage a business or brand.

And as our customer reviews statistics have shown, people will gravitate to businesses that have positive reviews. Of course, you can only get good or excellent reviews if you provide the best customer service, support, and experience. Everything else will follow.

Happy customers are likely to tell their stories through reviews and recommendations of your business. Good reviews build good company reputation which is an important factor for consumer purchasing decisions. You can even leverage reviews for B2B and SaaS lead generation. Whether your company serves businesses or consumers at large, the requirement is the same – you need to gain trust, and customer reviews have become vital tools to earn that.

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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