5 Reasons Why Online Reviews Significantly Influence Buying Decisions
Customer reviews play a significant role in the customer journey. Positive reviews are shared 47% more often than negative ones. But what about the negative ones? Did you know that 95% of customers will share their bad experiences? And what is the impact on your business? Let’s explore the benefits of online reviews in the industry. Here are 5 reasons why online reviews significantly influence buying decisions. Having positive reviews will establish your credibility and boost your conversion rate.
1. The positive effect of customer trust
A study by the Spiegel Research Center found that positive online reviews build trust, which can increase sales by up to 270%. This effect is potent in the case of products that have multiple reviews. This research indicates that consumers use reviews as a shortcut to making decisions. Furthermore, consumers are also more likely to buy a product with five or more reviews than one with only one review. The study also reveals that consumers care about each review’s recency and star rating, not just the number of stars.
Hence, it is essential to encourage positive feedback to increase the chances of conversion. The number of reviews may be low but can be enormous. To maximize conversion rates, try to include as many reviews as possible on product pages.
Online reviews are a great way to improve customer satisfaction
Besides improving customer satisfaction, customer reviews also improve conversion rates. Regularly updated customer reviews can help attract more visitors to the website. The positive effect of online reviews on conversion rate is significant for e-commerce websites. Positive reviews can increase traffic to a product’s page and increase click-through rates on search engine results pages. They also enhance the customer’s confidence in the brand. They can also boost the sales of a product if it is recommended by a satisfied customer.
According to the Spiegel Research Center, a positive review environment can increase conversion rates by 270%. It is thus critical for businesses to take advantage of the positive effect of customer reviews to increase sales. While it may seem a small effect, a large volume of positive reviews is a huge benefit. It also helps create an environment where customers feel free to share their experiences.
Furthermore, the more positive reviews a business has, the more trustworthy it will become. This is true whether you are searching for a company that buys gold or a plumber with a 5-star rating.
2. Establishes credibility
Consumers are looking for a platform where they can engage in honest conversations. In e-commerce, the authenticity of reviews is a valuable asset. It’s proven that consumers trust negative reviews more than positive ones.
A recent study by PowerReviews found that 82% of shoppers specifically seek out reviews with negative ratings. This is backed by other online reputation statistics. Readers are also skeptical of reviews with overly optimistic ratings. As a result, it is crucial to respond graciously to negative reviews.
Studies have shown that consumers trust online reviews more than personal recommendations. Authentic, high-quality reviews are more trustworthy than spammy ones. Consumers also value authenticity, which is why most businesses turn off spammy reviews.
Studies also show that positive reviews drive sales by 18% and four percent higher conversion rates. That’s a pretty impressive return on investment! So, how can you create a positive online experience for your customers and earn their trust?
Reviewers tend to be more likely to buy large-sized products, return items, and have more children than people who don’t write online reviews. They are also more likely to have graduate degrees than the average consumer. People who write reviews online are also more likely to have higher incomes and more children than consumers who don’t write reviews. They’re also more likely to buy products, not on their shopping lists.
3. Builds trust with potential customers
The presence of positive reviews on a business website builds credibility and trust with potential customers. Most consumers trust peer reviews over company claims, so it’s essential to post a positive review for your business. In fact, 79% of consumers cite positive reviews in making purchasing decisions, making them more likely to buy your product or service. However, it’s not always possible to get 100% positive feedback. Nonetheless, you can still use online reviews to back up your claims.
One of the most effective ways to build trust with potential customers when reading online reviews is to address customer comments and concerns. The response should be as concise and straightforward as possible. Adding badges to the review page is another way to build trust from the first moment that visitors arrive at your website. A famous example is Walmart, which prominently displays its star rating at the top of each product page. Adding these badges can reinforce a sense of trust in visitors who come to your website for a specific product.
Studies reveal the importance of online trust
According to a recent survey by social commerce specialist Reevoo, consumers trust online reviews more than personal recommendations. Furthermore, 91 percent of 18-34-year-olds trust online reviews as much as personal recommendations. So while consumers may not trust reviews at first glance, they still tend to read online reviews and use them to guide their purchasing decisions. That’s why it’s so essential to create a positive review site.
Businesses that monitor their online reviews regularly build trust with their customers. Conversely, those that ignore their online reviews are at risk of losing business. By responding to online reviews in a timely and thoughtful manner, you’re ensuring that your customers feel that you value their opinions and are sensitive to their concerns.
In addition, a positive review site will reward you with a badge that you can display on your website or email signature. And the SEO benefits of online reviews are numerous. Once you identify the right keywords and place them on the site, you can leverage the positive reviews.
4. Increases conversion rate
Studies have shown that consumers believe many online reviews, but only a tiny percentage of them trust them. In addition, most consumers are suspicious of thoughts that are not positive. In fact, 15% of online users will not charge a business with no reviews. Fortunately, it’s possible to add product reviews to your site to increase your conversion rates by 10%! The following are some of the benefits of adding product reviews to your website.
Consumers trust reviews to help them make informed purchasing decisions. The additional layer of information on product pages will give shoppers more confidence in their decision and lower the chances of a return.
The same study by Reevoo found that an average 18% uplift in sales is seen when reviews are included on product pages. So, how do you increase your conversion rate? Below are some tips to make it work for you. Read on to learn how to boost your conversion rates with online reviews!
Positive reviews provide a major boost
A positive review environment increases the likelihood of a consumer buying a product. A study by the Spiegel Research Center found that displaying customer reviews on a product’s page can improve a company’s conversion rates by as much as 270%.
Creating a positive review environment can also boost sales from a product’s competitors by 75%. The same study shows that reviews can help a business grow by expanding online conversion rates by 27%.
Another way to improve your conversion rate is to focus on retention. Invest in your existing relationship with customers and build loyalty. That way, customers will want to return to your site and make purchases. By doing so, you’ll improve your conversion rate without a considerable investment.
Even a tiny increase in your conversion rate will significantly impact your bottom line. So, why wait to improve your conversion rate? Get started today!
5. Increases social proof
Getting online user testimonials is one way to boost your online reputation. When you see many positive reviews on a particular product or service, chances are that it is credible. Social proof is essential when buying big-ticket items. People want to know that others have experienced the same issues and are satisfied with the result. Reading customer reviews helps them make that decision. It can also give them insight into the product’s shipping and customer service.
Moreover, it is proven that 92% of online consumers trust online reviews more than personal recommendations. One study shows that they read product reviews on an average of 12 times more than the descriptions of the same products. It is this trust that convinces them to purchase the product.
Hence, online reviews are an effective tool to boost conversion rates. To help you increase your online reviews, here are some examples. Read on to learn how social proof works and how you can use it to your benefit.
Positive online reviews are a great social proof strategy
An excellent social proof strategy is to add a section on your website that includes answers to frequently asked questions. This way, you can build a community of existing customers, and they can help influence prospective new customers. Then, you can also create a social media community or a community space on your website. The main goal is to engage with your customers and build a relationship with them. As a result, you’ll generate more social proof when people read reviews on your website.
In addition to responding to online reviews, you can also respond to any negative reviews. Responding to negative reviews demonstrates that you care about your customers’ experiences and are willing to hear them out. This will boost your credibility and your overall reputation.
In addition, you’ll build customer trust when customers see you reply to their online reviews. That way, you’ll get more positive reviews in the future. That’s the ultimate goal of customer reviews.
