The internet has transformed the way consumers research and make their buying choices. People used to rely on friends, family and loved ones for advice, but now they do most of their research through social media and online review websites. Online reputation is key for any business wanting to come out ahead of its competitors.
Still, companies neglect or fear this medium, when to embrace it and nurture it can be revolutionary to their marketing efforts.
Many assume their website and social media pages do the 'selling of their business, but the reality is people will check out what other people are saying either through their social channels and online reputation websites such as Yelp, TripAdvisor and Google.
There are those that feel online reputation is like the Wild West, and you have little or no control over it, so they choose to bury their heads in the sand and ignore it. But the truth is, people are going to talk about them whether they want them to or not.
We've put together these 28 statistics to show why online reputation matters for every company, and why it's time to start taking some action towards protecting and growing yours.
Why you need to look after your online reputation
1. 90% of consumers read online reviews before visiting a business
2. 84% of people trust online reviews as much as a personal recommendation
3. 7 out of 10 consumers will leave a review for a business if they're asked to
4. 90% of consumers read less than 10 reviews before forming an opinion about a business
5. 73% of consumers think that reviews older than 3 months are no longer relevant
6. 54% of people will visit the website after reading positive review
7. 94% of consumers would use a business with a 4 star rating
8. 57% of consumers would use a business with a 3 star rating
9. 40% of consumers read online reviews on their smartphones at the point of sale
10. Consumers are likely to spend 31% more on a business with 'excellent' reviews
11. 22% of consumers will only consider reviews written in the last 2 weeks
12. 76% of consumers are willing to pay more for hotels with higher review scores
13. 28% of consumers have written online reviews, with 84% having read them
14. 95% of unhappy customers will return to your business if an issue is resolved quickly and efficiently
15. 71% agree that consumer reviews make them more comfortable that they are buying the right product/service
16. Consumers are 63% more likely to purchase a product from a site if it has product ratings and reviews
17. Consumer reviews create a 74% increase in product conversion
18. 10% of your Google search ranking is influenced by review scores
19. 1 negative review can cost a business 30 consumers
20. There are 26,380 reviews posted on Yelp every 60 seconds
21. 75% of reviews posted on review websites are positive
22. Consumers who read reviews on smartphones are 127% more likely to buy than those who read reviews on PCs
23. 30% of consumers assume online review are faked if there are no negative reviews
24. Products with positive reviews sold 200% more than those with no ratings
25. Products rated 4.5 stars (out of 5) sell the most, three times more than products with 5 stars
26. Only 27% of consumers will consider a product with a 2 star rating
27. 64% of consumers read online reviews when purchasing technology items
28. Only 12% of consumers are prepared to read more than 10 reviews
28 statistics that prove your online reputation matters: the takeaway
Ultimately you can't put lipstick on a pig. So, if you know you have a great product and service, then embrace your online reputation and put your efforts into getting your happy customers to tell the world how great you are. Because, as we all know, word-of-mouth marketing is still the biggest driver of new and repeat business.
And the stats say it all. Online reputation management is no longer a 'nice to do', it's essential to the successful running of any modern business.
All statistics have been compiled from BrightLocal, Business2Community, Vendasta, Web Republic, Renegade Works, Econsultancy and Social Media Today.