If you are anything like me, a tremendous amount of product research is put into purchasing big ticket items. Recently, I have done research for items like a T.V., ring appraisal, and even a computer. The “internet generation” is able research whether a store provides a reliable product and great customer service, or not.
Consumer value, trust, and reliability of the product or service needs to be established. There is a divide as to whether website reviews really make or break a small business. From the research I have done, the statistics speak for themselves.
According to econsultnacy.com, “More than half (61%) of consumers read online reviews before making a purchasing decision. User reviews are a proven sales driver, and something the majority of customers will want to see before deciding to make a purchase”. Bottom line, user reviews improve conversions. They eliminate any doubts potential customers may have about a product.
Stats – Good Reviews
• According to Reevoo stats, 50 or more reviews per product can mean a 4.6% increase in conversion rates.
• 63% of customers are more likely to make a purchase from a site which has user reviews. (iPerceptions, 2011).
•Site visitors who interact with both reviews and customer questions and answers are 105% more likely to purchase while visiting, and spend 11% more than visitors who don’t interact with UGC. (Bazaarvoice, Conversation Index, Q2 2011).
• Consumer reviews are significantly more trusted (nearly 12 times more) than descriptions that come from manufacturers, according to a survey of US internet users by online video review site EXPO. (eMarketer, February 2010).
• According to Reevoo, reviews produce an average 18% uplift in sales.
strong>Stats- Bad Reviews
• The most surprising statistic of all: bad reviews improve conversion by 67%. According to Reev0o, consumers trust reviews more when they see both good and bad scores. This is because the customer is in purchasing mode.
• 68% of consumers trust reviews more when they see both good and bad scores.
• 30% suspect censorship or faked reviews when they don’t see any negative opinions on the page.
If there are an overwhelming number of reviews that are bad that is not good for business. If the number if bad and good reviews are proportionate that helps to make the bad ones look more believable.
The most widely used review sites are; Yelp, Google Places, Angies List, Yahoo Local, Merchant Circle, City Search and Trip Advisor. Seeing as how reviews are able to convert customers by 67%-68%, it would be a good step to encourage customers to review the business, especially since there is an 18% uplift sales.
Lets face it. Reviews give quick access to information that helps make informed decisions. There is a growing trust which means prepared that the consumers are prepared to make decisions quick!