Online Reviews: key customer insights for 2024

In the ever-evolving landscape of 21st century business, one thing remains crystal clear – online reviews are indispensable.

Today's consumers are discerning, and they overwhelmingly rely on online reviews to guide their purchasing decisions. So, just how influential are these reviews? How many customers contribute reviews, and how do businesses respond?

This article is meant to provide you with a definitive compilation of online customer review statistics to shed light on the immense power of online reviews in 2024. Let's dive right in!

1. How Important Are Online Reviews?
It's no surprise that a staggering 95% of consumers turn to online reviews before making a purchase decision. Furthermore, 58% of these shoppers are willing to pay a premium for products with favorable reviews (Source: G2).

2. The Importance Of Recency
The recency of a review is crucial. A substantial 44% of consumers do not consider reviews relevant if they were written over a month ago. This highlights the need for an ongoing review acquisition strategy to maintain relevance.

3. Online Reviews Influence Buying Decisions
Online reviews have become an integral part of the shopping process for 89% of consumers worldwide. Positive reviews, in particular, sway the purchase choices of 49% of these global shoppers. (Source: BrightLocal)

4. Reviews or friends: who do we trust more?
49% of consumers trust online reviews as much as personal recommendations.
Nearly half of consumers place the same level of trust in online reviews as they do in recommendations from friends or family. This figure represents a shift from last year when 79% held this view. Consumers are becoming more discerning, distinguishing between authentic and influencer-driven reviews.

5. Stars And Filters Matter
Star ratings can significantly impact a business's online visibility. A substantial 70% of internet users employ rating filters when searching for businesses, with a preference for those boasting 4 stars or higher. While a five-star rating is not mandatory, ratings falling below four stars will adversely affect business prospects. A whopping 94% of consumers will consider a business with a four-star rating, but only 57% will do the same for a three-star-rated business. Though industry-specific, these numbers reflect consumers' aversion to mediocrity.

6. How Many People Read Online Reviews?
98% of people "occasionally" read online reviews for local businesses.
Nearly all consumers consult online reviews for local businesses, with 77% reading them regularly. The preference for not reading reviews for local businesses has dwindled to just 2%, down from 13% in 2020.7. When Does Trust Kick In?

The average consumer reads 10 reviews before trusting a business. (Source: Statista)

Trust is cultivated through reviews, with the average American consumer reading ten before placing their faith in a business. Notably, 31% read more than ten reviews, especially among younger demographics.

7. How Many Reviews Do You Need?
68% of consumers don't trust a 5-star rating unless there are more reviews. (Source: Podium) A high star rating alone doesn't suffice. A significant 68% of consumers require a substantial quantity of reviews to trust a 5-star rating. Furthermore, 83% prioritize recent and relevant reviews.

8. The Power of Bad Reviews
Even negative reviews can be beneficial for conversion rates. Customers tend to spend five times longer on a website if they engage with negative reviews. Surprisingly, they also tend to trust these reviews more, leading to an 85% increase in conversion rates. While a terrible overall star rating isn't ideal, having a diverse range of ratings tends to be more trusted than having solely 5-star reviews. Negative reviews, if informative - and particularly if thoughtfully responded to - can actually enhance conversion rates by providing valuable insights about the product.

9. Quality vs Quantity Debate
A study from the University of Colorado Boulder highlights an interesting finding: the correlation between review ratings and objective product quality is relatively weak. However, this correlation strengthens significantly when products have a large number of reviews. This emphasizes the importance of marketing efforts to garner both high-quality and numerous reviews since product quality alone may not guarantee them.

10. The Impact of Video Testimonials
Surprisingly, a TurnTo study revealed that user-generated content (UGCs, aka video testimonials/reviews) carries more influence over consumer decisions than any other factor studied, including search engines. Authentic content generated by users significantly shapes consumer choices.

11. Reviews vs. Discounts
More consumers prioritize reading reviews over seeking out discounts and pricing information. Over 50% of consumers look at reviews, while only 34% focus on deals.

12. Reviews Consumption By Age Group
According to the Pew Research Center, over half of adults under 50 years old routinely check online reviews before purchasing new products. Only 16% of US adults "never" check online reviews, with 40% "always" or "almost always" referring to them. In the 18- to 29-year-old demographic, 53% "always" or "almost always" consult reviews. Even if your target audience skews older, ignoring online reviews would be unwise, as only 34% of older adults "never" check reviews.

13. Impact on B2B decisions
92.4% of respondents claim that reading a trusted review makes them more likely to purchase a B2B product. (Source: G2). Authentic reviews wield significant influence over purchasing decisions, with over 92% admitting that they sway their choices. Interestingly, only 1 in 5 companies have considered incorporating reviews into their marketing strategy.

14. Impact Of Reviews on Conversions Rates
A study from Spiegel Research Center found that adding reviews can improve conversion rates by an average of 270% and that higher priced items see even better improvements, up to 380%. Conversion rates peak for products with ratings between 4.0 and 4.7. Furthermore, the most recent reviews seem to solidify the direction of sales, with the first 5 reviews having the strongest impact.

These statistics collectively emphasize the pivotal role that online reviews play in consumer decision-making. Businesses must actively engage with reviews, encourage customer feedback, and manage their online reputation to thrive in today's competitive marketplace. Online reviews are no longer just a supplement to a business's success; they are a cornerstone of it.

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