Why Are Customer Reviews So Important?

In today’s digital world, customer reviews have become essential for any business. They are no longer just a nice-to-have feature; they are a must. Whether you’re starting out as a small business or running a big company, understanding why reviews matter and how they can help your business grow is very important. Reports published by Podium show that reviews impact 93% of purchase decisions. Continue reading to discover why online reviews are so crucial, which sites are most relevant, and how to get more reviews.

Imagine this: You’re about to try a new restaurant but see two options—one with glowing reviews and another with none. Which one would you choose? That’s the undeniable power of customer reviews. Read on to discover why online reviews are so important, which platforms matter most, and how to maximize their potential.

What Are Customer Reviews?

Customer reviews are feedback left by customers after trying a product or service. The reviews may include a ranking system, such as star ratings, which helps the customers evaluate the product's quality or service. Businesses use customer reviews as a marketing strategy. According to a study published by Harvard Business School, positive online reviews left by customers generate more sales.

Online reviews that contain media such as photos or video testimonials encourage potential buyers to trust your business products or services. BrightLocal says, 76% of people “always” or “regularly” read online reviews for local businesses. If you have a newly established business, you should always motivate your customers to leave an online review for your product to increase sales.

Why is it important?

Customer reviews are the backbone of your brand’s reputation. According to CX statistics, 86% of consumers are willing to pay more for a better customer experience. Positive feedback from customers who have previously benefited from a product or service directly impacts sales generation.  

By prioritizing customer feedback, brands can organically grow through referrals and word of mouth. An online video review service called EXPO conducted a survey of US internet users and found that individuals trust consumer reviews roughly 12 times more than manufacturer descriptions. Positive online reviews from consumers can significantly increase the sales of local businesses.

Here’s why reviews are so important:

Building Trust

Reviews show that other people have tried your product or service and liked it. For example, Amazon products with lots of good reviews often sell faster than those without.

Improving Online Visibility

Google gives preference to businesses with more positive reviews. This helps your business show up higher in search results. A report by Moz says reviews are a key factor for local search rankings.

Increasing Sales

Products with five or more reviews are 270% more likely to sell, according to a study by Spiegel Research Center. Positive reviews help customers feel confident in their decision to buy.

Better Customer Experience

Feedback helps businesses understand what customers love and what needs fixing. For example, if a restaurant gets complaints about slow service on weekends, they can work on improving staffing.

Why Reviews Are Crucial for Small Businesses

Small businesses can benefit a lot from reviews. Unlike large companies, small businesses rely heavily on community trust and local recommendations. Here are some reasons why reviews matter for them:

• Competing with Bigger Brands: Reviews help small businesses show that they’re just as good, if not better, than large companies. For instance, a local bakery can attract more customers by highlighting its personalized service through positive reviews.
• Growing Awareness: Every review mentions your business name, which helps more people find you online.
• Building Customer Loyalty: Replying to reviews shows customers that you value their opinions. For example, Zomato is known for responding to reviews and using feedback to improve customer relationships.

How to Get More Customer Reviews

Getting reviews is easier than you might think. Here are some simple tips:

• Ask Directly: After a customer buys from you, send them a polite email or text asking for a review. For example, Airbnb sends automatic reminders to guests after their stay.
• Offer Incentives: You can offer discounts, coupons, or a chance to win something in exchange for honest feedback. For example, Yelp found that businesses offering "Check-In Offers" received 50% more reviews.
• Google reviews: Your Google My Business profile directly impacts most of the brand’s reputation online. Google is the most important of all platforms since it immediately influences search results. According to stats from Distilled, rich snippets can mean a 10-20% increase in click-through rates. Potential customers will most likely Google for information about your business and read all of the reviews.
• Use Social Media: Post on platforms like Instagram or Facebook, asking customers to share their experiences. For example, a clothing brand can ask followers to review their latest collection.
• Make It Easy: Share direct links to your review pages on Google, Yelp, or TripAdvisor. The simpler the process, the more likely customers will leave a review.
• Video Testimonials: Ask happy customers to record short videos talking about your product or service. For example, Slack uses video testimonials from well-known companies like Airbnb to demonstrate their tool’s value.

Pro Tip:

Your Google My Business profile is especially important. Distilled reports that rich snippets from Google reviews can boost click-through rates by 10-20%.

How to Use Customer Reviews Effectively

Once you have reviews, here’s how you can use them to grow your business:

• Show Them on Your Website: Add a section to display positive reviews. For example, Shopify includes customer testimonials on its homepage to attract new clients.
• Share on Social Media: Highlight great reviews in your posts, stories, or ads. Nykaa, a popular Indian beauty retailer, frequently features customer feedback on their Instagram stories and ads, building trust and driving sales.
• Improve Local Search Rankings: Encourage customers to leave reviews on Google. Positive reviews help your business show up in local searches. For example, businesses with many good reviews are more likely to appear in Google’s "3-Pack."
• Respond to Reviews: Reply to every review, whether it’s good or bad. Thank customers for their kind words or address their concerns. For instance, Swiggy, an Indian food delivery service, actively responds to reviews on social media to show they care about customer experiences.
• Analyze Trends: Use tools to track what people are saying. Look for patterns in the feedback to see what’s working and what’s not. For example, Uber Eats analyzes customer reviews to find top-performing restaurants and identify delivery issues. 

Impact of Customer Reviews

Customer reviews directly impact conversion rates from potential customers to buyers. According to iPerceptions, 68% of consumers trust reviews more when they see both good and bad scores, while 30% suspect censorship or faked reviews when they don’t see any negative opinions on the page. It is essential for businesses to respond to reviews to motivate customers to learn more about the product, eliminate doubts they may have, and help with product selection.

Positive Reviews

The goal of every business is to gather numerous positive reviews to establish their brand’s presence online. The simplest and easiest method is to ask customers to leave a review online. Another method would be asking customers about their satisfaction concerning shipping, product quality, and checkout through post-purchase surveys.

According to NiceJob, “The quality of reviews also matters. Only 57% of customers would choose a business with a three-star rating but 97% will choose a business with a four-star rating.” It is vital for you to ensure that your brand’s products are receiving positive online reviews and ratings.

Negative Reviews

For your business to have a good reputation, it is important to develop strategies to reduce negative reviews and know how to respond to them. 

Addressing issues promptly and professionally can strengthen your brand’s reputation. According to PwC, 59% of customers will leave a company after a series of negative experiences, and 17% will leave after a single negative customer experience. Occasional negative reviews are unavoidable, but they also present a chance to demonstrate your dedication to your clients.

The approach taken by your business to deal with negative reviews shows potential customers that you deeply care about and value their opinions. Demonstration of solving customer’s issues eventually strengthens your brand’s reputation.  

Final Thoughts

Customer reviews are essential for any business. They build trust, improve your online presence, and help your business grow. For small businesses especially, reviews can be a game changer.

Make it a priority to ask for reviews, respond to them, and learn from the feedback. By valuing your customers’ opinions, you can create a better experience for them and build a strong, loyal customer base.

Ready to transform your business? Start asking for reviews today, respond thoughtfully to feedback, and use these insights to create an exceptional customer experience. Your customers’ opinions aren’t just valuable, they’re transformative.