Local Online Marketing / Reviews / Reputation Research & Data

Understand the data of why it's important to optimize a business's online reviews & online reputation.

Did You Know?

Did you know that Accordng to BrightLocal's 2020 Local Consumer Survey, 73% of consumers only pay attention to reviews written in the last month.

We Can No Longer Afford to Ignore What Our Data Tells Us

While it's been known that every year the number of people utilizing online resources to find products and businesses has increased, for local marketing purposes, it wasn't exactly clear as to how much or which specific actions were more or less undertaken online. When it comes to the impact of reviews and testimonials and their impact on online consumer behavior. The results can no longer be ignored.

The shift after COVID-19 especially is so dramatic that the business loss of ignoring reviews, testimonials, and modern forms of online reputation management and marketing can be as high as 300% lower revenue as opposed to those businesses who do invest in different forms of online reputation.

Do You Know What's Holding You Back? We've identified the 5 most common barriers that hold back businesses from achieving success with their reviews. This mistake can be costing a business up to 270% in less revenue and fewer conversions. Find Out Your Business's Review Barrier in 2 Minutes

Stat No. 1 // Consumer Internet Usage

2020 - How Frequently Did Consumers Use the Internet to Find a Local Business in the Last Year

How Frequently Did Consumers Use the Internet to Find a Local Business in the Last Year?¹

This statistic you can say is predictable, right? It makes sense that generations Gen-Z and Gen-Y (Millennials) would be more savvy with computers and smartphones, and thus would frequently access reviews before making a purchasing decision. However, what's interesting from this data from Brightlocal is that Gen-X (the generation before Gen-Y) is also just as online-savvy and online-dependent despite having grown up by-in-large without modern technology; with 75% of Gen-X referencing reviews on at least a weekly basis.

Stat No. 2 // Review Requests by Businesses

How Many Survey Respondents Were Asked to Write a Review?

How Many Survey Respondents Were Asked to Write a Review?¹

This is partially why what we do works. We have a system of requesting review responses that have a number of successes. You can see that there are still a fairly high number of businesses that still don't take advantage of asking their users for reviews, and thus aren't capitalizing on the ability of using existing business to generate future business.

Stat No. 3 // Impact of Conversions

What is the Impact of Online Reviews on Conversion Metrics?

What is the Impact of Online Reviews on Conversion Metrics?²

For this stat, we are going to reference information from the Spiegel Research Center at Northwestern University. As part of the Spiegal Center's research on the impact of the online reviews, they found that from retail stores that the inclusion of reviews resulted in a 190% increase in conversions in lower priced goods, and a 380% increase in higher-priced/premium items because of the increased risk of a purchase, people depend more on online reviews for high-ticket items.

Stat No. 4 // Necessary Number of Reviews

How Many Reviews Does a Product Need to Peak in Increased Conversion?

How Many Reviews Does a Product Need to Peak in Increased Conversion?²

Also referencing the Spiegel Research Center, they found that the number of reviews necessary to peak in order to get the most increased conversions was 5 reviews. Mind you, this situation was also in a retail store setting, from the same study, the Spiegel Center found that expensive "weight-loss programs" also needed about 5 reviews to get the greatest benefit in conversion. Sellers of expensive products benefited the most from publishing reviews. However from this study, a minimum of 5 reviews resulted in a 270% average increase in conversions.

Stat No. 5 // The Minimum Rating

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What is the Minimal Review Rating a Business Needs for a Prospect to do Business with Them?¹

BrightLocal has been conducting a local consumer study for several years now, as well as they also service thousands of small businesses and have great insights into market research. They have several research studies that allow us to better understand where local markets are heading. This survey shows that people are progressively referencing reviews on a daily basis. Within the span of a year 6% are referencing online reviews daily.

Stat No. 6 // Which Review Directories are Most Popular

Where are People Reading their Reviews?

Where are People Reading their Reviews?³

Now that we know that reviews are important... we should know on which websites people are referencing their reviews. The truth is, it really depends on the product. GatherUp surveyed 500 people about restaurants and found that the average restaurant has over 200 reviews combined. Looking at the chart regarding where people prefer to source their review-based information, Yelp was numbered the highest, followed by a close second, Google My Business. We don't expect that every niche or industry has a similar breakdown.

Stat No. 7 // How Often are People Searching Reviews

How Often Did You Use the Internet to Find a Business Locally in the Last Year

How Often Did You Use the Internet to Find a Business Locally in the Last Year?¹

Also referencing the Spiegel Research Center, they found that the number of reviews necessary to peak in order to get the most increased conversions was 5 reviews. Mind you, this situation was also in a retail store setting, from the same study, the Spiegel Center found that expensive "weight-loss programs" also needed about 5 reviews to get the greatest benefit in conversion. Sellers of expensive products benefited the most from publishing reviews. However from this study, a minimum of 5 reviews resulted in a 270% average increase in conversions.

Sources
1. Spiegel Research Center. Northwestern University - Research Study on Reviews - 2017
2. BrightLocal Local Consumer Survey, 2019
3. GatherUp Local Reviews Study - 2019