How Customer Reviews Impact Conversion Rates

Most business owners hate third-party review sites like Yelp and TripAdvisor, but they also understand the power of such sites on customers’ buying decisions. Customer reviews are tremendously influential in convincing potential customers to buy.

According to a recent study, nearly 88 percent of customers trust online reviews as much as personal recommendations, and almost 72 percent of customers agree positive online reviews make them trust local businesses more.

However, the problem is, customers are more likely to share negative experiences than positive feedback. Such customers have loud and strong voices that highlight the extremes of any brand experience. Therefore, it is important to acquire the right kind of reviews and understand how they can affect your bottom line and online reputation.

How do potential customers consume online reviews?

Customer reviews are a type of social proof, and their quantity and quality matter. For instance, when we are buying a product on Amazon, we want to know how many people bought it and how was their experience. This information reduces the uncertainty of online shopping.

Reviews are one of the best marketing tools a business can use. According to studies, nine out of ten potential customers read online reviews before buying a product or service. It has become second nature to look up a product online and find out what others users are saying. With these statistics in mind, it is easy to understand how much influence an online review can have on your conversion rate.

Consumers trust reviews and testimonials as much as they trust word-of-mouth. So, if your existing customers are raving about your products and services, it is going to have a positive impact on your sales. Customer reviews and testimonials help eliminate any doubt potential customers may have about your products or services. Reviews can also help potential customers choose which product or service is right for them.

Reviews go a long way in establishing the credibility of both the brand as well as the offerings. From your own experience of online shopping, you know that you would prefer recommended products over non-recommended ones. Similarly, when your website's visitors see a product rated well by people who have used it, they are more likely to buy that product. For most products and services, people believe in investing their hard-earned money in “tried and tested” products.

In fact, looking at customer reviews is an integral part of the decision-making process. It is highly unlikely that potential customers will buy a product without reading online reviews.

Using customer feedback to improve conversion

Outstanding customer reviews will not only help you increase conversions but can also make you stand out from competitors. Having a handful of positive reviews can help your business improve its online reputation, thus creating a bigger demand for your products. The fact is, new customers trust the experience of existing customers more than paid advertisements. This makes customer reviews more influential and helps serve as a marketing tool for businesses of all sizes.

Customer reviews are no longer just an option; they are vital for running a profitable business. Customer reviews act as endorsements for your business by customers who have already used your products. These evaluations play a major role in getting potential customers to try your offerings.

Thousands of potential customers are looking for products and services like yours. All they need is a signpost directing them to your business. That signpost is a five-star rating and a few positive online reviews.