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62 Customer Reviews Statistics You Must Learn: 2021/2022 Market Share Analysis & Data

User reviews are barometers of how your business is faring with customers and the general public. They allow you to directly respond to customers, either to thank them for their loyalty or address their concerns.

Should you need proof to convince others (or yourself) of the importance of customer reviews, here are 45 compelling reasons, including ones related to Covid-19. We’ve gathered facts, data, and numbers to give you customer review statistics so you’d know what to do, what to expect, and what to prepare for when it comes to user and customer reviews.

key customer reviews statistics

General Online Customer Reviews Statistics

Almost 9 out of 10 consumers read reviews before making a purchase, making reviews a critical factor in buying decisions. And where else does a world of connected people find reviews but online? Here’s what you need to know in the world of online customer reviews.

  • 97% of the consuming public read reviews online to search for local businesses, and 12% do so daily. (BrightLocal, 2020)
  • 23% of consumers have read a review in the previous day while 65% read one in the last week. This coincides with the data above that most people check reviews of local businesses.
  • Meanwhile, 41% say that reviews only have a moderate influence on their discovery of local businesses. (Podium, 2020)
  • An average of 10 online reviews is read by consumers before they feel they can trust a local business. This also ties up with the results from a survey that customers wait outside a business’s doors or building and read reviews before going in (see Impact on Sales). (BrightLocal, 2020)  
  • It takes an average of 40 online reviews before consumers start believing the accuracy of a business’ star rating. (BrightLocal, 2020)
  • 65% of shoppers trust products more when reviews have user-generated content such as photos and videos. (PowerReviews, 2019)
  • 91% of consumers in the 18 – 34 age group trust online reviews as much as recommendations from family, friends, and other personal acquaintances. (BrightLocal, 2020)
  • 89% of consumers read the responses of businesses to reviews, and 29% always read these responses. (BrightLocal, 2020)
  • And the way those businesses respond to reviews matter to 56% of consumers. (Podium, 2020)
  • A 2017 survey showed that 93% of consumers reported that online reviews affect their purchasing decisions. In 2020, customers still say that online reviews have a huge impact on their decision-making (see Impact on Sales). (Podium)
  • 63.6% of consumers are likely to check Google online reviews before visiting a business’ website. (ReviewTrackers)
  • 15.44% or 3 of 8 factors that make up Google’s algorithm pie are Review Signals (review quantity, review diversity, review velocity, etc.), making online reviews a vital search ranking factor. (Moz)
  • 85% of consumers think that online reviews older than 3 months are not relevant, and 40% care only about reviews that are 2 weeks old. (BrightLocal, 2020)
  • It is estimated that 10% to 30% of all submitted reviews are fake. (100 Reviews)

Customer Expectations Brought About by Covid-19

Since Covid-19 started spreading, consumers have changed their expectations of local businesses. They have become more mindful of safety measures that businesses ensure. Nevertheless, they still expect the same things of businesses as they did pre-pandemic.

  • Because of fears and restrictions relating to Covid-19, 27% of consumers say that social distancing policies are important when choosing a local business. (Podium, 2020)
  • Since the outbreak of the pandemic, customers have paid more attention to businesses that are nearer to them. Indeed, 33% discovered a new business nearby during Covid-19. (Podium, 2020)
  • Despite many changes due to Covid-19, consumers are still looking for the same things from a business: quality of service/goods (56%), good prices (54%), good customer service (52%), and cleanliness (34%). More people are also concerned regarding mask-wearing practices in establishments (39% in 2020 compared to 4% in 2019). (Podium, 2020)
  • 50% of consumers are using reviews to validate the safety practices of businesses. (Podium, 2020)

Consumer expectations have changed since the pandemic began

Reputation & Customer Reviews Statistics

For businesses, reputation is a critical matter and reviews or content posted online is of great concern. More so, since unfavorable reviews can damage company reputation and can be costly. If you want consumers to come to you, one way to attract them is to have real and positive customer reviews which can build trust. The use of feedback and reviews management software wouldn’t hurt as well.

  • 50% of a company’s market value can be attributed to reputation. (PR Week)
  • 97% of business owners say that online reputation management is important to their business. (Cision)
  • 78% of corporate communications leaders pick consumers as the top stakeholder group whose sentiment is most important to an organization’s brand health. (PR Week)
  • 91% of SMBs consider a trustworthy vendor as 6th among the 12 most important factors when looking for new technology. (Salesforce) 
  • 83% of consumers believe that a business with a user-generated review on its landing page is trustworthy. (BrightLocal)
  • 74% of consumers said they would contact a business with reviews in its landing pages. (BrightLocal)
  •  75% of businesses believe reviews, forum posts, and comments are extremely important to the financial and reputational status of their business.  (Igniyte) 
  • 74% of consumers say that reviews increase trust in a company.
  • In the UK, 1 in 20 companies revealed that they lost £500,000 because of damaging content while 5% of companies say that a damaged reputation costs them from £100,000 to £500,000.  (Igniyte) 
  • About 40 positive customer experiences are needed to undo the damage of 1 negative review.  (Inc.) 
  • China has the most unforgiving consumers, as 76% who joined in a survey convinced others to stop using a brand because of inappropriate response to the pandemic. (Edelman, 2020)
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Top 5 Global Consumers Who Convince Others to Stop Using a Brand

because of inappropriate response to Covid-19

Top 5 Global Consumers Who Convince Others to Stop Using a Brand
China: 76%

China

76%
Top 5 Global Consumers Who Convince Others to Stop Using a Brand
India: 60%

India

60%
Top 5 Global Consumers Who Convince Others to Stop Using a Brand
South Korea: 45%

South Korea

45%
Top 5 Global Consumers Who Convince Others to Stop Using a Brand
Brazil: 35%

Brazil

35%
Top 5 Global Consumers Who Convince Others to Stop Using a Brand
South Africa: 27%

South Africa

27%

Source Edelman, 2020

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Most Popular Feedback and Reviews Management Software

  1. Yotpo is a full-suite e-commerce solution for visual marketing, loyalty programs, and referrals. It has AI-powered tools for collecting reviews and customer feedback. You can find out more about the product in our Yotpo review.
  2. SoGoSurvey is a comprehensive employee engagement, online survey, and customer experience platform. It collects customer feedback and analyzes data using NLP and an integrated case management system. You can learn more about its tools in our SoGoSurvey review.
  3. Qualtrics CX is a customer management platform that gathers customer feedback and provides real-time actionable insights. It has its own predictive intelligence tool that uncovers trends and patterns. You can find out more about its features in our Qualtrics CX review.
  4. Appcues is a product-led growth platform that allows you to deliver an exceptional user experience. It improves feature engagement and onboarding experiences. You can learn more about its tools in our Appcues review.
  5. xSellco Feedback is a customer feedback software that helps collect high-quality reviews for Amazon, eBay, Trustpilot, and more. It lets you customize review requests and choose your review platform. To know more about its tools, you can check out xSellco Feedback review here.

Positive & Negative Customer Reviews Statistics

Positive and negative customer reviews can spell the difference between business success and failure, or so we thought. While positive customer feedback and reviews can mean more customers, recent studies have shown that the popular star rating system doesn’t necessarily mean that if you get 5 stars, you’re automatically a winner in the review and rating game. People will actually seek out negative reviews to get a balanced view of a product or business. Let’s take a look at the important customer reviews statistics when it comes to the plus and minus equation.

  • 90% of respondents said that positive online reviews influenced buying decisions, while 86% said buying decisions were affected by negative online reviews. (Zendesk, 2020)  
  • A 5% to 9% increase in revenue can be the result of a 1-star increase in Yelp rating. (Harvard Business School)  
  • The rating benchmark had gone up from 3.3 in 2017. 57% of consumers will only use a business if it has a 4-star rating or more. In a more recent study, it has been found that customers still hold high expectations of brands they are thinking of doing business with. (BrightLocal)
  • 80% of consumers say they trust most are ratings that have 4.0, 4.5, and 5 stars. This data is similar to the findings of another survey, which shows that customers expect a lot from businesses. (ReviewTrackers)
  • A minimum of 3-star rating is required by 48% of customers to decide to patronize a business while 38% have higher expectations—4-star rating. (Podium, 2020)
  • However, a near or perfect 5.0 rating is considered “too good to be true” and is viewed with skepticism so much so that 82% of shoppers specifically look for negative reviews. (PowerReviews)
  • Certainly, 68% of consumers would not trust a 5-star rating unless there is a high number of reviews, another survey finds. (Podium, 2020)

minimum rating acceptable to consumers

  • On average, 4.2 to 4.5 is the ideal star rating for the probability of purchase. (PowerReviews)
  • A business with excellent reviews can result in 31% more spending by customers. (Invesp, 2019)
  • 94% of respondents say an online review has led them to avoid a business. (ReviewTrackers)
  • 31% of businesses say negative content has damaged their business. (Igniyte)
  • 41% of businesses admit that negative feedback and reviews are a big cause for concern. (Igniyte)   
  • Employee attitude plays a big role in negative reviews. 85% of consumers would leave a one-star review for a business if they did not like the employee attitude displayed. (Podium, 2020)
  • 73% of consumers trust a local business more if it has positive reviews. (BrightLocal, 2020)
  • 1 in 3 businesses feels that negative social media post is the greatest threat to their reputation. (Igniyte)   

Do business's responses change a customer's perspective on the business?

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Source: Podium, 2020

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Impact on Sales Statistics

Sales, earnings, revenues – every business aspires to make a profit. As you’ve noticed in the earlier sections, the probability of purchase greatly improves with positive reviews and is affected by negative reviews. It’s a simple equation with far-reaching consequences. Here’s how customer reviews impact sales and company bottom lines.

  • There is a 270% likelihood of purchase for a product with at least 5 reviews compared to a product with no reviews. (Spiegel Research Center)
  • The probability of purchase by consumers increases by 15% when reviews are done by verified buyers. (Spiegel Research Center)   
  • A 190% increase in conversion rates resulted when reviews were displayed for a lower-priced product, while for a higher-priced product, the conversion rate increased 380%. (Spiegel Research Center)
  • Between similar product lines, 35% of consumers have been driven to spring for a higher-priced option with better reviews. (Salsify)
  • 82% of consumers reported that a review’s content had convinced them to make a purchase. (Podium)
  • 41% of survey respondents say that reviews play a big role in their decision when choosing a local business. (Podium, 2020)
  • 87% of consumers say that reviews influence them to discover local businesses. (Podium, 2020)
  • Reviews are 2x more likely to impact decisions and 7.4x more likely to be a critical factor than traditional marketing. (Podium, 2020)
  • 58% of customers would go to a farther location if a business has great reviews. (Podium, 2020)
  • 47% also say that they will shell out more money for a business with positive reviews. (Podium, 2020)
  • 28% of customers admitted that they have stood or parked outside an establishment while checking reviews to decide whether or not to go in. (Podium, 2020)

Source: Podium, 2020

Direction of Customer Reviews Statistics

Customer reviews are transforming, and the traditional platforms for reviews are changing. People will look more for reviews on social media and search engines. There will be no let-up in online customer reviews as consumers are inclined to share and tell good experiences about products, services, and brands with others. This scenario also resulted in making the customer review market size an important technology niche for vendors.

  • Reviews are getting shorter, simpler, and straight to the point. The average review is 65% shorter than it was in 2010, now comparable in size to a tweet. (ReviewTrackers)
  • More positive reviews are emerging. Review platforms are shifting from being venues for airing consumer complaints to being sites for recommending businesses after a positive experience. (ReviewTrackers)
  • Google and Facebook are increasingly being used for online reviews, currently holding the top 1 and 2 spots for review platforms. Dedicated review sites like Yelp and  TripAdvisor have been overtaken by Google and Facebook. With Google’s popularity, it is no surprise that customers use the site most often for checking the reviews of businesses (see General Online Customer Reviews Statistics) (ReviewTrackers)
  • More consumers (53.3%) expect quicker responses by businesses to their reviews and do look forward to those responses within 7 days. (ReviewTrackers)
  • 83% of consumers say they only care about reviews that are recent and relevant. (Podium, 2020)
  • Customers are more likely to read reviews than to leave them. 81% have left a review at least four times in the past year while 20% said they have never left a review at all. (Podium, 2020)
  • A good experience with a local business would prompt 12% of customers to leave a review if they see a sign prompting them to while 36% would do so if they receive an email asking them to give a review. (Podium, 2020)

Top 3 Websites that Consumers Use to Discover and Choose Local Businesses

The Tools to Earn Customer Trust

There are several feedback and reviews management solutions and reputation management software being offered as standalone tools or as modules and add-ons to any CRM systems that your team can use to gather public sentiment about your business. These will help you generate your own customer review report or conduct customer review research.

There is also social media management software for getting the pulse of customers on social media platforms. Whatever solutions you use, these can help you manage customer comments and reviews and respond promptly.

The takeaway from our customer review data is that people will seek out the opinion and experiences of others, even from people they don’t know, to get information on a business. That becomes the starting point for consumers to engage with a business or a brand.

And as our customer reviews statistics have shown, people will gravitate to businesses that have positive reviews. Of course, you can only get good or excellent reviews if you provide the best customer service, support, and experience. Everything else will follow.

Happy customers are likely to tell their stories through reviews and recommendations of your business. Good reviews build good company reputation, which is an essential factor for consumer purchasing decisions. You can even leverage reviews for B2B and SaaS lead generation. Whether your company serves businesses or consumers at large, the requirement is the same – you need to gain trust, and customer reviews have become vital tools to earn that.

 

References: 

  1. Murphy, R. (2020, July 9). Local consumer review survey: How customers use online reviews. BrightLocal.
  2. Podium. (2020). 2020 state of reviews. Podium.
  3. Copadis, A. (2019). 41 online shopping statistics to bookmark in 2019. PowerReviews.
  4. Podium. (2017). 2017 state of online reviews. Podium.
  5. ReviewTrackers. (2018). 2018 ReviewTrackers online reviews stats and survey. ReviewTrackers.
  6. Moz. (2018). Local search ranking factors study 2018. Moz.
  7. Carden, T. (2018). 2018 statistics and trends in online reviews. 100 Reviews.
  8. Daniels, C. (2018, July 6). What’s your character worth? PR Week.
  9. TripAdvisor. (2018, July 26). Online reputation management, mobile experience and driving direct bookings critical areas of focus for U.S. travel businesses, according to new Tripadvisor-ipsos MORI study. Cision.
  10. Salesforce Research. (2017). Second annual small & medium business trends report. Salesforce.
  11. Anderson, M. (2020, September 28). How online reviews impact trust and landing page conversion. BrightLocal.
  12. Igniyte. (2015, May 22). The business of reviews report. Igniyte.
  13. Campbell, K. (2021, March 16). Why is reputation important? ReputationX.
  14. Igniyte. (2018, March 13). Reputational risk – The reputation report 2018. Igniyte.
  15. Thomas, A. (2018, February 26). The secret ratio that proves why customer reviews are so important. Inc.
  16. Edelman. (2018, February 26). Edelman trust barometer 2020. Edelman.
  17. Dimensional Research, & Zendesk. (2020, October 6). What is the impact of customer service on lifetime customer value? Zendesk.
  18. Luca, M. (2016). Reviews, reputation, and revenue: The case of Yelp.com. Harvard Business School.
  19. Saleh, K. (2018, April 11). The importance of online customer reviews [Infographic]. Invesp.
  20. Spiegel Research Center. (2018, April 11). How online reviews influence sales. Spiegel.
  21. Salsify. (2018). 2018 consumer research report. Salsify.
  22. Podium. (2020, February 25). State of online reviews. Podium.
James Anthony

By James Anthony

A senior FinancesOnline writer on SaaS and B2B topics, James Anthony passion is keeping abreast of the industry’s cutting-edge practices (other than writing personal blog posts on why Firefly needs to be renewed). He has written extensively on these two subjects, being a firm believer in SaaS to PaaS migration and how this inevitable transition would impact economies of scale. With reviews and analyses spanning a breadth of topics from software to learning models, James is one of FinancesOnline’s most creative resources on and off the office.

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