Customer Reviews: What is the Number behind Growth?

The Power of Customer Reviews. The number behind groth

What is the perfect number of customer reviews a brand should have to generate an increase in sales? 

As you know, online reviews strongly influence consumer behavior. From choosing a restaurant for dinner to selecting a service provider for a major project, reviews play a pivotal role in shaping purchasing decisions. 

 

No news here, we all have read at least one research showing that the majority of consumers rely on reviews to inform their choices, with many considering them as trustworthy as personal recommendations from friends or family: This research, for example, shows that the presence (or absence) of reviews impacts where the consumer choose to shop online. Over three-quarters (77%) specifically seek out websites with ratings and reviews and nearly all (99.5%) read reviews. But the main question we aim to answer is: 

 

What is the optimal review quantity for sales boost?

 

First of all, let’s understand some key points:

Customer reviews on the internet can be done in two ways:

Explanation about On-site and Off-site customer reviews

Both on-site and off-site customer reviews hold significance and mutually influence conversions. While on-site reviews streamline the purchasing process without the need to navigate to another tab, independent websites attract a significant number of users when they are preparing to spend money on a product or service, so the website needs to be prepared to transmit trust, also through reviews when consumers visit them.

 

Third-party reviews generally benefit consumers and businesses alike, theoretically promoting meritocracy. Good services receive positive reviews while poor ones receive negative feedback. This transparency grants customers greater insight, fostering trust in reputable businesses.

 

The Relationship Between Customer Reviews and Sales:

 

The correlation between reviews and sales is well-documented, but the exact threshold at which reviews start to influence purchasing behavior varies depending on several factors. One key consideration is the industry in which a company operates. In highly competitive sectors such as hospitality or e-commerce, a larger volume of reviews may be necessary to stand out amidst the noise. 

 

Customer Reviews are Especially Important for Expensive Products

 

Consumers heavily lean on reviews spanning a wide range of product and service categories. However, there are specific scenarios where reviews carry heightened importance. This is especially true when consumers are deliberating the purchase of a higher-priced item. The research also pointed that 78% of shoppers intensify their review reading habits when considering more expensive products.

Moreover, reviews play a pivotal role when a consumer is contemplating a brand or product that is unfamiliar to them. The research indicates that 98% of shoppers are inclined to pursue reviews for products they have not previously purchased.

 

The main goal is to get a substantial number of product reviews across the entire inventory. However, it is crucial to prioritize generating reviews for the most expensive and recently launched products. The existence of such reviews helps buyers mitigate the risks associated with buying more expensive or unfamiliar items.

64% of consumer states that they’re more likely to buy a product with fewer, more recent customer reviews than if it has a higher volume of reviews published three or more months ago

Finding the Sweet Spot:

  When it comes to reviews, there’s no magic number, the higher the volume the better. Studies have shown that businesses with a minimum of 1-25 reviews tend to instill greater trust and confidence in potential customers. However, the quality and sentiment of reviews also play a crucial role. A few glowing reviews can carry more weight than a larger number of mediocre ones. Conversely, niche industries or specialized services may see a significant uplift in sales with fewer reviews. In addition to review volume, another crucial factor must be taken into account, which is the review regency, indicating the freshness of reviews.   Beyond just the quantity of reviews, identifying what aligns perfectly with your brand involves considering several additional factors, such as:
Factors to Consider for Effective customer reviews Strategy: Product Cost, Brand Awareness, and Review Regency

Building a Review Strategy:

 

When it comes to crafting a robust review strategy, partnering with industry experts can make all the difference. Stars and Stories emerges as the optimal solution for brands looking to harness the power of user-generated content to drive sales growth. With our data-driven platform, we empower brands to leverage a world of user-generated content effectively. Our clients have access to valuable information about consumer behavior, product preferences and market trends. This partnership not only increases brand awareness, but also strengthens consumer confidence, paving the way for a tangible increase in sales.