Top 60 Online Reviews Statistics for 2023
Why ARE online reviews important?
Online reviews are critical to your business, but why? Why do people believe what others write about your business? Why would someone trust the testimonial of a perfect stranger?
It all comes down to the psychological phenomenon that is social proof. One of the chief experts on social proof, Robert Cialdini, writes, "We view a behavior as more correct in a given situation to the degree that we see others performing it." In essence, monkey see, monkey do. When we feel uncertainty in a situation, we assume that people around us (be they celebrities, experts, friends and family) have more knowledge of what's okay.
In conjunction with social proof, we also fall prey to the halo effect. The halo effect is a cognitive bias where our impression of a person influences how we feel and think about that person's character. A great example of the halo effect is our overall impression of celebrities. Since we see them as attractive, successful, and (more often than not) likable, we also tend to see them as intelligent, kind, and funny.
Along the same lines, we think that products and services used by experts are great because they have proven to be more knowledgeable than us in their specialized area. Thus, we trust online reviews because those people have experienced the product or service in question, unlike ourselves.
Which online reviews sites matter?
A lot of business owners don't realize that they need to collect online reviews around the web. Concentrating on only one site (i.e. collecting Google reviews) is detrimental, as a substantial group of their customer base may be finding them through another site like Facebook or Better Business Bureau.
The Big 3 Review Sites
If you are going to grow your online reviews, there are three specific review sites to consider. The big 3 online review sites (along with percentage levels of consumer trust) are:
Yelp (20 percent)
Facebook (20 percent)
Google (16 percent)
Yelp reviews carry such clout because it is difficult to collect an actual, visible review on Yelp. This is due, in large part, to the Yelp Review Filter.
Facebook reviews play to the idea of social proof. A Facebook user is seeing recommendations from their own friends and family, which automatically increases their trust factor.
Google reviews are powerful because Google is the most trafficked site in the world and the leading search engine. People turn to Google in their moments of need, and they see reviews on a business's Google My Business profile. Because the review platform is not as rigid as Yelp, trust declines a slight bit.
Directory Online Reviews Sites
Not as powerful as Yelp, Facebook, and Google, directory review sites are still critical to a small business's digital reputation. Directory review sites have optimized for search engines, so they show up on the search engine results page when prospective customers search for a product, service, or business.
The following directory review sites apply to any local business:
Industry Online Reviews Sites
Depending on your industry, there are a host of online review sites that matter to your digital reputation. For instance, if you are a realtor, then you need to collect positive reviews on Zillow. If you run a bed and breakfast, then you'd better have positive reviews on TripAdvisor. However, if you run a home services business (like an electrician of HVAC expert) then you'd want to collect reviews on Angie's List. Examples of industry review sites include:
Realtors
Hospitality
Home Services
For a full list of industry online review sites, check out this article on GoDaddy.
How to Collect Online Reviews
According to a recent study, 68 percent of consumers left a local business review when asked. In order to collect the most online reviews, you want to make it easy for your customers. However, gone are the days when you could ask a customer to search for you on Google (potentially hours or days after the sale) then leave you a review. They just won't do it!
Moreover, you'll lose track of which review sites you've asked your customers to visit. This confusion can end up in you overfilling one review site (i.e. Google) and neglecting another review site like Zillow or Better Business Bureau.
To streamline the process, consider a tool like MyReviewDashboard to help you collect reviews around the web. Not only does MyReviewDashboard provide you with a custom-branded review landing page (example here) it also allows you to showcase your online reviews directly on your website with its ReviewStream tool (example here.)
Top 60 Online Review Statistics for 2023
Now that you have a better idea of why online reviews matter and where and how you can collect them, let's get to the main event. Below are the Top 60 Online Review Statistics for 2023:
Google LOVES Online Reviews
The average local business has 39 Google reviews (Tweet this)
Local businesses that show up top of the local SEO pack have 47 or more Google reviews (Tweet this)
The average star rating for a local business is 4.42 stars on Google My Business (Tweet this)
Only 5 percent of local businesses on Google My Business have a star rating lower than 3 stars (Tweet this)
Customers Read Online Reviews Before Purchasing
Nearly 95 percent of shoppers read online reviews before making a purchase (Tweet this)
93 percent of consumers use reviews to determine if a local business is good or bad (Tweet this)
72 percent of customers don't take action until they have read reviews (Tweet this)
Prospective customers will read an average of 10 online reviews before they feel they can trust a local business (Tweet this)
60 percent of people read online reviews for a local restaurant or cafe (Tweet this)
73 percent of consumers trust a local business more after reading positive reviews (Tweet this)
49 percent of consumers value the quantity of online reviews a business has (Tweet this)
57 percent of prospective customers expect a local business to have more than 11 online reviews (Tweet this)
Prospective customers want to see an average of 40 online reviews before they'll believe a business's star rating (Tweet this)
Customers Engage with Online Reviews
6 out of 10 customers now look to Google My Business for reviews on a local business (Tweet this)
Nearly 9 out of 10 consumers read reviews for local businesses before making a purchase (Tweet this)
92 percent of consumers trust peer recommendations (Tweet this)
87 percent of American-based consumers need a business to have a minimum star rating of three or higher (out of five) to use it (Tweet this)
54 percent of consumers visit a local business’s website after reading a positive review (Tweet this)
71 percent of B2B buyers look at reviews during the consideration stage (Tweet this)
67 percent of B2B buyers rank peer reviews as very important when making a purchase decision (Tweet this)
82 percent of buyers consider user-generated reviews to be extremely valuable (Tweet this)
67 percent of B2B buyers want to see a mix of positive and negative reviews (Tweet this)
85 percent of buyers trust reviews as much as personal recommendations (Tweet this)
13 percent of consumers will contact a business after reading positive online reviews (Tweet this)
Online Reviews Impact Sales
97 percent of shoppers say reviews influence buying decisions (Tweet this)
Reviews produce an 18 percent uplift in sales (Tweet this)
Customers spend 31 percent more when a business has positive reviews (Tweet this)
57 percent of prospective customers will only consider a business if it has 4 or more stars (Tweet this)
92 percent of B2B buyers are more likely to purchase after reading a trusted review (Tweet this)
Displaying reviews can increase conversion rates by 270 percent (Tweet this)
Businesses that claim their free listings on at least four review sites earn 36 percent more revenue than average (Tweet this)
Having five reviews results in nearly 400 percent higher purchase likelihood (Tweet this)
Displaying reviews for higher-priced products can increase conversion rates by 380 percent (Tweet this)
A one star increase on Yelp can lead to a 5-9 percent increase in business revenue (Tweet this)
68 percent of Americans report positive reviews making them more likely to use a business (Tweet this)
Given two products with similar ratings, consumers are more likely to buy the product with more reviews (Tweet this)
Reviews make 7 out of 10 customers more comfortable purchasing a product (Tweet this)
88 percent of buyers are influenced in their buying decision by reviews (Tweet this)
13 percent of consumers will contact a business after reading positive online reviews (Tweet this)
Age Matters with Online Reviews
Half of all 18 - 34 year old consumers will always read online reviews before considering a local business (Tweet this)
Only 5 percent of 18 - 34 year old consumers never read online reviews (Tweet this)
80 percent of 18 - 34 year old consumers have written online reviews for a local business (Tweet this)
91 percent of 18 - 34 year old consumers trust online reviews as much as a recommendation from a friend or family member (Tweet this)
75 percent of 35 - 54 year old consumers read reviews on mobile browsers (Tweet this)
61 percent of consumers over 55 years old want businesses to have 4 or more stars (Tweet this)
78 percent of consumers over 55 years old read online reviews on PCs or Macs (Tweet this)
Responding To Online Reviews Is Mandatory
89 percent of prospective customers read the response to online reviews (Tweet this)
Consumers spend nearly 50 percent more with companies that reply to reviews (Tweet this)
Over half of all consumers expect businesses to respond to negative online reviews within 7 days, but 63 percent say that a business has never responded to their review (Tweet this)
Businesses who reply to reviews at least 25 percent of the time have an average of 35 percent more revenue (Tweet this)
4 out of 10 consumers say that brands replying to reviews shows that the company really cares about their customers (Tweet this)
Not replying to reviews can increase customer turnover by up to 15 percent (Tweet this)
7 out of 10 consumers changed their opinion about a brand after the company replied to a review (Tweet this)
Negative Online Reviews Aren't That Bad
40 percent of shoppers say negative reviews help build credibility for a product (Tweet this)
72 percent of buyers say negative reviews give depth and insight into a product (Tweet this)
8 out of 10 shoppers specifically seek out negative reviews (Tweet this)
Consumers spend 400 percent more time interacting with negative reviews, with a 67 percent increase in conversion rate (Tweet this)
95 percent suspect fake reviews if there are no bad scores (Tweet this)
The likelihood of purchase peaks at a star rating of 4.0 – 4.7, then decreases as the rating approaches 5 stars (Tweet this)
68 percent of customers trust reviews more when they see a mix of good and bad reviews (Tweet this)
Putting It All Together
If you weren't a believer before, you should be now. Online reviews work because of the psychological phenomenon of social proof teamed with the cognitive bias of the halo effect. In short: monkey see, monkey do. Not only should your business grow online reviews on sites like Yelp, Facebook, and Google, but you need to look into industry review sites like Houzz, Zillow, or TripAdvisor as well.
Consider a tool like MyReviewDashboard.com to help you manage your online reviews and promote them around the web. And remember that consumers are reading, engaging, and buying from businesses like yours all because of reviews.