Stats Proving the Value of Customer Reviews

Customer reviews are a vital element to the success of every business. This is because many consumers already use online reviews as the first step when deciding where to get dinner, buy a new outfit, or choose a new stylist. Taking charge and evolving your brand’s online presence for the better involves generating and interacting with online reviews.

To hone in the importance of customer reviews for any business, we compiled a list of statistics that show the ever-growing impact of online reviews and customer satisfaction for businesses across multiple verticals. As the online reviews and reputation management landscape evolves we will continue to update.

94%
of consumers said a negative review convinced them to avoid a business.
ReviewTrackers

General

Being aware of the importance of reviews is one thing, but it's worth having actual statistics to drive home the role reviews play for any business. Consider the following stats:

General Statistics on Customer Reviews

  • 76 percent of reviews are now either on Google or Facebook (ReviewTrackers).
  • Businesses between 3.5 to 4.5 stars earn more revenue than any other rating (Womply).
  • 67 percent of consumers said a “good customer service interaction” had an effect on their future buying habits, specifically by recommending the product or service they bought to others (Dimensional Research).
  • One of the main reasons why 62 percent of consumers ages 18-34 trust a brand is because of its good ratings and reviews (Marketing Charts).

Responding to Reviews

  • Responding to a 1- or 2-star review within 24 hrs has a 33 percent higher probability of the reviewer coming back and upgrading the review by as much as three stars (Nation’s Restaurant News).
  • The top thing mentioned in a negative review response is to “thank the reviewer for feedback” (ReviewTrackers).
  • The top thing mentioned in a positive review response is the “invite to come back” (ReviewTrackers).
  • Only 36.7 percent of consumers got a response from a business for their review (ReviewTrackers).
  • 44.6 percent are more likely to visit a local business if the owner responds to negative reviews (ReviewTrackers).
  • 53.3 percent of consumers expect a response to their review within 7 days (ReviewTrackers).

Consumer Behavior and General Reviews

  • 92.4 percent of consumers use online reviews to guide most of their ordinary purchasing decisions (NRC Health).
  • 97 percent of people make a purchase after visiting Yelp (Yelp).
  • 92 percent of consumers visiting Yelp are looking for a business they can return to (Yelp).
  • 80 percent of consumers visiting Yelp share businesses they find with other people (Yelp).
  • 28 percent of consumers are likely to leave a review after a positive experience (ReviewTrackers).
  • 34 percent of consumers are likely to leave a review after a negative experience (ReviewTrackers).
  • 63.6 percent of consumers check reviews on Google before visiting a business (ReviewTrackers).
  • 35 percent of consumers use a rating filter of 4 stars or higher (ReviewTrackers).
  • The rating trusted most by consumers is 4 stars followed by 4.5 and 5 stars (ReviewTrackers).
  • As much as 70 percent of consumers say they use rating filters (ReviewTrackers).
  • 40 percent of digital consumers use social networks to research new brands or products (Global Web Index).
  • Consumers expect 112 reviews to confirm the authenticity of a rating (Salsify).
  • 35 percent of consumers ranked “trust in brand” as one of the top 3 reasons for choosing a retailer (PwC).
  • Only 48 percent of Americans trust businesses as an institution (Edelman).
  • Customer actions (such as clicks to call, clicks for directs, and clicks to the website) per location in search went up by 20.1 percent between 2017 and 2018 (Yext).
  • 52 percent of consumers said a bad customer service interaction convinced them to tell others not to buy those specific products or services (Dimensional Research).
  • 46 percent of consumers’ purchase decisions are still impacted by bad experiences from “two or more years ago” (Dimensional Research).
  • 21 percent of consumers’ purchase decisions are impacted by good experiences from two or more years ago (Dimensional Research).
  • 46 percent of consumers used review sites to tell others about their bad customer experience (Dimensional Research).
  • The top 3 things users look for in product reviews are product performance, purchaser satisfaction, and product quality (Statista).
  • People ages 18-24 expect about 203 reviews when looking at a product online. The number of required reviews goes down in older age groups (Statista).
  • 19 percent of consumers trust online reviews as much as recommendations (Statista).
  • 25 percent of consumers only trust online reviews as much as recommendations if there are multiple reviews to read (Statista).
  • 53 percent of consumers view product ratings and reviews as the most important factor in the online shopping experience (Statista).
  • 77.6 percent need to see at least seven comments that say the same thing before they believe that there is a trend (NRC Health).

General Review Ratings

  • The average Facebook review rating is 4.42 stars (ReviewTrackers).
  • The average Google review rating 4.3 stars (ReviewTrackers).
  • The average TripAdvisor review rating is 4.25 stars (ReviewTrackers).
  • The average Yelp review rating is 3.65 stars (ReviewTrackers).
  • Businesses with a 4.0 to 4.5 star rating earn an additional 28 percent in annual revenue (Womply).

Miscellaneous

  • The average review is 12 percent more positive in 2018 compared to 2010 (ReviewTrackers).
  • Locations received an 87 percent increase in review volume in 2018 compared to 2017 (Yext).
  • 41 percent of respondents agree on the role competitive intelligence plays in their organization’s success (Crayon).
  • 49 percent of content published by small businesses on social media are reviews (Dimensional Research).
  • The best times to ask for reviews are 2-3 p.m. or 6-7 p.m. (ReviewTrackers)
40%
Over 40 percent of consumers are likely to leave a review after a positive experience at a hotel.
ReviewTrackers

Hospitality

A mix of repeat and new guests makes any hospitality-based establishment thrive in the long run. However, getting that constant flow of customers comes from delivering a great experience worthy of a great customer review. Don't believe us? Let the stats do the talking:

Statistics on the Hospitality Experience

  • 33 percent of diners won’t eat at a restaurant with less than a 4-star rating (ReviewTrackers
  • 35 percent of consumers choose a restaurant thanks to influence from online reviews (Toast).
  • 77 percent of diners rely on peer reviews over critic reviews (Upserve).
  • 43 percent of guests are likely to leave a review after their bad experience at a restaurant (ReviewTrackers).

Consumer Behavior and Hospitality Reviews

  • 55.5 percent of consumers see reviews as influential when choosing a new restaurant (ReviewTrackers).
  • 43 percent of consumers leave a review after a positive experience at a restaurant (ReviewTrackers). 
  • 48 percent will leave a review after a bad experience at a hotel (ReviewTrackers).
  • 39 percent likely to leave a review after a bad experience at an automotive service (ReviewTrackers).
  • 34 percent will write a review after a bad experience at a dealership (ReviewTrackers).
  • 93 percent will look at a menu online before dining out (OpenTable).
  • Online reviews influence the dining decision of 94 percent of consumers in the U.S. (TripAdvisor).
  • 90 percent of U.S. consumers made a dining decision based on a TripAdvisor ranking, rating, review, or award (TripAdvisor).
  • When compared to Google, Facebook, and Yelp, 94 percent of U.S. respondents said TripAdvisor provided the most accurate, trustworthy, helpful, and descriptive restaurant reviews and photos (TripAdvisor).
  • 88 percent of U.S. consumers read management’s responses to a TripAdvisor review (TripAdvisor).
  • 86 percent of travelers won’t book accomodations without first reading reviews (TripAdvisor).
  • 31 percent of consumers used reviews on a search engine to research their destination (TripAdvisor).
  • 44 percent of travelers used TripAdvisor to research their accommodations (TripAdvisor).
  • 21 percent of travelers used reviews on a search engine when researching their accommodations (TripAdvisor).
  • 81 percent of travelers always or frequently read reviews before booking a place to stay (TripAdvisor).
  • 79 percent of TripAdvisor users are more likely to book a hotel with a higher rating when choosing between two identical properties (TripAdvisor).
  • 52 percent of TripAdvisor users would never book a hotel that doesn’t have any reviews (TripAdvisor).
  • TripAdvisor users read about 9 reviews before making a decision on booking a hotel or restaurant (TripAdvisor).
  • 87 percent of people writing reviews on TripAdvisor do so to share their good experience with others (TripAdvisor).
  • Travelers are willing to pay a higher price for a hotel based on ratings instead of the hotel brand name (Expedia).
  • 90 percent of guests research a restaurant before dining – more than any other business (Upserve).
  • 33 percent of diners look at the reviews of other guests before dining (Upserve).

The Effect of Reviews on Restaurateurs

  • 33 percent of restaurants say attracting and retaining customers is one of their top challenges (Toast).
  • 97 percent of U.S. travel business respondents say online reputation management is important to their business (TripAdvisor).
  • 98 percent of U.S. travel business respondents said online reviews are important to their business (TripAdvisor).
  • The top area of focus for hospitality businesses is on customer service and retention (TripAdvisor).
  • When dealing with negative reviews or in-person feedback, 23 percent of restaurateurs reach out directly to the reviewer and 15 percent mention the feedback when conducting performance reviews to staff (Toast).
  • Restaurants increased their response to customer reviews by 29 percent between March 2017 – March 2018 and now respond to 41 percent of customer reviews. That’s a 46 percent higher response rate than all other businesses (Merchant Centric).

Miscellaneous

  • The average star rating for the entertainment and leisure industry is 4.41 (ReviewTrackers).
  • The average star rating for the hospitality industry is 4.17 (ReviewTrackers).
  • HGEM (guest experience management company) now has a 71 percent increase in response time since using ReviewTrackers (ReviewTrackers).
  • Consumer trust in the food & beverage industry is at 68 percent with a 5 percent increase in consumer trust year to year (Edelman).
  • ReviewTrackers hospitality customers generate an average of 52 reviews per month (ReviewTrackers customer data).
  • 81 percent of all ReviewTrackers hospitality customers have a rating of 4.0 or higher (ReviewTrackers customer data).
  • To maintain that rating of 4.0 or higher, ReviewTrackers hospitality customers generate an average of 58 reviews per month per location (ReviewTrackers customer data).
55%
of consumers see reviews as influential when it comes to choosing a bank.
ReviewTrackers

Financial Services

Cash rules everything around consumers, and they need services to hold their investments, insurance, and everything in between. For financial service providers to stay in business, they need satisfied customers to write glowing reviews of how they treat the customer and their valuable monetary assets.

Statistics on Business Financial Services Reviews

  • Out of 15 industries, financial services are ranked second to last in terms of trust (Edelman).
  • 80 to 90 percent of insurance agencies have 3 reviews or less (Rocket Referrals).
  • The customer perception of banks having a good reputation and “being customer-driven” is lower in 2019 than in 2009 (J.D. Power).
  • Insurance services are ranked 12th among industries where customers read online reviews (Insurance Technologies Corporation).

Consumer Behavior and Financial Services Reviews

  • 61.2 percent of consumers think reviews are influential when choosing an insurance agent (ReviewTrackers).
  • 18 percent of consumers will leave a review after a positive experience with an insurance agent (ReviewTrackers).
  • About 18 percent of consumers will leave a review of their financial advisor after a positive experience (ReviewTrackers).
  • 19 percent of consumers will leave a review after they have a positive experience with their local bank branch (ReviewTrackers).
  • About 26 percent of consumers are likely to leave a review after a negative experience at their local bank branch (ReviewTrackers).
  • About 26 percent are likely to write a review after a negative experience with an insurance agent (ReviewTrackers).
  • 29 percent are likely to leave a review after a negative experience with a financial advisor (ReviewTrackers).
  • 8 in 10 consumers would switch financial institutions for a better experience (Transunion).

Miscellaneous

  • Acquiring new customers costs $303 for banks and insurance, which is the third-most expensive industry for customer acquisition (HubSpot).
  • The average star rating for the insurance industry is 4.53 (ReviewTrackers).
  • The average star rating for financial services is 4.06 (ReviewTrackers).
  • A 1 percent increase in customer service satisfaction for the home and auto insurance sectors translates to an additional $215 million in total revenue (Forrester).
  • Financial services experienced an 8 percent increase in trust between 2015 to 2019 (Edelman).
  • A 1-point decline in Forrester’s Customer Index score means a multichannel bank loses $124 million in revenue (Forbes).
  • Banks at the top of Kanta’s customer experience index are 1.9 times more likely to be recommended by customers to a friend or colleague (Businesswire).
  • Overall customer satisfaction with banks is 807 / 1000 points for 2019 (J.D. Power).
  • A major problem affecting the reputation of banks is the decline in overall satisfaction, specifically when it comes to resolving customer problems, as well as the timeliness in addressing the issue (J.D. Power).
  • Banking is ranked second to last in terms of reputation score (63.2 / 100 points) when compared against 15 other industries (American Banker).
  • ReviewTrackers financial services customers generate an average of 57 reviews per month per location (ReviewTrackers customer data).
  • ReviewTrackers financial services customers who maintain a 4.0 rating generate 90 reviews on average every month (ReviewTrackers customer data).
  • Over 90 percent of insurers don’t talk to their customers throughout the year (CMS Wire).
69%
Consumer trust in retail increased by 2 percent year to year for a total of 69 percent.
Edelman

Services

Consumers rely on multiple services in their daily lives. This can come in the form of a trusted plumber, a new car mechanic, or even a support representative to resolve issues. The experiences in these and other service-based businesses can lead to reviews that attract or repel additional customers.

Statistics on Consumer Services

  • 67.1 percent of consumers see reviews as influential when it comes to choosing a new auto repair service (ReviewTrackers).
  • 62 percent of U.S. online users read reviews before selecting customer services (Statista).
  • Trust in professional services is at 68 percent with 0 percent change year to year (Edelman).
  • Around 39 percent of consumers will leave a review after a negative experience with an automotive service (ReviewTrackers).

Consumer Behavior and Services Reviews

  • 65.2 percent of consumers think reviews are influential when choosing an auto dealer (ReviewTrackers).
  • About 34 percent of consumers are likely to leave a review after a positive experience with an automotive service (ReviewTrackers).
  • 28 percent of consumers will leave a review after a positive experience with a dealership (ReviewTrackers).
  • 35 percent will write a review after a negative experience at a dealership (ReviewTrackers).
  • 32 percent of U.S. online users read reviews before selecting a utility service (Statista).

Statistics on Employer Reviews

  • 84 percent of employees and job seekers say the reputation of a company as an employer of choice is important when it comes to deciding where to apply for a job (Glassdoor).
  • 83 percent of employees and job seekers are likely to research company ratings and reviews when deciding where to apply for a job (Glassdoor).

Miscellaneous

  • The average star rating for the legal industry is 4.51 (ReviewTrackers).
  • The average star rating for the services industry is 4.51 (ReviewTrackers).
  • The average star rating for retail and wholesale is 4.27 (ReviewTrackers).
  • The average star rating for automotive is 4.21 (ReviewTrackers).
  • The average star rating for real estate is 4.09 (ReviewTrackers).
  • ReviewTrackers customers in the services industry generate an average of 21 reviews per month per location (ReviewTrackers customer data).
  • 59 percent of ReviewTrackers services-based customers have an overall rating of at least 4.0 stars (ReviewTrackers customer data).
  • To maintain that 4.0+ rating those customers generate an average of 18 reviews per month per location (ReviewTrackers customer data).
  • Service-based ReviewTrackers customers with a 4.0 rating or higher also have a response rate of 39 percent (ReviewTrackers customer data).
54%
of consumers use patient reviews to form their own opinion of a doctor, dentist, or other healthcare provider.
PatientPop

Healthcare

Health is wealth and consumers want to make sure the care they receive comes only from the best. To separate exceptional physicians from the rest of the field, patients rely heavily on the reviews of other consumers before they trust a physician with their health information.

Statistics on Healthcare Reviews

  • 44 percent of patients want to give feedback after each visit (NRC Health).
  • 69.9 percent of consumers see positive patient reviews as “very” or “extremely” important (Patientpop).
  • 72 percent of consumers use online reviews as the first step to finding a new doctor (Software Advice).
  • Nearly two-fifths of patients will overlook negative reviews if the provider responded in a thoughtful manner (Software Advice).

Patient Behavior and Healthcare Reviews

  • 80 percent of patients said they would switch providers for convenience factors (NRC Health).
  • There is a 34 percent year-over-year growth in consumers placing importance in choosing a provider with whom they had experience in the past (NRC Health).
  • 55 percent prefer to give feedback via email (NRC Health).
  • 73 percent of consumers prefer to provide feedback within a few days (NRC Health).
  • 92 percent will respond to a 10-question survey (NRC Health).
  • 84 percent of patients expect a follow-up if they had a bad care experience (NRC Health).
  • 27 percent of consumers want to see ratings and reviews of physician on a physician-based website (NRC Health).
  • 59 percent of consumers see online reviews from patients as a contribution to their decision when it comes to choosing a doctor, dentist, or other healthcare provider (PatientPop).
  • 48.8 percent of patients look for healthcare provider reviews on Google (PatientPop).
  • Of those who write reviews, 41.2 percent post reviews on multiple sites (PatientPop).
  • The 30-44 age group is the most active in reading online reviews and has more patients posting reviews (40.3 percent) than any other age group (PatientPop).
  • 51.8 percent of patients say their negative feedback wasn’t addressed by the practice (PatientPop).
  • 60.3 percent of the time, patients are satisfied by the process of a practice contacting a patient who posted a negative review (PatientPop).
  • 94 percent of survey respondents use online reviews to evaluate physicians (Software Advice).
  • 48 percent would go out of their insurance network for a provider with favorable reviews (Software Advice).
  • Only 2 percent of patients leave “very negative” feedback on reviews sites and 10 percent leave somewhat negative reviews (Software Advice).
  • 70 percent feel it “very” or “moderately” important for providers to respond publicly to reviews (Software Advice).
  • 45 percent are “moderately likely” to choose a provider based on positive reviews (Software Advice).
  • 30 percent rank patient rating scores as the most important reviews information when taking a look at the provider’s review history (Software Advice).
  • The most important review information to patients in terms of “Delivery of Care” is the accuracy of the diagnosis (Software Advice).
  • In terms of “Administrative” elements, the most important review information to patients is the ease of scheduling appointments (Software Advice).
  • 59.9 percent of patients selected their doctor based on positive reviews (NRC Health).
  • 60.8 percent avoided doctors based on negative reviews (NRC Health).
  • 37 percent of patients used online reviews as the first step to finding a new doctor (NRC Health).
  • 83.3 percent of patients trust online reviews more than personal recommendations (NRC Health).
  • 74.7 percent of patients want to see at least seven ratings before they trust them (NRC Health).
  • 66.1 percent of healthcare consumers consider reviews older than 18 months to be no longer relevant. 19.8 percent believe reviews older than six months are no longer relevant (NRC Health).
  • 72.2 percent of patients expect their reviews to lead to “broad organizational improvements” (NRC Health).
  • 87 percent of patients rely on reviews as a recommendation source when looking for a dentist (Dentacoin).
  • 66.3 percent of consumers see reviews as influential when choosing a primary care physician (ReviewTrackers).
  • 28 percent are likely to leave a review after a positive experience with a specialist physician (ReviewTrackers).
  • 28 percent of patients are also likely to write a review after a positive experience with their primary care physician (ReviewTrackers).
  • 31 percent will write a review after a negative experience with their primary care physician (ReviewTrackers).
  • After a negative experience with their specialist physician, 30 percent of patients are likely to write a review (ReviewTrackers).

The Patient and Provider Relationship

  • 92 percent of healthcare consumers surveyed said the top priority for medical providers over the next 12 months is to “improve customer experience” (Black Book Market Research).
  • 90 percent of patients no longer feel obligated to stay with providers that don’t deliver an overall satisfactory digital experience (Black Book Market Research).
  • 88 percent of respondents under the age of 40 will choose their next medical provider based on a strong online presence (Black Book Market Research).
  • 68 percent of consumers use digital solutions to shop for a health plan (McKinsey).
  • 73 percent will use digital solutions to search for a doctor (McKinsey).
  • 65 percent of patients will ignore reviews that are unreasonable or highly exaggerated (Software Advice).
  • 34.7 percent of patients (the highest across multiple industries) say their doctor’s online reputation is very important (NRC Health).
  • 80.3 percent of providers are aware of the importance of a strong online reputation, but most of them don’t know how to change it in a positive way (PatientPop).

Requesting Patient Reviews

  • 45.5 percent of healthcare providers proactively ask their patients for feedback (PatientPop).
  • 54.7 percent of patients who were asked for feedback got the request via email (PatientPop).
  • Only 12.4 percent of patients get review requests via text message (PatientPop).
  • Spending as little as 10 minutes every week “cultivating your online presence and addressing feedback publicly” reduces the impact of negative reviews by 70 percent (Software Advice). 

Miscellaneous

  • The most used review site for healthcare is Google (37 percent), followed by Healthgrades (26 percent), RateMDs (13 percent), Yelp (12 percent), and other sites (12 percent) (Software Advice).
  • The average rating for the healthcare industry is 4.28 (ReviewTrackers).
  • The average rating for senior care is 4.05 (ReviewTrackers).

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