The increasing impact of online reviews continues to prevail – in the U.S. and beyond.
As the latest demonstration of how reviews on sites like Yelp, TripAdvisor, Google, and Foursquare are influencing consumer behavior and business reputation, a new report by Real Business reveals that reviews potentially generate 40 percent additional revenue for businesses in the UK.
The economic impact of reviews was calculated by online portal Trustpilot together with Cambridge University mathematician William Hartston, who developed his own formula for determining how reviews can drive – or drive away – business sales.
The report is based on the results of a survey of over 2,000 UK consumers. Moreover, according to findings:
- 77 percent of respondents say their purchase decisions are based mainly on reviews.
- Meanwhile, 62 percent admit that they are more likely to choose a business after reading a positive review of that business. 20 percent even go so far as to say that they will spend 10 percent more on the products/services of that same company.
- Negative reviews are once again proven to hurt business reputation, with 78 percent of respondents saying that they are discouraged from buying anything from businesses with bad reviews. According to the survey, it takes only three to five negative reviews for UK consumers to stop buying from a given business.
- As always, management response to reviews can go a long way in turning prospects into customers. The report suggests that 15 percent are more likely to do business with a company after they see management response to reviews – a response by which the negative aspect of the review has been solved.
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