Online reputation management has become an essential step of any business strategy, as customer satisfaction is unavoidable in companies’ growth potential. The online feedback you get can be your most powerful tool, but it can also lead to devastating failures.
The following statistics will serve as an informational and cautionary insight into the world of online reviews and the importance of providing a positive experience to each of your buyers.
Top Reputation Management Statistics: Editor’s Choice
Most Relevant Statistics About Online Reviews in 2022
While the world of marketing is continually shifting and changing, one thing remains clear—online reviews are a huge factor in your consumers’ purchasing decisions.
1. 97% of customers learn more about local businesses online than from any other resource.
Most people search for business reviews on Google, Facebook, or Yelp to get a better insight into how local businesses operate.
Reputation management for 2021 is all about maintaining an online presence that creates a positive experience, which is essential for customers. A favorable online reputation will undoubtedly get potential clients one step closer to the checkout.
2. 91% of SMD owners think that a vendor’s trustworthiness is vital when deciding on new technology.
A vendor’s trustworthiness is an important factor for SMD owners. Online reputation management statistics confirm that 91% of them take it into account when considering new technology.
If you, as a small business owner, research the vendor’s reputation before purchasing their product or service, your potential buyers will do that as well.
3. 81% of consumers aged 18–34 trust buyers’ reviews they find online.
When it comes to online reviews, statistics imply that they are as important, if not more, than word of mouth. Getting positive reviews online will help you find more potential clients.
Before online reviews, word of mouth marketing used to be the best way to find the most trustworthy and reliable businesses.
4. 89% of consumers read businesses’ responses to feedback, according to online review statistics.
The way you behave toward your clients is significant for building a good reputation online. But handling bad reviews gracefully and appropriately is vital. Only a small percentage of customers who read online reviews don’t bother to check out the response.
5. 54% of consumers won’t buy a product if they suspect fake reviews.
In addition to that, reviews of businesses with no or hidden bad scores are suspected to be fake or censored by 95% of consumers.
Many businesses are using fake reviews as a tool to promote their products or sabotage competitors.
6. Consumers will spend up to 31% more money on a business that has excellent reviews.
When putting their trust in a business, not to mention spending money on it, customers expect nothing short of excellence.
On the flip side, reputation management trends show how they are also ready to pay more for a satisfying service. For this reason, they tend to trust excellent reviews.
7. The market size for online reputation management is expected to reach $491.32 million by the end of 2026.
Comparatively, the global reputation management market size is estimated to hit $239.99 million in 2021, at a CAGR of 15.33%.
The same research indicates that the industry will experience its most significant growth in Europe, the Middle East, and Africa.
8. On average, the reputation management cost can fluctuate from $300 to $50,000 per month.
The cost might vary depending on the business size and its reputation issues. Defamation Defenders is one of the most affordable options out there. The price for this reputation management company ranges from $500 to $3,000 per month.
The Impact of Negative Business Reputation: Top Facts
While positive reviews can boost your business prospects, a bad online reputation will negatively impact sales and hiring costs. On top of that, a company with a poor reputation will most likely experience an employee retention crisis.
9. 40 positive customer experiences are needed to undo the damage of one negative review.
The importance of online reputation management has never been more pronounced. According to customer experience statistics, positive reviews are vital for undoing the single unfavorable review that a dissatisfied client might have posted.
A minimum of 40 people needs to have a good experience with your business and share positive feedback to improve your online reputation.
10. Online reputation management trends show that 85% of customers actively search for negative reviews before deciding to buy a product.
We learn that the age group of 18–29-year olds search for negative reviews the most—91% of the youngest consumers consider negative feedback more telling than a positive one.
In total, reputation management statistics suggest that 97% of buyers read online reviews before a purchase, and 89% consider them an essential part of the process.
11. 42% of all Amazon reviews are fake.
We have already said how much faith people put in reviews when forming an impression about a company. So, these online reputation management statistics might not be something any business or a customer wants to read. Especially on Amazon, fake reviews are spreading like wildfire.
12. 52% of people consider that at least half of a company’s market value depends on its reputation.
An incredible 91.9% of respondents believe that online reputation management is highly linked to at least a quarter of the company’s market size. For this reason, if a company fails because of a bad reputation, its market value falls with it.
13. 97% of customers said that negative customer experience significantly influences their future buying decisions.
Moreover, 58% of customers stopped purchasing from the company they had a negative experience with, and 52% started buying from its competitor.
Statistics on business reputation management disclose that the same percentage (52%) told about their negative experience to others. Simultaneously, 48% were highly unlikely to consider using the company’s services or products again in the future.
14. More than 50% of consumers expect businesses to respond to their negative reviews within an hour.
Precisely 53.3% of buyers have understandable expectations from companies. Reputation management trends imply that more than 50% of customers demand a response within seven days if businesses provide feedback. However, an alarming 63% of companies never reply back.
Statistics on Product Review Websites
As previously mentioned, an online review is given based on the customer’s experience with the business. Whether public or private, these reviews can be collected by the company or third-party review sites.
15. 97% of the travel industry businesses on TripAdvisor claim that reputation management is essential to them.
If you’re ready to invest in social media online reputation management, remember that 92% of the travel industry considers social media presence crucial to their business development.
Around 98% of companies also believe that online reviews are essential to their reputation.
16. 63.6% of consumers examine Google reviews before visiting a business.
Nearly two-thirds of people will read Google online reviews to decide whether to check out your company’s website.
However, Yelp drives conversion rates as well—it can help build your online reputation and get you more clients, repeated purchases, and ultimately more money.
17. The Instant Pot amassed over 125,000 5-star reviews on Amazon.
When shopping in the home and kitchen category, the Instant Pot is the most positively reviewed product on Amazon. Thanks to its affordable price and the staggering number of 5-star reviews, this product continues to grow more and more popular.
The Brushed Microfiber Sheet Set comes right after, with 120,000 5-star reviews.
18. 158.03 million US consumers use Google My Business every month, making it one of the top consumer review sites.
Google My Business is the undisputed leader in the field of online reviews. Facebook is a distant second with 85.57 million monthly US consumers, closely followed by Amazon with 85.44 million. Yelp (40.47 million) and Trip Advisor (28.27 million) round out the top five review sites.
Yelp Reputation Management
As you will see in the following statistics, Yelp is a necessary review website you should consider to grow your business. If appropriately used, Yelp can turn into a powerful weapon in your arsenal.
19. In 2020, the annual revenue of Yelp was $873 billion.
In 2015, Yelp annual revenue was about $550 million. From that point on, the numbers kept rising exponentially, reaching $943 and $1,014 million in 2018 and 2019, respectively.
However, the pandemic negatively impacted these figures, causing a significant decrease in 2020.
20. Yelp conversion rate is reported to be 97%.
The same survey also disclosed that 93% of people compare businesses on Yelp before making a purchasing decision.
Around 80% of people are likely to share their local business experience with someone they know.
21. 68% of Yelp reviews are 4-star and 5-star.
Out of all of them, statistics about online reviews show that nearly half are rated five stars, and one in five are 4-star.
Unfortunately, a good 17% of Yelp reviews are rated 1-star. This might be due to the fact people tend to share negative experiences more than positive ones.
Reputation Management Statistics: The Takeaway
The way your existing and potential customers experience your products and services can be your greatest asset or your biggest obstacle.
If you want to ensure that reviews work in your favor, investing both time and money in reputation management practices is essential.
One of the most important things that can be seen in the statistics listed in this article is that 9 out of 10 people with purchasing intent trust positive reviews they read online. That alone should be enough to pay attention to the public’s perception of your business.
Frequently Asked Questions
What percentage of people check reviews?
A survey indicates that 84% of people tend to trust online reviews as much as they’d trust personal recommendations from friends and family.
A whopping 91% of potential customers said they regularly read online reviews before purchasing a product. By keeping this in mind, these statistics show how critical reviews attract new customers and retain the existing buyers’ base.
How big is the online reputation management market?
In 2021, the worldwide market size for online reputation management is forecast to attain $239.99 million, at a compound growth annual rate of 15.33%.
Unsurprisingly, this figure is reaching astounding records every year. In fact, the market value will hit over $491 million by 2026.
What percentage of users leave reviews?
Only 5%–10% of consumers write online reviews, which affects a great part of business sales. If you take a closer look at this stat, you can conclude that not a lot of customers are eager to leave a review.
Most of the time, about 70% of businesses ask consumers to provide feedback about their experience. Yet, 50% of them actually wrote down a review after being asked to do it.
How much does reputation management cost?
The cost for reputation management varies a lot, depending on the company. One of the most affordable services is Defamation Defenders, charging between $500–$3,000 per month.
On the more pricey end of the spectrum, Guaranteed Removals charge anywhere between $4,000–$20,000 a month. The price depends on the number of negative items that show up in the search results and the websites they appear on.
Are people more likely to write bad reviews?
Unfortunately, customers that have a bad experience with a brand are twice or even three times more likely to write down an angry review than a positive one, and here’s why. People tend to remember the negative experiences more clearly than the positive ones.
In addition to that, customers want to share their bad experiences online to warn other potential consumers. Their contribution is more powerful than any kind of advertising or marketing strategy.
Who is most likely to leave a review?
Most Americans aren’t too eager to leave their review, although more than 90% read online feedback on products they intend to purchase. Only 10% of Americans consistently review products online, while 38% said they had never left a review. When it comes to services, even fewer people in the US have a habit of leaving feedback—9%, to be exact.
However, when gender is involved, women are more likely to offer online feedback than men.
How much can a bad review hurt your business?
A single bad review can chase away four out of five potential buyers.
When it comes to the most trustworthy review sites, people tend to turn to Yelp and Google the most.
What does this mean in terms of negative reviews? One bad review on Yelp can cost your company a total of 30 potential customers. On the other hand, negative feedback on Google alienates 70% of potential buyers.
What is the best reputation score?
The most common reputation scale is 0–1,000, where 1,000 is the best possible reputation score.
However, an average industry score is 525, so anything over 600 indicates that the company is on the right path to an impeccable reputation.
According to reputation management statistics, once the business surpasses 850, it’s already considered one of the best online rankings.
Sources
100 Reviews, Bright Local, Bright Local, Edelman, Igniyte, Inc., Invesp, Market Watch, Neil Patel, Power Reviews, Power Reviews, PR Newswire, PR Week, Review Trackers, Reviewed, Salesforce Research, Yelp, Vendasta, Zendesk