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Home > Resources > Library > Blog

How Do Positive & Negative Reviews Help (& Hurt) Your Sales?

Do you really know how important reviews are to your bottom line? Read this article to learn how online reviews can positively and negatively impact your business.

How Do Positive & Negative Reviews Help (& Hurt) Your Sales?

We know, you’re probably aware that reviews are crucial to your business's digital marketing strategy. But, in case you need a reminder, check out these statistics:

  • 97 percent of people look at online reviews
  • 12 percent of people look at online reviews every day
  • 54 percent of people look for a local business online at least once a month

Reviews matter and even if you don’t read them regularly, they certainly sway our purchase habits and the way consumers make buying decisions. 

Think about it: suppose you want to order a pizza and there are two restaurants near you. One has a two-star rating and the other has a four-star rating. It only makes sense to order from the higher-rated store, but why is that the case? 

To better understand why reviews matter so much to consumers and how they use reviews to find your business, let’s take a look at the influence that positive and negative reviews have on your sales.

Excellent Customer Service Is An Expectation

It’s no secret that customer service is the main reason that customers use reviews to find businesses.

If a customer is unhappy, they’re not afraid to let it be known. In fact, 35 percent of people leave businesses negative reviews if they received poor service.

And, other customers are looking for those specific reviews to avoid the same issues.

Don’t get us wrong, plenty of people still write positive reviews and they can help your business make additional sales or bring in new customers.

But, half of shoppers don’t make purchases when they receive bad customer service, and if any of them leave a negative review, you could miss out on the customers who read those reviews and stayed away.

Reviews in a post-pandemic world are even more valuable than ever before. Potential customers see reviews as one of the few ways to stay informed on the safety protocols that businesses are following, the delivery and BOPIS options they offer and more.

So, don't miss this opportunity to showcase your relevant and timely customer service through reviews.

Reviews Establish Trust With Consumers

We trust reviews from strangers the same way that we trust recommendations from our family and friends. Well, for the most part. Studies show that as many as 85 percent of people choose a business based on that trust.

Customers want to trust the businesses where they choose to shop, so it only makes sense that they put so much trust in reviews. In fact, nearly nine out of ten consumers read reviews before making a purchase. 

If you haven't started asking your customers to leave reviews (hopefully positive) yet, you need to start now. On average, your business needs about seven reviews before a customer can trust you. 

Consumers Are Looking For Products and Services to Avoid

One of the worst feelings is being disappointed with a purchase (ever get a terrible haircut and immediately regret choosing a new stylist?). Naturally, consumers will be frustrated when they feel their money has been wasted, and the process of getting a refund or some kind of compensation is exhausting.

You hate that feeling and so do your customers! By thoroughly researching the products and services you offer, consumers are choosing to avoid any inconvenience to make sure that they'll be completely satisfied with their purchase.

For instance, more people are searching for the phrases “to avoid” and “is __ worth it?” on Google than they have in the last couple of years. And now, more people are willing to share that information in reviews as well!

Ultimately, reviews can lend a hand to consumers when it comes to uncovering this decision-making information.

Final Thoughts

Whether we like it or not, customer reviews are here to stay and they're not going away anytime soon.

The only thing that we can do is understand why (and how) customers are using reviews to find businesses and understand the impact that every review has on your business performance and sales.

Now, we understand the hurdles that small businesses jump through just to gain a few reviews online. And as we've discussed, reviews are essential when it comes to landing sales. As many as 80 percent of consumers consult online reviews about local businesses!

If you run a local business and don't have the time, resources and experience to expand and manage your reputation online, then make sure to learn more about Renown, RevLocal's review management service that's catered to local businesses like yours!

We have more review marketing resources for your reference. So make sure to visit the blogs and infographics below: 

  • How to Respond to Every Type of Review
  • How to Build Your Best Online Reputation
  • How Many Reviews Does Your Business Actually Need?
Justin Dunwiddie

Justin Dunwiddie, Content Contributor

Review Marketing

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