Customer reviews are the hot-button topic every marketer is raving about. Believe it or not, more than half of the buyers look at the reviews first and then, make a purchase. From buying an outfit to visiting a dental care center, shoppers read at least one online review before reaching a decision. So, reviews do hold power, and there is no doubt about it. Both positive and negative reviews can affect your business revenue. Where the former increases sales, the latter drives customers away from you.
How Positive Reviews Affect Your Business Revenue
Positive reviews make you look more credible and authentic. Once you have gained the trust of a significant number of customers, it will become easier for you to attract more customers towards your brand. The presence of positive feedbacks and buyers’ recommendations on your platform improves the chances of persuading new buyers to purchase your offerings. Studies have clearly indicated that customers are 31% more likely to pay for products and services from companies having reviews speaking favorably for them. This increased likelihood of shoppers spending more money can result in higher revenue for your business.
Moreover, positive reviews with 4.7 or more star ratings help to compel prospective buyers to visit your website and contact you. Such higher ratings make them feel more confident and comfortable with doing business with you. The more customers are satisfied with you, the more new people will trust in buying from you. Consumers tend to believe verified online reviews strongly; even they know total strangers give reviews. Consequently, they react to those reviews seriously and make their purchase decision based on them. Positive reviews build customer trust and loyalty.
Furthermore, having positive reviews creates a positive image of your business. Your online reputation and visibility will grow if many people are talking about you. This, in turn, will result in more search traffic and help generate new leads and higher search ranking. Good customer feedback also helps in facilitating customer engagement. That means customers are happy to inform you what they love about your products. This will give you valuable insights into your product development, and you will know the best ways to keep satisfying your customers. Eventually, this will lead to more revenue in the longer run.
How Negative Reviews Affect Your Business Revenue
No organization likes to lose their customers. Sadly, negative reviews can risk you losing your customers if you do not take action timely and effectively. The findings of a study claim that a single negative review can turn away approximately 22% of customers. At the same time, a company can lose about 59% of customers if they have at least three negative reviews. Additionally, negative reviews can adversely affect the credibility, reputation, and profitability of your business. Many people get hesitant to buy from companies that lack reviews or have numerous negative reviews.
Moreover, a company can lose around 30 customers due to only a single bad review. A negative review can also drive away nearly 40% of potential customers. Similarly, any negative e-commerce product review can badly affect your business, resulting in revenue loss. Lastly, a study reveals that a company with a 1 – 1.5-star rating reports 33% less revenue than the average business. Negative reviews can also result in low search engine ranking, loss of customer trust, bad online reputation, and decreased sales.
How you can monitor reviews about your business
The above points explicitly emphasize the influence of positive and negative reviews on business revenue. Hence, it is essential to monitor and build positive reviews for your business proficiently. Keep these points in mind and do not let any negative review damage your online reputation!