The Top Online Reviews Statistics for 2020

I was presenting for the Grow with Google program in Kansas City recently when someone in the crowd challenged me, "Why should I care about reviews? If they don't like me, that's their problem."

I stopped for a second, inferring that this business owner had recently been "scorned" by a negative online review and had, as a result, made up his mind that reviews were worthless. As I peered at the audience member, I calmly asked, "Have you received some less than stellar feedback recently?"

"Yes, from a completely awful customer who doesn't know what he is talking about!" he responded.

"That's great!" I said, "Now you have a chance to show everyone that you're a class act!" The audience member just looked at me dumbfounded as I went on, "You see, 89 percent of consumers are reading your response to that review. That's 9 out of 10 people looking to see how you take on the feedback, process it, and respond to your customer. They then decide if they want to buy from you." I watched as he and every other audience member started scribbling down notes.

I get this quite a bit at my events. Someone writes off online reviews for their business because they've been the "victim" of a negative review. I usually get asked how to remove negative reviews altogether (which is impossible, mind you.)

Why Do Online Reviews Work?

It comes down to the mixture of social proof and the halo effect.

Social proof, at its simplest form, is monkey see, monkey do. Someone sees what others are doing, and that person assumes that it is socially acceptable to do the same.

The halo effect is where someone's impression of a person influences how that persons feels and thinks about the other person's character. A great example is how we look at celebrities. Since we see celebrities as attractive, successful, and most probably likable, we also tend to see them as kind, funny, and interesting.

The marriage of social proof and the halo effect help us to see online reviews as socially acceptable determination of how good, bad, or blah a business is.

Top Online Reviews Statistics for 2020

Because the power of reviews has become a constant question at my Grow with Google workshops, I decided to create a list of the top 60 online review statistics for 2020. Below are just a few stats to show you why online reviews are mission critical to your digital reputation.

Customers Engage with Online Reviews

1. Nearly 95 percent of shoppers read online reviews before making a purchase
2. 72 percent of customers don't take action until they have read reviews
3. 57 percent of prospective customers expect a local business to have more than 11 online reviews
4. 87 percent of American-based consumers need a business to have a minimum star rating of three or higher (out of five) to use it
5. 85 percent of buyers trust reviews as much as personal recommendations

Online Reviews Impact Sales

1. 97 percent of shoppers say reviews influence buying decisions
2. Customers spend 31 percent more when a business has positive reviews
3. A one star increase on Yelp can lead to a 5-9 percent increase in business revenue
4. Having five reviews results in nearly 400 percent higher purchase likelihood
5. Given two products with similar ratings, consumers are more likely to buy the product with more reviews

Responding to Online Reviews Is Mandatory

1. As mentioned, 89 percent of prospective customers read the response to online reviews
2. Consumers spend nearly 50 percent more with companies that reply to reviews
3. 7 out of 10 consumers changed their opinion about a brand after the company replied to a review
4. Businesses who reply to reviews at least 25 percent of the time have an average of 35 percent more revenue
5. Not replying to reviews can increase customer turnover by up to 15 percent

Negative Reviews Aren't So Bad

1. 40 percent of shoppers say negative reviews help build credibility for a product or service
2. 8 out of 10 shoppers specifically seek out negative reviews
3. Consumers spend 400 percent more time interacting with negative reviews, with a 67 percent increase in conversion rate
4. 95 percent of consumers suspect fake reviews if there are no bad scores
5. 68 percent of customers trust reviews more when they see a mix of good and bad reviews

For a full list of the Top 60 Online Review Statistics for 2020 and their sources, click below:

Putting It All Together

Although you may receive a negative review like my recent audience member, it's how you handle it that really matters. Reviews are powerful because of the psychological phenomenon of social proof and the cognitive bias of the halo effect. People trust them to help make better buying decisions, and reviews have been proven to drive increased engagement.

Take a look at the Top 60 Online Review Statistics for 2020 to learn more about why reviews matter to your business.