Understanding the Worth of Online Reviews for Your Business
An operating business will certainly know the worth of most of its assets. Besides the usual physical assets, a brand now also has to be able to estimate its online assets.
How much is your website worth? What about your Facebook business page? Even if you don’t have an exact dollar figure in mind, you can likely estimate it. Just like your website and other online assets, your review profile can also be viewed as an asset that can either generate revenues or stifle progress. When you look at it like that, reviews are an asset that could:
- Increase the amount spent by a customer by 30%
- Allow you to raise your prices by 10% per one-point increase
- Improve the level of trust with 90% of consumers who research your business
Online reviews can have quite the impact but not all online reviews have equal weight. There are distinctive factors behind the value of each review location as well. Let’s look at the main sites:
Google Reviews is the most important platform to understand since it has the widest reach through the search engine. These reviews show up when a customer searches for a specific business type within their area. Consumers don’t even have to search for reviews — they are automatically attached to your brand by Google.
As such, positive reviews on Google reviews make customers 38% more likely to visit your location, and 30% more likely to consider buying from you. Over half of consumers will click through to your full listing based strictly on your star rating.
Yelp has positioned itself as the website for reviews with more than 127 million individual reviews. Also a popular resource among internet users, a single star improvement in your rating on Yelp can translate to up to 10% increase in your revenue. If customers are already looking at Yelp reviews means that they have a clear intent of buying from your company. 90% of users report making a purchase from a business with a favourable rating on Yelp.
Finally, there are Facebook reviews. Three in four consumers report using Facebook to find more information about businesses, and that includes reading reviews. Furthermore, 80% of consumers report being more likely to trust a business if they have positive reviews on the social network.
It may be complex to calculate the worth of online reviews for your business, but it can be quantified as an estimated value by combining the effective impact on revenues.