It’s not surprising that online reviews influence purchase decisions, and therefore, sales. What may not be aren’t aware of, is just how much online reviews can increase your conversion rate.
A study created by Spiegel found that: “Displaying reviews can increase conversion by 270%”. This is almost a threefold increase in sales – just from generating online reviews and showing them off.
The report from Spiegel goes on to say that five reviews are enough to increase the likelihood of purchase by 270%, compared to a product with no reviews.
While online reviews increase sales of products and services across industries and price points, they’re especially influential when it comes to big-ticket items. This makes sense, as the more expensive a product is, the more a potential shopper has to lose should the purchase not meet their expectations.
According to Spiegel’s findings, lower-priced products saw a typical conversion rate increase of 190% (which is impressive in itself), and the conversion rate for more expensive products increased by a massive 380%.
And when we say “high risk”, we’re not talking about a skydiving trip. High-risk purchases are those that aren’t entered into lightly, due to the fact a potential customer feels that the stakes are high, either financially or in a psychological sense.
For instance, household insurance, a trip to the dentist or a wedding venue are all products or services that have a great impact on the end consumer. Because these purchases require a lot of deliberation on the part of the consumer, online reviews help to assure potential shoppers by providing them with an account of what to expect.
By reducing the level of uncertainty a consumer might have with a business, online reviews indirectly increase the sales of higher-risk products or services.
In a previous post, we spoke about the ways online reviews can help your SEO rankings, as they provide Google with user-generated content – a quality that search engines look favourably upon. The higher your ranking in Google, the more people see your business. Highly visible businesses enjoy increased brand awareness, which of course, increases sales.
A collection of online reviews implies that your business is a credible one, by way of providing insight from existing consumers. In the eyes of a consumer, the more credible a business, the more trustworthy it is. It also shows that you’re actively trying to improve the experience they go through when interacting with your brand.
Today, trustworthiness is one of the most important qualities that consumers look for in a brand. As a result, shoppers are much more likely to buy from businesses that have a bank of online reviews that verify ta business is credible.
Reviews on Hellopeter have helped over one million consumers make better choices. Had an experience you’d like to tell us about? Leave us a review here.
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