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Do Online Reviews Really Matter?

Online reviews have been part of the Internet since the Internet began, and they have not lost their interest to the general public. You can find reviews on most mainstream ecommerce sites, as well as on product review sites. Some review sites specialize in one industry, while others are a catch-all for anything and everything.

  • How much do reviews affect a business' success online?
  • Do they also have influence for business success offline?
  • How much do online reviews affect your bottom line?

Industry Differences

It is clear that in some industries, online reviews can make or break a business. For restaurants, hotels and other hospitality industry companies, online reviews have long been the arbiter of great success or doom. Hotels and restaurants are made or broken by reviews online, because there are many choices that customers can make, and those choices are made via "user experience points." User experience points are not actual points, but the collection of goodwill a business can make from reviews. Established businesses can weather some bad reviews, because their loyal clients will support them, however newer businesses can literally be broken because of a bad review.

If you are in the entertainment and travel industry, you should be aware of your reviews on industry review sites and on large catch-all review sites such as Yelp. Many people plan their vacations and entertainment by going to review sites first.

Product Reviews

 Choosing-Online-Reviews

For companies who sell products, reviews are fast becoming a gauge in how people buy. It is true that many people do not leave a review unless they have had an extreme experience, either positive or negative. But don't let that fact fool you into believing the people do not read reviews before they purchase your products. It doesn't matter whether you have reviews on your own site. It is easy to Google reviews online, then go to the site the reviews are on to read them. Amazon is a great place to find reviews for a wide range of products. Reviews affect the sales success of any product that is not required by medical advice or law.

Major Purchases

Reviews become even more important when customers are making a major purchase. A Google Local survey in 2014 asked people how important online reviews were in their decision-making when making a major purchase. The answer was that 67.7 percent of respondents felt that reviews had an influence on their purchase. Even more importantly, 54.7 percent admitted that online reviews were a major part of their buying decisions.

On the flip side, the same survey learned that just one negative review had the potential for loss of over 20 percent of business. The amount jumped significantly when there were three or more negative reviews.

SEO Significance

Beyond the influence a review has on actual buyers and potential buyers, reviews also impact your SEO. Reviews add backlinks to your site which are valuable in establishing site authority and credibility. Additionally, review sites often show up at the top of search, sending traffic to your site. If you have good reviews, then Google will note that as part of its algorithm, pushing your search results to the top when queries are relevant to your site.

Other things can influence SEO.

  • Your competition may not appear on review sites. On those sites, you are the only company that comes up when your product is searched.
  • Multiple reviews on review sites are more places that you can be found on Google.

The Bottom Line

Ultimately, the bottom line is the main concern for business, and reviews can have a huge affect on it. Good reviews increase ROI, sales and bookings. Multiple review sites offer more chances for traffic to flow in your direction. And reviews offer the opinion of people who are real customers talking about their experience to their peers.

Chris Vendilli
About the Author
Chris is the founder and CEO of Vendilli Digital Group. In his free time, you’ll find him camping, fishing, or playing beer league ice hockey with a bunch of guys who refuse to admit they’re already over the hill.
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