Download Now

2021 State of Reviews

<h2>Reviews are table stakes in winning today&#8217;s consumers.</h2>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-14150 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2022/01/inbound-marketing4.jpg" alt="People collaborating on a laptop" width="800" height="350" /></p>
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Reviews used to be a nice-to-have. Now, they’re a <a href="https://www.podium.com/article/online-reviews/">make or break</a> in whether a consumer chooses to engage with your business. Review importance, influence, and consumption are rapidly increasing in consumer mindshare. And customers are turning to them more quickly—and more singularly—than ever before.</p>
<h3><a href="https://www.podium.com/reviews/">Reviews</a> influence 88% of consumers in discovering a local business.</h3>
</div>
<div class="page" title="Page 4">
<div class="layoutArea">
<div class="column">
<p>21% of consumers say that reviews play a big role in discovering a local business.</p>
<div class="page" title="Page 4">
<div class="layoutArea">
<div class="column">
<p>12% of consumers say that reviews do not play a role in discovering a local business.</p>
<div class="page" title="Page 5">
<div class="layoutArea">
<div class="column">
<h3>The top characteristics consumers say are most important when choosing a local business are:</h3>
<ul>
<li>Location (61%)</li>
<li>Price or promotions (55%)</li>
<li>Personal recommendation (50%)</li>
<li>Reviews (41%)</li>
</ul>
<div class="page" title="Page 5">
<div class="layoutArea">
<div class="column">
<p>Reviews are 2x more likely to be an important factor in choosing a local business than loyalty, and 7.4x more likely to be an important factor than traditional marketing.</p>
<div class="page" title="Page 6">
<div class="section">
<div class="layoutArea">
<div class="column">
<h3>Most consumers have read a review in the last week.</h3>
<div class="page" title="Page 6">
<div class="section">
<div class="layoutArea">
<div class="column">
<ul>
<li><strong>23%</strong> have read an online review in the last day.</li>
<li><strong>46%</strong> have read an online review in the last 3 days.</li>
<li><strong>65%</strong> have read an online review in the last week.</li>
<li><strong>85%</strong> have read an online review in the last month.</li>
<li><strong>94%</strong> have read an online review in the last year.</li>
</ul>
<div class="page" title="Page 7">
<div class="layoutArea">
<div class="column">
<h3>Approximately half of consumers are willing to travel farther and pay more in order to patronize a business with higher reviews.</h3>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-13922" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-11.19.53-AM.png" alt="" width="820" height="402" /></p>
<div class="page" title="Page 8">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>28% of consumers say they have looked up a business’s reviews while standing or being parked right outside to decide if they should go in or not.</p>
<div class="page" title="Page 9">
<div class="section">
<div class="layoutArea">
<div class="column">
<h2>Consumers are not just looking for five stars.</h2>
<p><img decoding="async" loading="lazy" class="size-full wp-image-13918 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/pexels-oleg-magni-2764678.jpg" alt="person building email list on laptop" width="1200" height="971" /></p>
<div class="page" title="Page 9">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>When customers search for a business online, they’re not just looking for five stars—it’s not that simple anymore. Consumer behaviors around finding and choosing local businesses online have become incredibly nuanced. Businesses need five stars and review quantity, quality, consistency, relevancy, and diversity to increase patronage.</p>
<div class="page" title="Page 10">
<div class="layoutArea">
<div class="column">
<h3>Although they are not enough on their own, high average star ratings are still the baseline required to compete.</h3>
<div class="page" title="Page 10">
<div class="layoutArea">
<div class="column">
<p>38% of consumers require at least a 4-star average rating to consider engaging with a business.</p>
<p>Only 9% of consumers would consider engaging with a business that had a 1- or 2-star average rating.</p>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-13923 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-11.21.56-AM.png" alt="" width="972" height="454" /></p>
<div class="page" title="Page 12">
<div class="layoutArea">
<div class="column">
<p>83% of consumers agree or somewhat agree that reviews must be recent and relevant in order to care about them. 68% of consumers agree or somewhat agree that they don&#8217;t trust a high review rating unless there is a high quantity of reviews.</p>
<p><img decoding="async" loading="lazy" class="size-full wp-image-13961 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-5.12.47-PM.png" alt="" width="1178" height="432" /></p>
<div class="page" title="Page 13">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><strong>56%</strong> of consumers say that a business’s responses to reviews have changed their perspective on the business. Consumers consider how businesses respond to reviews when making purchasing decisions. Business responses offer insight into how responsive, responsible, and caring a business is. Responses tell the consumer how the business is going to treat them.</p>
<div class="page" title="Page 14">
<div class="layoutArea">
<div class="column">
<h3>Consumers use a variety of different review sites and search engines to make their decisions.</h3>
<div class="page" title="Page 14">
<div class="layoutArea">
<div class="column">
<p>However, consumers are more than twice as likely to turn to <a href="https://www.podium.com/guides/google-review-star-ratings/">Google</a> to discover and choose a local business than any other site.</p>
<p>Nearly 68% of consumers are likely to engage with your business using a mobile device compared to 32% who would engage via desktop. We asked this same question in our 2017 State of Reviews Report, and the gap between mobile usage vs. desktop usage has widened from the reported 59% and 41% (respectively) in 2017.</p>
<div class="page" title="Page 15">
<div class="section">
<div class="layoutArea">
<div class="column">
<h2>COVID-19 has created opportunities to win new customers online, but it has also created new consumer expectations.</h2>
<p><img decoding="async" loading="lazy" class="size-full wp-image-14114 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2022/01/retention2.jpg" alt="Coffee Shop Barista" width="800" height="350" /></p>
<div class="page" title="Page 15">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>COVID has provided new opportunities, but has also come with new expectations. If you tap in to customer needs and your <a href="https://www.podium.com/article/google-reviews/">reviews reflect</a> the characteristics your customers care about now, you can edge out your competitors. If they don’t, your customers will find another business whose reviews more fully reflect the experience they want to have.</p>
<div class="page" title="Page 16">
<div class="layoutArea">
<div class="column">
<h3>Since COVID-19, consumers are on the hunt for local businesses who will cater to their current needs.</h3>
<p>33% of consumers say they have found a new local business near their home during COVID-19 that they didn&#8217;t previously patronize.</p>
<p>31% of consumers say they are more likely to look at a local business&#8217;s Google listing before visiting it than they were prior to COVID-19.</p>
<div class="page" title="Page 17">
<div class="section">
<div class="layoutArea">
<div class="column">
<h3>Consumers want local businesses to succeed and are willing to show support through review behavior.</h3>
<p>41% of consumers say they are more compelled to patronize local businesses since COVID-19, vs. 14% who say they are less. 45% of consumers would consider refraining from leaving a negative <a href="https://www.podium.com/guides/online-reviews-matter/">online review</a> (when they normally would have) because they want to try to be more understanding of businesses’ operating challenges. 42% of local businesses say their online reputation has gotten better or much better since COVID-19, vs. 7% who say it has gotten worse or much worse.</p>
<p>Overall, consumers are still looking for the same things as they were pre-COVID. But since COVID-19, almost 50% of consumers are also reading reviews to validate local businesses’ safety practices.</p>
<p>01. Quality of service or products</p>
<p>02. Good prices</p>
<p>03. Good customer service</p>
<div class="page" title="Page 20">
<div class="section">
<div class="layoutArea">
<div class="column">
<h2>Consumers are much more likely to consume reviews than create them.</h2>
<p><img decoding="async" loading="lazy" class="size-full wp-image-14126 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2022/01/interaction-management-2.jpg" alt="Phone in hand" width="800" height="350" /></p>
<div class="page" title="Page 20">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>The vast majority of consumers leave a business review once a quarter, or less. And a fifth say they’ve never left one. While consumers read reviews regularly, there is clearly a barrier to creating reviews that local businesses must breach. Businesses need to rethink how they ask for reviews and eliminate any factors that might be preventing their customers from leaving reviews, both positive and negative.</p>
<div class="page" title="Page 21">
<div class="layoutArea">
<div class="column">
<p>Many consumers (81%) leave a business review four times a year or less. 20% say they have never left a business review.</p>
<p><img decoding="async" loading="lazy" class="size-full wp-image-13933 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.51.47-PM.png" alt="" width="1502" height="632" /></p>
<div class="page" title="Page 22">
<div class="layoutArea">
<div class="column">
<p>After having a good experience with a local business, consumers are 12% more likely to leave a review if they see a sign asking them to—and 36% more likely if they receive an email invite to leave a review.</p>
<p><strong>41%</strong> of consumers say that text is their preferred way to communicate, vs. <strong>18%</strong> who prefer email. <strong>48%</strong> of consumers say they have received a text from a business asking them to leave them a review. <strong>36%</strong> of those consumers have left a review based on the text request they received.</p>
<div class="page" title="Page 24">
<div class="layoutArea">
<div class="column">
<p>When consumers do leave reviews, having a negative experience with employees is the leading motivation to leave a negative review. 85% of consumers say that employee attitude is the most likely motivation for a consumer to leave a one-star review. Having a positive experience with employees is also the leading motivation to leave a positive review.</p>
<div class="page" title="Page 26">
<div class="section">
<div class="layoutArea">
<div class="column">
<h2>Local businesses feel the pressure and are taking proactive measures to compete online.</h2>
<p><img decoding="async" loading="lazy" class="size-full wp-image-13916 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/attraction-marketing-2.jpg" alt="laptop with facebook on the screen" width="1200" height="1050" /></p>
<div class="page" title="Page 26">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Although 67% of local businesses report an average review rating of 4.0+, local business leaders are feeling the need to <a href="https://www.podium.com/article/review-marketing/">improve</a> their online reputation as the market becomes increasingly competitive.</p>
<div class="page" title="Page 27">
<div class="layoutArea">
<div class="column">
<h3>79% of local businesses say they are at least somewhat proactive about their online reputation, with 30% saying they are very proactive.</h3>
<div class="page" title="Page 27">
<div class="layoutArea">
<div class="column">
<p>Local businesses are 1.4x more likely to have an average star rating of 4.5 or higher if they are <a href="https://www.podium.com/article/texting-from-a-computer/">proactive</a> about their online reputation vs. if they are passive about it. 45% of local businesses say that online reviews are “very important” to their business’s success.</p>
<div class="page" title="Page 28">
<div class="layoutArea">
<div class="column">
<h3>In 39% of SMB local businesses, the Owner/ CEO is held most responsible for their online reputation.</h3>
<div class="page" title="Page 28">
<div class="layoutArea">
<div class="column">
<p>Even in enterprise local businesses, 18% said the same, although Marketing Manager was the most common role held responsible in those larger orgs (24%).</p>
<div class="page" title="Page 29">
<div class="layoutArea">
<div class="column">
<h3>Businesses are more likely to say they respond to positive reviews than negative reviews.</h3>
<p>54% of local businesses say they respond to all or most reviews. 16% of local businesses say they rarely or never respond to reviews.</p>
<div class="page" title="Page 30">
<div class="layoutArea">
<div class="column">
<h3>Local businesses are employing varied strategies to try to improve their online reputation.</h3>
<div class="page" title="Page 30">
<div class="layoutArea">
<div class="column">
<p>No one strategy is being used by a majority of local businesses. However, offering incentives to leave reviews is the most common strategy, and only 19% are asking customers to leave reviews by <a href="https://www.podium.com/article/texting-landlines/">text</a>.</p>
<p><img decoding="async" loading="lazy" class="size-full wp-image-13927 aligncenter" src="https://cmsaustralia.wpengine.com/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-11.53.27-AM.png" alt="" width="900" height="336" /></p>
<div class="page" title="Page 31">
<div class="layoutArea">
<div class="column">
<h3>Almost all local businesses using a reputation management software say that the software pays for itself.</h3>
<div class="page" title="Page 31">
<div class="layoutArea">
<div class="column">
<p>94% of local businesses who use a reputation management software at least somewhat agree that it provides enough <a href="https://www.podium.com/guides/roi-of-online-reviews/">ROI</a> to make up for the cost.</p>
<div class="page" title="Page 32">
<div class="section">
<div class="layoutArea">
<div class="column">
<h2>Dominate your local market.</h2>
<div class="page" title="Page 32">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>As you read this, people are searching for a business like yours. The question is, will they find and choose you? Unless you have a competitive star rating with an impressive number of reviews, the answer will likely be “no.”</p>
<p>Become the top-rated option in your area by automatically sending <a href="https://www.podium.com/article/online-review-statistics/">review</a> invites to customers via text, managing your reviews efficiently, and providing a modern customer experience. And do it all from one place with Podium.</p>
<p><em>This survey was conducted by Survey Monkey Audiences from October 9–October 21, 2020 in the US. Audiences surveyed included 1,543 consumers (age 18–99+, all regions), 455 SMB owners or managers, and 378 enterprise business leaders in businesses with a local presence.</em></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
