What’s In The Stars Infographic
Social Media has changed almost every part of our lives over the last 10 years.
From how we go about finding love to the photos we take of our food on the first date! More importantly for business owners, these customer stories are no longer shared just between close groups of friends and colleagues – but sent out on multiple social networks and reaching thousands of people. In this infographic, we explore the relationship between the stories and ratings customers generate online and their impact on business.
- 72% of consumers say that positive reviews make them trust a local business more (vs. 73% in 2013)
- 10% of consumers donâ€™t take any notice of online reviews (vs. 12% in 2013)
- 88% Of Consumers Say They Trust Online Reviews As Much As Personal Recommendations
- 67% of consumers said they read up to 6 reviews (vs. 77% in 2013)
- 85% of consumers said they read up to 10 reviews (vs. 92% in 2013)
- 7% of consumers said they read 20+ reviews (vs. 2% in 2013)
The Key Players – Yelp
How It’s Used
- 135 Million monthly users in 2015
- 60.2% of Yelp users use the service primarily for the Reviews
- 32.5% use primarily for finding something near them
- 89% of users say reviews have a medium to high impact on their decisions
- Over half of the users have incomes over $75,000
- According to a study by Harvard Business Associate Professor Michael Luca “a one star increase in Yelp ratings results in a 5-9% increase in revenue”
- Moving from a 3-Star Rating to a 3.5 Star Rating increased business revenue by 21% for the most trafficked hours of the day
- 14% of all Yelp Reviews are 1-Star Reviews.
- Only 13% of people will use a business with an overall rating of 1-Star
- 72% of bad reviews are due to bad customer service interaction and having to explain the same problem to multiple people
More than 700 businesses and consumers have filed complaints about Yelp with the FTC
With its large user base and potential to increase the revenue of a 3-Star business by about 20%, Yelp is here to stay. Staying on top of new reviews can be a time-consuming affair, but apps like GoFanbase are offering a new way to quickly track customer experiences, while also encouraging more 5-Star reviews for businesses trying to climb the social ladder.
One trillion searches per year
- Has a 64% market share of all searches, next is Microsoft with 20%.
- Important since 48% of consumer research begins on SearchEngines
- 42% of Auto, 41% of Home & Garden, and 38% of Clothing
- There are over 200 ranking factors in Google’s Search Engine Algorithm, 10% of the weight is estimated to be review signals (quantity, velocity, diversity, etc.)
- Local searches are weighted even more heavily for reviews
- it is estimated by Google that for every $1 a business spends on AdWords, they receive $8 in profit. (chance for app graphic here)
- 88% of consumers have been influenced by an online review
While Yelp! is the overwhelming source for photo stories, Google remains the go-to option for researching a product and business. Google’s search volume and ad programs give businesses the potential to reach large swaths of new customers if they are willing to promote and advertise through adwords and SEO marketing. Visit gofanbase.com to start promoting with just a few taps of the finger!
With 97% of consumers doing some form of online research before making a decision, online reputation management and reviews are a necessary piece to the successful business puzzle. Putting the time into promptly responding to negative reviews, thanking the users that leave positive reviews, and promoting with Google and Yelp are all facets to a successful social media and online Marketing Strategy.
At GoFanbase we have invested in understanding what works for our clients and developed social media software that has helped their businesses become active participants in social by working with a mobile-first social media management model.