Customer ratings can make or break your business. Whether you love them or loathe them, reviews heavily influence how potential customers decide where to spend their money.
Did you know that 72% of people will read reviews before taking action? Not only that, but 92% of B2B buyers say trusted reviews make them more likely to purchase.
Even before visiting your business, 90% of consumers will have read reviews. That means nine out of 10 prospective customers get their first impression of your business from what others say online. And if your ratings fall short, winning back their trust becomes a much harder task.
The reviews you receive and how you respond to them are critical in influencing your online image.
In this guide, we’ll walk through how ratings shape perception, where trust fits in, and what actions you can take to drive more glowing reviews
How trust influences consumer decisions
From choosing a new restaurant to making a one-off purchase, online reviews are incredibly valuable.
Ratings give potential customers access to real-world experiences they wouldn’t usually get without buying the product or service themselves. Reviews allow customers to gauge a business’ credibility without the risk of spending their own money. For instance, shoppers often skip products with fewer than 4 stars on Amazon, even if the price is better, purely based on perceived trustworthiness.
There’s the psychological pull, too.
Naturally, the average consumer wants to hear about the experiences of others with similar needs, preferences, or circumstances. This is called social proof and leads us to:
- Empathize with people who resemble us
- Trust their recommendations
- Mirror their actions
When a review feels relatable, it becomes even more influential.
Trust also depends on who is leaving the review. In 2024, nearly half of consumers who read reviews by named contributors felt more confident about a business, an increase of 8% from 2023. This upward trend shows consumers are digitally savvy and increasingly selective about what they trust.
The impact of star ratings
Star ratings influence perception, but they also impact your bottom line. The more positive reviews you collect, the more revenue you’re likely to earn. Businesses with 9+ reviews earn 52% more revenue than the average. That figure jumps to 108% for companies with 25+ reviews.
There’s also a tipping point when it comes to an average rating. Customers tend to consider businesses with a 3.4 stars out of 5 or higher rating. If your business drops below that threshold, you risk losing business to your competitors. Only 9% of people would consider using businesses with less than two stars.
That’s why a steady stream of relevant, recent reviews isn’t just nice to have – it’s a must.
Review volume vs. review quality
If ‘get more reviews’ isn’t already on your to-do list, it should be. According to Power Reviews, shoppers want to see 100+ reviews per item.
And the stats back this up:
- Products or services with over 5,000 reviews see conversion rates rise by 292.6% – almost three times as many sales as businesses with no reviews.
- When customer reviews are missing altogether, 35% of consumers are less likely to buy, and 2% won’t purchase at all.
Still, the quantity of reviews isn’t everything – you also need quality. Prospective buyers want to read thoughtful reviews, not just vague ratings.
- Overly generic reviews – like ‘Great product! Will buy again!’ with no specifics – can trigger suspicion, especially when they appear repeatedly.
- Long, detailed reviews influence 21% of consumers in 2024
- Reviews that go the extra mile – by including an appealing photo or video – entice 37% of people.
- When reviews only include a star rating and minimal words, 28% of people may consider it fake.
- 40% are wary of reviews that sound AI-generated
The impact of positive and negative reviews
As a business, simply having online reviews isn’t enough – they need to be positive, too. 66% of consumers say positive ratings are the most important factor in their decision-making process. High star ratings also make more than half of consumers feel confident about purchasing.
A poor reputation, on the other hand, will stop 90% of online shoppers from purchasing.
Not all bad reviews will negatively affect your business if you respond to them. In fact, 45% of people are more likely to do business with you if you reply to negative reviews. Responding can also help improve the chances of a negative reviewer returning to your business.
Acknowledge + Empathize + Resolve = the review reply trifecta
Your reply helps provide transparency and/or accountability about the situation. When you answer empathetically, your response can show you genuinely care about your customers. It also provides insight as to how you’ll treat prospective consumers.
The effect of answering services on customer ratings
Creating positive customer experiences can be challenging, especially if you operate independently or with a small team.
Working with a professional answering service ensures each caller receives prompt and consistent support. An attentive answering service can help your business provide a positive customer experience, hopefully producing a glowing company review!
This isn’t just about answering the phone – it’s about making every caller feel seen, heard, and helped, no matter the hour.
Without a virtual receptionist, unanswered calls often go to voicemail. And since 80% of callers refuse to leave a voicemail, a lot of potential business could slip through the cracks. Voicemail can also leave prospects feeling frustrated and damage your reputation as a result.
But when customers receive excellent customer service, they’re more likely to become repeat customers. And because a 24/7 team is always there to respond, your customers never feel ignored or left waiting. Friendly customer service keeps 73% of consumers loyal to a brand, whereas 33% will go elsewhere after just one bad experience.
With customized call scripts, you can shape the experience you want your customers to have with your answering service. It’s this consistent human presence – even in the middle of the night – that builds trust, encourages positive interactions and reviews, and helps turn first-time callers into loyal advocates.
The importance of timeliness in reviews
Timely review responses can make or break how potential customers perceive your business. And it’s not just about replying at all – it’s about replying fast.
Only 47% of consumers would buy from a business that doesn’t respond to reviews. That number jumps to 88% when businesses actively respond to both positive and negative feedback.
But it’s not just if you reply – it’s when.
- 34% of consumers would expect a response within three days
- Only 4% say the response time doesn’t matter
Quick responses show you’re active, engaged, and care about customer experience, helping prevent negative views from snowballing.
Plus, recent reviews carry more weight. Reviews within the last two weeks directly impact more than a quarter of consumers’ decisions, whereas older reviews (six months to a year) are far less impactful.
Search algorithms tend to favour fresh engagement, too – so fast, consistent review activity doesn’t just help with credibility, it also helps with visibility.
Sector-specific insights
Customer ratings matter in every industry, but they’re even more important in some. Research by Rio SEO shows four key sectors where local reviews influence consumers the most:
- Service businesses. Nearly half of local consumers say the online reputation of a service business influences their decision to buy.
- Financial services. Trust and accuracy are vital in the financial industry, which is why 47% prioritize reputation when choosing a provider.
- Healthcare. Nearly 40% use online reviews to search for a healthcare provider. Patients are twice as likely to trust reviews over doctor referrals when choosing a primary care doctor.
- Retail. 39% of people searching for retail stores say online reviews impact their purchasing decisions, with millennials being the most impacted.
Interestingly, research has found a relationship between the first and future reviews on a site.
A study by the University of Florida’s Warrington College of Business found that when the first review is positive, it attracts more reviews over time—and those reviews are more likely to be positive as well. This ripple effect can influence reviews for up to three years.
The effect of customer ratings on brand loyalty
The long-term effect of customer ratings on brand loyalty can be significant.
Positive customer ratings enhance a company’s reputation, build trust, and encourage repeat business.
Take John Lewis, for example. Their consistently high Trustpilot ratings reinforce their reputation for customer care, and keep customers coming back.
After a 5-star experience, consumers are 3.1 times more likely to recommend and trust a company. However, after a 1-2-star experience, that likelihood drops to 2.3 times.
As customer loyalty grows, so do retention rates. Leading to increased revenue, lower acquisition costs, and greater profitability.
Ultimately, trust builds loyalty, and loyalty drives long-term growth.
Using customer ratings to drive business growth
Your online reputation is one of your most powerful business assets. Here’s how to strengthen it:
- Update your profile: Claim your Google Business profile and keep all details up to date
- Ask at the right time: Ask for reviews promptly when the customer’s experience is still fresh
- Don’t offer incentives: Don’t offer review incentives because most platforms prohibit the act
- Use feedback to improve: Respond professionally to positive and negative reviews on all platforms
Reviews also allow business owners to make improvements to their business. Your reviews and ratings are honest thoughts about what your customers appreciate and where they believe there’s room for growth.
So, spend time reviewing your reviews! The more you analyze this feedback, the easier it becomes to identify patterns or recurring issues. And when you understand where to improve, you can deliver a service or product that’s much more aligned with your customer’s needs.
Conclusion: The importance of customer ratings
Whether on Yelp, Facebook, Google, or another site, online reviews have become a cornerstone of modern decision-making. They’re a powerful form of social proof and offer potential customers insight into the quality and reliability of your products/services.
The better the customer experience, the more likely the consumer is to recommend and return to the business again.
If you’re looking to improve your customer experience, consider partnering with a professional answering service to help you deliver timely, empathetic support; the kind that earns glowing reviews and long-term loyalty.
Quick takeaways
- Star ratings directly influence consumer trust and buying decisions; even a drop from 5 to 3 stars can significantly reduce conversions.
- Recent, high-quality reviews carry more weight than quantity alone, especially when they include thoughtful detail and visuals.
- Timely and professional responses to reviews, both positive and negative, boost trust and purchase intent.
- Answering services play a crucial role in driving customer satisfaction and ratings by offering empathetic, real-time support.
High ratings support brand loyalty and repeat business, especially in sectors like retail, healthcare, and finance.
