A recent survey commissioned by Reputation, a leader in reputation performance management, highlights the growing significance of online reviews in shaping consumer choices. Conducted by the research firm Prodege in the fall of 2024, the survey gathered insights from 2,000 U.S. consumers, revealing that online reviews now surpass traditional influences like marketing campaigns, influencer recommendations, and even advice from friends and family.
The survey coincides with National Leave a Review Day on October 22, aiming to emphasize the critical role of online feedback in the buying process. Findings indicate that 54% of consumers prioritize online reviews when making purchasing decisions, significantly higher than the opinions of friends and family at 24%, company claims at 18%, and social media or media reviews, both at 2%. A notable 77% of respondents characterized online reviews as “mostly” trustworthy.
When asked to identify key business attributes influencing their purchasing decisions from a list of 12 options, consumers identified the following four as the most crucial:
- Quality of product or service (90%)
- Customer service and support (76%)
- Brand reputation (69%)
- Customer reviews (65%)
Younger generations, particularly Gen Z, place an even greater emphasis on online reviews, with 76% considering them the second most important factor after product quality. In contrast, brand loyalty (44%) and a company’s stance on social and political issues (24%) ranked as the least significant attributes.
“Consumers today are placing unprecedented trust in online reviews, viewing them as a powerful influence that eclipses traditional marketing and media,” said Joe Burton, CEO of Reputation. “For businesses, this shift underscores the necessity of providing exceptional customer experiences, encouraging feedback, and engaging meaningfully with online reviews. By doing so, companies can leverage customer insights to foster trust, stimulate growth, and deliver personalized experiences.”
Declining Trust in Institutions
The survey also revealed a significant drop in consumer trust across various institutions, including government, media, and large corporations. Half of the respondents reported a lack of trust in any institutions or social media platforms when making purchases. A mere 2% expressed confidence in Fortune 500 or 1000 companies, while 97% believed that corporations often overstate the value of their products or services. Trust in national media (4%) and government (5%) remains low across all demographics.
Economic Uncertainty Heightens Review Dependence
The importance of consulting online reviews prior to a purchase nearly doubles during economic uncertainty, rising from 30% to 55%. This trend is particularly pronounced among younger consumers, with 63% of Gen Z and 61% of Millennials increasingly relying on reviews as prices rise.
Concerns Over AI-Generated Reviews
The rise of AI-generated reviews has raised concerns among consumers. The survey found that 53% of participants fear that AI could undermine the trustworthiness of online feedback. Additionally, 87% admitted struggling to distinguish between authentic reviews and those produced by AI. While Millennials demonstrated a 50% higher ability than Boomers in identifying fake reviews, only 15% felt proficient in this skill. Interestingly, nearly 25% of Millennials believe that AI could enhance the reliability of reviews.
Importance of Active Review Management for Businesses
The survey emphasizes the necessity for businesses to proactively manage online reviews. Negative feedback drives away 67% of consumers, but companies can potentially reverse this trend by responding directly to negative reviews. A significant 85% of respondents indicated that reading responses to negative feedback impacts their purchasing decisions. Companies that reply to negative reviews within 24 hours may see a 33% increase in the likelihood of consumers improving their ratings.
“Businesses can no longer afford to overlook online reviews,” Burton stated. “Timely and thoughtful responses to both positive and negative feedback are essential for building trust and enhancing customer perceptions. Our data reveals that consumers are open to giving companies a second chance if they feel acknowledged.”
Additionally, the recency of reviews greatly influences consumer trust, with 67% of respondents asserting that reviews from the past three months are highly or moderately important. In contrast, only 39% value feedback older than a year, highlighting the need for businesses to continually seek fresh reviews to maintain relevance in consumers’ minds.
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