Location 3, a digital marketing agency, reviewed 16 months of AdWords campaign data, 93 million impressions, 32 months of historical user reviews on Google, 72,000+ reviews for more than 7,000 businesses.
The research showed a direct correlation between better reviews and ratings and improved performance. As stars increased, so did conversions.
Better Star Ratings, Better Conversions
- Businesses in the lowest grouping had an average 3.31 stars, translating into an average conversion rate of 10.42 percent.
- The best-rated segment had an average of 4.96 stars, translating into a 12.83 percent conversion rate.
“…if the lower-rated locations could convert at levels comparable to the top-performing segment, it would effectively mean 13,000 additional leads.” – Location 3 Study
More Responsive to Reviews, Better Conversions
The businesses that did a better job responding to reviews also experience higher conversion rates.
- Businesses with the highest response rate (8.13 percent) saw an average conversion rate of 13.86 percent.
- Businesses with the lowest response rate (5.73 percent) saw an average conversion rate of 10.42 percent.
“While we’ve long known that responding to customer reviews as a business owner (both positive reviews and negative reviews) can potentially improve the overall user experience and highlight your dedication to quality service, our test shows that engaging with customer reviews as a business owner has a positive correlation with improved conversion rates for paid search advertising.” – Location 3 Study