THE PERFECT GOOGLE REVIEW AVERAGE
5 stars on all portals for more customers – sounds like a desirable goal, doesn’t it? But if you take a closer look at the current survey, you will come to a different conclusion. But let us first take a step back. The average rating is – for the fourth time in a row and with an increasing tendency – the factor to which consumers pay the most attention when they look at a company, followed by the number of ratings as well as their topicality (more on this in the following chapters).
The majority of consumers (57%) in all age groups stated that a local company must have at least 4 stars in order to use it. As the 55+ group reads comparatively fewer reviews of local companies online, but at the same time expects to receive more than 4 stars for a purchase decision/use, it is particularly important for companies focusing on this target group to maintain a good reputation online.
Companies with an average review of 3 – 4 stars receive the most trust. Make sure that your company receives a natural rating profile. Both positive and negative ratings are important.
WHAT IS THE BEST REVIEW AVERAGE?
The review average also affects the click-through rate in the Local Pack. For example, a company can receive 25% more clicks if the rating is increased from 3 to 4 stars. If a company has less than 3 stars, the click-through rate was lower than if the company has no rating at all (-11%). According to a case study by Location3, improving Google’s rating by 1.5 stars can mean as many as 13,000 more leads for a company.
In view of these figures, companies must not neglect their online reputation. This applies not only to their Google ratings, but to all ratings on online directories in which they are listed. 70% of the respondents in the Reviewtrackers survey stated that they use rating filters for online searches. The “4 star filter” is used by the majority (35%). This means that all companies with less than 4 stars fall through the grid, are not displayed in the search results and therefore lose potential customers. Especially companies that are in the more expensive price range should actively look for a good rating. This is especially true for the hotel industry. 76% of consumers are willing to pay more money for a hotel with a better rating. For the same price, consumers are 3.9 times more likely to choose the hotel with the better rating (Search Engine Journal).
AT A GLANCE
Companies with an average rating of 3.5 – 4.5 stars have the most sales and the best click through rate according to the evaluation of the studies. In addition, companies should be listed on several evaluation platforms.
THE SALES FACTOR
Intuitively, it would be obvious if companies rated with 5 stars achieved the highest average turnover. The Womply study shows that this is not the case. Instead, companies with a rating between 3.5 and 4.5 stars make the highest average turnover. Interestingly, this effect of the rating on sales decreases when the rating exceeds 4.5 stars, so that companies rated with 5 stars generate even less sales than the average. Studies even show that products with 4.5 stars sell up to 3 times better than products with 5 stars. One reason for this may be that companies or products with a perfect score usually have fewer ratings and are less established. Finally, the number of ratings is a relevant factor in the decision-making process. In addition, the perfect score is perceived as less trustworthy in times of fake reviews. A study by the Spiegel Research Center, for example, shows that the purchase probability is highest at ratings between 4.0 and 4.7 with a falling tendency after this threshold. A poor rating on Google and Tripadvisor has the most negative impact on average sales.
THAT WAS BY NO MEANS ALL...
Learn everything about the topic of ratings on 45 pages. Starting with the basics, the e-book offers detailed statistics and surveys on the topic of Google reviews. A must for every entrepreneur.