Why Small Businesses Should Care About Reviews

Reviews play a significant role in influencing consumer behavior, and most consumers read reviews before selecting a local business. In its new report, SOCi examines the Google profiles of 31,000 chain and franchise businesses to determine the influence of reviews on conversion rate. The report looks at the relationship between increases in star rating, review count, and review response with changes in conversion rate. SOCi found that businesses earn 4.2% conversion rate from 7,927 search impressions per month.

What The Report Shows

The report shows that review count is directly proportional to conversion rate, with businesses gaining 2.8% conversion for every 10 new reviews. Businesses that improve their average star rating by 0.1 stars experience a 4.4% boost in conversion rate. Responding to reviews correlates positively with conversion rate, with businesses improving conversion rate by 16.4% when they respond to all reviews. The report quantifies the benefits of reputation management tactics, showing how basic tactics can have a concrete impact on business success.

The report also reveals that businesses can generate approximately $9,988 per month through Google, assuming all calls, clicks, and direction requests result in a transaction. For instance, 10 new reviews equate to $280 in additional revenue for a business earning an average of $30 per transaction.

What an Increase In Star Ratings Provides

Similarly, a rating increase of 0.1 stars can boost revenue by $440, while responding to all reviews, compared to none, results in a $1,638 increase. Although other factors influence conversion rates, these results suggest that businesses that prioritize reputation management can benefit significantly.

Despite this, only about a third of businesses respond to their reviews on Google, indicating that many businesses still ignore the importance of reviews in influencing consumer behavior. The study thus highlights the importance of reviews for small businesses and emphasizes the need for a strong reputation management strategy.Consumers Trust 4 Stars out of 5 Stars the Most

How to Maximize Star Ratings

To maximize the impact of reviews on conversion rates, small businesses can follow certain tactics. First, businesses should actively encourage customers to leave reviews, which can boost their online reputation and visibility. Businesses can also leverage tools like email and SMS to solicit reviews from satisfied customers.

Secondly, businesses should respond to all reviews, positive or negative, as this can help build a positive relationship with customers and show that the business values their feedback. Finally, businesses should monitor their online reputation and respond quickly to any negative reviews to address customer concerns and improve their overall reputation.


In conclusion, reviews have a significant influence on consumer behavior and can impact a business’s conversion rates. Small businesses that prioritize reputation management and follow basic tactics such as encouraging reviews, responding to reviews, and monitoring their online reputation can benefit significantly from this trend. The SOCi report provides valuable insights into the influence of reviews and highlights the importance of a strong reputation management strategy for small businesses.


Conversion: The Influence of Reviews and Why Small Businesses Should Care

by Thrive Directories Reputation Marketing Expert