How Five star Rating Can Boost Revenue

Over the last few years,we’ve heard many debates regarding five star rating and how important they are to a business or brand. But many businesses we’ve met don’t know the real value of five star rating and how to use them to boost their revenue. Therefore, we’ll go over some stats and key points as to why five star rating is important to businesses.

Maybe we should look at in the consumers point of view to better understand how important is a star rating to them. As you might have imagined star rating is very important to online consumers. In today’s digital age where everyone is online and interacting with one another, people are paying attention more than ever to what others are saying in the deepest, darkest corners of the web.

The fact is, 90% of consumers read online reviews before visiting a business. And 88% of consumers trust online reviews as much as personal recommendations. According to Professor Michael Luca from Harvard Business School, a 1-star increase in ratings equals a 5-9% increase in revenue for a business.

Some key factors from Revlocal to consider about Five star rating:

1. Only 5 percent of consumers will use a business with a 1-star rating
2. 9 percent of consumers will a business with as low as a 2-star rating
3. 42 percent WILL NOT purchase from a business with less than three stars
4. 37 of consumers want to see a 4 star rating.
5. 8 percent of consumers say they won’t use a business if it doesn’t have a five star.

Last, It’s imperative that one understands the importance of star rating to a business or brand. Therefore, it’s time take action and start boosting your online rating. Take time to read one of the recent posts here on why it’s important to have small businesses on Upamile.