Jump of 0.1 in Five-Star Review Averages Can Make the Difference on Conversion

Near-me searches are exploding as customers on the go and equipped with mobile devices search for nearby gas stations, convenience stores, restaurants, and hardware shops. Ninety-two percent of millennials and 82% of consumers overall have used that term, which is now central in local mobile search behavior.

When customers are looking for a quick fix and do not intimately know the shops around them, star-rating averages are crucial. A new report by location-based marketing firm Uberall indicates they are so influential in consumer decision-making processes that a mere 0.1-point jump in a store’s average rating can increase its conversion rate by 25%.

As for just how many stars a business needs to attract customers, it turns out there may be a magic number: 3.7. A boost from 3.5 to 3.7 stars corresponds to a 120% jump in conversion. Other key metrics on a sliding scale of conversion efficacy are 4.0 and then 4.4 stars.

For businesses struggling to garner top reviews especially as for all businesses, responding to reviews is key. Uberall found that responding to 30% of reviews or more can be the basis of a competitive edge in a local market. Yet the average response rate for SMBs was 25%, followed by dismal rates of 12% for enterprises and 9% for global brands.

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Joe Zappa is the Managing Editor of Street Fight. He joined Street Fight as a contributing writer in 2015, has compiled the daily newsletter since 2016, and has spearheaded the newsroom's editorial operations since 2018. Follow him on Twitter @joe_zappa, and shoot him an email at jzappa@streetfightmag.com.
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