How Valuable is 1 Star
You probably already know that reviews influence your customers. Otherwise, why else would you be reading this page when you could be relaxing with an orange mocha frappacino or other choice beverage? But you may have some team members who don’t quite understand the significance of reviews. So here are some hard numbers to get everyone on the same page:
A Harvard study on restaurants showed that a difference of 1 star can translate to 9% in sales .
Volkswagen conducted a study that showed its dealerships with average reviews of 4 stars and higher got 32% more traffic than those with 2 stars and below.
Research at The Hotel School at Cornell University showed that a hotel can raise its price by 11.2% without negatively affecting sales, if it’s rated 1 star higher.
The fact that independent studies in a variety of industries have reached similar conclusions is more than coincidence. The bottom line is that your reviews and online reputation impact revenue.