What's the roi of boosting Your Online Ratings?

Companies that boost their ratings on shopping sites like Amazon.com may increase their sales revenues by about 10% for each .1  their ratings go up, for example from 3.5 to 3.6 stars.  


And, companies that boost their ratings one full point -- for example from 3  to 4 stars -- may double their sales revenues, our research and real-world experience shows.

Online Ratings Heavily Influence Purchases

Nine out of 10 prospects say consumer online ratings influence their purchase decisions, numerous studies have shown.

If your product gets four or more stars (out of five), prospects are very likely to buy your product. But a large majority of shoppers -- over 80% -- won't buy a product with less than four stars, studies show.

Boosting your online rankings increases the likelihood that prospects will buy your products (see chart below.)


Purchase intention increases as ratings increase. 

Purchase intention increases as ratings increase. 

Real-Wold example

Company "A" is a consumer electronics company.

The company's flagship product previously had a 3 rating out of 5 on Amazon.com, where at that time it was generating about $500,000 in annual sales revenues. At 3 stars, most shoppers were reluctant to buy this product. 

The company began a systematic effort to identify and mobilize Advocates to post positive reviews on Amazon. (The company did not pay or provide incentives for Advocates to post positive reviews.)

The company's sales revenues started increasing as its ratings started going up, first from 3 to 3.1 then from 3.1 to 3.2, etc. However, the company saw the largest sales lift when the rating jumped from 3.9 to 4.0 stars.

Within one year, ratings for the product increased one full point from 3 to 4 stars and sales revenues from Amazon doubled from $500,000 to approximately $1M.


Numerous studies have shown the ROI of increased star ratings:

  • Given equal pricing, guests are 3.9 times more likely to choose hotels with higher ratings than lower ratings. And even if the hotel with great reviews has higher pricing, travelers are still willing to book at that hotel  (source: PhocusWright, 2014)
  • Hotels that increase their ratings by one point on TripAdvisor can boost revenues 39%. (source: “Hotel Performance Impact of Socially Engaging with Consumers,” Cornell University Hospitality Research Center.)
  • Restaurants that boost their Yelp rating by one star can increase revenues by 5% to 9% (source: “Reviews, Reputation, and Revenue: The Case of Yelp.com,” Michael Luca, Harvard Business School, 2011)
  • 92% of people will hesitate to do business with companies with less than four out of five stars (source: BrightLocal, 2014)

norton revenues jump 200% on Amazon.com

Check out this 90-second video featuring a Zuberance customer, especially the part where she says revenue increased 200% after her company began an Advocate reviews program.


You also may want to look at this cool infographic: