Importance of Online Ratings and Customer Reviews

Online ratings and reviews provide crucial insights into a product or service’s quality, reliability, and overall customer satisfaction. They act as a virtual word-of-mouth, helping us make informed decisions and avoid potential disappointments.

The power of online ratings lies in their ability to influence and shape consumer behavior. According to a study conducted by BrightLocal, 91% of consumers read online reviews regularly, and 84% trust them as much as personal recommendations.

This shows just how much weight we give to the experiences and opinions of fellow shoppers.

How Google Calculates Overall Ratings?

On Google, the overall rating is determined by averaging all the star ratings submitted by users for a particular business. The calculation is as follows:
((5 × number of 5-star ratings) + (4 × number of 4-star ratings) + (3 × number of 3-star ratings) + (2 × number of 2-star ratings) + (1 × number of 1-star ratings)) / (sum total of the number of ratings received by the business)

For example, if a business has received following ratings then the overall rating would be calculated as:

Similarly, for a business with six 5-star ratings, four 4-star ratings, and two 3-star ratings:

Local Pack Results, And Google Stars

Local businesses have several options available to showcase their business on Google, including Google Places, local map results, and a Google Business Profile page. These platforms can display star ratings, which can significantly impact the consumer’s decision-making process. In fact, consumers can even sort local pack results by their rating, as depicted in the image example below.

Understanding the Psychology Behind Ratings

Have you ever wondered why some people are more inclined to leave negative reviews while others only leave positive ones? Understanding the psychology behind ratings can give us valuable insights into how people perceive and respond to products and services.

Research suggests that negative experiences substantially impact our emotions and memory more than positive ones. This phenomenon, known as negativity bias, explains why negative reviews carry more weight and influence our decision-making process.

Furthermore, an unhappy customer would generally leave feedback and a negative rating. However, a happy customer needs a nudge to leave positive reviews and ratings.

In case you are wondering how to nudge happy customers, read our blog on Noble Laureate or book an appointment with our SMEs.