How Reviews Shape Customer Trust and Brand Loyalty

As marketers, we know online reviews are a critical factor in building brand reputation and customer loyalty. But how deeply do they influence customer decisions? Our latest research uncovered* the real impact that managing customer reviews can have on brand reputation, growth, and customer loyalty — especially when corporate and local teams efficiently manage ratings and reviews at scale. Here's what you need to know about managing customer reviews efficiently and effectively:

• How important are online reviews to customers?
• How quickly should brands respond to reviews?
• How do reviews influence customers by generation?
• How do reviews impact behavior along the customer journey?
• Do customers still trust reviews?
• How can reviews actively support brand strategy?

Reviews are the top trust-building factor in purchase decisions

It's not just about star ratings — reviews have become the top trust-building factor for customers. Globally, 71% of customers say online reviews influence their decision to trust a brand.

Brands must respond to reviews right away

Time is of the essence when it comes to responding to customer feedback. Brands need to stay responsive, with 69% of customers expecting a reply — sometimes within hours:

• 6% expect a response within moments
• 24% expect same-day replies
• 39% expect a reply within a week

To meet customer expectations, brands must be able to respond to reviews across first- and third-party sites quickly and at scale.

• 88% of customers are likely to use a business if they see the owner respond to all reviews (positive and negative).
• More than two-thirds of customers who leave negative reviews will update or delete them if the brand responds to them. Yext customers see a +0.5 average star increase when they respond to 75% of reviews, even when using AI-generated or automated responses.

In industries like healthcare, review engagement is critical:

• 91% of patients look at reviews or provider ratings before booking an appointment.
• 93% of patients are likely to choose a physician based on their responsiveness to reviews.

Using AI and automated responses to generate personal, authentic replies can help brands develop a competitive advantage.

Reviews significantly influence customers in every generation

Generational preferences shape how often customers rely on reviews. From Boomers to Gen Z, reviews increasingly influence purchasing decisions:

• Baby Boomers: 36% regularly look at reviews before making a purchase
• Gen X: 55% often consult reviews before dining out or shopping
• Millennials: 66% rely on reviews frequently for decisions
• Gen Z: 71% depend on reviews before visiting restaurants or stores

Reviews are shifting into top-of-funnel strategy

There's no longer a single linear customer journey. Reviews, once considered a lower-funnel strategy, are now influencing customers much earlier in their decision-making process:

• 7% of Baby Boomers start their search for products or services on review websites
• 6% of Gen X, Millennials, and Gen Z follow suit.

Review websites are a first stop even more often when patients are seeking healthcare.

• 10% of Baby Boomers and Millennials start searching for healthcare providers on review websites.
• Gen X and Gen Z fast follow at 6% and 7%, respectively.

Managing reviews and reputation across the digital landscape will be key for brands in every step of the customer journey.

Reviews can make or break buying decisions

Most customers (71%) consider reviews the most influential trust-building factor as they research a product or service:

• 25% of customers rank average star rating as the top factor in a purchase decision.
• 17% rank the number of reviews as the top factor.
• 50% say a lack of reviews is a challenge for them when researching brands and making decisions about buying from them.

Surprisingly, only 24% of customers are satisfied with the information they find on review websites — suggesting brands aren't adequately prioritizing review management's impact on their overall success. But the truth is, a lack of reviews is one of the top three reasons customers might walk away from doing business with you. Finding a lot of negative reviews, few or no review responses, inaccurate or missing brand or location information, and even a suspiciously high number of five-star reviews can also deter customers from making a purchase.

Benefits of review management on brand strategy

When it comes to review generation as a brand-building strategy, more is more.

• Invite customers to share feedback across first- and third-party sites.
• First-party reviews enhance your reputation on your channels. Third-party sites (like Google, Facebook, Yelp, etc.) boost your brand's digital presence and your reputation.

Manage more reviews without more headcount.

• Intelligent response tools ensure that you share the right location-specific information whenever you respond to local feedback.
• Enlist Yext to help your team generate personalized responses within templates or using AI, so customers feel seen, heard, and respected. Take sentiment analysis a step further.
• Use data science and AI to surface themes from customer feedback at scale.
• Reviews are a treasure trove for identifying positive and negative business trends and sentiment. Turn reviews management into brand moments. It's not just feedback that shows up in reviews. Customers ask for help and pose questions about products, services, or other location-specific information in reviews. Managing reviews effectively means your brand can exceed customer expectations.

Use review management to drive more customer reviews and boost brand sentiment

Multi-location brands can use their size and scale to their advantage with efficient customer review and reputation management. Customers from every generation value reviews and review responses. Brands can give customers what they want, boost discoverability, and build trust by managing reviews across locations, channels, and platforms. Let us show you how Yext can help.

*Survey details: The results are from an online survey of 2,312 adults who purchased something online within the past year. The survey was conducted from June 14 to 25, 2024, by Researchscape International on behalf of Yext. Results were weighted by country population, age, and gender. Respondents were from five countries: France, Italy, Germany, the United Kingdom, and the United States.