Months of historical AdWords Campaign data
Months of historical user review data
Total Business Locations
After reading Harvard Business Review’s article titled Replying to Customer Reviews Results in Better Ratings, Principal Data Architect, Matt Donahue was interested in testing the hypothesis that Review Ratings should impact Paid Search performance.
Does quality of user reviews correlate to paid search performance?
Yes, we found a strong relationship between user review ratings and paid search conversion rate.
– Reviews in the lowest rated segment averaged 3.31 stars and a conversion rate of 10.42%.
– Reviews in the highest rated segment averaged 4.96 stars and a conversion rate of 12.83%.
If a brand could convert for the lowest-rated locations at the same rate as the highest-rated, then they would have seen an increase of over 13,000 additional leads (+23% gain in leads).
Does frequency of review replies correlate to paid search performance?
Yes, we found a strong relationship between review replies and the paid search conversion rate. Locations with a higher volume of replies and reply rate corresponded with higher conversion rates. The highest rated segment of reviews didn’t have the highest reply rate due to most already being 5-star reviews.
– Locations with the highest reply rate of 8.13% averaged a conversion rate of 13.86%
– Locations with the lowest reply rate of 5.73% averaged a conversion rate of 10.42%
While we’ve long known that responding to customer reviews as a business owner (both positive reviews and negative reviews) can potentially improve the overall user experience and highlight your dedication to quality service, our test shows that engaging with customer reviews as a business owner has a positive correlation with improved conversion rates for paid search advertising.