STUDY: 86% of Consumers Willing to Pay More for a Service Provider With Higher Ratings and Reviews

A recent survey comprised of 1,239 random adults in the United States was conducted to determine the influence of online reviews in the selection process of residential services, and here’s what was found:

– A heaping 86% stated they were willing to pay more for a service provider that had higher ratings and reviews.

– The amount of people claiming to find online reviews ‘extremely’ or ‘very’ valuable when evaluating residential service providers clocked in at 68%.

– Quality of service and cost topped the list of important details outlined in online reviews for respondents at 87% and 78%, respectively.

– As much as 56% of respondents reported using online resources to find their most recent residential service provider.

– Still, a large majority (74%) regularly consult Yelp in the selection process of a residential service provider.

 

Willingness to Pay More for Better Reviews

Willingness to Pay More for Providers with Positive Reviews

Contrary to the popular belief that many will pick the cheapest option, one of the most compelling findings of this survey was that the overwhelming majority (86%) reported being willing to pay more for a service provider that had more positive reviews.

“Consumers highly value their dollars spent, and are typically willing to pay a higher price for what they believe is a better service or product,” explains Chris Sullens, CEO of Marthon Data Systems.

 

High Level of Value Placed in Online Reviews

Value of Reviews in Evaluating Residential Service Provider

As many of us are well aware, there are several different ways to go about searching for a residential service provider. One of them being the trusty ol’ Yellow Pages.

But with the advent of the world wide web, it is becoming clearer than ever that online reviews are fairly prevalent in purchasing decisions, as evidenced by this study.

You’ll see that nearly half of respondents considered them ‘Very valuable’ and only 1% considered them ‘Not at all valuable’.

“Putting an emphasis on customer relationships can certainly help,” says Sullens. “If a business consistently provides high-quality services, competitive pricing and quote accuracy, positive word-of-mouth from satisfied customers will come easily.”

 

Yelp Still the Top Performer in Most Used Online Reviews Sites

Most Used Online Reviews Sites

Ah, Yelp. Can’t live with it, can’t live without it.

When the Google search results data from the study on plumbers in the top 30 U.S. cities was broken down, Yelp still dominated at 43%.

“People are often surprised to hear that, of the 67 million reviews on Yelp (as of Q3 2014), only 20 percent of the reviewed businesses on Yelp are restaurants, and 11 percent of the reviewed businesses are in the home and local services category,” says Morgan Remmers, manager of local business outreach at Yelp.

Overall, this study shows that online reviews continue to be a strong influence in purchasing decisions. A reputation management tool such as ReviewInc could certainly help to boost your awareness of how your online reputation is faring online. Contact us at 1-877-9REVIEWS to set up a demo.

This study was conducted by Software Advice.  For full report, please contact us at support@reviewinc.com.