8 Stats Every Contractor and Tradesman Must Understand

August 7, 2023

Online ratings and reviews have revolutionized how customers evaluate and choose services, including those provided by contractors and tradesmen. For plumbers, roofers, electricians, general contractors, and everything in between, being aware of some key online review statistics is paramount. This article presents critical review-related data that every contractor and tradesman should be well-versed in, enhancing their online reputation and business success.

The Significance of Online Reviews for Contractors and Tradesmen

Online reviews have a significant impact on how potential customers perceive the services of contractors and tradesmen. Familiarizing oneself with these statistics underscores the necessity of actively managing online reputation and leveraging the power of reviews.

1. Trust and Credibility

An astonishing 91% of consumers trust online reviews as much as personal recommendations, according to BrightLocal. Positive reviews establish trust and credibility, vital factors for contractors and tradesmen looking to win over prospective clients.

2. The Star Rating Effect

The average star rating is the most influential factor for potential customers assessing businesses, according to BrightLocal. A higher star rating directly correlates with improved credibility and an increased likelihood of securing new clients.

3. Recent Review Consideration

Recent reviews are crucial. A staggering 73% of consumers believe that a business must have recent reviews to be trustworthy, as reported by BrightLocal. Regularly acquiring new reviews is essential to maintaining a positive online presence.

4. Quantity and Impact

A compelling 40% of consumers form opinions after reading just 1-3 reviews, underlining the significance of having a substantial number of reviews. An abundance of reviews, even if not all perfect, significantly influences customer perceptions.

5. Positive Reviews and Revenue

Research from Harvard Business School reveals that a one-star increase in a Yelp rating can lead to a 5-9% increase in revenue for contractors and tradesmen. Positive online reviews directly correlate with increased earnings.

6. Ignoring Reviews Equals Loss

Ignoring reviews is detrimental. A Dimensional Research survey found that if a negative review goes unanswered, 30% of consumers would choose a competitor. Responsiveness to reviews is crucial for preserving customer relationships.

7. Social Media Connection

Online reviews often extend to social media platforms. A ReviewTrackers survey found that 63% of consumers are likely to check a business’s social media channels for reviews before making a decision.

8. Local Searches and Reviews

Local search results are heavily influenced by online reviews. Google prioritizes user-generated content, and businesses with positive reviews tend to rank higher in local searches, making them more visible to potential clients.

Conclusion

For contractors and tradesmen, online reviews are a game-changer. The statistics above emphasize the pivotal role that reviews play in building trust, credibility, and business growth. By actively managing online reputation, encouraging reviews from satisfied customers, and engaging with feedback, contractors and tradesmen can harness the power of online reviews to attract new clients and distinguish themselves in a competitive market. In a digital landscape where reviews act as digital testimonials, those who grasp their significance are poised for success in the evolving world of business.

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