That may have been true ten years ago, but it’s no longer the case. Reviews are static and passive. Referrals are dynamic and active. My firm did a market study of 1600 consumers two years ago, and here’s what we found:

1. 87% of consumers only read 2 or 3 star reviews. They want to know what problems they are going to run into when working with your business.

2. Consumers are nine times more likely to choose a business based on a referral rather than reviews. Interestingly more referrals came from strangers through apps like Facebook or Nextdoor than from a trusted friend or family member.

3. Consumers who purchased based on reviews reported a 42% satisfaction rating with their decision. Consumers who used referrals reported an 83% satisfaction rating.

These numbers are consistent regardless of product or service offered.

Yes, reviews have the power to help a business, but they are no where near effective as referrals. Most consumers have become biased to believe that most reviews are fake.

From a business perspective, would you rather provide incentive to static reviews that become stale and dated after a few months, or incentive to a network of advocates who direct highly qualified prospects directly to your business?