all right everybody welcome back I'm so excited for this deep dive because we're talking about something that honestly kind of blew my mind when I first heard about it oh yeah yeah so you know we're always talking about how important reviews are for you know building your reputation online attracting new customers all that good stuff right but did you know that those little star ratings those reviews that people are leaving can actually have a direct impact on a business's ability to set prices yeah I mean it makes sense when you think about it you know reviews really influence customer perception of value and when customers perceive something as valuable they're willing to pay more for it right okay so let's break that down a little bit because I think this is where it gets really interesting we all know that good reviews you know they build trust they give you that sense of okay other people have tried this product or service and they're happy with it so I probably will be too right but how does that translate to like a coffee shop being able to charge an extra for a latte well think about it this way you're walking down the street you're looking for a place to get a coffee you see two cafes right next to each other one has like a three star rating on Google the other one has four and a half Stars okay yeah you're probably going to be drawn to the one with the higher rating right even if it means paying a little bit more yeah probably I mean I'm definitely checking out the reviews before I go to a new restaurant or you know book a hotel room exactly and and there's there's actually data to back this up businesses with you know four stars or more on Google they often see like an average price increase of 9% without any push back from customers wow that's that's pretty significant it is it's because those positive reviews they create that perception of quality you know it's like oh this place must be really good if everyone's raving about it I'm happy to pay a little extra yeah I totally get that it's kind of like peace of mind you're paying for exactly and it goes beyond just trust too views can really highlight what makes a business unique you know so let's say that that cafe with the four and a half star rating let's say they roast their own beans inh house okay or they have you know some special Brewing method the reviews are going to talk about that right right and that helps them stand out from the competition it justifies that higher price tag right so they're differentiating themsel it's kind of like you know how people are willing to pay more for brand names exactly it's all about perception right so we've talked about the positive side you know what happens when reviews are good but what about the flip side what happens when the reviews are not so great well you know unfortunately negative reviews can be really damaging you know they erode that perceived value that we were talking about and businesses might actually have to lower their prices just to try to attract customers yeah that makes sense it's like if you see a hotel with you know a bunch of onear reviews talking about how dirty the rooms are you're probably not going to book it right even if it's the cheapest option yeah exactly you know I was actually in a similar situation a few months ago I was looking to book a hotel for a trip and there are two options that I was considering one was cheaper but it had like terrible reviews oh no and the other one was a little bit more expensive but it had like glowing recommendations and you know what I went with the pricier option yeah because those positive reviews they just gave me that peace of mind like I was saying earlier you know was like okay I'm willing to spend a little extra to know that I'm going to have a good experience yeah absolutely that's such a good example of how these things play out in real life you know yeah and it brings up a really important point for business owners too right which is that you can't just like sit back and hope for good reviews right you have to actively manage them you know you have to respond to negative feedback thoughtfully you have to encourage happy customers to leave reviews you have to use that feedback to improve oh so it's not just about getting good reviews it's also about using them strategically exactly but okay I have to ask isn't there a risk that you know with all this emphasis on reviews and ratings and online perception isn't there a risk that businesses might start prioritizing that over actual quality oh absolutely yeah that's a really valid concern and that's why it's so important I think as consumers to be Discerning don't just look at the overall star rating dive into the details of those reviews what are people actually saying are they praising the quality of the product or service or are they just talking about like you know the Ambiance or the decor right you have to look beyond the surface you know totally and you know what I've noticed sometimes certain types of reviews they just influence me more than others like if I see a really detailed review you know where someone's really put in the effort to describe their experience and they're talking about how it made them feel you know that's going to sway me way more than just a simple five-star rating oh 100% yeah the psychology of reviews is so fascinating right and and there's actually been research on this you know reviews that highlight personal experiences emotional connections they resonate more deeply with potential customers because it creates that sense of empathy you know like you can really see yourself in that person's shoes yeah it's like storytelling exactly it's like you know instead of just saying this product is great they're saying I Ed this product and it helped me achieve this goal or it made me feel this way right right and way more powerful yeah paints a picture you know it draws you in it's like you're already experiencing the product or service yourself exactly and it all comes back to that idea of perceived value right reviews are a way for businesses to shape that perception and that perception has a real impact on their pricing strategies so you know we started this deep dive thinking wow that's kind of a surprising connection right between reviews and pricing yeah but I think the more we've talked about it the more it's become clear that you know reviews shape our perceptions and our perceptions Drive our willingness to pay exactly so for everyone listening think about how this might change the way you look at reviews right are you going to dig a little deeper look Beyond just the star ratings yeah pay attention to those detailed narratives those personal experiences and for our business owners out there how are you going to leverage this knowledge to you know shape your pricing and your reputation strategy I think it's a lot to think about definitely thanks for joining us for another deep dive it's been a pleasure exploring this topic and we'll catch you next time see you then bye bye
