Customer reviews and ratings have become a pivotal factor in purchasing decisions, but how much do consumers really trust them? Renowned customer experience expert and bestselling author Shep Hyken joins us on the latest episode of CBT Now to share key insights from his latest research on the state of customer service. Hyken reveals surprising statistics about consumer skepticism, the influence of negative reviews, and the growing importance of personal branding in today’s digital marketplace.
Hyken’s latest research confirms that customer ratings and reviews play a crucial role in purchasing decisions, with 83% of consumers checking them before making a purchase. However, skepticism is on the rise, with 69% of customers questioning the authenticity of reviews—especially when businesses display only five-star ratings. Studies indicate that a 4.2 to 4.3 rating feels more trustworthy than a perfect score, reinforcing the idea that authenticity, not perfection, builds credibility.
In addition, Hyken highlights the importance of how companies respond to negative reviews. Citing marketing expert Jay Baer, he notes that public complaints have become a “spectator sport,” where potential customers observe how businesses handle criticism. A well-managed response to negative feedback can actually strengthen consumer trust.
Research has revealed some surprising insights into the sources we trust for product recommendations. Family and friends are the most trusted sources, followed by celebrity endorsements in third place. This puts celebrity endorsements ahead of social media influencers, online forums, and reviews on retailer websites. The least trusted source? Ratings on a brand’s own website.
Discussing the prevalence of fake and incentivized reviews, Hyken warns of potential regulatory action against fraudulent practices, especially as some companies use bots to generate positive feedback or post fake negative reviews on competitors’ pages.
On the topic of personal branding, Hyken emphasizes that sales professionals—from auto dealers to real estate agents—should build their own online reputations. He encourages individuals to collect personal reviews and testimonials, noting that even restaurant servers could benefit from a strong LinkedIn presence.
When asked which companies set the gold standard for customer service, Hyken mentions Amazon, Chick-fil-A, and The Ritz-Carlton, while noting that even the best brands will have detractors. Amazon, in particular, stands out for its seamless problem resolution, as Hyken recounts a personal experience where a missing package was replaced within minutes.
"83%, that's basically eight out of 10 customers, say they sometimes look at reviews and ratings before they make a purchase, which means they're important... But seven out of 10 customers—basically 69%—are skeptical about the authenticity of the review." – Shep Hyken
