Calculator: Predict How Your Online Reviews Are Impacting Sales

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Calculator: Predict How Your Online Reviews Will Impact Sales

Douglas Karr Wednesday, March 31, 2021

4 1 minute read

This calculator provides a predicted increase or decrease in sales based on the number of positive reviews, negative reviews, and resolved reviews that your company has online.

If you're reading this via RSS or email, click through to the site to use the tool:

Calculate Your Predicted Sales Impacted By Online Reviews

For information on how the formula was developed, read below:

Formula for Predicted Increased Sales from Online Reviews

Trustpilot is a B2B online review platform for capturing and sharing public reviews of your customers online. Trustpilot has found that their clients' testing shows an increase in conversion rates up to 60%. In fact, through analysis of over 2,000 clients, they've had a mathematician develop the actual formula for calculating the potential sales increase associated with positive reviews, negative reviews, and negative reviews that have been remedied.

Trustpilot wanted to investigate how reviews impacted sales, so they partnered with renowned Cambridge University mathematician, William Hartston, to develop a formula to calculate the economic impact of online reviews on UK businesses. The formula is as follows:

$V=7.9\left(\begin{array}{c}0.62P-.17N^2+0.15R\end{array}\right)$

Where:

V = Percent increase in revenue to your business due to online reviews
P = The number of positive reviews
N = The number of negative reviews
R = The number of satisfactorily resolved negative reviews

Customer Loyalty and Reviews

Customer loyalty is an essential part of virtually every marketing plan, but without your end-users testimonials shared online so that prospects can research and connect directly with customers, your customer loyalty plan isn't complete. Utilizing a platform to automate the collection, syndication, and promotion of customer reviews is essential for businesses selling online.

It’s time for brands to stop fearing online reviews and start understanding the power of honest customer feedback. Online reviews make customers feel appreciated and heard, and businesses see tangible, noticeable differences in ROI, revenue, customer retention, and click-through rates. If your business hasn’t done so yet, the time is now.
Jan Vels Jensen, CMO of Trustpilot

Online reviews boost traffic, sales, cart size, and reduces cart abandonment.

Download The Critical Role Of Reviews In Internet Trust

Douglas Karr Wednesday, March 31, 2021

4 1 minute read

Douglas Karr

Douglas Karr is the founder of the Martech Zone and a recognized expert on digital transformation. Douglas has helped start several successful MarTech startups, has assisted in the due diligence of over $5 bil in Martech acquisitions and investments, and continues to launch his own platforms and services. He's a co-founder of Highbridge, a digital transformation consulting firm. Douglas is also a published author of a Dummie's guide and a business leadership book.

4 Comments

Peter Gubler says:

Tuesday, March 30, 2021 at 2:18 PM

The math here seems dodgy. The example in the video gives 120 positive, 20 negative, and 10 resolved negative reviews. If I put those numbers into the above formula I get 572.75 rather than 62.41% as shown in the video.

Reply
1. Douglas Karr says:
  
  Wednesday, March 31, 2021 at 11:10 AM
  
  You are correct, I need to update this article. The formula is actually V = 7.9 (.62P -.17N²+ .15R).
  
  Reply
Willie Lopez says:

Saturday, June 5, 2021 at 5:40 AM

OwO, very interesting post. Never thought there has a calculator that predicts Sales on Online Reviews. Thanks for Sharing. I calculate and my score is: 1620.53%. What’s your opinion on my sales score?

Reply
1. Douglas Karr says:
  
  Wednesday, June 9, 2021 at 4:13 PM
  
  Wow! That would be quite a the jump and congratulations on your reviews.
  
  Reply

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It all started as a book club.

Yes, I’m serious. I started my work on the web more than two decades ago. My first site was Helping Hand, which curated the best sites from around the web to help people with their computers and navigate resources on the Internet. Years later, I sold the domain to a company that helped folks quit smoking, one of my first big contracts.

I began blogging on Blogger and waxed poetic about everything from politics to Internet tools. I was all over the place and mostly wrote for myself – without much of an audience. I belonged to a Marketing Book club in Indianapolis that quickly grew out of control. Over time, I discovered that more and more of the group were coming to me for technology advice. The combination of my technology background and my business and marketing acumen was in high demand as the Internet rapidly changed the industry.

After reading Naked Conversations, I was motivated to better brand and control the content on the site. I also wanted more control over the look and feel of my blog, so I moved to my domain in 2006 and built my first WordPress site. Since I was focused on marketing technology, I didn’t want the domain with my name to get in the way, so I moved the site (painfully) to its new domain in 2008 where it’s grown ever since.

The Martech Zone is owned and operated by DK New Media, LLC, a company I started in 2009. After working with virtually every major online marketing department in my tenure at ExactTarget and launching Compendium, I knew there was a great demand for my expertise and guidance within such a complex industry.

DK New Media is my company overseeing my publications, podcasts, workshops, webinars, and speaking gigs. Highbridge is my agency with two other partners that help companies maximize their investment in sales, marketing, and related products. We offer integration, migration, training, strategic consulting, and custom development.

Thank you so much for your support over the years!

Douglas Karr
CEO, DK New Media
VP, Highbridge