Consumers Value Reviews Over Credentials

A examine of over 1,000,000 evaluate web site transactions and a survey of over 12,000 shoppers might present that licensing credentials matter lower than scores and critiques.

Thus, it might not be sufficient to be The Best when buyer satisfaction expressed via scores and critiques matter most to shoppers.

This might have implications for the way all companies can domesticate extra gross sales.

Reviews and Prices

The analysis was carried out by an MIT researcher. The aim was to determine if licensing legal guidelines lead to a measurable enhance in shopper satisfaction versus transactions in areas with much less restrictive licensing necessities.

The examine was carried out on a house enchancment suggestion web site and with a survey of over 12,000 shoppers who had lately contracted dwelling enchancment providers.

The outcomes indicated that licensing necessities didn’t lead to greater buyer satisfaction charges. The examine additional found that licensing standing was much less essential to shoppers when hiring a house enchancment skilled.

What did matter was the contractor’s critiques and the value.

The researchers concluded:

“Our work means that, not less than for the setting of residential dwelling enchancment providers, shoppers pay way more consideration to fame measures than licensing indicators and extra stringent licensing legal guidelines impose prices on shoppers by way of greater costs, with out corresponding advantages by way of buyer satisfaction.

…we discover no impact of the licensing sign on the hiring selection…

We do discover important optimistic impacts for every of the fame measures (common score and variety of critiques) and important destructive results of costs.”

Licensing Credentials Matter Less to Consumers

When it involves getting employed, the transaction information from over 1,000,000 customers of a suggestion web site and surveys of over 12,000 shoppers clearly present that a contractor’s fame issues greater than the standing of their license.

The report states:

“…there is no significant impact of displaying the verified license signal.”

Licensing did affect hiring, however the impact was very low.

The analysis examine calculated that the licensing sign had the identical impact as a value drop from $200 to $197 (1.5% value drop) and had the affect of half of a p.c of a scores star.

That signifies that the license sign had a optimistic impact in conversion charges however that the optimistic impact was very small.

This is how the examine defined it:

“…for the sake of comparability, taking the 1.47 level estimate of the license verified impact… at face worth and evaluating it to the value impact (-Zero.617) means that the licensing sign is
value a drop in value from $200 (the median in our pattern) to about $197.

And evaluating to the typical score coefficient (Zero.254) means that the licensing sign is value about Zero.06 of a star.”

Top Reasons Why Consumers Make a Choice

Surveyed shoppers used the next phrases when describing their prime three the reason why they selected a selected firm.

  • value (50%)
  • price (14%)
  • high quality (14%)
  • evaluate (13%)
  • suggest (13%)
  • pal (12%)

Less than 1% of survey respondents listed licensing credentials as one of many prime three causes for hiring a house enchancment skilled.


The essential takeaway is the significance of cultivating a optimistic fame. That’s a proactive and pragmatic enterprise stance.

Businesses targeted on cultivating glad prospects will be capable of reap the benefits of this pattern towards rewarding companies with greatest critiques and buyer scores.

The analysis was targeted on dwelling enchancment companies. However it could be an indicator of how shoppers total are selecting professionals, providers and enterprise software program as effectively.

If that is the case then scores and critiques could also be extra essential now than at any time within the on-line procuring ecosystem.


Consumer Protection in an Online World: An Analysis of Occupational Licensing (PDF)

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