Why Are Google Reviews So Important for Local Businesses?

By Lukas | January 15, 2026 | 8 min read

Lukas

When people search for "restaurant near me," "hairdresser open now," or "coffee near me" today, they compare stars, reviews, and first impressions within seconds. Studies show that these seconds determine who gets visited and who remains invisible. This means that many decisions about your business are no longer made in your store, your restaurant, or your studio. They're made beforehand on a smartphone [2][6].

For brick-and-mortar businesses, this means something very concrete: Good reviews bring walk-in customers, full tables, and inquiries. Missing or outdated reviews often cost revenue unnoticed, day after day [4][5].

How Do Customers Search for Restaurants, Stores, and Local Service Providers Today?

Search often doesn't start with planning, but with an impulse. Hunger. Time pressure. A spontaneous need. People instinctively reach for their smartphone, open Google or Google Maps, and expect an immediate answer. They don't want to research, they want to feel safe. Studies show that online word-of-mouth influences purchase intention and that factors like usefulness, and trust in the message are particularly important [1]. They see:

  • Who is nearby?
  • Who seems trustworthy?
  • Where were others satisfied?

Whoever is visible in this moment wins. Whoever doesn't appear or seems uncertain loses the customer without ever being noticed.

Why Do People Decide in Seconds on Google Maps About a Visit?

Because no one has time to take risks. Stars and reviews are today's digital gut feeling. They replace personal recommendations, inquiries, and experience. A business with many current, positive reviews feels familiar, even on first contact. For customers, this means security. For businesses, it means: Trust is built before someone opens the door [1].

What Happens in the First Seconds of a Search Like "Coffee Near Me"?

In these first seconds, a silent decision-making process takes place. People don't rationally compare offers, but emotionally compare impressions. Eye tracking studies show that reviews capture attention and can influence decisions [2]. They look at:

  • Star rating
  • Number of reviews
  • Recency of experiences

These signals act like social proof:

  • Others were here.
  • It was good.
  • I can't go wrong.

If these signals are missing, uncertainty arises, and that almost always leads to scrolling further. The offer can be as good as it wants: Whoever doesn't convince in this moment won't be chosen.

Why Are Google Reviews Decisive for Local Visibility?

Google doesn't simply show all businesses. The algorithm favors places that are actively used, reviewed, and appear trustworthy. Google explains that local results are primarily based on relevance, distance, and prominence, and that prominence can also be derived from reviews and star ratings [6]. Studies also show that reviews have strong effects on demand and behavior, making these signals particularly valuable [3]. Many positive, current reviews mean:

  • better placement in Google Maps
  • more clicks
  • more visits

If these signals are missing, a business slips down or disappears completely from view. The result is not rejection, but invisibility. And invisibility costs revenue.

Why Do Good Businesses Lose Customers Without Noticing?

Because they believe their offering is enough. Good food, good service, good work. All of that counts, but only after someone has decided to come.

The hard truth: Many customers decide against a business before they've ever experienced it. Not because of poor performance, but because of missing digital trust signals. Research on online reviews and eWOM shows that trust and the perceived usefulness of such information significantly influence purchase intention [1].

For restaurateurs, this means empty seats.

For retailers, less walk-in traffic.

For service providers, fewer inquiries

And all of this, even though the quality is right.

How Do Google Reviews Specifically Affect Revenue and Capacity?

According to studies, reviews act like an invisible revenue lever. A frequently cited analysis shows that an increase of one star on Yelp can be associated with a revenue increase of about 5 to 9 percent [4]. Another study finds that an additional half star significantly increases the likelihood that restaurants are fully booked [5]. More trust leads to more clicks. More clicks lead to more visits. More visits lead to more revenue. Businesses with strong reviews:

  • are chosen more frequently
  • are questioned less often
  • appear like the safe choice

Businesses without reviews must convince before someone trusts them. And that rarely succeeds in seconds.

Why Do Stars and Reviews Work Stronger Than Any Advertising?

Because reviews are not promises, but experiences.

Advertising says: We are good.

Reviews say: Others were here and it was worth it.

These small stories, these short sentences, these stars feel real. They take away the fear of making the wrong decision. That's exactly why people trust strangers' experiences more than any ad. Studies also show that new, positive reviews can measurably influence demand and sales [3].

Why Do Many Decision-Makers Know That Reviews Are Important, But Still Don't Act?

Because everyday life in a brick-and-mortar business leaves no time. Staff, suppliers, guests, customers, problems. Reviews often end up at the bottom of the list. Not out of ignorance, but out of overload. This is exactly where the real problem lies:

Reviews are not a coincidence. They are a process. And processes need structure.

Solutions like revwize.com address exactly this: They help brick-and-mortar businesses systematically collect customer feedback, make trust visible, and stay present online. Without additional stress in day-to-day operations.

Why Do Customers Decide Online Today and Not at the Door?

The decision is no longer made in the storefront and not at the entrance. It's made on the screen. Long before someone is on-site. Stars, reviews, and visibility create an internal yes or no. If this yes is missing, the visit never happens.

For brick-and-mortar businesses, this means:

Whoever doesn't convince online doesn't get a chance offline.

Why Are Google Reviews a Strategic Success Factor Today?

Because they simultaneously:

  • build trust [1]
  • increase visibility [6]
  • accelerate purchase decisions [2]
  • influence revenue [4][5]

Reviews are no longer a nice-to-have. They are part of the infrastructure of modern local businesses. The question is not whether reviews are important. The question is, who actively uses them and who leaves them to chance.

Conclusion

Brick-and-mortar businesses today don't just win through quality on-site, but through trust before the decision. Google reviews are the link between digital search and real visits. Whoever understands this game and plays it systematically will be seen, chosen, and visited. Whoever ignores it remains invisible. Even with the best offering.

Sources

[1] Ismagilova et al. (2020), Information Systems Frontiers Ismagilova, E. et al. The Effect of Electronic Word of Mouth Communications on Intention to Buy: A Meta Analysis. Information Systems Frontiers (2020). https://link.springer.com/article/10.1007/s10796-019-09924-y

[2] Chen et al. (2022), Frontiers in Psychology Chen, T. et al. The Impact of Online Reviews on Consumers' Purchasing Decisions, employing the eye tracking method. Frontiers in Psychology (2022). https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2022.865702/full

[3] Chevalier & Mayzlin (2006), Journal of Marketing Research Chevalier, J. A., & Mayzlin, D. The Effect of Word of Mouth on Sales: Online Book Reviews. Journal of Marketing Research (2006). https://msbfile03.usc.edu/digitalmeasures/mayzlin/intellcont/chevalier_mayzlin06-1.pdf

[4] Luca (2011), Harvard Working Paper Luca, M. Reviews, Reputation, and Revenue: The Case of Yelp.com. (2011). https://www.hbs.edu/ris/Publication%20Files/12-016_a7e4a5a2-03f9-490d-b093-8f951238dba2.pdf

[5] Anderson & Magruder (2012), Regression Discontinuity, The Economic Journal Anderson, M., & Magruder, J. Learning from the Crowd: Regression Discontinuity Estimates of the Effects of an Online Review Database. (2012). https://anderson.are.berkeley.edu/pdf/Anderson%20and%20Magruder%202012.pdf

[6] Google Business Profile Help Google Business Profile Help. Tips to improve your local ranking on Google. (Relevance, Distance, Prominence, including reference to reviews). https://support.google.com/business/answer/7091?hl=en

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