Local SEO Insights: What Really Matters for Rankings and Customer Acquisition

Review Volume and Recency Trump Star Ratings

A groundbreaking new study from LocalSEOGuide (LSG) has revealed some surprising insights about what truly drives local search rankings. As reported by Greg Sterling of Near Media, LSG tracked local rankings across 10 different industries in 10 US cities, analyzing approximately 6 million search results to determine how different variables impact Local Pack positioning. [Source: Near Media]

The most eye-opening finding? Star ratings appear to have virtually no impact on rankings. Instead, review volume and recency emerged as the critical factors that influence both rankings and customer decision-making.

“Review volume and recency mattered a lot to people, but star ratings seemed to have no ranking impact at all,” notes Sterling. “In other words, a business with a lower rating but more reviews would outrank a higher-rated business with fewer reviews, all other things being equal.”

This aligns perfectly with our own research at GatherUp. In our “Beyond the Stars” report, we found that 68% of consumers prioritize recent reviews over overall star ratings when making purchase decisions. This consumer behavior data confirms what the LSG study shows from the algorithm perspective: recency matters more than perfection. [Source: Beyond the Stars – How American Consumers Use Reviews to Choose Local Businesses – Nov. 2024]


These findings underscore the importance of consistently generating fresh reviews rather than merely focusing on maintaining a perfect 5-star rating. For local businesses, this means implementing robust review solicitation strategies to ensure a steady stream of recent customer feedback.

Other Key Local SEO Factors

The LSG study highlighted several other important ranking factors:

  • Proximity remains paramount: Listings can’t rank very far from their physical business locations
  • Category diversity matters: Businesses in more Google Business Profile categories outranked those with fewer categories
  • Backlinks still drive rankings: The March 2024 Google Update favored sites with more domains linking to them
  • Local keyword optimization works: GBPs with city names and category keywords in URLs, titles, and H1s tended to outrank those without

    [Source: Near Media]

The Growing Impact of AI Overviews

The local search landscape is also being reshaped by Google’s AI Overviews (AIOs), which are increasingly appearing in local search results. Data from HomeServiceBase.com shows that 7.02% of search results in the home services vertical now include an AIO, with much higher percentages in specific sub-verticals like home inspection (33.9%) and air duct cleaning (28.1%).

Sterling predicts that “AIOs will continue to roll out across local categories until most local queries generate them,” potentially affecting organic click-through rates. [Source: Near Media]

Small Business Marketing Challenges

Despite the importance of Google Business Profile management, many small businesses are underutilizing this critical channel. A recent Constant Contact survey of 1,600 small companies found that only 24% are using “review sites” (including Google reviews), while 59% are focusing on organic social media marketing.

Sterling suggests we may have “reached peak GBP” adoption among SMBs, noting that “GBP is hard, often frustrating (see suspensions, verifications) with limited control. Many SMBs may not fully understand their customers’ behavior.” [Source: Near Media]


Key Takeaways for Local Businesses

1. Focus on review frequency and recency: Implement a consistent review solicitation strategy to generate a steady stream of fresh reviews — remember, 68% of consumers prioritize recent reviews over star ratings [Source: Beyond the Stars – How American Consumers Use Reviews to Choose Local Businesses – Nov. 2024]

2. Optimize your Google Business Profile: Ensure complete category coverage and accurate business information

3. Build quality backlinks: Develop a strategy to earn links from relevant, authoritative domains

4. Include local keywords: Incorporate city names and category keywords in your website URLs, titles, and headings

5. Don’t neglect GBP management: While social media may be more familiar, Google Business Profile remains critical for local visibility  – 67% of consumers trust Google the most, with Amazon and Yelp following [Source: Beyond the Stars – How American Consumers Use Reviews to Choose Local Businesses – Nov. 2024]

As the local search landscape continues to evolve with AI-driven features, maintaining a strong presence where customers are actually searching becomes increasingly important. The data is clear from both ranking studies and consumer behavior research: when it comes to reviews, quantity and freshness trump perfect ratings for both visibility and customer acquisition. Businesses that maintain a steady flow of recent reviews will have an advantage in both search rankings and consumer trust.

Ready to boost your review frequency and improve your local rankings?

Book A Demo Today and start seamlessly collecting reviews where they matter most. Our platform makes it easy to maintain a steady stream of fresh reviews, helping you improve both your search visibility and customer acquisition.

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