Reviews and Ratings: Impact on Local SEO

Why reviews are crucial for local SEO

If you want to be found locally in Austria, there is no way around Google. According to StatCounter, Google held a search engine market share of 81.87 percent in Austria in May 2026, followed by Bing at 9.01 percent. So just over four out of five searches in Austria go through Google. That makes the Google Business Profile the deciding factor in whether a restaurant, a law firm or a contractor appears in the Local Pack. And reviews are one of the central signals that influence this ranking.

Reviews work in two ways. First, they influence the ranking directly. Second, they steer user behavior. A US survey by BrightLocal shows that 97 percent of consumers read reviews for local businesses and 41 percent now "always" do so, a clear increase from 29 percent the previous year (US data). A 2022 Capterra study confirms the picture: 63 percent of Germans always or often read online reviews before a purchase, which makes reviews the most trusted source of information before a buying decision (data from Germany). Reviews are therefore a must for every business that operates locally, not a side issue.

How Google reviews influence local ranking

In its official documentation, Google names three main factors for local ranking. The help page "Tips to improve your local ranking on Google" lists relevance, distance and prominence.

• Relevance: how well a listing matches the search query. Complete, precise profile information improves relevance.
• Distance: how far the location is from the place of the search or from the location named in the search terms.
• Prominence: how well known a business is. This is where reviews come in.

The number of reviews feeds directly into prominence. According to the German-language version of Google's help, the more reviews and positive ratings a business receives, the better its ranking in local search results can be. According to Google, prominence also draws on the number of websites that link to the business and on other information found online. That makes reviews an officially confirmed ranking signal, not just a trust indicator for users.

Review signals in detail: what really counts

Not every review has the same effect. Five dimensions matter.

• Number: More reviews strengthen prominence. A high review count signals to Google and to users that a business is established.
• Average rating: The star rating influences ranking and click behavior. According to a US survey by BrightLocal, 68 percent of consumers only use businesses with four or more stars, compared with 55 percent in 2025; 31 percent even require at least 4.5 stars (US data). Expectations are rising.
• Recency: Fresh reviews carry more weight than old ones. 74 percent of consumers specifically look for reviews from the last three months (US data). A Capterra study from Germany shows something similar: for 67 percent, a review should be no more than six months old to be taken into account (data from Germany).
• Frequency and velocity: A steady flow of new reviews is more sustainable than a one-off burst. Continuity keeps the profile current and credible.
• Keyword content: What customers write gives Google semantic context. A review that names the service and the location ("fast repair in Graz") strengthens the topical relevance of the profile.

Interestingly, people prefer many reviews to a perfect but thin record. According to Capterra, 71 percent would rather buy a product with 4 out of 5 stars from 15 reviews than one with 5 out of 5 stars from only 5 reviews (data from Germany). Quantity and credibility beat a flawless facade.

Best practices: collecting and responding to reviews

Optimize your Google Business Profile and collect reviews

Reviews rarely come in on their own. The key is asking for them actively, but in a legally compliant way.

• Share your review link: Google provides a direct review link in the Business Profile. Place it on printed invoices and receipts and on your website. Use it in emails, including your signature or the invoice email, only under the conditions below (consent or the existing-customer exemption).
• Use QR codes: At the point of sale, on business cards or on table tents, a QR code leads straight to the review form.
• Ask personally after delivering the service: The best time is shortly after a positive interaction. Important: don't buy reviews, don't trade them for incentives, and don't ask only satisfied customers ("review gating" violates Google's guidelines).
• Follow email law: Treat review requests by email like promotional emails. Under § 174 TKG 2021, you need prior consent for them. Without consent, this only works for existing customers, and only if all conditions of the exemption are met: you obtained the address in connection with a sale or a service, the email concerns your own similar products or services, you offered a free and simple way to opt out when collecting the address and in every email, and the customer did not refuse such emails from the outset, for example by signing up for the ECG opt-out list. The GDPR also applies to the data processing. The request must be transparent and voluntary.

Responding to reviews the right way

Responding is a must, not an extra. Your responses show engagement to Google and to future customers.

• Positive reviews: Short, personal, with a reference to the detail the customer mentioned. Avoid generic phrases.
• Negative reviews: Factual, solution-oriented, without justifying yourself in public. Move the conversation to a private channel where possible.
• Response time: Respond promptly, ideally within 24 to 48 hours. This signals a process that works.
• Personalization: Pick up on the name, the product or the situation. Copy-paste responses come across to readers as indifference.

Handling negative and fake reviews

Negative reviews are no disaster. They are a chance to handle complaints visibly. Fake reviews, on the other hand, can be reported to Google if they violate the guidelines (for example spam, off-topic content or fake profiles). The distrust is real: according to Capterra, 59 percent of respondents believe that half or more of online reviews are fake (data from Germany). Authenticity and transparent responses are therefore a competitive advantage.

Legal aspects in Austria and the EU

In Austria and the EU, clear rules govern how customer reviews are displayed. The EU Omnibus Directive amended the Unfair Commercial Practices Directive, and Austria transposed this into its Unfair Competition Act (UWG) through MoRUG II. This creates a transparency obligation: under § 2 para. 6b UWG, anyone who makes customer reviews available must state whether and how they ensure that the reviews come from actual customers. There is no general obligation to check every review. But anyone who claims the reviews come from customers who actually bought or used the product must take reasonable and proportionate steps to verify this (Annex no. 23b UWG). Under Annex no. 23c UWG, it is always considered unfair to submit fake reviews, to commission them or to misrepresent consumer reviews to promote sales. As an example of such manipulation, Recital 49 of the Omnibus Directive cites publishing only positive reviews and deleting negative ones. The Austrian Economic Chambers (WKO) point businesses to these requirements. Rule of thumb: only display genuine reviews and disclose how you check their authenticity.

Review platforms beyond Google

Google dominates, but it isn't everything. A broad presence strengthens trust and citation consistency.

• Industry portals and Herold: Relevant in Austria for regional visibility and local citations.
• Trustpilot: Strong in e-commerce and among service-oriented businesses.
• Facebook and Instagram: Social recommendations and reach.
• NAP consistency: Name, address and phone number must be identical across all platforms. Inconsistent listings weaken local credibility and ranking.

Reviews as a driver of conversions and revenue

Reviews influence position, click-through rate and revenue. A higher star rating in the Local Pack makes it more likely that users choose the listing. The thresholds mentioned above apply directly here: if 68 percent only consider businesses with four stars or more (US data), a business with 3.8 stars loses a large part of its potential customers before they even click. Reviews are a filter at the start of the customer journey, not just at the end.

Structured data and rich snippets

Review markup about your own business does not earn stars in search results. Since September 2019, Google no longer shows review rich results for LocalBusiness and Organization when a business marks up reviews about itself on its own website (self-serving reviews). This also applies to reviews that appear through an embedded third-party widget. For other types such as products, courses, recipes or books, AggregateRating and Review schema markup can still produce stars as a rich snippet. According to Google, the reviews must come directly from users, and you may not copy reviews from other websites. Imported Google or Herold reviews are therefore not suitable for review markup. Markup without visible content violates the guidelines and can lead to manual actions. For local ranking, what counts are the reviews in the Google Business Profile.

Common mistakes in review management

• Ignoring reviews: Not responding signals a lack of customer focus.
• Only reacting to problems: Positive reviews deserve a response too.
• Generic standard responses: They seem automated and reduce credibility.
• Review gating: Asking only satisfied customers for reviews violates Google's guidelines.
• Buying or faking reviews: Legally prohibited and a reputational risk, especially given how widespread the distrust of fake reviews is.
• One-off collection burst: A sudden spike in reviews without continuity looks unnatural. A steady flow is better.
• NAP inconsistency: Business data that differs across platforms weakens local ranking.

Review management processes and tools for SMEs

Sustainable review management is a process, not a project. SMEs do best with a lean, repeatable workflow.

• Monitoring: Track all relevant platforms in one place, for example through notifications in the Google Business Profile or a reputation tool.
• Ownership: A defined person or role writes the responses and handles escalations.
• Response workflow: Templates as a framework, but always adapted to the individual case.
• Active collection: Build QR codes and review links firmly into customer contact so that new reviews keep coming in.
• Automation in moderation: Automate reminders and collection triggers, but keep responses personal.

Metrics and measurement

The following metrics make success measurable.

• Total reviews and reviews per month: Measures growth and velocity.
• Average star rating: Track whether you hold the critical thresholds of four and 4.5 stars.
• Response rate and response time: Share of reviews answered and average time to respond.
• Recency: How many reviews are less than three or six months old.
• Visibility in the Local Pack: Position for relevant local search terms.
• Click and conversion effects: Views, calls and direction requests in the "Performance" section of the Business Profile.

Conclusion and further reading

Reviews are an officially confirmed local ranking signal and a strong conversion lever at the same time. If you want to be visible locally in Austria, you need a continuous process of active collection, fast and personal responses and legally compliant presentation. Number, recency and star rating are the most important levers. If you maintain these signals and comply with the UWG requirements, you gain visibility both on Google and in the increasingly AI-driven local recommendation systems.