Customer product reviews online can increase conversion rates, online traffic and average order values, according to the latest “Social Commerce Report 2007” by e-consultancy and Bazaarvoice.

More than half of online retailers in the UK, U.S. and Europe said their overall conversion rates had grown in the past year due to customer ratings on their Web sites, while only nine percent said they dropped. Over 75 percent said their site traffic had increased due to the reviews, while only five percent said it had dropped. Average order values increased for 42 percent of the responders, and only six percent said they had decreased, according to the report.

The report found that nearly 30 percent of online sellers were using customer ratings and reviews, and over half said they were considering it.

About eight in 10 online sellers said a major benefit of the online reviews was to increase conversions, while 73 percent said improving customer retention and loyalty were a major benefit. Nearly 60 percent thought a major benefit for customer reviews was to improve search engine optimisation.