March 2025

Online reviews are a crucial factor in a company's success. An interesting observation is that many highly-rated businesses often have an average of 4.7 stars on a 1-5 scale. Why is that? The answer lies in a combination of mathematical, psychological, and system-driven factors.

The Natural Distribution of Ratings

Ratings often follow a right-skewed distribution, meaning:

• Most satisfied customers give 5 stars.
• Some customers, who notice minor flaws, give 4 stars.
• Unsatisfied customers give 1-3 stars, but in smaller numbers.

Due to this distribution, the average rating frequently falls between 4.6 and 4.8, with 4.7 as a common midpoint.

The Influence of Rating Behavior

Not all customers rate businesses equally. Studies show that:

• Very satisfied customers are more likely to leave a review when asked.
• Unsatisfied customers often leave reviews only when they have a very bad experience.
• Neutral customers (3-4 stars) are less likely to leave reviews.

Since the majority of ratings are positive, but occasional negative reviews appear, the average typically stabilizes below a perfect 5.0 but remains above 4.5.

Psychological Perception and Credibility

Interestingly, a perfect 5.0-star rating is often perceived as unrealistic. Customers are skeptical of businesses with only perfect reviews, as it may seem manipulated. A rating of 4.7, however, appears more credible, as it reflects both high customer satisfaction and minor areas for improvement.

Conclusion

An average rating of 4.7 stars is rarely a coincidence. It results from natural distribution, psychological effects, and how reviews are collected and managed. Companies with this rating are usually highly regarded but also perceived as realistic—a perfect balance between trustworthiness and credibility.

Would you like to improve your company's review management? Trustify helps you collect authentic reviews and strengthen your online reputation!