Two companies have five-star ratings. Both seem to have happy customers. So how do you decide which one deserves your business?
The answer depends on what's behind those stars.
One company might have five reviews, all written several years ago. Another might have hundreds of reviews across several websites, including recent feedback from customers who hired them last month.
Both can display the same five-star average, but they don't provide the same amount of information.
Before hiring a contractor, auto repair shop or other local business, it's worth taking a closer look at how that rating was earned.
Start With the Number of Reviews
A five-star rating based on three customer reviews is very different from one based on 300.
That doesn't mean a company with fewer reviews provides worse service. Newer businesses and smaller companies may have excellent customer relationships without having collected much online feedback.
The difference is how much information you have to work with.
With only a handful of reviews, one customer's experience can have a large effect on the average. With hundreds of reviews, you have more opportunities to identify common experiences, recurring complaints and changes in service quality.
Consider a roofing contractor with six five-star reviews. Those customers may have had excellent experiences, but the rating tells you relatively little about how the company handles different types of projects or unexpected problems.
A contractor with 200 reviews gives you more material to examine. You can look for feedback about scheduling, workmanship, communication and warranty service.
Review volume provides context. It doesn't guarantee quality.
Look at More Than One Review Website
Most consumers have a favorite place to check reviews. Google and Yelp are common starting points, but neither necessarily provides every available customer rating.
A local contractor might have reviews on Google, Yelp, Angi and an industry-specific consumer organization.
Each platform may attract a different group of customers. Some people leave reviews after small repairs. Others provide detailed feedback about major projects. The number of reviews, average score and available details may differ between websites.
If you check only one source, you may miss information that changes your impression.
This is one reason ONE AllRatings combines customer ratings from multiple sources. Its Rating Process also considers the recency of reviews and the reliability of the sources.
The goal is to give consumers a broader picture than they would get from looking at one website alone.
Find Out When the Reviews Were Written
A company can change quite a bit in five years.
An experienced manager might leave. The business could hire new employees, expand into unfamiliar services or come under new ownership.
Sometimes those changes improve customer service. Sometimes they create problems.
Imagine a plumbing company that earned excellent reviews from 2018 through 2021. Its overall average might still look impressive today, even if customers have reported missed appointments and billing problems during the past several months.
The reverse can happen, too. A business with a poor rating history might have corrected earlier problems and earned consistently better feedback under new management.
Look for changes in the kinds of comments customers leave over time.
Pay attention to whether recent reviews support the company's older reputation.
Read What Customers Actually Say
Star ratings make it easy to compare businesses quickly. Written reviews can tell you what those ratings mean.
When reading customer feedback, look for details that relate to the service you need.
If you're hiring a roofer, comments about the company's punctuality are helpful. Feedback about roof leaks after installation or how the contractor handled a warranty claim may be even more important.
A few useful things to look for include:
- Whether customers describe the work that was performed.
- How the company handled problems or unexpected costs.
- Whether communication was clear throughout the job.
- Whether customers would hire the company again.
- Whether similar complaints appear repeatedly.
Don't assume every negative review proves a company did something wrong. Misunderstandings happen, and some complaints lack enough information to judge fairly.
What matters is the overall pattern and how the business responds when things go wrong.
Two Real Companies With Five-Star Ratings
A useful example comes from two roofing company reports on ONE AllRatings.
All Bay Roofing in Vallejo, California displays a five-star rating based on six reviews from two sources. Its published TOTAL SCORE is 80 out of 100.
J.O Roofing Inc. in San Francisco also displays five stars. Its report shows 48 reviews from three sources and a TOTAL SCORE of 100.
Both have five-star customer ratings in the reviewed reports, but their overall OAR scores differ.
Why?
OAR considers more than customer reviews. Its TOTAL SCORE also includes verified Key Docs information and company report disclosures.
The reports show different levels of verified documentation and company information. That helps explain the difference in TOTAL SCORE.
Importantly, a company with 0% in the Key Docs field has not necessarily failed to obtain a required license or insurance policy. It means the applicable documentation has not been verified in that part of the OAR report.
The figures above reflect the reports reviewed for this article and may change as new information is added.
Don't Forget the Company's Credentials
Reviews tell you how customers felt about a business. They don't necessarily tell you whether the company has the qualifications required for your project.
Before hiring a contractor, check the appropriate state or local licensing authority. Confirm insurance coverage and find out whether the company has experience with the work you need.
These questions are especially important for expensive home improvements, electrical work, plumbing and roofing.
A five-star rating can't replace those checks.
A Better Way to Use Five-Star Ratings
You don't need to spend hours investigating every company. Start with a short list and compare the details that matter most.
Look at the number of reviews, where they came from, how recent they are and whether customers report similar experiences.
Then check the company's credentials and ask questions about the specific work you're considering.
Five stars can help you find promising businesses. The information behind those stars can help you decide which ones deserve a closer look.
ONE AllRatings brings much of that information together in individual company reports. You can find rated local companies by region and compare more than the average star rating before making your decision.