The good, the bad, and the vital. The power of online reviews is undeniable. So how can e-commerce and, more generally, businesses stay on top of the feedback game?
The burden of choice
Choice. It’s a beautiful thing. Yet have you ever gone online to find an electrician, carpet installer, or dog walker and been overwhelmed by the number of options? Have you ever found yourself scanning the online review section, looking for those sacred five stars to help make your decision easier? Have you ever seen the word “terrible” pop up and another reviewer’s opinion solidified your own?
The mentality of the consumer pack
We might think of ourselves as autonomous beings capable of making independent decisions. But the truth is that consumers have a herd mentality: We’re very influenced by our peers, especially when faced with choice overload. In a 2021 study, 87% of respondents admitted to reading at least one online review before visiting a local business, while a whopping 94% said a negative review made them avoid interacting with that business altogether. Reviews are a highly valued source of online information, twice as likely to influence customer decision-making as loyalty and 7.4 times more likely than traditional marketing.
Beyond e-commerce
And consumers aren’t just using reviews when shopping online. Research shows that 82% of shoppers are researching products and reading reviews on their cell phones while looking at the same product in-store. Invaluable to customers, essential to businesses, reviews can mean the difference between an open wallet and a closed browser or store door.
We trust in good feedback
So what wisdom should businesses take from these statistics? If glowing reviews of a service or product increase conversions and negative reviews drive away potential customers, then a good review should be a valuable asset. As should positive feedback on social media. Even if that feedback doesn’t drive immediate sales, it can help build a business’s credibility and create lasting trust. The review process itself allows businesses and customers to build a relationship with each other, and that reciprocity will lead to better business in the long run.
Celebrate the good. Respond to the bad.
That means ignoring a positive review or not responding to a negative review is missing a trick. Businesses should share praise and encourage positive interaction on social media, without gloating or exaggerating, while using negative reviews as an opportunity to show they care and care. Remember, reviews are a two-way street. They spark conversation, they generate attention, they give businesses a chance to adapt and improve. All serve not only to engage customers, but ideally to hold on to them.
The Star Factor
So what kind of reviews should businesses be hoping for? And what differentiates a good review from a great one, in terms of impact? There’s no denying that star ratings are important: a simple, visual way for consumers to make a confident, informed purchase. Customers look for a minimum of 3.4 stars before they’ll even consider engaging with a business, so the impact of a one-star review can be damaging, especially if there aren’t many reviews posted in the first place.
Frequency is key
This means that the quantity of reviews is just as important, if not more important, than the star factor. A Stanford University study found that people choose products on Amazon with more reviews than competitors, even when the alternatives have higher average scores. More reviews also mean better SEO, with new feedback helping to drive the content machine and keep companies on the algorithm’s radar.
Consistency and relevance
Consistency is also key for brands to build and maintain a good reputation. If one customer review waxes lyrical about a company and another tells others to avoid it like the plague, it leads to consumer uncertainty. But if a customer is greeted with a chorus of “superb!” and “awesome!”, then they are able to quickly form an opinion and act with confidence. The more recent the reviews are, the more weight they carry. In fact, a recent study showed that 85% of consumers believe that reviews older than three months are no longer relevant. Five stars. Frequent. Consistent. Recent. Together, these four things are your golden ticket when it comes to building a positive online presence.
Staying true
Finally, there is authenticity. Businesses can't just put their positive reviews on display for all to see. They need to make sure they are authentic. According to a survey by TotalRetail, if buyers suspect that a product has fake reviews, 36% would not buy it and 28% would not trust the brand again. Trust is critical to the success of all relationships, especially those between a company and its customers. So, keep it real.
Making it easier….
The Internet has brought everything imaginable to our fingertips: organic grocery delivery, telehealth, a new car delivered to our door. But online reviews play a critical role in this purchasing process and can impact everything from trust and loyalty to sales and SEO. The power of online reviews is undeniable. But 20% of customers, while reading them often, have never written one.
…to spread the love
Research has shown that after having a good experience with a company, consumers are much more likely to leave feedback if they receive an invitation via text or email. Therefore, companies should define their review strategy and stay proactive by adopting the review system, encouraging more customers to provide feedback, and making it easier for them to spread the love.
