The viral nature of the Internet allows social media and other user generated content, such as Ratings and Reviews, to influence millions of people. Why do Ratings and Reviews matter for consumers?
- Increased Consumer Confidence
Did you know that 90% of consumers say buying decisions are influenced by online reviews?1 Ratings and Reviews undoubtedly provide- easily accessible and digestible information to consumers and help them make informed and objective decisions while on the path to purchase.
- Enhanced Consumer Loyalty
Ratings and Reviews give consumers an instantaneous and meaningful platform to share their feedback about products and companies across the world. PowerReviews CEO, Matt Moog states that once “consumers have left a little piece of themselves, they are proud of it.” Consumers like to feel that they are being heard and are special, for example when they receive emails from TripAdvisor telling them that they are in the top 15% or that thousands of people have read their reviews. By giving consumers recognition and an opportunity to voice their opinions, they ultimately pay it forward. Engagement based loyalty creates an authentic relationship for consumers.
But what are the benefits for businesses?
For starters, Ratings and Reviews increase sales and drive traffic. Other advantages include:
- Brand Credibility
Each review establishes your brand’s credibility and increases consumer confidence during their purchasing path, in turn increasing your conversion rates. More than 86% of consumers say reviews are an essential resource when making purchase decisions2. Clearly, reviews are an essential part of the purchase process. If the brand or retailer isn’t providing them, the consumer will seek them out from a third party like Amazon.
- Turning Negative Reviews Into Positive Consumer Experiences
Negative reviews show consumers that reviews are authentic and quickly resolve issues while creating goodwill. According to the Forbes article, The Upside of Bad Online Reviews, “Barely 25% of online shoppers report that they are unlikely to purchase a product after reading negative reviews, and most take those reviews with a grain of salt. Truth is, negative reviews probably won’t hurt your business – and they ultimately may help boost consumer conversion rates.” Leverage a product review analytics and reporting tool to find trends in negative sentiments and create better products.
- Keeping Your Consumers Close
Consumers typically need several reviews to make purchases comfortably. 66% of consumers read 10 reviews or fewer before purchasing a product. 22% read between 11 and 25 reviews, and 6% read more than 25 reviews2 . Ratings and Reviews power a virtuous cycle where more reviews drive more transactions which in turn drive more reviews.
The modern day marketer can conclude that ratings and reviews have become one of the most powerful ways for retailers and brands to engage consumers at the point of purchase. For businesses and consumers, a star can make all the difference!
1 Dimensional Research
2 Walker Sands PowerReviews Study