Online reviews are one of the most important ways for businesses to stand out in today’s crowded marketplace. They can make or break a company in terms of its reputation, word-of-mouth, and sales.
This article explores the value of online reviews, how customers use them to make buying decisions, how your business can build your online review strategy, and things to analyze from reviews gathered.
Online Review Definition
An online review is a critical assessment of a company or product written by someone who has used or purchased that product. Reviews are typically posted on a website by the reviewer, although they can also be written in a blog entry, on social media, or in a discussion forum. Online reviews are one of the most important ways for businesses to stand out in today’s crowded marketplace. They can make or break a company in terms of its reputation, word-of-mouth, and sales. Studies have found that 90% of consumers read product reviews before making a buying decision.
Why Are Reviews Vital In Todays Market?
Online reviews have become increasingly important in recent years, as online shopping continues to rise. According to statistics, online consumer spending is expected to grow by 11% year-over-year, reaching $351 billion by 2020.
As online shopping becomes more and more commonplace, customers have turned to online review sites to inform their buying decisions. When researching products online, approximately 90% of consumers consult online reviews before making a purchase.
Customers are increasingly relying on reviews to inform their purchasing decisions. The good news is that reviews are more accessible than ever before, so businesses have the opportunity to capitalize on this growing trend.
How Do Customers Use Reviews?
There are a few different ways that customers use reviews.
Information
The most basic use for reviews is to gather information about the product or service. Customers read reviews to find out what other customers thought of a product or service, including any cons, pros, and general sentiment about the product or service.
Trust
Another way that customers use reviews is to determine the level of trust in a particular business. Customers will often look at a business’s review score to determine how trustworthy the business is.
Comparisons
When shopping for similar products or services, customers will often compare reviews between different companies. For example, if a customer is searching for a lawn care company, they may compare the reviews between different companies to determine which one is best.
Purchase Decision
The most important way that customers use reviews is to make a purchase decision. Customers rely on reviews to make decisions about whether or not to purchase a product or service.
How To Build An Effective Review Strategy?
When a customer has had an exceptional experience, they are likely to leave a positive review. Unfortunately, a significant percentage of customers don’t leave reviews even when they have had a great experience.
Customers often don’t leave reviews because they aren’t aware of the fact that they can, or they don’t know how to go about it. Here’s how you can build an effective review strategy:
Announce
Announce that you would like your customers to leave reviews. You can do this via your email receipts or receipts at the point of sale. You can also include a link to your review page on your website.
Ask
You may want to ask customers for reviews directly or ask for feedback. You can do this in a variety of ways, including on your receipts, in person, and on your website.
Collect
You can collect customer emails and publish their reviews on your website, or collect their emails and ask them to leave their reviews via email.
Act
You can respond to each positive review with a thank you and ask customers to leave you another review if they had an exceptional experience.
What You Can Analyze From Online Reviews?
Consumer Behavior
Consumer behavior can often be somewhat unpredictable. Although customers may trust a business with a high number of positive reviews, they may still choose a different company. This is because customers often rely on other factors, such as price, reputation, and location when making a purchasing decision.
It is important to note that consumers often make their purchasing decisions based on how they feel at the moment. If a customer is in the middle of an online shopping session, they may use reviews to compare different companies, but their decision may be based on emotions at that specific moment.
That being said, reviews can still play a significant role in a customer’s purchasing decision. If you have a high number of positive reviews, it can sway a customer’s emotions and help to make their decision easier.
Consumer Demographics
Although they are always a factor in a customer’s buying decision, demographics are often overlooked in reviews. A business with a high number of positive reviews will still be chosen by a customer based on its demographics.
That being said, if a business has a large number of positive reviews, the demographics of the customers buying from that business are likely to change. If a high-quality product or service is being sold to a wide range of people, it is likely to attract an even wider range of individuals.
Consumer Preferences
Reviews can often sway a customer’s preferences. If a business has a high number of positive reviews, it may sway a customer towards that particular business. However, the other factors that customers consider, such as price and location, often play a larger role.
It is important to remember that each customer is unique, with different preferences and buying habits. Even if a business has a high number of positive reviews, that doesn’t necessarily mean that a certain customer will choose them.
Consumer Trust
Finally, trust is also one of the key reasons that customers use reviews. If a business has a high number of positive reviews, it indicates that a large number of customers are happy with its product or service. Happy customers are more likely to leave positive reviews while unhappy customers are more likely to leave negative reviews.
As a result, businesses with a high number of positive reviews will have a higher overall trust rating. On the other hand, businesses with a low number of positive reviews will have a lower overall trust rating, making them less likely to be chosen by the average consumer.
This is why online reviews are so important for businesses. If your business can build a positive review presence, it will have better chances of attracting new customers.
Conclusion
Online reviews are extremely important, especially in today’s digital world. Customers use reviews to inform their purchasing decisions, and they expect businesses to have reviews and respond to them. If a business doesn’t have reviews or doesn’t respond to them, it will lose out on potential customers.
To maximize the effect of online reviews and translate it to business growth, it is important to take note of the things mentioned above about building an effective online review strategy and analyzing the reviews gathered. The Business owner or assigned staff for online reviews shall be proactive and responsive at the same time to get more customers through online reviews.
Articles You Might Want To Read:
Online Reviews: The Best Marketing Tool For Your Business
How Online Reviews Impact Purchasing Decisions
Why You Should Start Offering Product Reviews and How to Get Them
