How important are Customer Reviews for Ecommerce?
Satisfaction is a Rating and Loyalty is a Brand – Shep Hyken
Customer reviews are of very crucial for ecommerce business as it directly affects the sales and growth of the business. For the brick-n-mortar stores, people visit the stores in person and give their feedback face to face but in virtual space, as user cannot give in-person feedback about the website functioning or the products and any other services, businesses needs to analyse the reviews critically in order to improve in their services and products.
There are no doubts that customer reviews have the potential of increasing the conversions as they solve any doubts a user might be having before finalising the purchase. It will boost their decision making process.
According to a survey results on Searchengineland:
- 88% have read reviews to determine the quality of local business
- 39% read reviews on a regular basis
- 72% says that positive reviews makes them trust a local business
- 88% say that they trust online reviews as much as they trust personal recommendations.
As on invespcro.com,
- Customers are like to spend 31% more on a business with excellent reviews or highest ratings
- 86% of people will hesitate to buy from business which has negative reviews or low ratings.
According to Reevoo, reviews produce an 18% uplift in sales.
From the above stats, we conclude that customer reviews are very important for the businesses and as well as prospective customers, but even more critical part is, how well the businesses deal and manage with both positive and negative reviews.
In today’s virtual world, all kinds of reviews are poured from multiple channels like the social media sites such Facebook and Twitter and even from the websites’ customer review and feedback forms. On the basis of these reviews, businesses get an excellent chance to improve on the concerned areas and not only that it also gives a chance to get connected and engage with the prospective clients by solving methodically their doubts and queries regarding products or services.
Positive reviews, ofcourse gives an advantageous edge, as all the viewers will read those and leave a positive impact about your business on their mind. But the challenge comes when dealing with negative feedbacks.
Here, the businesses needs to understand very well that negative feedbacks actually helps them to improve on their product or services and even start a conversation with the prospects which can turn out to be positive. Thus it may turn into a blessing in disguise.
In fact, if all the customer reviews are positive, the prospects tends to trust the site less and think that the negative reviews are filtered. With some negative reviews users can find your site real and not a scam or fraud. It actually increases your credibility. Another advantage is by reading the negative reviews, potential clients are aware of what the worst scenario can be and they are mentally prepared for it and then does the purchase.
Some may doubt that in customer reviews, a competitor may leave negative feedbacks and spoil the reputation. There is not much to fear on that, as who can write the reviews can be controlled on your end, facilitating only the customers to leave the feedbacks and not the competitors.
In the age of social media and more and more interactive business website, customer service is considered to #1 factor affecting the sales & revenue. Ecommerce businesses needs to “listen” to the customer feedbacks and review, improve on the concerned areas, actively and positively engage in the communications which starts with reviews and try to increase the conversion.