Why? Because potential customers use reviews to find out what existing customers think about your business.
For better or worse, customer reviews directly influence whether people buy your products and/or services or not.
Customer reviews are any kind of feedback that your customers leave regarding your products and/or services.
Having more reviews, especially positive ones, attracts new customers which, in turn, helps your business grow.
The data behind this is convincing – one study found that 72% of consumers trust online reviews as much as recommendations from family and friends.
These reviews can be found on various online mediums – your website, your social media channels, or even on third-party review sites.
Such third-party review sites can be found with a quick Google search. Industry leaders like Yelp or Amazon should be the first on your list, then any and all online forums popular with your customers.
In this piece, well dissect ten reasons why customer reviews matter, then leave you with some final thoughts.
Customer reviews have become an indispensable part of the modern shopping experience. With the rise of ecommerce and online shopping, customers rely heavily on reviews when making purchasing decisions. But why exactly are customer reviews so important? In this article, we’ll explore the psychology behind online reviews, statistics that demonstrate their impact, and tips for leveraging customer feedback to improve your business.
The Psychology Behind Customer Reviews
To understand why reviews are so influential, we need to look at the underlying psychology behind them. When making a purchase decision, customers are faced with uncertainty and risk Reviews help reduce this uncertainty by providing social validation from other customers. According to psychologist Robert Cialdini, people are more likely to take action when they see others performing that same action first. Reviews provide proof that other customers have tried the product or service and found it satisfactory.
Seeing the experiences of fellow customers also triggers the herd mentality. If enough people endorse the product new customers will be more inclined to jump on board. Humans have a natural tendency to follow the crowd. Reviews tap into this instinctual desire to fit in with the herd.
Positive reviews also utilize the persuasion principle of social proof. They demonstrate that the product or service is accepted and well-liked by others. Negative reviews have the opposite effect, warning customers away due to bad experiences by previous buyers.
Statistics on the Impact of Reviews
Various surveys and studies have quantified the powerful sway reviews have on consumers. According to research by BrightLocal:
- 91% of 18-34 year olds trust online reviews as much as personal recommendations
- 88% of consumers read online reviews for local businesses
- 72% of consumers will only use a business if it has at least 4 stars on Yelp
- Online reviews influence 64% of customers’ purchasing decisions
Clearly, customers place enormous trust in online reviews when making choices. These statistics demonstrate just how vital customer feedback has become for businesses in the digital era.
Reviews Build Trust and Credibility
One of the main reasons reviews are so essential is because they build trust and credibility. Customers are understandably wary of claims made directly by businesses about how great their product is. But when those claims are validated by other customers, they seem more honest and legitimate.
Reviews lend third-party credibility that the company simply can’t manufacture on its own. Seeing what real people think about your business gives potential customers the confidence to become buyers. Reviews are a form of social proof that you deliver on your promises.
Positive feedback also indicates that you value customer satisfaction. Customers want assurance that you’ll rectify any issues that crop up post-purchase. Reviews demonstrating that you respond to feedback and fix problems provide that sense of accountability.
Reviews Improve Rankings and Drive Traffic
Customer reviews don’t just influence individual purchase decisions. They also have an impact on your overall online visibility and authority. Review volume and scores are key ranking factors for Google and other search engines. The more positive reviews you accumulate, the higher you’ll rank in results pages.
In fact, Moz found that websites with user-generated content like reviews enjoy a 95% increase in organic search traffic. So quality reviews will directly drive more visitors to your site or listings.
Review platforms themselves also attract significant user traffic. Your Facebook and Yelp pages receive thousands of visitors per month. Positive reviews enhance your reputation on these high-traffic sites, drawing more organic traffic.
User-generated content is perceived as more honest and compelling. Google values the credibility of reviews, so higher ratings and review volume leads to better ranking.
Reviews Provide Customer Feedback
While the trust and traffic benefits of reviews are self-evident, their value as a feedback tool is often overlooked. Customers provide a wealth of insights in their reviews that you can utilize to improve weak points and build on strengths.
Monitoring reviews allows you to identify recurring complaints that you can address. If multiple customers cite issues with shipping delays, you can take steps to improve fulfillment times. Negative reviews point out areas for improvement, while positive reviews indicate strengths to double down on.
Reviews also give you insights into your customers’ preferences and needs. You gain first-hand data on what your audience likes and values most about your product. Their feedback provides ideas for refining your offering and crafting better marketing messages.
Actively encouraging reviews ensures you have a steady source of customer perspectives to consult. Regularly monitoring and acting on review feedback is crucial for staying competitive.
How To Generate More Positive Reviews
Given the many benefits of customer reviews, your goal should be to proactively generate more positive reviews. Here are some proven tips for getting more high-quality feedback:
Make it easy for customers to leave reviews. Add review buttons or links to your email receipts, website, and other touchpoints. Simplify the process as much as possible.
Personally request reviews from happy customers. Identify your most satisfied customers and reach out individually asking them to leave a review. A personal appeal is more effective than a generic blast.
Incentivize reviews with discounts or giveaways. Consider offering a coupon code or free gift for customers who leave quality reviews. Just ensure incentives aren’t contingent on getting a 5-star rating.
Respond professionally to negative reviews. Don’t get defensive or argue with dissatisfied customers. Take the high road and offer to make it right. This builds goodwill with the reviewer and other readers.
Analyze reviews frequently. Stay on top of incoming reviews and mine them for feedback to act upon. Identify common complaints you can address as well as strengths to promote.
Encourage reviews on multiple sites. Expand beyond just Yelp or Google to build a stronger consensus across various platforms and directories.
Promote great reviews. Spotlight selected rave reviews on social media or your website. Ask happy customers if you can use their testimonial in your marketing.
Proactively managing your review strategy takes effort but pays huge dividends. The more positive feedback you accumulate, the more new customers will trust you and flock to your brand. Reviews have become the lifeblood of ecommerce so make cultivating them an ongoing priority.
Customer reviews have evolved into one of the most influential forces shaping online shopping behavior today. By tapping into the psychological drivers like social proof and the herd mentality, reviews help consumers make purchase decisions and build trust.
Statistics confirm the substantial sway reviews have over buyers. From driving higher rankings to providing customer feedback, reviews confer a variety of benefits for businesses as well. Successfully encouraging and managing reviews ensures your brand continues to earn customer trust in the digital world.
Increasing Business Visibility
Having more reviews in the public sphere inherently makes you more visible. It also makes it easier for potential customers to find you.
Even a few negative reviews sprinkled in amongst positive reviews is better than having no reviews on your Google business page.
This is because more reviews makes it more likely that youll appear high up in search engine results page (more on that to come).
In general having more content online leads to more traffic heading to your website. Reviews act as that content, regardless of whether they are positive or negative. Businesses that have more reviews attract more attention, rank better, and convert more customers.
Informing Product Roadmap
When building out your product roadmap you want to make it as customer-centric as possible.
This means building a customer journey based on insight youve obtained an effective Voice of Customer listening campaign.
If your products are developed with your customers wants and needs in mind, they are more likely to be useful to your customer.
In turn, customers will then be more likely to repurchase and recommend your products and services to their network.
Feedback found in customer reviews can also help you change course by making tweaks to any product features that arent working for your customer base.
There is no better way to understand your customers needs than by listening to their feedback, and extracting their sentiment – sentiment which can often be found within customer review.
By reading and responding to reviews you can then apply the insights you collect towards creating a better customer experience.
How important are customer reviews?
Why are reviews important to a business?
Reviews not only have the power to influence consumer decisions but can strengthen a company’s credibility. Reviews have the power to gain customer trust, and they encourage people to interact with the company. Customer interaction ultimately leads to improved profits for businesses.
How do customer reviews affect your business?
Customer reviews can affect your company’s reputation and the public perception of your products or services, business practices or customer service. Having many positive reviews can improve your company’s social credibility and leave positive impressions on potential customers.
Why is a customer review important?
A customer review honestly reflects one’s experience with your firm. Customer evaluations are a great resource for businesses, with the ability to enhance sales and expand your impact.
Why should you ask customers for reviews?
Everything you do – from the first interaction with the customer to the post-purchase experience – shapes shoppers’ opinions about your brand. Take advantage of the right tools to ask your customers for reviews, and use these reviews as your social proof to build trust with your customers and feedback to improve your business.
