Have you ever wished to try a new restaurant or buy a new gadget? What’s the first thing you are most likely to do? I’d bet it is to Google it for customer reviews. You’ll be looking for raw comments; honest feedback that will inform your decision. For companies, these reviews mean a lot, especially when leveraging this information.
So, why are customer reviews so critical to companies? We’ll try to paint this picture for you in this article.
Increase credibility
Credibility is all about trust. How much do consumers trust the company’s brand? Building credibility comes by listening to customer reviews and complaints and provide instant solutions to them.
New companies struggle to break even and be the ‘go-to’ source for particular products or services. The fastest way they can start making sales would be by encouraging word-of-mouth sales. In this technology age, this could be taken further by posting on social media.
Companies need customer reviews to build their reputation. For instance, a bakery with more positive reviews than negative is more credible in the baking industry than those with less exemplary reviews. A brand that has consistent positive reviews is more dependable.
The use of customer reviews websites like Reviews-On, Tripadvisor or Yelp is absolutely necessary and advisable.
Build social proof
It is much easier to purchase a product that has been recommended to you by someone you know. It is equally easier to ignore a product that has scathing customer reviews. According to HubSpot, approximately 49% of customers believe online testimonials at the same level as recommendations from friends and family.
This is referred to as social proof, a company’s footprint in the social space. Companies should take advantage of the impact of social proof in decision-making.
Celebrity endorsements get their spark from social proof. Seeing a celebrity visit a specific restaurant or buy a particular outfit will likely determine if you’ll use the same product. Social proof provides companies with numerous benefits. It is a stamp of approval or a vote of confidence.
Another benefit of sufficient social proof is promoting a feeling of ‘Fear of Missing out (FOMO)’ in prospective customers. Since everyone seems to be using the company’s product, others will not want to be left out.
Improve customer service and build customer loyalty.
In the service sector, user testimonials are vital in securing the bag. Consumer feedback can be used as insight. Data analysts require such information to advise company heads on the best way forward.
Focusing on consumer needs and queries helps ensure these problems do not arise again. Consumers will love your service and will keep coming back. By building consumer loyalty, companies are assured that a great business relationship has been formed and will thrive, even in sales.
Increase sales
One of the best benefits of customer reviews is that they significantly improve sales. First, the company has to ensure that it provides only top-notch services and high-quality products. Consumers will then flood websites and stores to make purchases.
Companies with customer reviews perform better in the market than those which don’t. Having positive customer testimonials have it even better. Most customers look at the reviews even before the price because low star ratings but great prices are not encouraging in the least.
Track performance
Companies can take advantage of customer reviews to track their performance in the industry within which they are, compared to their competitors. Consistent positive reviews mean that the company should continue doing what they are, or at least continually improve.
However, such reviews do not accurately represent the business’ performance. At least, not always. Customer satisfaction is essential and should take pre-eminence in any digital marketing undertaking, but it may be seasonal and biased.
When a company effectively manages its customer feedback, it could use this information to make forecasts about the future of the business. Consumer satisfaction effectively converts brand credibility into consumer loyalty.
Companies have more to lose without reviews than they are with them. Negative reviews should not be scary; they help build the company’s credibility. Some consumers will not trust ‘perfect’ ratings. A negative comment here and there makes them try out the product or service. The success of every business is greatly determined by the customers’ reviews and the value the company gives to the community.
