Why Customer Review is Important For a Business

Understanding Why Customer Review is necessary for your brand? Here are 8 reasons...Why User Reviews are important for a business today!

 

Everyone looks for a review and you do too! We directly or indirectly depend on people’s opinions about a product or a service. That’s why an existing brand or product sells more than a new one.

 

Let’s discuss how reviews matter?

 

We often ask our friends or relatives to suggest products to us before we make any move. If your friend buys a new mobile phone, I’m sure you’re going to ask him about the features, price, and surely you will try it hands-on, the same goes with any other thing, be it clothes, motorcycles, cars or possibly every other stuff that you can think of. Sometimes we like to try things before buying, and some other times we buy stuff online. Millennials have stepped forward and are buying almost everything online, from their smartphones, laptops, clothes, and every other thing that can be sold online. Flipkart, Amazon, and Snapdeal are household names now in urban areas of our country and even the online market is penetrating rural India.

 

The growing number of smartphone users has also helped the cause. According to techARC, a market research firm- India had 502.2 million smartphone users in December 2019, so around 77% of Indians are using mobile internet. People around the world are buying things online and also India is of the same race. According to research conducted by BCG, there are more than 90 million Indians who shop online that is a significant growth because in the year 2013 only 11.2 million Indians shopped on various e-shopping platforms.

  

However, before deciding to buy online several questions come into our mind e.g.- is the product genuine? What if I get a fake product instead? What are the return policies? And we think of every other fraud that has happened to people who have bought things online?

 

One famous incident that I can remember are people getting soaps instead of smartphones in the delivery packages? Though the online platforms have taken some steps to avoid these kinds of fraudulent activities- by ensuring quality packaging, return options, and many other logistical updates which ensure the product reaches the customers as packed.

 

After all these, people are still not sure about the products so they read online user reviews. So, are the reviews put up by customers or they are just put up by fake users? And do they matter? We have come across situations where the reviews are superb but the products are otherwise.

 

However, some reviews are given by genuine buyers and really help a potential customer to make a purchase decision. The e-commerce platforms have become more transparent when it comes to reviews and other policies hence have managed to garner trust in the hearts of customers.

 

 A lot of brands are going to the virtual launch of their new products and it's trending because it not only saves money but also increases the reach of the brand. Millions of users can watch it on YouTube live or Facebook live stream. Some surveys tell us that people do read user reviews before making a purchase decision.

 

According to research by Spiegel, around 95% of people read reviews before buying a product or service but the elephant in the room is, do they really matter? Do reviews increase sales or vice versa? Why do organizations need to pay attention to what’s being said about them online?

 

Hear the role of an Advertising Agency comes, who guides a brand through a result-driven marketing strategy. This is why nowadays the brands are hiring the best Digital Marketing Companies to promote a product or a service online.

 

Here are 8 reasons why Do user reviews matter?

 

1. Customer Trusts on Reviews:

 

According to research made by the marketing company Bright Local (United Kingdom), 91% of customers between the age of 18-34 trust online reviews as like as a personal recommendation.

 

When you are buying a gadget online, there’s a lot of chance or should I say you need to read and watch online reviews of the product. However, the reviews sometimes can be misleading hence the e-commerce platforms must not indulge in such incidents which eventually leads to tremendous loss for the brand in the long run.

 

Indian market is unorganized when you look at the types of customers that exist. Some trust online reviews blindly while others like to experience the hands-on before making a purchase decision. The growth in numbers of shoppers and internet literacy has helped brands to widen their reach and people are reading reviews more than they used to do before.

 

Fake reviews and ratings are not uncommon in India. According to a survey conducted by Local Circles 2017, shows us that around 50% of customers don’t trust product reviews. However, the e-commerce platforms are now paying more attention than fake reviews are not listed by collaborating with specialized advertising partners.

 

In recent years, customers are reading more reviews than ever and certainly, a lot of them make their purchase decisions based on the reviews and also contributing their honest reviews online.

 

The biggest advertisement in India a brand can do is word-of-mouth marketing. However, since that is changing though sluggishly but if a person reads a review and buys a product and the product meets his/her expectation it eventually leads to word-of-mouth marketing. However, with changing times customers are buying more stuff online and steady growth in online sales observed after the covid-19 pandemic.

 

It shows that people are developing trust on e-commerce platforms day by day and review plays an outstanding role in business success.

 

2. Impact of reviews on Sale:

 

When you read an impressive review or watch a fabulous review of a gadget on YouTube before buying, it usually increases your trust. If there’s a five-star rated product on a website, you’re likely to notice it and make your decision. According to American direct marketing company Spiegel, 95% of people read reviews before making a purchase decision.

 

Not only reviews but the number of reviews also plays a vital role when it comes to sales. According to the Association for Psychological Science, when two products have the same ratings a product that has a greater number of reviews is likely to be purchased.

 

We often see reviews before buying. We have started to check the rating before visiting a restaurant, or a hotel, even before riding a cab or placing a food order.

 

The negative reviews can hurt the business, hence 21st-century entrepreneurs are becoming more customer-centric. In our country, we are often called to review their service, and many times we get a mail stating that to provide our feedback and reviews regarding the product or service. So, when a product has a higher rating and good reviews that are likely to succeed in the market. Brands adopt different marketing techniques to promote their brand in the market.

 

Many smartphone brands come up with new ideas to reach their target audience e.g., Asus collaborating with gaming influencers to launch their gaming mobile phone Asus ROG 2. The influencers review the phone before it reaches the market and builds a positive image of the product which helps the brand to increase its sales. It’s the reason why a serious business owner recruits a good marketing agency. The agency’s role is to guide the brand throughout the pre-sales, post-sales life cycle and ensure the best reviews and highest sales.

 

 3.     Negative Reviews can make a Huge Loss

 

Now that most of us do visit reviews pages and read them. The next question that comes into our mind is what if there are more negative reviews than positive reviews for a brand or a product? Do we believe and decide to go against or go against the grain? A lot of times we tend to take negative reviews seriously and the negative word of mouth reaches faster than a wildfire.

 

However, there have been cases of rival companies putting up negative reviews against each other. So, the brand as well the customer needs to be vigilant about it.

 

No doubt that if a brand gets only great reviews, it can also lead to suspicion in the minds of the customers and the same can happen if there are only negative reviews. According to Power of Reviews, over 82% of customers actively search for negative reviews on a product before making a purchase decision.

 

This is a telling figure for any brand. Negative reviews if addressed appropriately can also bring business through word of mouth. According to the research made by Spiegel, the chances of purchase peaks at a star rating of 4.0 to 4.7, then declines as the rating gets closer to 5.0.

 

4.     Replying to Customer’s Review can help you generate More Revenue:

 

When you are reading a negative review and observe that the business owner hasn’t replied to the negative review. I’m sure you will be hesitant to go for that product or service. On the other hand, if a business owner replies to a negative review and promises to solve the customer's issue by getting in touch. It’s most likely to garner trust in the mind of the other potential customers.

 

According to the American marketing research firm Womply, customers spend around 49% more money at businesses that respond to their customer’s reviews. Negative reviews not only generate more revenue but also help people to communicate their problems more clearly and may help the business to work on their product or service to avoid such future incidents.

 

We often read what businesses reply to customer’s negative reviews and why is that so? One of the reasons could be that we try to see whether the business takes care of the customer after the sales process. So next time before you make a purchase decision go through reviews and see to it that the organization replies to most of its customers. If not, there is a high chance that the potential customers may decide not to purchase from that particular organization.

 

 5.     Reviews make the Brand more Visible:

 

When a potential customer is looking for a smartphone, the person may directly use the default search engines like Google, Yahoo, or Bing. Every search engine uses a unique set of algorithms for indexing and surfacing content but one thing in common; all of them use original and fresh content.

 

The user reviews can certainly contribute to increasing brand availability on these websites by feeding content machines with the required content.

 

When businesses are visible on the first page of these websites automatically, they get more visibility compared to other brands.

 

Over some time once a business gets a high exposure and clicks, they are likely to get more queries about their products and services. Eventually, it can bring more revenues if the brand is continuously present and gets reviews that are original and fresh.

 

6. Power of Positive reviews:

 

The fact of the matter is up to a certain extent many of us do read reviews and if it’s positive we are likely to purchase the product. Some potential customers may get suspicious as discussed above, However, with improving, services and transparency, brands are now trying to improve their products and services.

 

Customers also want to engage with brands if they are satisfied with the product offering. A customer may take some time to write reviews and provide ratings but once done, it can be used by the brand to promote their product. Brands often use customer testimonials to show their promising products.

 

There's a famous adage in the marketing field that is “when you are out of sight you are out of mind”. Positive reviews and positive word of mouth help the brand to stay in the mind eventually lead to higher sales in a long run.

 

7.     Review Provides feedback at no Extra Cost:

 

We are often swamped with feedback calls and messages from various brands. The organizations spent extra money on getting feedback. The mails and calls are often ignored by customers. Though some customers are likely to respond to such calls and messages, in Today’s digital era, businesses can get feedback at no extra cost.

 

A review page encourages customers to express their views - positive or negative at free of cost. Their testimonials can help the brands to improve the product or service if required. It also helps the businesses to know where they stand in the market.

 

The importance of reviews is never-ending. If reviews turn out to be positive it can help the brand to reach more people as it improves the SEO of the website. Great reviews also act as personal recommendations for people and they certainly can contribute to higher sales and revenue.

 

On the other hand, negative reviews provide scope for improvement and it also creates trust in the minds of the potential as well as existing customers.

 

Only positive or negative reviews may raise suspicion in the minds of the potential and existing buyers. The brand needs to pay attention to what’s being said about them on digital platforms. The organization must try to answer each review properly. 

 

 8.     Online reviews are More Important to appear in Local Search:

 

Whenever we travel to a new city we Search for nearby ATMs or nearby petrol pumps or sometimes even a grocery store and mostly we buy from there. So, if your business is not listed on Google or Facebook, you may lose many customers in just a few hours, consider this for a year and think how much revenue that many customers could have generated.

 

In 2018, the ReviewTrackers survey presented some fascinating data. According to the survey, Google is the most preferred review site and around 63.6% of consumers said that they are likely to search online reviews of a business before visiting the actual business place. such visits usually convert into sales, with at least half of the local searches eventually leading to a purchase.

 

Since Google has more than half of the market share, it becomes a necessity for every business house to be available on Google search list and that too with decent reviews and preferably more than 4-star ratings to appear higher or top in the search list. The customers usually check negative reviews if any and observe how the business account has responded to them. So, appearing at the top doesn’t guarantee you a business however, there are other factors such as photos, customer engagement, and how negative reviews are answered play a crucial role in bringing potential customers thus increasing revenue.

 

Presence in digital space such as Facebook or Google not only helps the business but also the potential customer. The businesses can provide their business hours and contact details which can be helpful for the customer’s access. Sometimes a person may not be able to reach business on the telephone. The digital space also provides an option for potential customers to ask questions to other existing customers or connect with the business online and eventually the query translates into sales, though not necessarily some may find better alternatives.

 

The competition is cut-throat and every business is trying to come up with exciting products to lure more customers and aim for higher profits however small business units must take advantage of online platforms and earn higher profits.

 

A small storeowner who hasn’t listed his/her business on Google or Facebook loses a customer. An updated Facebook/ Instagram page of business can provide higher returns in the long run. If a business is listed on Google and has more positive reviews it appears on the top which can contribute to increased sales revenue. 

 

The Conclusion goes here…

 

User reviews in today’s era are essential for a business to survive in the long run. The businesses must stay focused on getting reviews and most importantly replying to the customer to develop trust among them are essentially important. So, ignoring digital platforms can lead to the loss of many potential customers.

 

Since every business is going online there's a need for them to increase their presence online and reach a wide target audience which eventually brings more revenue. The business houses need to keep researching on latest social media development and they may come up with trending topics and associating their brands with the latest story that can certainly, help the brand to create a unique image in the minds of both existing and potential customers.

 

If you are dealing with a business and you need any kind of help in acquiring digital presence, digital marketing strategy, or social media promotion, please feel free to contact us. We will help you out. Click here to get in touch.

 

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