In today’s mobile and ‘want it now’ retail environment, busy shoppers make the decision to purchase based on a range of factors, and online reviews are becoming increasingly important. In this article, Feefo’s Andrew Mabbutt explores their role in the buying process, and how they can help – and hinder – the buying process …
Despite retailers and consumers placing a lot of focus on price, there are far more reasons that influence the consumer’s decision to part with their money.
Although the price is undoubtedly a significant factor, a very cheap deal is often considered too good to be true, or assumed to be a con or poor quality, and consumers search for the hidden catch.
Providing slashed prices, minimal margins and exceptional offers alone is not enough to boost business.
Instead, trust is one of the most influential deciding factors. As the investment required by the consumer grows, in terms of initial payment outlay or commitment to ongoing terms, so the need for trust increases.
Common questions include, who is this brand that they will enter into a relationship with? Do they have prior experience? If so, how was it? If not, from whose experience can they learn?
These questions are important, and shoppers use them to determine whether or not they trust the company, and if they will proceed with their purchase.
There are a number of cues that can indicate the quality of a supplier and product to the consumer, from the ambiance in store and the uniform of the staff to the brand’s following on social media or layout of a website.
One growing factor is a company’s online reviews, which provide people with one of the most efficient and direct ways to convey the experience of shopping with a brand. In fact, 75% of consumers say good reviews would persuade them to buy a product. Reviews that are displayed clearly on a company’s website and across social channels are most effective, and provide reassurance and insight that a brand is worth trusting with a purchase, that products are of the quality expected and the service will deliver.
Reviews are a great tool for consumers, particularly for those people trying out a new supplier or product, to give them a real idea of what to expect. The biggest selling factor for reviews, from the perspective of the consumer, is that they are outside the realm of the sales brochure – they are communicated from one shopper to another to tell the unadulterated and unmotivated truth.
This is what a consumer is looking for, providing them with the ammunition they need to enter into a purchase with their eyes open, fully aware of the kind of experience they can expect to have.
But are reviews always a godsend for the purchase process? Should business owners be wary about reviews? After all, they can’t control what is said about their brand, and quite often people are more motivated to vent their experiences when they’ve been bad.
What if there are negative comments, or ones which the business feels are unfair? Will these put off new customers? Could they prevent sales that would otherwise have been successful, and stop customers that could have become perfectly happy from placing their orders?
The truth is, while a bad review never makes for a pleasant read, these can actually work in the business’ favour – in some cases, even more than a positive one. The average consumer doesn’t expect to see a five-star rating and spotless record. After all, nobody is perfect. They expect mixed reviews, but most importantly they measure a brand on how they handle customer feedback.
“The average consumer doesn’t expect to see a five-star rating and spotless record. They expect mixed reviews, but most importantly they measure a brand on how they handle customer feedback”
Interestingly, 95% of unhappy customers will return if an issue is resolved quickly and efficiently, according to the National Association of Retail Marketing Services. A respectful, appreciative and sensible response speaks volumes about the company behind it, and the way that they view and treat their customers – it’s easy to say thank you for a glowing review, less so for one that is more challenging.
If a company can show that it listens to and values these insights, and acts upon them where necessary, they will earn a myriad of Brownie points when it comes to new business.
Another cause for concern felt by both businesses and consumers is the legitimacy of reviews. Review abuse can come in many forms, from competitors, business owners themselves, or even disgruntled ex-employees, purposely leaving either very positive or slanderous reviews in an effort to alter the perception of the company. This is a big problem, and skews people’s trust toward a company, which may suffer as a result.
Many companies are beginning to take a stand on fake reviews, and it should always be considered when selecting a reviews platform. The only way to turn around this hindrance is to eradicate the risk altogether by ensuring that review requests are only sent to people that have actually made a purchase with the company. That way a business can be confident that customers will not be hindered by false reviews, and all those undertaken will come from genuine customers with real experiences to share.
To conclude, reviews are clearly an imperative part of the decisionmaking process and should not be underestimated. Their level of influence is huge, and, when leveraged correctly and transparently, can be one of the most effective tools a company can deploy to boost business and build brand reputation.
Andrew Mabbutt is CEO at reviews and customer analytics company Feefo.
