There are several reasons why customers read online product reviews. The most obvious reason is to gain trust. A high number of positive reviews from satisfied customers increases the brand’s credibility in the eyes of prospective customers, increasing the chances of a sale. Moreover, positive reviews validate the brand’s expertise in the eyes of potential customers, demonstrating that it has overcome challenges and produced quality products. Therefore, paying attention to positive online reviews when establishing your brand is crucial.
Review quantity is more closely correlated with revenue performance than average ratings.
It’s not clear whether review quantity is directly correlated with revenue performance, but academic studies have shown that reviews directly impact revenue. One such study by Womply found that businesses with average ratings of 3.5-4.5 earned over $72,000 less each year than those with average ratings of four or higher. In addition to influencing revenue, reviews are essential because they help consumers locate a business.
Many consumers value a high review quantity more than an average rating. A business with a high review count earns 54% more revenue than a business with optimal ratings. However, customers don’t trust average ratings much if there are few of them. Thus, a company must work to acquire a consistent stream of new reviews. A higher percentage of negative thoughts is not necessarily alarming; getting a healthy balance of both types of studies is essential to ensure a balanced reputation.
The study’s authors point out that consumers tend to buy from businesses that respond to online reviews. These businesses, for example, may have better service and are therefore perceived as trustworthy by consumers. Unfortunately, however, seventy-five percent of companies don’t respond to reviews. Moreover, those who respond to fewer than 25% of online reviews earn almost twice as much as those who react to less than one-fifth of reviews. And businesses that responded to more than fifty reviews did not do any better than those that responded to fewer than 25% to half.
Negative reviews carry more weight than positive reviews.
While good reviews increase sales, bad ones can actually hurt them. Even worse, the ratio of good reviews to bad ones can make or break a business. In fact, a recent study by BrightLocal found that 89% of consumers read responses to reviews. It may seem counterintuitive, but customers increasingly seek out negative reviews to determine a company’s legitimacy and customer service. Therefore, providing a place where customers can leave negative reviews can be an essential part of the customer experience and show your customers that you care about their feedback.
When it comes to buying online, the impact of negative reviews is more significant than that of positive reviews. This is because, while five-star reviews are often fake, people are more likely to trust negative thoughts based on the first stage of the buying process. This is especially true for those who depend on negative reviews as an alternative to their opinions. However, this effect is not universal – some reviews carry more weight than others.
While some consumers find negative reviews beneficial, the ratio of bad to good reviews is also critical. Those who read more negative reviews are likely to do more research and delve into pre-purchase research. As a result, they stay on websites longer than other visitors, viewing four times as many pages. And only one-fifth of bad reviews cause customers to abandon a site. Therefore, the longer a consumer stays on a site, the greater the chances of converting to purchase.
Negative reviews have become so widespread that 91% of people read them online and trust them as much as personal recommendations. Moreover, 82% of people specifically search for negative reviews online. That means that positive reviews aren’t useless; they should be used with positive reviews for the best results. And if you want to gain a competitive edge over your competitors, you should read and respond to negative reviews.
Millennials are more likely to refer to product reviews than older cohorts.
A recent survey shows millennials are more likely to look at product reviews before purchasing than their older counterparts. In fact, nearly half of US consumers post product reviews online after purchasing home products or consumer electronics. While not all categories are equally popular among millennials, they are more likely to post reviews after buying consumer electronics. Furthermore, among those who post reviews, nearly half of the households are from suburban areas.
Millennials have a different outlook on life than their elders. They grew up with instant messaging platforms and the Internet. While they started with Walkmans, many eventually upgraded to MP3 players and streaming music. They also experienced the rise and fall of MySpace and other social media platforms. As a result, they have become early adopters and champion new technology. However, millennials have been hit hard by the Great Recession. As a result, they have different perspectives on careers, financial decision-making, and other areas.
This generation of buyers also relies on online reviews to make purchasing decisions. While traditional marketing strategies rely on traditional media and print advertising, Millennials are more likely to consult product reviews before purchasing. This makes product reviews a powerful tool for brands and retailers who want to make a difference. In addition, consumers have a high tolerance for reviews and prefer to trust other people’s opinions.
Millennials engage with brands more deeply on social media. Millennials are 2.5 times more likely to “like” a product on social media than older cohorts. Additionally, millennials are more likely to share links to product reviews online than older cohorts. On Twitter, millennials are more likely to follow a brand. This is a significant indicator of their influence over purchasing decisions.
Product descriptions aren’t replacing online reviews.
You can avoid the pitfalls of product descriptions by following a few rules. First, ensure your content speaks to the needs of your target audience. Think about their pain points. What makes their lives hard? What do they need to solve? Think about it this way: homeowners have a problem: they spend a lot of time cleaning and disinfecting. They might purchase a product that solves both issues and smells nice.
Another reason customer reviews aren’t replacing online reviews before buying is because they are more trustworthy than manufacturers’ descriptions. According to a recent study, consumers trust consumer reviews over manufacturer descriptions by 18%. Online video reviews such as those from Reevoo result in an average 18% increase in sales. It’s worth noting that brands often cherry-pick their positive reviews, but user-generated content can make a big difference in how a product appears in a search.
The way you say something is just as important as what you write. Make sure to use emotional language when writing a product description. For example, don’t use all-caps or too many symbols, as these can make the copy look cluttered. Instead, use a tone that reaches the audience and makes them laugh. When you have a product description that evokes emotion, your audience will take notice.
While product descriptions can’t replace online reviews, they can help you rank high on Amazon. A third-party tool like BigCommerce can enable your product to rank well on Amazon. This allows you to sell more, which improves your search engine rankings. Besides, it gives your customers a personalized experience. The description makes it more likely that they’ll buy the product. If you don’t want to lose out on sales, you should use product descriptions.
Affluent households are most likely to read online reviews.
Consumers in affluent households are the most likely to read online reviews. In fact, three out of four people in the US read online reviews before buying a product. These people are more likely to spend time comparing reviews and buying based on the feedback received. Fortunately, this behavior is growing in popularity. If you’re interested in influencing affluent households to buy your products, consider tracking online reviews and helping them find them through social media. For example, 81% of online review readers are on Facebook, Twitter, LinkedIn, and Pinterest. All five social media platforms offer ad space for brands to use. Using positive reviews as the content of these ads can effectively reach this segment of consumers.