CAN REVIEWS INCREASE YOUR REVENUE?
Have you wondered why two similar products with the same rating online most times generate different sales outcome? Let’s take, for instance, Product A and B are the same product with the same rating, but Product A generates more sales than Product B because it has got more reviews than the other – That is the reality of business.
NOW THE QUESTION IS WHY?
It is estimated that 85 percent of customer’s value online and offline consumer reviews as much as personal recommendations. Online reviews can boost your product sales and generated more revenue.
First, we have to know what online review is – even though most of us already know, let us phrase it out for the sake of this article.
WHAT ARE ONLINE REVIEWS?
Online reviews are writings in the form of feedback that notifies old and new customers if a previous customer enjoyed your product and services or not. As simple as reviews may seem or look like, they have a drastic effect on the increase in sales.
When prospects visit your website for the first time and purchase a product, the comments they leave based on their experience with the purchased goods and service is a review.
“Marketing strategy for most businesses today has become digital. Network interconnection of digital channels has made the process much more comfortable.”
HOW VITAL ARE ONLINE REVIEWS TO YOUR BUSINESS?
The importance of reviews can’t be overlooked, because the more reviews you get, the higher the chances of your business ranking on the first page of Google – This means that most people will get to see your business first and they would view your site which automatically makes them prospects.
People don’t just accidentally find themselves reading a review while they are surfing the internet. They go to directories and review sites to have an idea of the business and services that is suitable for their needs.
In so many cases, the reviews a business has, are viewed or read by customers before they attempt to visit or click your website link. If the reviews read by potential buyers prompt them to click on your website, there is every possibility that those potential buyers would purchase your product or services
“It would interest you to know that a lot of consumers trust online reviews as much as recommendations they get from people”
HOW CAN REVIEW GENERATE INCOME FOR YOUR BUSINESS?
We live in a world that screams – No reviews, No revenue – How so?
Before the purchase of a product or service, most consumers depend on the advice and recommendations of other individuals before embarking on the purchase. When you want to make a decision based on whether a product is worth your time and money, you can always consult America’s library of customer reviews and ratings on that product before making your decision. A large portion of America’s population now makes use of these ratings and reviews by previous buyers before caring out their purchasing decision on the product for the first time. How?
If two related products have the same rating, online shoppers would prefer to buy the one with more reviews. Why?
The reason is simple, even if the two products has the same rating, the one with more reviews pulls more customers because it merely has more reviews – these reviews make the product look unique or more trustworthy.
During the last few of years, the prevalence of reviews has risen significantly, and reviews help people choose which products or services they go for or buy. Over time reviews have slowly become an integral part of a business.
In an age where the internet has germinated over the world, reviews are bound to drive customers towards your business, which makes it vital but how important are they? Some quick statistics are shown below;
When it comes to your business SEO, review platforms and forums help play a significant role, and as such, they help determine 13% of your products search ranking on search engines. When prospective customers scan through the result list, it showcases your aggregate reviews in star ratings but the customer may go as far as reading the reviews of previous customers most times which will influence the decision making on the product.
Reviews help inform prospective customers if your business can adequately provide them with their product and service needs. A customer that reads an online review before purchasing a product is sure about what he wants to purchase. It’s quite essential to take note that when reading reviews about your service, the consumer will also be on the look on how your business handles its customers in case problems come up.
To show how good your product and services are, it would be imperative for you to get an inflow of recent steady reviews that indicate how excellent your product and customer service is. In summary, reviews inform customers if your product is worth their time and money before venturing into business with you.
Most people within a range of demographic groups read reviews and are likely to infuse this information in their purchase know-how. It has been discovered that 53% of 18-29-year-old youths and 47% of 30-49-year-olds read reviews before buying any anything for the first time.
It doesn’t mаttеr what type оf business уоu аrе running – whеthеr lосаllу bаѕеd оr іntеrnеt-bаѕеd – соnѕumеr rеvіеwѕ wіll аlwауѕ play аn іmроrtаnt role in сuѕtоmеr dесіѕіоnѕ. Customers reviews are changing the buying habits of customers now more than ever, and more than a hand full of people are going online to make research on products and services before making a purchase – basically, they read reviews from previous buyers.
Americans exhibit notably high levels of trust in ratings and reviews; customer feels that ratings and reviews give them confident about their purchases. Americans today access a host of ratings and reviews that may help them learn more about products, businesses, and customer’s experiences before exercising their purchase power.
Mоѕt online shoppers (97 реrсеnt to bе еxасt) say rеvіеwѕ іnfluеnсе thеіr buуіng dесіѕіоnѕ. We also found оut that 92 percent of consumers will hesitate to buy something if it has no customer reviews at all. People are more likely to trust a complete stranger because they see that reviewer as a peer; they see them as people who are in the same boat with them, people who have spent already or taking the lead, so they trust their reviews.
Various studies have also been conducted to help determine the exact impact that reviews have on the popularity, number of sales, product awareness, conversion rate and profitability of businesses selling products or services.
Tаkе a рееk at thеѕе mіnd-blоwіng ѕtаtіѕtісѕ оn hоw hugе of a rоlе rеvіеwѕ рlау оut in the buying рrосеѕѕ for customers and how much they can influence good or bad reviews for a company.
Having numerous positive reviews increases the likelihood of convincing customers to pay more money for products or services. In fact, ѕtudіеѕ hаvе ѕhоwn thаt соnѕumеrѕ are lіkеlу tо ѕреnd mоrе оn products and services from businesses that have excellent reviews backing them up.
Having negative reviews will inevitably affect your business, yet for every star that a business gets, the chances are that a business’ revenue will increase by anywhere between 5%-9%.
Having reviews also increase customers’ trusts because it’s more like a way of saying people have purchased your product and they loved. Studies have also shown that 85% of customers trust reviews as much as personal recommendations.
There’s no doubt that online reviews influence consumers. Wе have рut tоgеthеr 4 facts thаt will look at how сuѕtоmеrѕ are іnfluеnсеd аnd еxасtlу how bіg thіѕ іnfluеnсе іѕ.
1. 80% of customers research products online every week.
That’s right. A whopping 8/10 consumers conduct online research about products they’re interested in purchasing. When a potential customer goes online to look up your business, hopefully, they find something good. If уоu’vе bееn рrореrlу mаnаgіng уоur оnlіnе rерutаtіоn, you’re gоldеn. If уоu haven’t, it’s probably time to put your best foot forward.
2. 88% of customers trust online reviews as much as personal recommendations
Pеорlе vіеw online rеvіеwѕ lіkе thеу view testimonials – аѕ еxреrіеnсеѕ straight from the mouth of a real person
3. 91% of people only look at the 1st page of Google results.
Academic research indicates that 91% of searchers do not go past page 1. Surprised? You shouldn’t be. Think about the way you search. Do you ever click on multiple search result pages in Google? So to make more sales, you need to rank on the first page of Google and with reviews, you can.
4. 70% of people trust the оріnіоnѕ оf оthеr сuѕtоmеrѕ роѕtеd оnlіnе.
Even thоugh fake reviews are a huge problem on all the major review sites, most consumers still trusts them. Before eating out at a restaurant or calling a plumber or booking a hotel, now more than ever, people turn to online reviews to make decisions about which businesses are going to get their money.
HOW TO HANDLE REVIEWS
Use of online management software:
Statistics have shown that 88% of customers read reviews, but the number of customers that go-ahead to write a review of the product is very few. The reason may be because they are not bothered by it, they feel it is stressful, or the process is somewhat too long. But the good news is there is good online management software that helps speed the process of making customers write reviews. The software work by routing your customers to your business profile and customers can log in using their accounts on social media, so they don’t stress to start creating a new account.
This option is automated, and it is a way of reminding customers and showing them how to write a review. The only way you can get the customers to write reviews is when you make the long process very short.
Teaching customers how to leave reviews:
No doubt some customers do not care about writing reviews, but those who care may not have a clue about how to go about it. Most customers do not have an idea of the relevance of the reviews to your business that is why you take it upon yourself to educate your customers on the importance of reviews to your business.
One way to go about this is creating an informative content on your website to show your customers how to go about it. You can present it as a short video clip or infographic to make it more engaging.
Ask all of your customers for feedback:
It is advised that you ask your customers for a review whether it is good or bad. It goes a long way to build a legacy that helps you improve. When you ask someone to give a review, it shows your flaws and at the same time makes you do everything you can to improve your services.
Good response to reviews publicly:
When a customer leaves a review whether positive or negative, you have to be calm about it. If the review is positive, you can give a note of thanks to the customer, but if the review is negative, it is advised that you calm down before you give a response so that you avoid being reactive. The best way to go about it is to apologize in public and assure the customer that you are going to work towards solving the problem. Your approach has to be humble as well.
This tells your customers that they have a voice and that voice counts. At the long run, it encourages more positive feedback from your customers.
Give out incentives for customers to write reviews:
This step should be utilized when you have tried every other thing, and it failed. The idea behind this method is to offer incentives to encourage customers to write reviews. The catch here is that you should not provide incentives for customers that leave positive reviews but extend it to every customer that leaves a review.
HAVE YOU THOUGHT ABOUT FAKE REVIEWS AND THE CONSEQUENCES?
It destroys customers trust:
A lot of companies go about selling fake reviews online as a shortcut to getting reviews. They outsource it to individuals for a little amount of money. It is more like a contract because the employees have to write reviews on a daily basis.
The worst part of it is that most of this people can only write rudimentary English. Customers these days are becoming good at spotting out reviews that are not genuine. If customers view your page and all they see is comments in poorly constructed English, they would not trust your business. Hence, they will not make purchases.
Traffic to your website would reduce:
If your reviews appear to be fake, you will be penalized for it. When this occurs, Google will lower your rank, and the traffic to your website reduces as well.
You may likely be fined:
Initially, regulators did not mind fake reviews, but now reviews have become a conspicuous part of digital marketing. Consumers base their trust on these reviews to make purchases hence; regulators have decided to deal with this deceptive marketing method. Regulators fined companies with about $350,000 for posting reviews that were fake on popular websites. These penalties or even worse may occur if the practice continues.
You may appear unbelievable:
Let’s assume that you did all the things mentioned above and you escaped every form of penalty because you successfully have some well-constructed comments. There is a very high possibility that your reviews may look unbelievable. Most online businesses that are giving excellent services still have negative reviews so it would be very unbelievable not to have a negative review but all positive. Customers may likely find you out, and traffic to your website will reduce.
The truth about reviews is that it has its positive side and its negative sides. Below would be listed the pros and cons of reviews
It can help increase your ranking- the local search ranking survey in 2015 carried out by MOZ showed that signals from reviews, make up to about 8.4% of the ranking factor utilized by so many search engines. This large percentage affects where your business ranks in the search result
It helps increase sale conversion- online reviews have helped some businesses increase sales. Brightlocal carried a survey and observed 92% of customers read reviews and about 40% came up with an opinion by just reading few reviews. Now the big question is how does this translate into sales?Before consumers make a purchase decision, they read reviews. What they learn then influences the purchase. If there are positive reviews, then you can be sure that they will likely visit your site. A report by Reevoo in 2012 showed how reviews increased sales up to 18% and 70 or more reviews for a product could mean an increase in conversion rates by 4.6%.
It helps generate long-term marketing materials- marketing that comes from testimonies of customers is a good thing. The number of customers that leave a positive review as a result of their satisfaction with the product, it gives rise to increasing purchase over the years.
It helps you know what your customers want- online reviews generally, help you to understand your customers and see what you can do to enhance your product and services. Some customers tend to share what they like or hate about your product. Adhering to their feedback will help you know what you are doing right and not.
It helps to build trust with the customer- you have to know that all the reviews you get might not be positive but how you handle them is what makes the difference in your business. Statistics show that about 18% of customers that leave reviews that are negative, most times become loyal and they repeat sales after receiving a response from the business.
If you get negative reviews, this are the cons and the effect it would have on your business are:
A negative review can drive away about 22% of your customers, and about four negative reviews can result to about a loss of 59% of your customers.
People rather not make purchases from businesses with negative or no reviews.
Negative reviews spoil the trustworthiness, prestige, and profitability of a business.
In a time where the internet has penetrated the world deeply, it is apparent online reviews would drive traffic to or away from your business.If you have negative reviews, in the long run, it is not the end of the world. You cannot please everyone, and for the sake of legitimacy and consistency, it is good to have balanced reviews.
The way you take the time to respond to the reviews is an indication that you have your customers at heart. As long as you try as much as possible to give quality services, the good reviews will be more than the bad reviews, and prospective customers will be able to locate your business.
Online reviews and review sites are gaining so much popularity in the world of digital marketing today, so you are advised to take full advantage of the opportunities that they bring to help build your business reputation.
Providing an opportunity for your customers to review your products, and also making sure that your ratings and reviews about your product are displayed, proves how highly you think of your customers and how committed you are.
According to statistics, we have found out that giving your customers reviews from other clients basically makes prospective customers to have confidence in your products or services.
Customer reviews are essential for your business revenue generation such that recently online shopping patronage and social recommendations has an increased rate of product sales caused by reviews.With the information provided above it has been proven that online reviews can adequately increase your sales and generate much more revenue for your business and products than staying without one.