With the advent of the internet and explosion of internet availability, more and more people have turned to e-commerce for income generation. Either as a passive income or as a full-time job. One of the issues that have arisen from this is many players in every imaginable business niche, resulting in huge competition from giants such as Amazon to smaller independent websites.
Small online businesses often have very little budget, as such one of the ways they can compete that is not influenced by adspend is through absolutely awesome customer service! With the development of e-commerce platforms, customers can now leave reviews based on a variety of product and service related factors that enable other potential customers to manage expectations and sellers to acquire key feedback.
Customer reviews can also be used very effectively to encourage potential customers to buy, even if it’s a bad review.
Unfortunately many people ignore the importance of customer reviews, whilst they can be very powerful motivators (good and bad) in the complex purchase decision process. If customers were stood in a shop considering a purchase, would they not take advantage of the opportunity to quiz previous customers of the same product before their own purchase?
The first thing I look for is customer reviews and ask myself:
- Are there other people out there using the product?
- Do those people who bought the product regret their purchase?
- Will the product do what it promises?
Around 90% of customers actually search for reviews before buying an item. That means that if you do not have any customer reviews on your store’s site, you are potentially losing 90 customers out of every 100 that visit your store.
88% of customers trust online reviews as much as personal recommendations. If most of your customers are coming from Google, then you know those customers already have a need for the product. The final step for them is to actually make the move and purchase it. Reviews are the best way to upsell anything.
Customers are likely to spend 31% more on a business with an excellent review. I once spoke with my friend Roger, who’s a top seller on Amazon. He said that reviews are one of the most important things when it comes to product ranking. He also mentioned that users with bad reviews can lose 50% of their potential customers.
72% of the people say that they go to a restaurant after viewing a review on Yelp or another restaurant review site. This means that if you are running a DIY store, it is important to receive good reviews for your business. A customer can walk next door to your competitor’s business, but excellent ratings and reviews will get them through your door first.
72% of consumers will take action only after reading a positive review. When a customer is on your website, you want to be able to do whatever you can to make them commit to a purchase. This can be chatting directly with them using a chat widget or showing them sale offers/coupons. Creating an impulse buying signal through reviews is one of the best ways to get them to buy right away.
86% of people will hesitate to purchase from a business that has negative reviews. I personally would be put off by negative reviews when shopping online. Everything might look attractive in the pictures and descriptions, but if I see bad reviews, I might ignore the product or worse, go to another business for the same product.
What if you have negative reviews?
Negative reviews will happen. Nobody can sell thousands of products a day and receive a bad review. The most important things to do are:
- Respond as soon as possible: the sooner, the more attentive other people see you are.
- Be Polite: Although frustrating, you always have to remember you’re representing your brand.
- Aim to resolve their issue: Offer them a refund if you can afford to.
You never know, the customer might just replace the review with a good one!
- 90% of customers actually search for reviews before buying an item
- 88% of customers trust online reviews as much as personal recommendations
- Customers are likely to spend 31% more on a business with an excellent review
- 72% of the people say that they go to a restaurant after viewing a review on Yelp
- 86% of people will hesitate to purchase from a business that has negative reviews
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