April 29, 2009
Survey: Customer Reviews Score Highest with Online Shoppers
By Tom Ryan
According to a survey
from Avail Intelligence, internet shoppers in the U.K. rate personal recommendations
and user reviews over price when it comes to making online purchases.
Over a third (36 percent)
of respondents rated peer opinions such as recommendations, reviews and
customer-generated wish lists as the most useful aspect of an internet
shopping site. This compared with 25 percent who said price matching was
what they looked for most.
The research also found
that newer website technologies, such as video content and 3D images of
products, are not yet popular with mainstream consumers. Only one in seven
said they found 3D images useful and the figure fell to just 4 percent
for video content. “This is likely to change however as the technologies
become more widely adopted by retailers looking to improve the overall
feel of their site,” said Avail.
“Despite the credit
crunch, U.K. consumers appear more concerned with the experiences and suggestions
of other web-based shoppers than finding the best deal online,” said
Pontus Kristiansson, CEO and founder at Avail Intelligence, in a statement. “Whilst
the internet is viewed as the best place for a bargain, it’s clear that
recommendations and reviews from other users have an important part to
play when persuading shoppers to buy.”
Echoing the results,
a survey by Opinion Research Corp. found 84 percent of U.S. consumers said
browsing reviews influenced their decision on whether or not to purchase
a product or service. Half of respondents turned to online customer reviews
early on in the decision-making process.
But the Opinion Research
survey also found only a
“vocal minority” is leaving feedback and swaying consumer opinions
as only 28 percent of respondents had posted their own reviews.
“This is critical
for companies to understand as they fight to be considered by consumers
and look for ways to be ever-present through a variety of channels and
media outlets,” said Linda Shea, SVP and global managing director
of Opinion Research’s Customer Strategies Practice, in a statement. “Taking
a more proactive approach to participating in, monitoring and controlling
online reviews may very well be one of the many ways organizations can
influence both consumer consideration, and, ultimately, the buying decision.”
Discussion Questions:
With customer reviews and feedback becoming so popular, can online retailers
do well without them? Can consumers’ desire for peer opinions be translated
to the brick ‘n mortar space?
BrainTrust
Recent Discussions
Discussion Questions
Poll
I’ve never seen any research or even mention of how online retailers estimate the significance of feedback and such, so can’t comment either way in the poll. I think it has to vary by category, and what people are used to. If an eBay or Amazon merchant has a relatively low percentage of satisfied customers, I avoid them, as I assume most people do. Hotel and travel reviews I take with a grain of salt, since so many travelers seem to be malcontent nut cases. I’ve had merchants fall all over themselves and beg me not to leave bad feedback, and I’ve seen people who ripped me off threaten me with bad feedback if I give them bad feedback. It’s the usual jungle out there. Good merchants pay attention, bad ones don’t care.
All retailers, whether online or offline should enable consumers to write reviews by creating the forum for these discussions on their websites. Retailers that don’t engage in a dialogue with their consumers risk being left behind by the very consumers they are trying to attract.
Ms. Shea is wrong to suggest that retailers control reviews. Consumers can sense manipulation a mile away and will respond negatively towards any retailer that tries to cover up or eliminate negative reviews.
Retailers need to use reviews as a forum to being a dialogue with consumers. That dialogue will attract other consumers and, if a retailer is open and honest, will turn readers into customers.
Online retailers will lose a percentage of their business to consumers if they aren’t staying up to date on the convenience mechanisms for those consumers. Online consumers are not like brick and mortar, they are about convenience (and with that includes knowledge and information from people that tried it and liked it) comparison price shopping, shipping ease, returns, etc. Some will shop sites to get opinions on the product and then go to other sites to purchase if they can save on shipping and price. It’s the total package offered!
Yes, brick and mortar can and should look into reviews and feedback. Top sellers, best sellers, etc, is another way to draw the consumer in.
Product reviews and opinions is what built up online shopping. The ability to quickly get reviews from different people is part of the value equation for most online shoppers. I could see big benefit to the shelf like maybe a tag that says “98 people online loved this product” and it could frame the actual price sign. If your online operation is scoring well with customers, why not build a stronger association with the online presence at the store level?
I agree completely with Max–the minute companies or purchasers start manipulating the review system the jig will be up. Companies need to get comfortable with consumer reviews being a way to identify product problems or items that are missing the mark and use them as a customer feedback channel.
Some of the situations Warren described sound like the employees are being incented on the basis of “good reviews”–if you place such simple incentives in place, expect your employees to find ways to game the system. Using ratings and reviews as a chance to listen to customers and respond to their needs can make retailers better at what they do–but they need to operationalize where the feedback goes and what to do with it.
Doron’s comment above is right on the mark. Consumers are swamped with so many messages and options that a credible, (supposedly) objective third party recommendation is all it takes to often sway their decision. Consider the case of liquor stores; all it takes is a sign saying “92 points” or “Our pick” to drive up sales dramatically.
Whether online or in-store, retailers would dramatically benefit from using more reviews and recommendations.
Feedback is important…and the more positive it is, the better online retailing’s future becomes. When “Mikey” or Warren Thayer tell us they like “it” we will likely buy it too. If they say they don’t like it, we will tend to avoid it. So, “Mikey” and Warren, thanks for important feedback.
I’m on the verge of buying a new washing machine for the first time in 10+ years and admittedly checked all the reviews online to see what brands and models are like at the moment. My criteria included price, energy saving, simplicity, etc. The one on which I’ve decided–and the retailer from whom I plan to buy it–was based on a combination of one that meets my needs and offered a good selection of user reviews on the retailer’s website. This particular machine was only reviewed in the one place as Which?–my benchmark influencer–didn’t have enough members using it but gave it reserved approval. Having done the rounds of the bricks and mortar shops as well, I found the usual biased, inconsistent and contradictory advice from real live sales people. Skeptic that I am about those who submit online reviews, in this instance I am crossing my fingers and basing my decision on those who have. Lesson–reviews should have been available on all the retailers’ websites (and maybe in-store kiosks, dare I say it?).
Similarly, I have just reviewed my broadband supplier and decided against changing based on a total absence of reviews on any of the competitors’ packages and my own long-term satisfaction with my current provider. Bottom line–if online reviews from strangers can influence me, then they can probably influence anybody.
Every piece of research we see and all anecdotal comments from our retail clients suggests that these numbers are simply the “tip of the iceberg” when it comes to “social influence” as a measurable consumer dynamic. Let’s all remember that what we’re seeing is simply the “hi tech” version of what used to be…”I talked to Jane’s cousin the other night at the school event and she bought an Acme blender and loved it….”
We also believe that cross-channel retailers in high-interaction categories will need to deliver a solution enabling reviews in-store. We have developed solutions to cost-effectively deliver those messages to consumers.
A BrandWeek article today talks about how General Mills has built a network of mostly mom bloggers (900 strong) called MyBlogSpark. General Mills supplies the network with free products to use as giveaways to the blog audiences.
Although the company claims they want transparency, there are some decidedly murky areas. According to the piece, participants are told: “If you feel you cannot write a positive post regarding the product or service, please contact the MyBlogSpark team before posting any content.”
The General Mills spokesperson asserts that the clause is only there to encourage bloggers to alert the company of bad experiences so they can pass comments on to the brand, and that they are not restricting free speech, however it’s hard to imagine that dictum not having an influence on what the bloggers feel comfortable saying.
This is classic “mother-in-law” research, but I find online product reviews to be far more helpful than I would have expected. In particular, Amazon does a great job of presenting the “most helpful” positive and negative reviews. That, rather than just looking at distribution of star ratings, helps to separate the valuable feedback from the nutcases. Often, you can get a sense of how different users value different aspects of a product, and therefore whether their concerns should be your concerns. For example, the Roomba has mixed reviews, but the negative reviews seem driven by pet owners. Since I don’t own a pet, I was able to figure out the product would likely be great for me (and it has been).
Among e-shoppers, the growing expectation is that they will have access to recommendations and reviews from other shoppers. While some e-retailers may currently squeak by without shopper feedback, I expect they’ll need to venture down the feedback pathway (sooner rather than later) to ensure consumers enjoy the shopping experience they seek.
That said, I’m hesitant to treat the findings re: recommendations/reviews and price as competing. I believe they work hand-in-hand, allowing e-shoppers to determine if a lower/higher price translates into a better/worse product. Price only tells the shopper how much they will spend. Recommendations and reviews complete the “value” equation by telling the shopper the “value” of the product that goes beyond price.
Because these two e-shopping components work hand-in-hand, the study’s finding re: the vocal majority that leave feedback is very important. This is an area where e-retailers should invest time and creative thinking to get more shoppers to leave feedback re: their product experiences. Without the feedback, shoppers may be hesitant to click “buy.”
As for translating shopper feedback into the bricks-and-mortar space, it’s already going on–largely in an unorganized fashion–via simple conversations between fellow shoppers in the aisle, via feedback from savvy store associates and via access to e-kiosks that allow shoppers to read feedback on the merchant’s website. And handheld devices/apps hold huge potential to bring recommendations and reviews to shoppers when and where they want. This is an area that merchants should be exploring to find out how they can make the store shopping experience just as user friendly–and knowledgeable–as the online shopping experience.
There’s no closing the door on feedback, whether online or in the store. It really comes down to providing the shopper with the tools needed to increase their buying confidence, i.e., creating a smarter shopper and easing them into the buy.
Tim’s spot on about bringing customer reviews in-store through e-kiosks or mobile devices. Other emerging technologies include digital signage or interactive signage.
Before I had access to reviews online, I would rely on store sales staff to educate me on products and explain the differences between brands, models etc. There’s one electronics store in particular here in my city where without fail, whatever you were looking at, the salesperson would say “oh that’s very good, I have that one at home.” Hear that more than twice and you lose trust and respect for the store.
I have far more trust in end-user review feedback (especially for electronics) so I see a lot of value in bringing this information in-store. Sales staff should also be reading as many online reviews about products as possible.
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I’ve never seen any research or even mention of how online retailers estimate the significance of feedback and such, so can’t comment either way in the poll. I think it has to vary by category, and what people are used to. If an eBay or Amazon merchant has a relatively low percentage of satisfied customers, I avoid them, as I assume most people do. Hotel and travel reviews I take with a grain of salt, since so many travelers seem to be malcontent nut cases. I’ve had merchants fall all over themselves and beg me not to leave bad feedback, and I’ve seen people who ripped me off threaten me with bad feedback if I give them bad feedback. It’s the usual jungle out there. Good merchants pay attention, bad ones don’t care.
All retailers, whether online or offline should enable consumers to write reviews by creating the forum for these discussions on their websites. Retailers that don’t engage in a dialogue with their consumers risk being left behind by the very consumers they are trying to attract.
Ms. Shea is wrong to suggest that retailers control reviews. Consumers can sense manipulation a mile away and will respond negatively towards any retailer that tries to cover up or eliminate negative reviews.
Retailers need to use reviews as a forum to being a dialogue with consumers. That dialogue will attract other consumers and, if a retailer is open and honest, will turn readers into customers.
Online retailers will lose a percentage of their business to consumers if they aren’t staying up to date on the convenience mechanisms for those consumers. Online consumers are not like brick and mortar, they are about convenience (and with that includes knowledge and information from people that tried it and liked it) comparison price shopping, shipping ease, returns, etc. Some will shop sites to get opinions on the product and then go to other sites to purchase if they can save on shipping and price. It’s the total package offered!
Yes, brick and mortar can and should look into reviews and feedback. Top sellers, best sellers, etc, is another way to draw the consumer in.
Product reviews and opinions is what built up online shopping. The ability to quickly get reviews from different people is part of the value equation for most online shoppers. I could see big benefit to the shelf like maybe a tag that says “98 people online loved this product” and it could frame the actual price sign. If your online operation is scoring well with customers, why not build a stronger association with the online presence at the store level?
I agree completely with Max–the minute companies or purchasers start manipulating the review system the jig will be up. Companies need to get comfortable with consumer reviews being a way to identify product problems or items that are missing the mark and use them as a customer feedback channel.
Some of the situations Warren described sound like the employees are being incented on the basis of “good reviews”–if you place such simple incentives in place, expect your employees to find ways to game the system. Using ratings and reviews as a chance to listen to customers and respond to their needs can make retailers better at what they do–but they need to operationalize where the feedback goes and what to do with it.
Doron’s comment above is right on the mark. Consumers are swamped with so many messages and options that a credible, (supposedly) objective third party recommendation is all it takes to often sway their decision. Consider the case of liquor stores; all it takes is a sign saying “92 points” or “Our pick” to drive up sales dramatically.
Whether online or in-store, retailers would dramatically benefit from using more reviews and recommendations.
Feedback is important…and the more positive it is, the better online retailing’s future becomes. When “Mikey” or Warren Thayer tell us they like “it” we will likely buy it too. If they say they don’t like it, we will tend to avoid it. So, “Mikey” and Warren, thanks for important feedback.
I’m on the verge of buying a new washing machine for the first time in 10+ years and admittedly checked all the reviews online to see what brands and models are like at the moment. My criteria included price, energy saving, simplicity, etc. The one on which I’ve decided–and the retailer from whom I plan to buy it–was based on a combination of one that meets my needs and offered a good selection of user reviews on the retailer’s website. This particular machine was only reviewed in the one place as Which?–my benchmark influencer–didn’t have enough members using it but gave it reserved approval. Having done the rounds of the bricks and mortar shops as well, I found the usual biased, inconsistent and contradictory advice from real live sales people. Skeptic that I am about those who submit online reviews, in this instance I am crossing my fingers and basing my decision on those who have. Lesson–reviews should have been available on all the retailers’ websites (and maybe in-store kiosks, dare I say it?).
Similarly, I have just reviewed my broadband supplier and decided against changing based on a total absence of reviews on any of the competitors’ packages and my own long-term satisfaction with my current provider. Bottom line–if online reviews from strangers can influence me, then they can probably influence anybody.
Every piece of research we see and all anecdotal comments from our retail clients suggests that these numbers are simply the “tip of the iceberg” when it comes to “social influence” as a measurable consumer dynamic. Let’s all remember that what we’re seeing is simply the “hi tech” version of what used to be…”I talked to Jane’s cousin the other night at the school event and she bought an Acme blender and loved it….”
We also believe that cross-channel retailers in high-interaction categories will need to deliver a solution enabling reviews in-store. We have developed solutions to cost-effectively deliver those messages to consumers.
A BrandWeek article today talks about how General Mills has built a network of mostly mom bloggers (900 strong) called MyBlogSpark. General Mills supplies the network with free products to use as giveaways to the blog audiences.
Although the company claims they want transparency, there are some decidedly murky areas. According to the piece, participants are told: “If you feel you cannot write a positive post regarding the product or service, please contact the MyBlogSpark team before posting any content.”
The General Mills spokesperson asserts that the clause is only there to encourage bloggers to alert the company of bad experiences so they can pass comments on to the brand, and that they are not restricting free speech, however it’s hard to imagine that dictum not having an influence on what the bloggers feel comfortable saying.
This is classic “mother-in-law” research, but I find online product reviews to be far more helpful than I would have expected. In particular, Amazon does a great job of presenting the “most helpful” positive and negative reviews. That, rather than just looking at distribution of star ratings, helps to separate the valuable feedback from the nutcases. Often, you can get a sense of how different users value different aspects of a product, and therefore whether their concerns should be your concerns. For example, the Roomba has mixed reviews, but the negative reviews seem driven by pet owners. Since I don’t own a pet, I was able to figure out the product would likely be great for me (and it has been).
Among e-shoppers, the growing expectation is that they will have access to recommendations and reviews from other shoppers. While some e-retailers may currently squeak by without shopper feedback, I expect they’ll need to venture down the feedback pathway (sooner rather than later) to ensure consumers enjoy the shopping experience they seek.
That said, I’m hesitant to treat the findings re: recommendations/reviews and price as competing. I believe they work hand-in-hand, allowing e-shoppers to determine if a lower/higher price translates into a better/worse product. Price only tells the shopper how much they will spend. Recommendations and reviews complete the “value” equation by telling the shopper the “value” of the product that goes beyond price.
Because these two e-shopping components work hand-in-hand, the study’s finding re: the vocal majority that leave feedback is very important. This is an area where e-retailers should invest time and creative thinking to get more shoppers to leave feedback re: their product experiences. Without the feedback, shoppers may be hesitant to click “buy.”
As for translating shopper feedback into the bricks-and-mortar space, it’s already going on–largely in an unorganized fashion–via simple conversations between fellow shoppers in the aisle, via feedback from savvy store associates and via access to e-kiosks that allow shoppers to read feedback on the merchant’s website. And handheld devices/apps hold huge potential to bring recommendations and reviews to shoppers when and where they want. This is an area that merchants should be exploring to find out how they can make the store shopping experience just as user friendly–and knowledgeable–as the online shopping experience.
There’s no closing the door on feedback, whether online or in the store. It really comes down to providing the shopper with the tools needed to increase their buying confidence, i.e., creating a smarter shopper and easing them into the buy.
Tim’s spot on about bringing customer reviews in-store through e-kiosks or mobile devices. Other emerging technologies include digital signage or interactive signage.
Before I had access to reviews online, I would rely on store sales staff to educate me on products and explain the differences between brands, models etc. There’s one electronics store in particular here in my city where without fail, whatever you were looking at, the salesperson would say “oh that’s very good, I have that one at home.” Hear that more than twice and you lose trust and respect for the store.
I have far more trust in end-user review feedback (especially for electronics) so I see a lot of value in bringing this information in-store. Sales staff should also be reading as many online reviews about products as possible.