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8 reasons why ratings and reviews are so important

Ratings and reviews are more than just sidebars to product pages on e-commerce or social media profiles!

In a digital world, ratings and reviews are user-generated content (UGC) are indispensable sales and marketing tools for today’s brands. Consumer reviews are valuable for a brand because they provide insights into the customer experience and perceptions of the product or service. By analysing reviews, brands can identify areas for improvement, address customer concerns, and ultimately improve customer satisfaction and loyalty. Additionally, positive reviews can serve as powerful marketing tools, helping to build brand credibility and attract new customers.

summary of reasons

8 reasons why companies need ratings and reviews

1) Ratings and reviews for social proof

Social proof is when people look at what others are doing or saying and use that to decide what they should do. According to Robert Cialdini, it is one of the six main principles of persuasion that can influence people’s decisions, and an effective way to build trust in a brand and increase its credibility. In fact, if someone says that your product or service is good, it is more likely that other people will believe it and try it out. This mechanism works even for online reviews, since because people trust the opinion of other customers as much as they trust their family and friends.

2) Reputation Management

Companies need to monitor ratings and reviews to ensure they maintain a good reputation online. 

Reputation is the perception of a company or brand by its customers and the public. It is determined by various factors such as customer experience, customer service, product quality and performance, pricing, marketing messages, and advertising. A good reputation can help a company gain new customers and increase sales, while a bad one can lead to lower sales and lost customers.

Having a good reputation is essential for successful marketing campaigns as it helps build trust in the brand and create positive associations in the minds of people. Remember that consumers are more likely to buy from brands they trust, so, having a good reputation is key to increasing conversions.

3) Product Development

Companies can use ratings and reviews to gain valuable insights into the features that customers like or dislike, and which ones are more important, helping them fine-tune products and services. This leads to higher customer satisfaction.

4) Increased Conversion Rate

People want to make sure that the products they buy are of high quality and work well, before making the purchase. Reviews provide valuable information which increases their trust in it and, therefore, incentivises purchases. Studies have shown that product pages with ratings and reviews have higher conversion rates than those without – a key metric for any business selling online. Not having a section of ratings and reviews on a product page could cost companies a lot of sales.

5) Effective Lead Generation

Ratings and reviews can help capture leads in several ways. By providing valuable information about the product they build trust in the company increasing the chance of prospective customers to register their interest with the company. Additionally, the moment that customers leave their reviews is yet another opportunity to invite them to sign up for an offer or loyalty programme.

6) Online Visibility

Ratings and reviews can also improve a business's visibility in search engine results pages (SERPs). Search engines like Google take into account the quality and quantity of reviews a business has when determining its search engine ranking. This means that businesses with high ratings and a large number of positive reviews may appear higher in search results, making it easier for potential customers to find them. 

7) High-Quality Content

User-generated content in the form of ratings and reviews gives companies access to high-quality content that can be shared online – allowing them to reach more people without having to generate all the content. Companies can use this content in various ways, such as creating engaging blog posts, educational videos, e-books, and other content that provides useful information about their products or services.

8) Social Engagement

Ratings and reviews create social engagement by giving customers a personal stake in the product - they’re more likely to be actively involved with it if they feel their opinions are being heard.  

How to collect great customer reviews and incentivise ratings

There are several effective ways for businesses to collect reviews and ratings. The simplest one is to send the customer an e-mail asking them to write their opinion in response, redirecting them to a specific form, or asking them to leave a rating on your company's social media profiles. Reviews can also be in video format. In any case, the easier and faster the system, the more likely the customer will take the requested action. To incentivise people you can think of a small reward, such as exclusive free content.

Social media platforms are definitely a great tool to collect reviews and ratings, but connected products are even better. Through these products you can ask consumers to leave feedback or reviews, or share UGC. All they have to do is scan an NFC tag or QR code on the label of the item and they can leave their feedback directly on the specific product page of the item they scanned.

But there is more. Connected products offer a range of ancillary services, from product authentication and providing access to exclusive content, to discounts and personalised offers. A consumer who connects to the digital platforms behind a connected product for any reason and has a positive user experience will have a better opinion of your company and thus be more likely to leave a positive review. 

Finally, you will be assured of collecting genuine reviews from real people who actually have your product, and be able to distinguish them from fake reviews, or feedback from people that have had a bad experience with a fake product. 

To sum up, ratings and reviews are essential for any company that wants to stand out from the competition and reach more customers. By leveraging these UGC, you can both build a better customer relationship and increase economic results.

10 Mar 2023

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