The influence of customer reviews and word-of-mouth on purchasing decisions

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Most people make purchasing decisions based on the recommendations of their friends and family. A recent study found that 84% of consumers trust word-of-mouth recommendations more than any other form of advertising. It means that businesses that can generate positive word-of-mouth for their products are at a significant advantage over those that cannot.

One way to generate positive word-of-mouth is by getting your customers to write reviews of your product. A recent study found that 88% of consumers read online reviews before making a purchase, so having good reviews on sites like Yelp or Amazon can be the difference between making a sale and losing one. Additionally, reviews can help you to get more organic traffic to your website, as those looking for customer feedback are likely to find it through search engines.

Word-of-mouth and customer reviews can have a significant impact on the success of a business. As such, companies should make sure that they take advantage of this powerful marketing tool by encouraging their customers to leave reviews and by responding quickly and positively to any negative feedback they receive. It will ensure they can get the most out of their customer’s word-of-mouth marketing power.

Ten reasons why customer reviews and word-of-mouth are essential:

1. It is a powerful marketing tool that can help to attract new customers and increase sales. Customer reviews and word-of-mouth can be effective ways to draw people in, as positive reviews can build trust in a brand.

2. It allows for two-way communication. Customer reviews allow customers to give feedback and opinions on the product or service they have purchased. This kind of feedback helps companies gain valuable insights into what customers think and want, allowing them to take the necessary steps to improve their offerings.

3. It builds trust between the business and its customers. When customers see that their opinion is valued and taken seriously, it can help foster a sense of loyalty and trust in a business and increase customer retention.

4. It helps to create a competitive advantage. By responding quickly and effectively to customer reviews, companies can develop a reputation for excellent customer service that will set them apart from their competitors.

5. It increases the business’s visibility. When customers leave positive reviews about a product or service, it is likely to be seen by other potential customers, helping to increase brand awareness.

6. It can be used as social proof. When a customer thinks of making a purchase, seeing the positive experiences that other people have had with a product or service can help them make an informed decision and feel more comfortable making the purchase.
Alex Walker, Senior Marketing Manager at CouponBirds analyzed that, “Customers are more inclined to buy a product for which there are available a lot of positive reviews online. Having a good rating on sites like Trustpilot gives you an edge over the competition.”

He explained, “The fact that thousands of people visit Trustpilot and similar sites to see reviews about a product they intend to buy gives a strong clue about human nature. We are naturally wired to buy the things which are used by our fellow human beings.”

7. It shows that the company is engaged with its customers. Responding to and engaging with customer reviews can demonstrate that a business is actively trying to improve its product or service based on the feedback they receive.

8. It helps to build an online presence. When people search for a particular product or service on the internet, they will likely come across reviews and testimonials from previous customers. This can be an effective way to get people’s attention and entice them to visit the website.

9. It helps improve customer service. Reviews and feedback are valuable sources of information that can highlight areas where improvement is needed, allowing companies to address these issues quickly and effectively.

10. It encourages customer feedback. When customers see that their opinions are valued and taken seriously, it can encourage them to leave more detailed reviews and even recommend the product or service to someone else. In turn, this can lead to an increase in sales.

Ten tips to get positive reviews from customers:

1. Make sure customers are happy with their purchase:

Providing excellent customer service is key to encouraging customers to leave positive reviews. You should ensure that customers are satisfied with their purchase and have all the information they need about your product or service. Doing this can increase the chances of them leaving a positive review.

2. Ask customers to leave reviews:

Don’t be afraid to ask your customers for feedback or a review. You could do this via email after their purchase or through social media by including links in posts. But ensure you are not too pushy or intrusive.

Jordan Fulmer, owner of Momentum Property Solutions has found those reviews effective which include the personal experience of the consumer. He explains, “Instead of a generic review that says something like, Great experience, highly recommend, a review that talks about the client’s personal experience give a much better impression. We’ve witnessed this first-hand in our business. We met with a client, and she said she chose us because she saw a review on our website from someone who was facing her exact situation whom we were able to help. At that point, we were the only company she wanted to work with, and we were able to help her out in the same way!”

He advises, “It is imperative to ask your clients and customers for reviews, but more than that, to ask them to write about their personal experience working with you.”

3. Offer incentives:

Offer customers an incentive for leaving a review, such as discounts on future purchases or other rewards. This can be an excellent way to encourage more people to leave positive reviews and increase your visibility online.

4. Respond to negative reviews quickly:

It’s essential to be proactive when responding to customer reviews, especially negative ones. Respond quickly and offer solutions where possible, as this can help turn a negative review into a positive one.

5. Thank customers for leaving reviews:

This is an easy way of showing your appreciation for customers taking the time to leave you a review. It can help create a feeling of loyalty towards your business, which in turn could lead to more positive reviews being left.

6. Monitor customer feedback:

Keeping track of customer reviews and feedback is a meaningful way to ensure customers are happy with your product or service. You should take the time to read through reviews and address any issues that may be highlighted.

7. Ask questions in reviews:

Encourage customers to leave more detailed reviews by asking them questions about their experience, such as what they liked or didn’t like about your product or service. It can help you identify areas where improvement is needed and give potential customers a clearer idea of what to expect.

8. Make review sites easy to find:

Set up a review page on your website or include links in other places, such as social media profiles and email newsletters, so customers can easily find the right place to leave reviews.

9. Promote customer reviews:

Make sure existing customers are aware of the reviews left by other customers. You could include customer testimonials on your website or in marketing materials and share them on social media.

10. Share reviews on other sites:

Promote customer reviews by sharing them on third-party review sites such as Google Reviews, and Trustpilot. It can increase your visibility and build trust with potential customers.

Ten ways in which review influence consumer:

1. Reviews increase product visibility:

Reviews can make your products or services more visible online and increase the chances of being found by potential customers.

2. Reviews create trust:

Customer reviews provide an unbiased opinion about a product or service that potential customers can trust, making them more likely to purchase from you.

Ryan Rottman, Co-Founder, and CEO of OSDB Sports say, “If it’s not on the internet, we don’t trust it! Ultimately, we want to get what we pay for – and if there isn’t evidence that other consumers have already gotten value from it before us, we’d rather play it safe than risk a bad experience.”

3. Reviews improve SEO:

Reviews can help boost your search engine rankings, as they provide more content for search engines to crawl through, increasing your relevance and visibility.

4. Reviews increase conversion rates:

Customer reviews can directly impact the conversions you get, with research showing that 88% of customers trust online reviews as much as personal recommendations.

5. Reviews boost customer loyalty:

Reviews help create a feeling of trust with customers, which can lead to higher customer satisfaction and loyalty levels.

6. Reviews provide feedback:

By reading through customer reviews, you can gain valuable insights into how your products or services are performing and identify areas for improvement.

7. Reviews create social proof:

Customer reviews can boost your credibility and encourage more people to buy from you, as they provide ”social proof” that other customers are satisfied with their experience.

8. Reviews influence buying decisions:

Research shows that 88% of consumers read online reviews before making a purchase decision, so it’s vital to ensure you have a good number of positive reviews.

9. Reviews build relationships:

Customer reviews help create an ongoing relationship between customers and businesses, allowing them to keep in touch even after the purchase.

10. Reviews increase sales:

Having more customer reviews can help to increase your sales by giving customers the confidence they need to make a purchase.

Ten ways to handle negative reviews:

1. Respond quickly:

Respond to negative reviews as soon as possible. It will show the customer that you are taking their feedback seriously and will give them a chance to see that they have been heard.

2. Apologies sincerely:

Apologize for any inconvenience caused and thank the customer for bringing it to your attention. It will show them that you are taking responsibility and are willing to make things right.

3. Offer solutions:

Try to offer the customer a solution to their problems, such as providing a discount or replacement item. It can compensate for any inconvenience caused and show them you care about their satisfaction.

4. Don’t take it personally:

Try not to take negative reviews too personally and instead focus on finding a solution that works for both parties.

5. Ask customers to direct their concerns privately:

If the customer has raised an issue that needs to be discussed in more detail, ask them to get in touch via phone or email. It will give you both a chance to discuss the issue in more detail and come to a resolution.

6. Don’t delete negative reviews:

It is better to address any issues raised by customers publicly, as deleting or hiding negative reviews can appear unprofessional and make potential customers suspicious.

7. Use the feedback to improve:

Take the time to assess any negative reviews and use them to make improvements that will benefit you and your customers.

8. Avoid getting drawn into arguments:

It is essential not to get drawn into arguments with customers, no matter how unreasonable they may seem. Remain professional and focus on finding a solution.

9. Monitor reviews regularly:

It is vital to keep an eye on your customer reviews, so you can address any issues raised as quickly as possible and show customers that you care about their satisfaction.

10. Thank customers for their feedback:

Even if the review is negative, thank the customer for taking the time to provide feedback. It shows that you are open to constructive criticism and willing to take action to improve your products or services.

Conclusion:

By using customer reviews, businesses can build trust with customers, boost sales and get valuable feedback that can help them refine their product or service offerings. With the right approach, customer reviews can be a valuable tool for businesses to help gain a better understanding of their market, provide quality customer service and build relationships with customers.

At the end of the day, it is essential to remember that customer reviews are meant to be a positive experience for both customers and businesses. By ensuring positive reviews, responding quickly to negative ones, and using feedback to improve, businesses can create an engaging and supportive customer experience that encourages customers to leave reviews. Ultimately, this will lead to more satisfied customers and a better reputation for your business.

By understanding the importance of customer reviews and taking steps to handle them appropriately, businesses can use customer reviews as a powerful tool to gain trust, build relationships and improve their products or services.

The influence of customer reviews and word-of-mouth on purchasing decisions is undeniable. With the right approach, businesses can ensure their customers are engaged, happy, and willing to leave positive reviews. Ultimately, this will help them build a robust online presence and gain more loyal customers. By understanding the impact that customer reviews can have on their business, businesses can take steps to ensure they use customer feedback as an opportunity to improve and increase their sales.

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