While 55% of consumers claim that online reviews are likely to influence their purchasing decision, one bad review can cost businesses up to 22% of their prospects.
Among many benefits, customer reviews enable brands to build credibility and eventually, generate more revenue. Along with building credibility, reviews can help make strong associations with their customers and make their brand more relatable.
Reviews can also act as a channel to spread the word about brands, and their products and services. By encouraging customers to share reviews and cultivating meaningful experiences of their audiences, brands improve engagement, boost sales pipeline, enhance customers’ loyalty towards the brand and gain a competitive edge. This is why established brands like Nike and Dollar Shave Club leverage reviews and user-generated content in ads and content.
Further, customers can also use reviews to inform brands about their products’ shortcomings. Along with good reviews, if marketers allow their customers to post negative reviews, brands can establish transparency and convince users that they genuinely care about customer feedback.
[13 minute read]