Today’s customers have an important tool at their disposal to aid their every buying decision: product reviews.
Reviews can easily sway a customer’s decision when they’re researching a product. Many e-retailers know their stores should have product reviews, but aren’t reaping as many benefits as they should be. Customer word of mouth is a powerful tool that e-retailers need to use to their advantage whenever possible.
Here are four ways product reviews help your business:
Higher Conversion Rates and Better Chance to Upsell
Customers read reviews because they want to see what other people think of the product they are considering. If a product has poor reviews, customers are less likely to give it a chance. Favorable reviews have the opposite effect as they boost your conversion rates. What kind of boost am I talking about? These product review stats tell an intriguing story:
- When comparing two similar types of products from a high-end retailer, researchers found the purchase likelihood for a product with five reviews is 270 percent greater than the purchase likelihood of a product with no reviews.
- There was a 190 percent lift in conversion rate for a lower-priced product featuring reviews and a 380 percent boost in conversion rate for a higher-priced product featuring reviews.
- Purchase likelihood is optimum when a product achieves a four to 4.7 rating out of five. Products that are in the 4.7 to five range can create a sense that the product is too good to be true.
- Verified buyer reviews are usually more favorable. The average star rating from verified buyers is 4.34 out of five while the average star rating from anonymous reviewers is 3.89.
Reviews Could Show a Product Flaw
No e-retailer wants to see negative reviews about their products, but these poor reviews could reveal something that may be overlooked. If more product reviews are coming back with the same type of issue mentioned, it’s likley to be less about picky customers and more about a flaw in your product.
For example, if you were selling makeup in your e-commerce store and kept getting the same negative feedback about a specific eyeliner pencil breaking quickly, you need to address the issue with your supplier. The flaw in the product costs your e-business money in many ways. You are covering the cost…