Customer Control Is Good for Business
Many companies are nervous to open up their products and services to customer comments. But a new study finds firms that allow unbiased user reviews actually build stronger customer relationships and make more money than those who keep information close to the vest. The Top 40 Online Retail Satisfaction Index from ForeSee Results surveyed over 10,000 online shoppers that visited one or more of the top 40 online retailers. The sites that offer customer product reviews have a competitive advantage, while sites that don't are missing an opportunity to drive satisfaction, loyalty, and sales.
Among the key findings on customer product reviews:
- Customer product reviews drive satisfaction and loyalty and provide a competitive advantage for sites that offer them.
- Customer product reviews are a powerful influencer of the purchase decision for first-time buyers, a critical target audience for retailers
- Shoppers on sites with customer product reviews were 5% more likely to buy online, 5% more likely to buy from the retailer the next holiday season, and 4% more likely to purchase from the retailer the next time they are in the market for similar merchandise (as compared to shoppers on sites without reviews).
Customers want to know that they can trust a product or service, and a peer recommendation is the best way to do that. We'll see if it becomes more of a trend for 2007.
What do you think? Is your company opening up dialog between customers? Do the pros outweigh the cons?
How do you ask customers what they want without creating expectations you may not be able to meet?