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Asking Customers What They Think Has Long-Term Benefits
For some companies, letting their customers' voices be heard is critical for long-term success.
A new study released today from online customer satisfaction firm Foresee Results, finds that the availability of online customer reviews on a retail Web site boosts overall satisfaction with the Web site, loyalty, and likelihood to buy online. Of the top 100 grossing retail Web sites, the ones that offer customer reviews experience better loyalty and conversion rates.
Some highlights of the study include:
* Customer reviews significantly improve the online shopping experience. Satisfaction is 11 percent higher for people who said they had seen customer reviews on the site than for those who said that reviews weren't on the site they visited.
* Customer reviews increase conversion and loyalty. Shoppers on sites with reviews are 10 percent more likely to purchase from the retailer's Web site than those on sites without reviews.
* Online shoppers that remembered seeing customer reviews are 13 percent more likely to recommend the site than are shoppers who didn't see reviews.
In the upcoming July/August issue of 1to1 Magazine, the staff discovered the benefits of offering customer reviews firsthand. We interviewed Canadian retailer Loblaws, eToys, and a Connecticut amusement park Lake Compounce about their customer feedback efforts. Not only did these organizations see improved loyalty, but they took the feedback a step further by using the recommendations to improve their products and services. Loblaws is even using the customer feedback as a marketing tool to promote its improved products.
So by leveraging consumer-generated content, these companies are actually letting their customers build their businesses. As a result, the evolution of online reviews is inevitable. And experts say in a couple years companies will be branding customer reviews, as in the Loblaws’ example.
Are you ready to start encouraging customers to ask what they think—both negative and positive? Because they’re ready to tell you. Are you ready to listen?
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