Customer product reviews popularly known as user generated content provide a competitive edge for any retail site. It acts as a “Trump card” to pull in more customers to your shopping site. It can be considered as a factual ad campaign that has its own value and plays a vital role in decision making process of customers.
A recent survey conducted by E-tailing group inc. on 50 odd online retailers showed the following results. 58% of the retailers said that there has been a good customer response on adding the customer reviews to their sites. The customer loyalty increased to 47% that droved 42% of sales, all due to the true and honest reviews by customers. The experience gained by customers cannot be denied and it speaks volumes about the product as such and has the ability to promote the posting site as well. Above all the survey has proved to maintain a competitive advantage by 37%.
There has been a unanimous declaration by most of the online merchants that since the integration of customer reviews on their sites, there has been a tremendous increase in time spent by customers on their websites and overall customer satisfaction.
The following statistics reveals the success of incorporating customer reviews.
1. 37% of the merchants said that customers compare the performance of the products with or without reviews before making their purchasing decision.
2. 26% of the retailers have had a sharp increase in their sales after incorporating reviews to their sites.
3. 26% of the online merchants also witnessed the increase from sale to conversion.
4. 26% of the merchants reported that they had a minimized rate of returned items on their site.
Besides these statistics, 11% of retailers reported more than 20% rise in their conversions, as a result of integrating customer reviews to their websites. There was an increase of 11% to 20% according to 21% of merchants and 1% to 10% according to 4% of retailers. To conclude 63% of the online retailers have not taken notice of the impact of these customer reviews have made. The remaining retailers witnessed how the reviews acted as Trump cards on their own site and generated many conversions.
A recent survey conducted by E-tailing group inc. on 50 odd online retailers showed the following results. 58% of the retailers said that there has been a good customer response on adding the customer reviews to their sites. The customer loyalty increased to 47% that droved 42% of sales, all due to the true and honest reviews by customers. The experience gained by customers cannot be denied and it speaks volumes about the product as such and has the ability to promote the posting site as well. Above all the survey has proved to maintain a competitive advantage by 37%.
There has been a unanimous declaration by most of the online merchants that since the integration of customer reviews on their sites, there has been a tremendous increase in time spent by customers on their websites and overall customer satisfaction.
The following statistics reveals the success of incorporating customer reviews.
1. 37% of the merchants said that customers compare the performance of the products with or without reviews before making their purchasing decision.
2. 26% of the retailers have had a sharp increase in their sales after incorporating reviews to their sites.
3. 26% of the online merchants also witnessed the increase from sale to conversion.
4. 26% of the merchants reported that they had a minimized rate of returned items on their site.
Besides these statistics, 11% of retailers reported more than 20% rise in their conversions, as a result of integrating customer reviews to their websites. There was an increase of 11% to 20% according to 21% of merchants and 1% to 10% according to 4% of retailers. To conclude 63% of the online retailers have not taken notice of the impact of these customer reviews have made. The remaining retailers witnessed how the reviews acted as Trump cards on their own site and generated many conversions.
3 comments:
21 February, 2008 4:02 AM
Customer reviews act as a kind of social validation. It's the online equivalent of asking colleagues what they think of a product we're considering buying.
21 February, 2008 5:08 AM
Paul, In addition to the comment you have highlighted here, i would say reviews acts as an online judgement tool, considering consumer experiences to create the final picture of the product they are willing to buy.
22 February, 2008 10:07 AM
Absolutely. I've found myself pushed over the edge to buy an album after reading lots of positive reviews by other customers on the site from which I was considering the purchase.
I would imagine such reviews are useful for the retailer, too. They can see WHY a ptoduct is popular - something that raw stats alone can't say.
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