Why You Need An Online Customer Review Strategy — Brightpearl

Why You Need An Online Customer Review Strategy

Introduction

We now exist in a world where technological innovation is empowering customers to expect more from the retailers and brands they shop with, to switch when they’re not happy or satisfied, and to share their negative experiences in the form of bad online reviews.

With the rise of so many avenues for online feedback, consumers have started exercising their right to criticize when they receive sub-par service – and you must start paying closer attention.

Most customers today will do at least one search for your company online before deciding to make a purchase. So if a bad review or overall rating can be found on an online review site, social media platform, or on your own website, then shoppers are going to think twice before buying from you.

The influence of online product reviews and ratings on consumers continues to grow and plays an increasingly important and normalized role in consumers’ purchasing behavior. And it’s what happens after the buy button that has the most potential to create the kind of consumer disappointment that often translates into negative feedback and ratings.

But with a solid review strategy combined with retail operations technology powering your business to provide superior shopping experiences, you’ll not only deliver on your customers’ demands and expectations, but exceed them.

Ultimately, the ability to delight your customers at every interaction is well within reach – and with it, the positive endorsements needed to capture consumer attention and position your brand as one that customers can trust.

With this in mind, this article will explore:

The Power of Customer Reviews

The power of customer reviews is increasing. Recent research from Brightpearl and Trustpilot shows that star ratings and reviews are important to shoppers as it gives them a voice and a compass to aid decision making.

Here are a few takeaways from the report:

In addition, Product Review Monitoring claims that “online reviews are the second most trusted source of information behind friends and family,” while 35% of shoppers told Podium that what motivates them most to leave a review is “to inform others about the customer experience”.

While once upon a time having a slick website was key to a great e-commerce experience and positive reviews, most shoppers’ expectations now stretch far beyond this. They expect superior experiences at every touchpoint – from same-next day delivery options to real-time shipping, hassle-free returns and fast response times.

If one of these areas fails, then they all do, potentially leading to frustrated shoppers and negative feedback. With this comes increased cost for your business as you strive to get a grip on poor feedback. The average merchant now spends $10k a year managing negative reviews.

This tangled web of negativity spirals out of control before – wham! – lost sales and a serious blow to your revenue forecast.

In fact, our recent study reveals that the difference in revenue between a 3-star and a 5-star rating can be as high as 33%. If you have $1 million in annual revenue, for example, you may be losing as much as $330,000 because of a negative reputation.

On the flip side, brands with a stellar five star review strategy are yards ahead of the competition – leading to increased conversion, retention and spend.

As an example, DIY specialist retailer, Mad4Tools.com has successfully built a passionate and vocal community around their products by investing in excellent experiences. As Paul Swain, Director of Mad4Tools.com, explains here, the business prides itself on an excellent end-to-end journey.

Displaying reviews has the power to increase your conversion rates by as much as 270%! [Source: Spiegel Research Center, 2017]

How To Get Customers To Leave Reviews

While negative reviews provide you with ample opportunity to show the speed, quality and genuine care of your customer service within your response, our research shows that just 6% of shoppers look at reviews that are over six months old.

This underlines the importance of focusing on building up a series of good customer reviews once a negative one has been posted. But how can you get more customer reviews – particularly positive ones? Here are five key ingredients.

1. Provide a superior shopping experience

First and foremost, your customers have been conditioned by big box retailers like Amazon to expect the very best from you – or you’re at risk of them leaving a less-than-glowing review.

To help combat this, you should invest in optimizing the complete end-to-end buying experience, not just how your website looks and operates.

At Brightpearl, we’ve put a lot of our own time and energy into building centralized retail operations software that has been designed with this very goal in mind.

2. Use a variety of review sites and plugins

There are a growing number of review sites – and you need to make sure you’ve claimed your company presence on each one that your shoppers are likely to use.

3. Ask for feedback at the right time

Loopy Loyalty claims a whopping 70% of customers are happy to leave a review when asked.

4. Incentivize your customers

Your customers’ time is valuable so you may need to provide them with an incentive to encourage them to leave a review.

5. Respond to every review

Your customers are going to be much more likely to leave a review – good or bad – if they feel like they’re being heard and respected for leaving their feedback.

The Customer Experience Gaps Causing Consumer Dissatisfaction

We looked at 29,080 1-3 star reviews left by consumers rating the service of e-commerce businesses. A whopping 77% of these less-than-stellar reviews were a result of typical operational failures, such as poor customer service, or negative experiences related to delivery, returns and refund policies.

Using Technology to Revolutionize Your CX and Generate Five Star Feedback

1. Improving Shipping and Delivery Speeds

Customers expecting items within 24 hours is now fast becoming the norm – with 61% willing to pay extra for the convenience that same day delivery brings.

2. Reducing Processing Costs

Efficient warehouse management is software that is designed and built to optimize the warehouse, distribution, supply chain and fulfillment processes within your business.

3. Faster Returns Processes

A fully functioning WMS also has the ability to improve your returns processes, making them miles more efficient and your warehouse less expensive to run.

4. Providing Hassle-Free Returns

Getting your returns processes fully under control means they’ll also be more likely to be hassle-free for your customers.

5. Excelling At Customer Service

In our view, a reliable CRM is paramount to knowing and understanding your customers thoroughly, as well as being able to provide them with a consistent experience regardless of who they speak to within your company.

Conclusion

Today’s online review culture can make or break your business. Get it right and you will reap the just rewards of increased conversion, retention and spend for your business. But get it wrong and you risk becoming trapped in a messy web of negativity and a poor online reputation.