I like trying new places and, let’s be honest, it’s quite fun doing the research and looking at different destinations, hotels, and restaurants. For most of the weekend, I was on various online websites assessing feedback, reading reviews and honing my options accordingly.
Now, I know I work for a business that provides online reviews solely for the financial services sector, but it’s clear they shape our buying decisions across almost all parts of our lives. In fact, our research shows that 84 per cent of customers trust reviews from other customers*. Therefore, in this article, I’ll give four key reasons why online reviews matter.
Influencing purchasing decisions
Most customers read reviews before making a purchase or using a service. And our research found that 69 per cent of customers are likely to change their mind after reading reviews*. I know I did with one particular hotel this weekend. This demonstrates the importance of reviews and having a strong online reputation.
Providing valuable feedback
Online reviews give companies feedback from customers. Positive reviews show what they’re doing well, while negative reviews show areas for improvement. This feedback helps them to make changes and improve products, services and customer experience.
Building brand awareness
Online reviews can help companies become more well-known, boost visibility and attract new customers. When customers leave reviews on platforms like Smart Money People, they showcase the company to others. Responding to reviews also helps companies improve their image and build stronger customer relationships.
Addressing customer concerns
When a customer leaves a negative review, it’s essential for companies to respond quickly. This shows that they value their customers and want to learn and get better. Companies can improve their service and increase customer loyalty by addressing negative reviews and resolving issues. At Smart Money People, for example, we notify companies when a customer leaves a review, so they can respond quickly.
From building trust and credibility to influencing purchase decisions and providing valuable feedback, the importance of reviews is clear to see. Companies should manage and respond to reviews, positive and negative, to maintain a strong online reputation and attract and retain customers.
*Smart Money People research, 2022
