Customer reviews are a crucial aspect of business, whether you like it or not. Some online sellers are wary of asking for reviews because they are afraid that the customer will leave a negative review. Customer reviews bridge the gap between the business and the consumers, and will greatly benefit you.
Feedback vs Customer Reviews: What’s the Difference?
Before we discuss the importance of customer reviews, let’s talk about how different they are from customer feedback.
Both feedback and reviews have an impact on the customer’s buying decision. Consumers cannot physically test the items so they turn to those who have bought the product.
Feedback is mostly about the seller, shipping, packaging, and the overall customer service experience. Feedback is all about the seller. In Amazon, feedback has an impact on the seller’s ability to win the Buy Box. Also, feedback is a factor whether a customer would want to buy from the same seller in the future. When an Amazon seller has low or negative feedback, it will negatively affect the seller’s Order Defect Rate (ODR), which is part of the seller’s account health performance matrix, and may lead to suspension. When a seller account is suspended, they lose their privileges to sell on Amazon.
On the other hand, customer reviews are about the product itself. Reviews have nothing to do with the seller’s performance or shipping but purely on the buyer’s experience with the product. In addition, customer reviews affect Amazon search rankings. Customer reviews are the main reason people would buy a certain product. Since consumers cannot test the physical product before buying, they look to others’ opinions and this affects their buying decision.
Benefits of Customer Reviews on Amazon
Now that you know the difference between feedback and customer reviews, here’s how they can benefit your business.
- Helps Understand Customers and Their Needs
Customer reviews give sellers an idea of what customers really want. Sellers can also tailor-fit and improve their products and services based on the customers’ experiences and reviews. Customers can be honest about the product because they remain anonymous. Therefore, customer reviews help sellers focus on consumer needs and wants.
- Establishes Credibility and Social Proof
Customer reviews strengthen a company’s credibility and increase product awareness. When a business has more positive reviews, it entices the consumers to purchase from you because they trust people who have experienced your product. On the other hand, don’t be afraid of negative reviews. Responding to negative reviews shows consumers your willingness to help, resolve problems, and offer solutions. Therefore, you add a personal touch to your business and show credibility. This not only leads you to improve your products and services, but is also a means of reaching out to your customers.
- Promotes Healthy Competition
Since buying decisions are mostly based on customer reviews, it encourages healthy competition amongst brands. For example, if one brand offers a discount but has 20 3 star-reviews, and another brand does not offer a discount but has 10 5-star reviews, which would the consumer choose? This strategy allows brands to become more competitive and creative when formulating a marketing plan.
- Encourages Customer Loyalty
When businesses reach out to customers for reviews, it helps them establish a relationship with your business. It also lets your customers have a voice because we value their opinions. Customer reviews empower your customers because it encourages them to interact with you. Thus, customer reviews also fosters customer loyalty.
- Helps Improve Rankings
When customers leave reviews on your website or on Amazon, traffic is directed towards your listing. Thus, customer reviews help business rank in terms of SEO, which includes ranking well in Google business.
- Consumer Marketing
Customer reviews on Amazon and on eCommerce websites is like a micro-marketing campaign that is continuous. “Word-of-mouth” is always the best tool because it gives an honest opinion of your products. When your products have a lot of positive reviews, it provides a positive image to would-be buyers and promotes continual brand awareness.
- Generates More Reviews
One review begets another. As more and more people write reviews about your product, your listing gains more visibility. Customer reviews grab more buyer attention which could lead to an increase in sales. In addition, your brand will also gain more visibility.
Customer reviews on Amazon or on any eCommerce site are an important part of a business. There may be negative reviews, but that should not deter us from offering exemplary customer service. Turn the negative experience into a positive one, and it will have a more positive impact on your customer. When that happens, most likely you will have a loyal customer.
Do not be afraid of having a few negative reviews, too. A too perfect review score may look less credible to some buyers. They may even think that the reviews are fake. Just make sure that you respond appropriately and professionally to negative reviews so your customers will appreciate your service and come back to you.
Do you need help in coming up with a plan for addressing negative reviews? Connect with us and we’ll be glad to help you out!
“Your most unhappy customers are your greatest source of learning.”— Bill Gates
Very helpful information!
I used to hate reading negative reviews. But when I had my chance to write a review for an item that I bought, I totally understood why they are important. Now, I see to it that all negative reviews of feedback are taken as an opportunity to make that person into a loyal customer.