Why Customer Reviews Matter

87% of people read reviews when considering a purchase and 79% trust them as much as they would a personal recommendation (Forbes). As we know here at Locomotive, people trust real people when it comes to advertisements and brand recommendations. It’s part of the reason we truly believe in what our company does. But do customer reviews actually correlate to increase or decreased revenue? Do the reviews actually impact the business coming in? The answer is yes, most definitely! Actually, according to a study conducted on hotel sales impacted by online customer reviews in the International Journal of Hospitality Management, there is a “significant relationship between online consumer reviews and business performance of hotels.” This is not really surprising. We all do it. Let’s say that we want to buy something online. So, what is the first thing that we do? We look at the products online reviews to see what others are saying about it. Then we weigh out our options by searching that same product from their competitors. This helps us get a clear picture of what we’re buying before we buy it when we can’t touch or see it in real life. “66% of consumers consider positive reviews to be an important factor in their purchase decision” (SOCi). It makes sense. Word of mouth is one of the most powerful factors in driving business growth. Online reviews are just the digital version of this and it has even been dubbed eWOM, standing for “electronic word of mouth” now. Furthermore, a Hard University Study found that, “a one-star increase in a restaurant’s Yelp rating led to a 9% increase in revenue.” Seems that the numbers cannot be ignored. Customer reviews do affect a business and do matter. It’s important that this is not be ignored and feedback from your audience must be addressed in order to keep a positive light on your brand.

The Importance of Customer Satisfaction

Customer satisfaction is the measurement of how well a business’s products or services meet their customer’s expectations. I mean, we all know this. We have our favorite brands that we buy from and we know the reasons why. We have all also been in a place where we have decided to stop buying from a business. Statistics show that 59% of customers will leave a company after several poor experiences and 17% after just one according to PwC. I know I have done this and you’re probably saying to yourself right now that you have too. The top reasons for customer dissatisfaction are quality issues, pricing problems, poor customer service, failure to meet implied expectations and usability complications. Don’t be that person. Listen to your customer’s wants and needs. It’s much easier to keep a client than acquire a new one and it’s actually costlier. According to Survicate, it can be 5-25x’s more expensive than retaining an existing one. Exceptional customer service will also lead to new customers through word of mouth. So, what makes great customer service stand out from just good customer service? Well, it’s going that extra mile to make sure that each customer’s experience is positive by going the extra mile. Going above and beyond expectations. Here are a couple of ways to ensure that your company has stand out, customer driven service.

1.     Offer omnichannel customer service avenues. This will offer options for everyone. Offer phone, text, email and live online web chats. Everyone has a different preference when it comes to contact so be prepared for that.

2.     Be timely. No one likes to sit on hold for a half hour! Ensure that your customer service is prompt! 66% of people think that valuing their time is the most important thing in any online customer experience (Help Scout.) Resolve issues as quickly as possible but make sure not to rush through. Quality over speed every time for the more complex problems. 

3.     Don’t be pushy. No one likes a pushy salesman. Help customers help themselves by not shoving products down their throats. Offer help but don’t be overly aggressive.

4.     Personalize and be consistent. People like to feel like their experience is being tailored to their own needs. For example, know your customer’s names. I know that I personally love it when I repeatedly go to a business and they say hello calling me by name. I’ve actually recently stopped doing business somewhere because the owner acted like she doesn’t know me when I’m there every single week and we had personally had introductions at some point early on in the business relationship. Rude!

5.     Be positive and know how to problem solve. A positive attitude is one of the most important aspects of the customer experience overall. Smile, say hello, know what to do when there is a problem and how to go about solving it. Be creative in the process. Be flexible with your customers. Relationships are a give and take from both sides. They choose to do business with you. Respect that and make sure that they know you appreciate that!

Understanding ways to provide great customers service are vital to the success of a business. A business will thrive with the skills to provide this to their customers. Of course, this is not the only thing necessary for an accomplished business but it by far one of the most important in retaining your audience and growing it.