MARKETING: Customer Reviews — a Blessing or a Curse?

Communicating to key consumers and gaining their trust and loyalty can be a tough game. Traditionally, messages in this venue have been a one-way street with the brand pitching why their product is wonderful. In our “always on” and “information demand” world of today, a one-way street may not be enough. As a recent Adweek article notes, consumers want more details before they make a purchase and are open to look to their peers for insight.

However, this process can be made even trickier if the brand opens this communication to a two-way street by offering customers a chance to post product reviews online. The flipside in this equation, though, is that open consumer interaction can increase sales, satisfaction and loyalty.

Allowing consumers to express their concerns or praise for a product, consumers feel more engaged and connected. Also, prospective customers want to know what their peers think. For the second year in a row, a 2007 survey, noted that over half of the people in the U.S. said they trust peers – or a person like me – f or information more than experts or doctors. A separate 2007 survey showed that 40% of shoppers who purchase from a site with reviews made that purchase because of the reviews. It has also been shown that reviews enable consumers to purchase a higher end product because of concerns with a lower-level product.

As with any form of marketing and advertising, taking advantage of a good thing can be tricky. If brands over manage reviews and only allow positive or glowing posts, consumers will not fully trust the reviews and will search out dirt elsewhere. So, it is beneficial to let consumers see the bad with the good. Also, these review are a good way for brands to address product issues – a wise brand will contact the consumer and offer resolution and help. Brands should also funnel negative reviews to product managers so they may address issues in design or manufacturing.

Harnessing consumer reviews can be incredibly beneficial and offer increased sales and loyalty and improved products. This element can be considered an evolution in Word of Mouth or peer-to-peer marketing, which is incredibly powerful. But, with all things in business, it takes care and trust to allow it to work just right.

Source: Adweek, NOISE
By: Al Krueger, Director of PR, NOISE Branding