October 23, 2007

Biznology Blog by Mike Moran

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Online Reviews Mean Sales

Earlier this year, I asked whether manufacturers would post product reviews. Many retailers are doing it, of course, but too many manufacturers think allowing their customers to review their products is "risky"—there's that word again. So, does the risk outweight the reward?

Yet another study came out yesterday with a resounding, "no."

Deloitte's Consumer Products group says that 62% of consumers refer to online product reviews and 80% of them say they influence their purchases. (I think the ither 20% are in denial—I can't see how you can read anything that has no affect on your decision, even if it just confirms what you thought you knew.)

Every time a new study come out, it's confirming that ratings and reviews are a key persuader. Have some bad reviews mixed in? Conversions are higher, probably because your customers believe the reviews are honest. Not sure that the effect will be positive? I've never talked to a company where conversions went down after adding reviews.

Your customers are seeking out this information, Why not keep them on your site to get it?

Posted by mikemoran at October 23, 2007 6:50 AM