Restaurants, Food, Appliances, Household products, Hotels, Automobile, Electronics, Apparel, Travel, Entertainment, Magazine/Newspaper and Financial Services companies among others have something in common: they are susceptible of receiving a customer review. We have heard a lot about them, but what’s the role of the customer reviews in the digital marketing arena?
According to a study conducted by BrightLocal in 2014, 88% of the internet users have read reviews before deciding a purchase (Between 3 and 10 reviews). More than 90% of users will select a product or service if it has a 4 star rating. Almost 90% of the users said that they trust online reviews as much as personal recommendations.
So let’s say that you have invested an important budget in an advertising campaign that drives traffic to your product page. If your latest reviews are lower than 4 stars, more than 88% of the users may abandon the purchase process. Let’s say you invested $1 per click for 200,000 users, that’s $200k. If the conversion rate is 10% (To simplify the equation) the acquisition cost will be $10. However when we ad “Bad reviews” in the equation, the acquisition cost may jump to more than $88.33.
An unsatisfied client expresses his disappointment in social media and customer reviews sites (TripAdvisor only has more than 200MM customer reviews). In both cases the brand can interact with the unsatisfied client and take action. Since they know the business impact of the reviews, they can take more seriously the importance of improving the product, service and customer attention.
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