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Customer Product Reviews: Key to Driving Satisfaction, Loyalty and Conversion By: Larry Freed, President and CEO, ForeSee Results In a retail store, advice on products and brand is never more than an aisle or department away. Associates are available to share their expert opinions, answer questions and help customers decide which products meet their needs. Even other customers sometimes chime in and share their viewpoints and perspectives on the merchandise. Until recently, this part of the shopping experience was missing from online retail. But, not anymore. With the increasing popularity of customer reviews, another in-store feature has been successfully replicated online. Many retail sites are taking advantage of the transparency of the web to enable customers to post opinions about products on their websites for others to read. Retail sites that offer customer product reviews currently have a competitive advantage, while sites that don't are missing an opportunity to drive satisfaction and loyalty, according to the results of the Top 40 Online Retail Satisfaction Index. This bi-annual research analyzed data collected during the holiday season from visitors to the top 40 retail sites by sales volume (as defined by Internet Retailer) using the proven methodology of the University of Michigan's American Customer Satisfaction Index (ACSI). Key Findings: . Almost half (49%) of online holiday shoppers that bought a product recalled seeing online customer product reviews . Customer product reviews drive satisfaction and loyalty and provide a competitive advantage for sites that offer them . Customer product reviews are a powerful influencer of the purchase decision for the critical group of first-time buyers
. Internet pure plays lead adoption of customer product reviews, providing a competitive advantage online over multi-channel merchants Customer Product Reviews Increase Satisfaction and Loyalty In our research, 49% of people who bought from one of the top 40 sites in the two weeks prior to the holidays remembered seeing customer product reviews. This group's satisfaction with the online shopping experience was 5% higher than for shoppers that didn't recall customer reviews. More importantly, the availability of customer product reviews drives loyalty. The table below shows how future behaviors tied to loyalty differ for shoppers that reported visiting sites with customer product reviews versus those without. Customer No Customer % Difference Product Reviews Product Reviews Available Satisfaction with 84 80 5% Website Satisfaction with 86 82 5% Retailer Image of Retailer 88 84 5% Likelihood to 85 80 6% Recommend Likelihood to 88 84 5% Purchase Online Likelihood to 86 82 5% Purchase Next Holiday Season Likelihood to 86 83 4% Purchase Next Time Scores are on a 100-point scale.
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. Customer product reviews benefit the retail organization as a whole. Customers on sites with reviews are 5% more satisfied with the retailer as a whole (not only the web experience) and their image of the retailer is 5% higher than customers on sites without customer product reviews. . Customer product reviews have a viral effect, leading to positive word of mouth recommendations. Shoppers that visited sites with customer product reviews are 6% more likely to recommend the site than shoppers that went to sites without this feature. . Customer product reviews impact the bottom line. Shoppers on sites with customer product reviews were 5% more likely to buy online, 5% more likely to buy from the retailer next holiday season and 4% more likely to purchase from the retailer the next time they are in the market for similar merchandise. Customer Product Reviews Drive Conversions Customer product reviews not only drive satisfaction and loyalty, they also directly influence the purchase decision. Our research showed that: . Of holiday shoppers that bought from sites with reviews, 39% cited the customer product review as the primary factor that influenced the purchase. . This group's satisfaction score is 21% above the average score of all survey respondents (score of 91 vs. 75). Higher satisfaction leads to loyalty, and purchasers citing reviews as the primary purchase influencer are significantly more likely to purchase from the retailer the next time they buy similar merchandise (score of 92 vs. 74). Customer product reviews are al... [download for more]
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