Customer reviews: definition, challenges and impact for a company

Customer feedback is a very important aspect in a company. According to IFOP 2020, in France more than 87% read the opinions of former customers before placing an order. No matter what area you work in, it’s imperative to have feedback from your customer. To do this, you can put in place strategies to collect it. Some do it in number of stars, others in comments or even rating. Definition, issues and impact, you will learn about it all in this article.

Definition

Before defining what a customer review is, it is imperative to differentiate between prospect and customer. These two terms are widely used in companies, but they are two different people. The prospect is a potential customer. This is a person who would be potentially interested in a product or service. On the other hand, the customer is a person who buys the products or services of a company. The customer therefore has a past with the company.

A customer review is therefore feedback left by a customer to a company. This can be in the form of:

• a note
• a comment
• stars
• points

The feedback left by the customer comes from an experience with the company. Even if the dream was to have a positive customer review, this is not always the case. Whether it is negative or not, it is important for a company. The customer’s return can concern a product, a service or even a specific point of sale. It’s not just about talking about what the company sells. Their opinion may relate to corporate culture , for example. When a consumer shares their opinion, it is called a customer review.

Nowadays, customer feedback is not only a management policy, but it is a decision-making lever in a company. The scope of a comment on the web is limitless. It is therefore necessary to take care of the image of the company to avoid linking it to certain scandals. The e-reputation for a company depends on the opinion of its customers.

In addition, the form of a customer review may vary. There are two main ones.

Spontaneous customer reviews

These are the sets of opinions spontaneously filed by the customer. For example, on trusted platforms for employee reviews, you will find spontaneous opinions. These customers come by their own will to rate a service and leave their opinion on a service or product. These reviews are mostly disseminated on social networks or on customer review platforms. Most often, these opinions come from a communication strategy of the company. For example, if it is a question of working on e-reputation or on an aspect of the company, these opinions can be very effective.

Requested customer reviews

If it is not spontaneous, it is then requested. A requested customer opinion is simply a request made by a company to its customer. Generally, a customer satisfaction survey is required. Once this is done, the company can post this notice on its site. However, this should be discussed with the client beforehand.

Finally, for companies, the challenge remains the same. Be able to highlight positive customer reviews. The more people think and say good things about a company, the better off its economic health.

Issues

The stakes are high here. A customer review is a revolution for both businesses and consumers. For a very long time, the consumer path has been relegated to the background. With these reviews and the notoriety of the web, it is easier to make known what you think. In this case, the stakes are all the more crucial for companies. It is imperative that the consumer becomes the priority. Satisfy them at all costs to avoid negative reviews.

In addition, whether the opinions are requested or spontaneous, the company must receive as much positive reviews as possible. This will be a determining factor in its finances. Positive customer reviews have the potential to influence both:

• notoriety;
• credibility;
• corporate finance.

According to TrustPilot’s 2018 statistics, consumers spend 31% more in the presence of positive customer reviews. This is a real opportunity for companies. However, there is not a filtering option on the company’s website. Having positive reviews on your site can be synonymous with consumer fraud and disengagement. 68% of consumers are more confident when they discover both positive and negative reviews of a product. It is therefore necessary to find a good strategy to strengthen the credibility of the brand or company.

Finally, remember that a customer review is not inevitable. Quite the contrary! However, it will have to be used to your advantage, because it can become a nightmare. The importance of customer reviews is no longer to be demonstrated. Here are 7 issues to know to take advantage of it.

Improve your service

Customer feedback is perceived as a real burden for companies. However, it is possible to use it to your advantage. A deep analysis of these reviews allows you to better know and understand your customer. Each return is therefore a way to learn more about a customer. It is for this reason that you should never influence the customer’s opinion. You can use customer reviews to enrich your customer database. By analyzing a negative comment from a customer for example, you will be able to know their intention and what they like. You can also share the collected dataset internally.

Reinsurance

The customer review is a way to create some reassurance in the customer. In this way, they are confident of the product they are buying. In case of non-satisfaction with the service, they know that their voice will be heard by all. A company without a customer review can be a very heavy factor. Nowadays, consumers or customers read these reviews to be able to buy a product or opt for a service.

SEO

Search Engine Optimization or natural optimization method is used to rank a site in search engines. In the case of Google, this SEO can be local or not. For a successful business, it is imperative to be able to rank well in search engine results. Customer reviews contribute to this. To have the desired effects, it is therefore necessary to integrate web reviews on a My Google business page.

E-reputation

For a company, it is important to work on its online presence. It’s not just about advertising campaigns or SEO. It is also necessary to disseminate customer feedback on these networks. Not only does the customer feel valued, but it helps to establish a good reputation for the company.

Continuous improvement

In a company, the decisive factor is improvement. Without this, it is impossible for the company to continue to impact. Customer reviews are therefore a boon for companies. Indeed, these opinions make it possible to identify the reasons for customer satisfaction or dissatisfaction. This data will allow you to improve your service or product. It is a way that allows companies to innovate and always meet the needs of customers. In a negative comment, beyond frustration and discontent hides a new avenue for improvement. It will therefore be necessary to analyze them carefully.

Help customer service

The after-sales service allows you to get in touch with the customer once the purchase has been made. Customer feedback will allow this team to better calibrate their responses. Each customer review reduces the so-called “level 1” requests.

Increase conversion rate

According to a study by BazaarVoice, the conversion rate increases by 10% from the first review of a product. The same study leads to a 30% increase from 50 reviews on a product. It is therefore important to leave customer reviews on the company’s website. By leaving reviews about a product, the company benefits from it.

Impact

The impact of customer reviews on the company is very important. Not only is this opinion a decision-making factor, but it is a guarantee for the consumer. In case of dissatisfaction, the consumer with the help of a comment or a review can let the world know what they think. However, in case of satisfaction, the consumer will be able to make it known and thus allow the company to benefit from a positive comment. The impact of customer reviews is therefore considerable for a company.

Figures and statistics

Customer reviews are not just for consumers. It makes it possible to achieve employer brand objectives for example. The figures are in favor of the companies that implement it. These reviews reassure the customer. According to an IFOP survey, 88% of consumers consult online reviews before taking action. This study shows to what extent customer reviews are a decision-making lever for the customer.

Indeed, during a traditional purchase, the customer can see, touch and appreciate the product. Once online, they no longer have that privilege. They are then forced to read the reviews, to inquire about the opinion of other consumers. It is therefore undeniable for any company. Whether it is a business selling a service or goods. This idea is transcribed in Jeff Bezos’ famous quote “We don’t make money selling books, but by helping customers make purchasing decisions… ». In order to minimize the risk of error, the user will make these choices based on the reviews taking into account very specific details such as:

• the quality/price ratio;
• notoriety;
• delivery times and
• the warranty.

This list is not exhaustive. These details may vary from client to client. It is therefore important that the company has rich and varied customer reviews. In these cases, ratings and stars remain an additional source of information for the user. These ratings make it possible to compare brands with each other and to gauge them. They are sometimes synonymous with reliability in the eyes of the user.

Finally, according to Dimensional research, 90% of consumers who viewed online customer reviews before making an online purchase say that positive reviews influenced their decision compared to 88% of negative reviews. The user is therefore more responsive and the company makes sales.

Positive impacts

A positive customer review is much better for the company. According to a study by Trustpilot, half of consumers believe that the final score is the most decisive factor for buying. The more positive reviews you receive about a product, the higher the rating will be. The direct consequence of this is an increase in turnover. However, by receiving positive reviews about a product, “electronic word-of-mouth” is more likely to work. This strategy allows the company to spend less on advertising budget. While decreasing the advertising budget of the sale, you increase your turnover and save money at the same time.

A positive review of a product can allow the company to make more sales. It is therefore an indispensable tool for the company. It is in this same way that it remains important for search engines for example. The more positive reviews you receive about your product, the better off your SEO will be. Here are some criteria that the American giant Google uses to position a product:

• the number of reviews;
• the average score of reviews;
• the number of platforms mentioning reviews, and
• the reliability of the sites that host the reviews.

These criteria are specific to this search engine (Google). However, it will be necessary to call on an expert to better work on your SEO. When you go to a company’s employee review platform , it is important to be able to read more positive than negative reviews.

Negative impacts

Whether the customer opinion is positive or not, the company must highlight it. However, if a positive review is more likely to boost a company’s sales, be aware that this is not always the case for a negative review.

Indeed, a negative opinion is sometimes a cataclysm for the company. The more negative the review, the lower the rating, the less customers will buy your products. The information from the analysis of customer reviews will have to be transferred to the after-sales service to improve the quality of the service. Remember that negative reviews are much more important in the eyes of the user or consumer. It is an element that plays a counter-argument to the brand.

Of course, you must avoid having too many on your site, but you must not ignore it. A site without a negative review is already psychologically not good for the consumer. It doesn’t encourage anyone to take an interest in you. This is a sign of deception among brands.