Customer reviews are most significant for travel, hospitality and consumer electronics.
The ability to directly compare different products is making more consumers now look at product ratings over brand value. A study by Simon-Kucher says 71% of people felt ratings were very important, with the urban young most inclined to use ratings as a deciding factor.
Ratings are the third most important factor when making purchasing decisions with only product specifications and price ranked more important. While rating products is more popular in some industries than in others, 33% of those surveyed regularly rate after a purchase and 76% of the said had placed a rating before at least once.
Managing partner UK at Simon-Kucher, Mark Billige said “The power of ratings to influence customer behaviour is only going to grow further with time and across more sectors.” Amazon, eBay, Uber and other brands have used their rating systems to build customer trust and satisfaction with minimal marketing spend.
[3 minute read]