Customer reviews help companies generate trust
and an image of authenticity
. Customers on the hunt for the right product or service often turn to independent customer reviews in order to make an informed purchase decision. After all, how can something be bad if other people think it's good? Multiple studies — including one by Tomorrow Focus
— have shown that online reviews hold considerable sway over the purchase decisions of consumers. Products and services backed by positive reviews sell over 200 times better than those without any customer feedback. This leads to considerable improvements in conversation rates
. Customer reviews, therefore, have a direct and demonstrable
effect on revenue
With improvements in revenue come boosts in online visibility, too. Aggregating your reviews and ratings from different platforms and displaying them on your organic Google search listing (Google star rating) is an effective way to quickly communicate your customer satisfaction levels and generate trust in potential customers.
Similarly, improving your Google ranking enables you to drive more clicks and improve your lead conversion rate
. Google recognizes customer feedback as unique, user-generated content and accordingly gives it a higher ranking.
But customer reviews aren't merely useful in terms of lead generation and increasing revenue — they also have a positive impact on a company's quality management
and quality assurance. Critical feedback helps businesses identify their strengths and weaknesses, optimize products and services, and better understand the needs of their customers. The logistics company DHL is a good example of this. Several years ago, the company introduced its Track & Trace express service, which makes it possible to register and track packages and shipments electronically, allowing customers to find out exactly where their express packages are and when they're expected to arrive. The service was introduced following customer complaints about packages not arriving in accordance with the reported delivery date and time. This example shows how effective complaint management can turn customer feedback into improved products and services.