A person reviews a product and recommends it to their network of friends. The dollar value for that recommendation is tied to each sale generated within that network. A blogger reviews a product, the review introduces the product to an audience and sales are generated from that recommendation. Never underestimate the power of a review and what it can do for your business. There are numerous ways a review can help in growing your business. Here are five convenient ways customer reviews can add value to your business.
Discover Customers’ Needs and Wants
Brands can get a glimpse into the customer’s experience with a product by following their reviews. Many revealing problems with the product and learning challenges can be gleaned from insight on the customer experience. If a business plans to build additional, similar products or expand existing product lines, they can learn from the invaluable feedback of customers.
Keeping the customer experience in mind during product development adds value to the products you offer clients. For example, the home security company Vivint has learned to improve its products and services based on the reviews of its customers. Using Vivint reviews and customer feedback, the company grew from a home security provider into a home automation company offering solar power and wireless internet.
Promote Transparency and Trust
Reviews can be used to promote transparency for a brand. Your business can utilize the feedback supplied by customers to demonstrate transparency. This means that the business can publish their findings about a given product, negative or positive, on their website. Negative feedback can build trust in the mind of the consumer, but it’s best to show off your positive reviews on your website. Make the reviews visible to your customers. E-commerce giant Amazon is a great example of utilizing reviews of their products to increase their customers’ trust in their products.
Reviews can make it easier for your brand to be recognized as trustworthy in the minds of potential consumers. Companies can take it a step further, and demonstrate that there are listening to the feedback by commenting on changes made to address the concerns.
Improve Your Current Products
Customer reviews can be used to create better, or improved versions of an existing product. The reviews can increase the success of a product line and open doors for the introduction of new products. The reviews can provide the business with the insight required to maintain a competitive advantage with their peers.
One of the best examples of how responding to customer complaints can improve your current product is Domino’s Pizza. Once touted as “cardboard” pizza with a “ketchup” sauce, Domino’s rebranded and improved their recipe based on what customers wanted.
Increase Perceived Value of Product
Rave reviews can improve the perceived value of a product. A product review that discusses how the item improved the lives of customers can be leveraged to sell to consumers the utility of that product. The right reviews can make it easier to demonstrate value in advertising and marketing efforts. Companies can use the reviews alongside market research to determine pricing and maximize profit for a good sold. The reviews can be leveraged across social platforms and marketing channels.
Reviews from customers provide opportunities for improvement. They can increase sales for a product and help sell the value of the product to the point where it easier to tweak marketing efforts. Reviews can be beneficial to increasing the price of a product, improving an existing product, or reintroducing the product to a different marketplace. Transparent customer reviews can build trust in consumers. Customer reviews can even help the businesses market across multiple channels.