Customer Reviews can Increase Your Online Sales or Affiliate Conversions

money-myths.jpgI have the habit of googling for information about a certain product before I decide on buying it, especially if its expensive or new. For example, if I’m buying electronics I’ll usually visit websites like Amazon.com or Circuit City.

Why? Because the user reviews there give me more details on the actual product’s design or usability. I like to have as much information as possible before paying for an expensive camera.

And it looks like I’m not the only one. A recent social commerce report on online retailers shows that the use of customer reviews will increase the overall sales for your website.

Asked about the effects of customer ratings on their Web sites, over half of online retailers in the United Kingdom, the United States and Europe said their overall conversion rates had gone up in the past year, compared with only 9% who said they fell.

Over three-quarters said their site traffic had increased. Only 5% said it had fallen. Average order values rose for 42% of the responding online retailers, and only 6% said they had decreased.

And that’s not the only benefit of user reviews, it seems. The online retailers surveyed have suggested that user reviews provide other advantages, such as improved customer retention/loyalty as well as better search engine optimization.

The report also suggests that search engines are the largely the first source used by customers when researching a product, with the official company site coming in second.

Social Commerce Report (by Dosh Dosh)

Customer Reviews Build Transparency and Trust

I’m in favor of user-generated customer reviews and I think they should be added to all online retailers in some way. Customer reviews show that you accept objective opinions of your products from the people that matter the most: your target market.

Even better if you indicate that all feedback will be taken into account and used to improve future products. Acknowledging your customer’s contribution to your brand demonstrates humility and concern for their needs.

Customer Reviews can also be considered as elements of social proof which show that a demographic is actively interested in your brand and product.

Improved customer retention and loyalty? You bet.

Blogs and User Generated Content/Reviews

Communities are built when you allow users to interact with your business or website through user submitted comments, articles and reviews.

Blogs are a content management system that is remarkably community-orientated. Customer reviews and testimonials are already built-in to the overall framework through the natural comments left by site visitors.

This is perfect for product reviews or affiliate recommendations because you’ll tend to get visitors sharing their thoughts about the same product or website. This makes the product buzzy and interesting, while possibly increasing your direct or affiliate conversion rate.

I’ve also noticed that some posts on Dosh Dosh rank on search engines because of specific keywords left in comments as well, which is another reason why I think having comments on blogs is very useful indeed.

Try using customer and user reviews if you are running an eCommerce setup.. you just might see improved sales and traffic.

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8 Comments - Share Your Thoughts
  • Good post. Getting ranked for reviews is somewhat difficult since it’s been a lucrative niche for sometime. You are really competing with some big names out there

  • Agreed nice post, good job bringing in 3rd party information to validate your point.

    I also think we will continue to see the use of 3rd party validation sites like alaTest, that have large databases of products and reviews that can provide validation to shoppers on a commerce site.

  • Good post. I visit consumer review sites when I’m planning purchases of anything that is expensive.

    Adding customer reviews to an ecommerce site is pretty easy for any decent programmer (which I’m not).

    In a crude way, comments on a blog post about an affilaite program can also be considered “customer” or “user” review. But they do work.

    Don

  • Very Nice post.. A perfect example would be Amazon..

  • Agree, I also search for reviews if I want to buy somthing, especially is it’s expensive like electronics. So now i’m trying to give much real review as much as possible like things that I have owned recently. Sharing reviews would be great

  • It is still buyer beware because marketers have tuned in and post false reviews online. Many times they are easy to spot because they use basic language in their posts or attempt to reverse negative statements made by others. Word of mouth still is best. Someone you have a relationship with online or off, will always be the best resource.

  • Where was this poll result taken from?
    Asked about the effects of customer ratings on their Web sites, over half of online retailers in the United Kingdom, the United States and Europe said their overall conversion rates had gone up in the past year, compared with only 9% who said they fell.

    Over three-quarters said their site traffic had increased. Only 5% said it had fallen. Average order values rose for 42% of the responding online retailers, and only 6% said they had decreased.

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