If you’re a regular reader here you know that I get on specific tangents (remember daily deals, data and analytics, tablets versus smartphone for shopping, anything mobile, research, etc.). My latest obsession is with reviews – specifically the power of reviews.
And by reviews I don’t just mean formal, independent, objective reviews. Sometimes, a review is simply a social networking “friend” giving a recommendation for a product or service and sharing their opinion.
Well, it looks like a new survey from The Society For New Communications Research also found that reviews and shared opinions on social media are a major influence on purchases.
According to the report, a company is no longer defined by what they “report” or what they “say” they stand for. Instead, they are increasingly defined by the shared opinions and experiences of socially-connected consumers.
The report states that as a society we are now in a “so what”, “show me” or “can I trust what you say” business, political and social economy, says the report.
How Consumers Form Impressions of Companies (% of Respondents)
Important Factors
Very Important
Mildly Important
Quality of products/services
80%
17%
Cost of products/services
55
37
Customer care program
37
41
Friend, family, other trusted people
34
42
Customer reviews/ratings on social media
30
43
Social conscience
19
38
Rewards program
18
42
Years company in business
15
39
Media reports
13
43
Company ads
10
33
Social media presence
7
21
Source: Society For New Communications Research, September 2014
Gender plays a big role when it comes to reviews. Women are two times more likely to turn to social channels to inform their decisions about purchases than men (31 percent vs. 15 percent).
In the absence of personal recommendations, buyers frequently go online to inform their decisions. 71 percent of respondents regularly read social media sites as part of their information gathering routine; 76 percent consider what their friends, family or other trusted information sources say about a company when they are forming an opinion about a company.
Once a company earns a consumer’s loyalty, the typical factors a consumer uses to make purchase decisions becomes less scrutinized because the customer trusts the company to serve them well. Quality and price (75 percent vs. 72 percent) rate as the most important factors when choosing to buy from a company followed by trust (50 percent), positive ratings online (43 percent) and personal recommendations by family and friends (42 percent).
Product or service experience (positive or negative) is two times more likely to be shared than news of a company’s social impact (positive or negative). News of the negative societal impact of a company has greater impact on women (13 percent more than men).
Frequency Of Reading Ratings Or Opinions About Companies/Products/ Services On Online Social Media Forums
Frequency Read
% of Respondents
More than once per week
11%
About once per week
13%
A couple of times per month
27%
About once per month
18%
A few times per year
18%
One or two times per year
8%
Never
7%
Source: Society For New Communications Research, September 2014
Especially interesting were responses to the question “when deciding whether you will purchase products or services from a company that you have not used before,” 66 percent (the top response) report that online sites where ratings and commentary from other consumers are posted were their 1st or 2nd source of information. This factor was weighted more heavily than friends or family recommendations.
So there is no doubt that reviews and sharing those opinion within social networking circles and online are key. As an agency, we recognize that power and are putting in place new tools and services that help our clients find innovative ways to encourage and generate real reviews. And we our clients are getting on board. They understand that it’s no longer what they tell customers, but rather what other customers have to say that really matters.