Why Online Customer Reviews Are the Ultimate Salesperson for eCommerce

ByDanica Djokic
October 04,2022

Word of mouth has always been the most powerful form of marketing. It is human nature to trust the recommendation of a friend or family member over any other type of advertising: It’s honest, it’s personal, and it’s reliable.

But what if you could get that same level of personal recommendation from a complete stranger? That’s the power of online customer reviews.

In the article you’re about to read, we’ll discuss why online customer reviews are the ultimate salesperson for eCommerce businesses and how you can make the most of them.

What Are Online Customer Reviews?

At its simplest, a customer’s online review is a written testimonial about a product or service purchased and used by an actual customer. These reviews can be left on the website of the business in question, on a third-party review site, or even on social media platforms.

There are two main types of online customer reviews that businesses should be aware of:

1. Ratings and Reviews

These are the most common eCommerce product reviews, and they usually take the form of a star rating (from one to five stars, for example) along with a written comment. Customers will often be asked to rate their overall experience and specific aspects of the product or service they purchased.

2. Testimonials

Testimonials are similar to ratings and reviews but tend to be more extensive. They also usually include the customer’s full name, location, and headshot. Many businesses will showcase testimonials prominently on their websites.

We can also differentiate between private and public reviews.

  • Private Reviews

Clients review a product or service and share their reviews directly with the business through email, phone calls, or direct messages.

  • Public Reviews

Public reviews are those that anyone can see; they are left on a website or third-party review platform.

Public reviews are more important for businesses because they are more likely to be seen by potential customers and impact their purchase decisions.

How Customer Reviews Affect Businesses

Both positive and negative reviews customers post online can have a major impact on your business. If you’re still wondering why online customer reviews are the ultimate salesperson for eCommerce, note that statistics show that 89% of B2B buyers search online for product or service reviews and photos before making a purchase decision.

The impact of customer reviews is evident in both the short and long term. 

  • In the short term, they can help (or hurt) your business by influencing the purchase decisions of potential customers looking actively for information about your products or services.
  • In the long term, customer reviews can also help you improve your business by giving you insights into the areas where you need to make changes or improvements.

Of course, the effect of online seller reviews is not always positive. Businesses have been known to crumble due to negative reviews, especially when such reviews go viral. This is why it’s so crucial for companies to manage their online reputation.

What Can Positive Customer Reviews Do For Your Business?

Positive and authentic customer reviews can have many benefits for your business. Here are just a few examples:

1. They Can Increase Sales and Conversions

This is probably the most obvious benefit of positive customer reviews. If potential customers see that others have had a good experience with your product or service, they’re more likely to purchase it themselves. Higher conversion rates mean more sales and more revenue for your business.

2. They Can Help You Attract New Customers

In addition to increasing sales and conversions, positive eCommerce reviews can also help you attract new customers. After all, potential customers are more likely to trust a business recommended by someone they know and trust. This powerful marketing tool is called “social proof.”

With real customers’ words and sentiments about your product or service, your marketing campaigns will be more effective, and your advertising budget will go further.

3. They Can Improve Your Search Engine Ranking

In recent years, Google has increasingly used customer reviews as a ranking factor in its search algorithms. Businesses with positive reviews of their online stores are more likely to appear higher up in search results, which can lead to even more sales and conversions. The SEO factor is becoming increasingly important for most top-rated e-commerce platforms.

4. They Can Build Trust and Credibility

Positive online reviews can help build trust and credibility for your business. After all, if customers are willing to leave positive reviews, they must be pretty happy with your product or service. 

This can encourage potential customers who are on the fence about your business to give you a try. Finally, potential customers are more likely to trust a business recommended by someone they know and trust.

5. They Can Improve Customer Retention

Positive online business reviews can also help to improve customer retention. If customers are happy with your product or service, they’re more likely to stick around and continue doing business with you. This is especially important for businesses that rely on repeat customers or subscriptions.

How To Get Authentic Positive Reviews - Our Tips

There’s a common misconception that happy customers will automatically leave positive reviews and unhappy customers will bad-mouth your business to anyone who will listen.

This is not always the case.

In fact, getting positive customer reviews requires an active effort. You need to reach out to your customers and ask them for feedback. Luckily, there are a few ways you can do this and improve your online reviews section:

1. Send a Follow-Up Email

After a customer has made a purchase, send them a follow-up email and ask them to leave a review of their experience. This is a great way to get honest feedback about your product or service. You can include a link to the comment box or a star-rating system in your email, attach a short survey, or even ask for video testimonials.

2. Use a Pop-Up or Sidebar Widget

Another way to encourage customers to leave reviews is to use a pop-up or sidebar widget on your website. These widgets can be triggered after a customer has made a purchase or spent a certain amount of time on your site. This makes leaving a comment more convenient for customers, encouraging them to do so.

3. Get Social Media Reviews

Online businesses’ reviews can be solicited via social media platforms. You can post about your product or service on your company’s social media page and ask customers to leave their thoughts in the comments. You can also run social media ads that link to review pages or use hashtags to encourage customers to post about their experiences.

4. Leverage User-Generated Content

Another way to get positive customer reviews is to leverage user-generated content to resonate with your target audience. UGC is any content created by customers, such as product photos, videos, or reviews. Once you create your eCommerce website and add UGC, you can use it for your social media pages or marketing campaigns.

5. Incentivize Customers To Leave Reviews

One of the best ways to get online reviews for your business is to offer an incentive. This could be a discount code, a free product, or entry into a contest. Customers are more likely to take the time to leave a review if they know they’ll get something in return.

How To Deal with Bad Reviews

No company is perfect, and even the best businesses will get the occasional negative review. The important thing is how you deal with those bad reviews. Companies need to consult online reviews daily and take the good with the bad.

When you see a negative eCommerce review, don’t panic. Take a deep breath and remember that not every customer will be happy 100% of the time. Here are a few tips for dealing with negative reviews:

  • Respond to All Reviews, Good and Bad

It’s important to respond to all customer reviews, both positive and negative. This shows that you pay attention and care about your customers’ experience. A simple “Thank you” is usually sufficient for a positive review. For a negative review, you’ll want to take the time to address the customer’s concerns and offer a solution.

  • Thank them for their feedback: This will show that you take shoppers and their reviews and concerns seriously.
  • Apologize for the inconvenience: Even if it wasn’t your fault, an apology goes a long way.
  • Offer a solution: Let the customer know what you’re going to do to fix the situation.
  • Follow up: Make sure to follow up with the customer after you’ve implemented your solution.
  • Don’t Take it Personally

It's important to remember that negative reviews are not a reflection of you as a person. They’re simply feedback about your business. Try not to take it personally and stay focused on finding a solution.

  • Use Negative Reviews as an Opportunity To Improve

Your online store reviews, even negative ones, can be a great opportunity to improve your business. Use the feedback to identify areas where you can make changes. Maybe there’s a problem with your product, or your customer service could be better. Whatever the case may be, use negative reviews as an opportunity to make your business even better.

  • Monitor Your Online Reputation

Finally, it’s important to monitor your online reputation. This means regularly checking review sites, social media pages, and other online platforms for mentions of your business. If you see a negative review, reach out to the customer and try to resolve the issue. If you see a positive review, share it on your social media pages or website.

Final Thoughts

Even though it might be tempting to buy positive reviews, it’s not a good idea. Not only is it unethical, but it can also lead to long-term damage to your business. It’s much better to focus on earning positive reviews through excellent customer service and offering incentives.

You can turn online customer reviews into a powerful marketing tool for attracting new customers. Just remember to be professional, respond to all reviews, and use negative reviews as a growth opportunity.

FAQ
How important are customer reviews for eCommerce?

Customer reviews’ importance in eCommerce can’t be overstated. They build trust, improve SEO, and drive sales. Consumers tend to trust customer reviews more than they trust advertising, so it’s important to encourage shoppers to leave positive reviews. 

Negative reviews can also be turned into positive experiences by responding professionally and using them as an opportunity to improve your business.

Do reviews help sell products?

Yes, reviews can help sell products. Potential customers are more likely to purchase a product if they see that it has positive reviews and that the business has a good reputation.

Why are online reviews important to customers?

Online reviews are important to customers because they offer an unbiased opinion about a product or service. They can also help potential customers make informed decisions about whether or not to purchase a product. Finally, reading through reviews can be a fun and entertaining way to learn about new products or services.

What are the benefits of online reviews?

Online customer reviews’ benefits include improved SEO, increased trust, and more sales. Online customer reviews can also help you identify areas where your business needs to improve. Additionally, online reviews are a great way to get feedback from customers about their experiences with your business.

Those wondering why online customer reviews are the ultimate salesperson for eCommerce should consider all of these factors. Trust, transparency, and customer service should be the main priorities for any business, and online customer reviews help to promote all three.

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Since these are different for every aspiring business owner, nobody can tell you exactly how much money you need to start a business. Therefore, we’ll do the next best thing and tell you how to determine your start-up costs. To get an accurate estimate, you'll need to consider everything from the cost of office supplies to the price of any necessary licenses or permits. Once you have a good handle on the basics you’ll need to cover, you can begin looking for ways to finance them. Start-Up Costs for a Business According to the US Small Business Administration, the estimated starting cost can be divided into two main categories: pre-start expenses and asset expenditures. On top of these, you've got to be able to cover all the ongoing costs your business will incur before it’s capable of standing firmly on its own. There are one-time costs, ongoing costs, necessary costs, optional costs, fixed costs, and variable costs. Pre-Start Expenses are the one-time costs associated with getting your business off the ground, and they can range from legal fees to market research expenses. Asset Expenditures represent the cost of any physical assets you'll need for your business, such as office furniture or manufacturing equipment. Ongoing costs represent rent, utilities, and employee salaries, which you'll need to cover on a regular basis. Fixed costs, such as rent or business loan payments, stay the same each month. Variable costs, such as inventory or advertising expenses, can fluctuate monthly. Essential costs, such as licenses and permits, are absolutely unavoidable when running a legitimate business. Optional costs, such as consultants or workplace decorations, are not necessary but can be helpful. These are all types of expenses to consider when starting your business. You'll need to sit down, do meticulous research, and write an estimate of all the expenses and income you anticipate. To stay safe, plan for the worst-case scenario, but hope for the best. Common Start-Up Expenses Whether you are planning to start a bookkeeping business or a candle-making company, success doesn’t come cheap, especially in the beginning. Here is a list of outlays practically every venture needs to take care of: Business licenses and permits Office space or equipment rental Inventory cost Insurance Advertising and marketing Accounting and legal fees Employee salaries Utilities Website design and hosting fees Depending on your business, there may be other one-time or ongoing costs that you’ll need to consider. To get an accurate number, remember to factor in additional costs, such as inventory, shipping, marketing, and a fund for unforeseen expenses that may pop up along the way. Ways To Finance Your Business It’s encouraging to know that 58% of small firms began with less than $25,000 and one-third with less than $5,000. Once you’ve done your homework, you’ll know if you’re among them. Once you know how much capital you need to start a business, it’s time to figure out how to finance it. It's ideal if you can do it out of your own pocket, but that isn't always possible. Depending on your situation, you may need to consider creative funding methods to turn your idea into reality. Bootstrap: This means you’ll use personal savings to finance your company. This is a good option if you have a low-risk business that can be opened with little to no money. Crowdfunding: With crowdfunding, you’ll solicit small amounts of money from a large group of people. This is a suitable choice if you have a brilliant company concept but don't have the money to fund it. It used to be next to impossible to get funds in this manner, but today there are several excellent platforms devoted to crowdfunding that can help you quickly reach your objective. Small-business loan: A small-business loan from a bank or credit union is the traditional source of funding for startups. However, this avenue will only be available if you have good credit and need a significant amount of money to get started. Some banks give small-business loans to people with bad credit, but their interest rate is substantially higher. Friends and family: You may be able to cover business startup costs by asking your friends and family members to invest in your venture, either with interest or without. If you don't want to take out a loan and trust the people you're asking to support you, this is a fantastic choice. The final three options are more appropriate when your business is already up and running, but you’re struggling to keep up with the costs or are looking to expand the scope of your operations. Venture capitalists: If you have a high-growth business, you may be able to get funding from venture capitalists, who will finance your business with money pooled from third parties, such as investment companies or banks. If you need a lot of money and are ready to give up a portion of your company in exchange for cash, this is an excellent alternative. Angel Investors: Angel investors are wealthy individuals who invest in businesses in exchange for equity, but unlike venture capitalists, they are using their own funds. As you can see, angel investors and venture capitalists are similar, but not exactly the same. The amounts you can get from angel investors are often smaller than those from venture capitalists, too. Grants: You may be able to get funded by the government or other organizations. This is a good option if you have a low-income business or are working in a field that benefits the community. No matter how you finance your startup business, it’s wise to plan for the worst-case scenario. Once you've done your research and secured funding for your idea, you'll be all set to launch your new business... or are you? How Do You Know If You're Ready To Start a Business? The thought of being in complete control of our work lives—and incomes!—is incredibly appealing. Luckily, it's now more possible than ever to make that dream a reality. But before you quit your day job, here are four things to think about before becoming your own boss: 1. Are you prepared to work hard—really hard? Running your own business is not a 9-to-5 job. It's more like a 24/7 job. You'll have to put in extremely long hours to get your business off the ground, and even once it's established, you'll still need to work constantly to keep it afloat. So ask yourself—are you prepared to work hard? 2. Do you have what it takes to be a leader? As the boss, you'll be responsible for guiding and managing your team (if you have one). This means you'll need to have strong leadership skills. Are you up for that challenge? 3. Can you handle the stress? Running a company is stressful, and we're not just talking about procuring the money needed to start and operate a business. Things won’t always go as planned, and you'll have to constantly deal with challenges and setbacks. So ask yourself—can you handle the stress? 4. Are you prepared to take risks? Starting a business is a risk. There's no guarantee that you’ll be successful, no matter how well you plan or how talented you and your team may be. So ask yourself—are you prepared to take risks? If your answer to all of these questions is "yes," then you just might be ready to become your own boss. But remember, it's not a decision to be made lightly. Be sure to do your research and plan carefully before taking the plunge. Conclusion Once you’ve done your research, created a detailed business plan, and factored in additional costs that may pop up along the way, you should know how much money you need to start a business. Remember that this is just a general guide, and your specific situation may require more or less capital. So what are you waiting for? Get out there and make your dreams a reality! Who knows, you could be the next big success story on the cover of Forbes.
By Julija A. · March 07,2023

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