I wrote this paper to educate our internal teams about the impact of user-generated content, such as ratings and reviews, on sales.

1. RATINGS AND REVIWS:
YOUR SALES DEPEND ON
THEM
Point of View
October 2010
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2. In the mid-1900s, limited brand choices and communication channels meant that companies
controlled the messaging (i.e., mass marketing). Flash forward to today’s marketplace in which
consumers are inundated by media choices and advertisements. As a result, consumers ignore
what is irrelevant or what they don’t have time for, meaning searching and purchasing are done
on their terms — when they’re ready. Today’s media- and search-savvy consumers now control
the content. Nowhere is this power shift — from business to consumer — more prevalent than
user-generated content such as ratings and reviews.
Through user-generated ratings, reviews and peer referrals — which have grown in importance
thanks to social-networking sites online — consumers are playing an ever-increasing role in
influencing purchase decisions. But in an age in which consumers control the content, marketers
have become stunned by new data that suggests online content has reached a plateau.
According to Forrester Research, while social networks are attracting users at record rates
(Facebook now has more than 500 million users), the creation of user-generated content
remained consistent over the last year. For example, one-third of U.S. consumers watch user-
generated videos on YouTube, yet only 10 percent upload videos of their own.
Turning to proprietary research, our Local Search Usage Study (2010) shows a growing
importance is being placed on consumer-generated ratings and reviews (up two percent over
2009 and three percent over 2008). That growth is due, in part, to more social and mobile users
seeking ratings and reviews during the purchase process (78 and 71 percent, respectively); in
fact, both figures have grown steadily since 2008.
But while more consumers are valuing ratings and reviews, only 23 percent of all searchers
(across all search types/platforms) have submitted original content. Social networkers and
mobile users demonstrate the highest propensity to write ratings and reviews (38 and 39
percent, respectively).
As user-generated ratings, reviews and referrals continue to shape purchase decisions,
businesses must understand how such content affects the search landscape, not to mention
brand reputation and, ultimately, sales. In that light, businesses need to encourage shoppers to
leave their opinions so that future customers will be enticed to purchase. While what you write
about your own products and services may be true, shoppers will find your marketing content
difficult to believe; they’d rather turn to others who have shared experiences with your
brand — a shining example of how consumers control the content. And since you can’t control
what consumers say about you, you can monitor the perception of your brand to make smarter,
informed shoppers.
Here are a few tips to encourage customers to leave feedback about your brand in general, as
well as the products and services that you offer:
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3. 1. Ask.
It’s as simple as that. Whatever methods you use to solicit feedback, make it known that you
value and appreciate your customers’ opinions. Explain the importance of leaving ratings and
reviews: so you can improve. But realize that by asking for feedback, you are opening the door
to negative criticism; however, such critiques should not be feared or addressed with
hypersensitivity.
Studies show that even negative reviews can increase conversions. That’s because the
appearance of only positive ratings and reviews can tarnish a company’s credibility. Negative
comments are also considered helpful by consumers. Furthermore, backlash can do exactly
what you set out to achieve in the first place: to improve. Imagine how insights into poor
experiences could help you fix issues within your departments (e.g., customer service) and the
products/services that you sell.
2. Make the feedback process quick and easy.
A user’s experience with your brand doesn’t end with the purchase transaction. When you
conceptualize ways to improve the experience, you must factor commenting into the equation.
By streamlining searching and commenting in a central location, you will increase the likelihood
of securing feedback.
Since our proprietary research suggests that a majority of consumers research online, the
Internet seems like the logical place to streamline search and feedback. But too many clicks or a
lengthy review process will only deter consumers from leaving the feedback that businesses so
desperately need to improve. Try these tactics to improve feedback efficiency and overall
response rates:
a. Incorporate a web form at the point of purchase. By placing an online form in front
of customers’ eyes during the check-out phase, you are targeting your buyers when
their purchases are fresh in their minds. This also promotes an element of convenience
for the shopper because everything is contained to a single visit.
For in-store transactions, ask your customers to go online (when they get home) to
complete a brief survey or to leave feedback; a print postcard containing the URL can
serve as a reminder when they leave your store. In a recent development, Google is
prepared to distribute millions of custom mobile devices to small businesses in the U.S.
The goal is to provide in-store customers with a way to check in at local
businesses — much like Facebook Places and foursquare — as well as rate the
businesses and purchase items via Google Checkout.
b. Send a follow-up email. Once you have secured an email database of your online
and/or in-store customers, send customized messages based on their purchases within
the past year. Netflix does a good job of this by deploying emails that ask users to rate
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4. their recent movie rentals (each email links to a landing page associated with a user’s
account). In the email copy, consider something like this:
Dear [Customer],
You recently purchased [product] from us. Thank you for your business. In an effort to
continue improving our service to you, please take a few minutes to rate your purchase
and experience with us. We value your input!
c. Within the online-transaction and/or shipping receipt, embed a link to a rating
system or a web form. In doing so, customers will always have the link on hand (for as
long as they keep their receipt). If you are shipping a product to a customer, it never
hurts to try a traditional method of dropping a print postcard within each package; on
the postcard, ask the customer to visit a URL to rate his or her experience with you.
d. Use surveys. Whether your customers purchase directly online or via phone, offer
short surveys to gather feedback. Two-minute surveys can be attached to the conclusion
of phone calls. Or use an affordable, Web-based survey program such as SurveyGizmo,
which allows you to embed questionnaires directly within emails or social-networking
pages. Both methods provide immediate results.
e. Portray feedback on your website. Sites like Amazon and eBay are built for this
functionality. By adding expert content, answering customers’ questions or featuring
ratings directly on your site, you are helping existing customers give potential customers
all the information they need to buy — all during the search process (and purchase
process if you enable online ordering). In essence, you are putting your customers to
work for you. And the payoff is huge because potential shoppers place more trust and
confidence in peers’ opinions than anything you could ever say about your brand.
3. Keep it confidential.
Refrain from asking for identifying information when featuring ratings and reviews directly on
your website. With the social-networking boom of the 2000s, it seems odd that consumers
would hesitate to share information publicly. After all, they openly share videos, birthdates,
photos and whereabouts via Facebook, Flickr, Twitter and more. But consumers are more apt to
share information when they’re not forced into it. Sharing private information is, and always will
be, a sensitive subject among consumers, especially when it comes at the request of businesses.
To increase response rates, keep your customers’ identities anonymous during the rating or
review process. At the very least, enable usernames or profiles that act as cyber curtains
between actual identity and online identity. A shining example of this is a service from the
Yellow Pages Group; its My Yellow Pages™ Account allows users to write reviews and to share
newly discovered places with others, while keeping their identities protected.
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5. 4. Make it worth their while.
In an economy driven by loyalty programs, consumers are attracted to incentives. To encourage
your shoppers to spend a little extra time with you, incorporate an incentive-based or tiered
rating/review system in which users get rewarded for their opinions. Whether you offer five
percent off the next purchase or free shipping, customers will comment more if they know
something is in it for them. The slight price reduction via incentives will pay dividends in the end
because you’ll be able to harvest necessary insights into how you can increase sales overall.
5. Promote your brand socially.
Now more than ever, consumers are more influenced by the opinions of their peers. While you
can feature ratings and reviews on your site to demonstrate that you value opinions, consumers
will place more trust in content if it is available apart from your proprietary website. That’s why
more consumers are flocking to social networks for business information, which has spurred the
new marketing mantra of “Go where your consumers are.”
According to our Local Search Usage Study, 69 percent of consumers are more likely to use local
businesses if they have information available on social-networking sites. As social-networking
usage continues to affect search, companies need to develop a presence for their brands via
social marketing. What’s more, most social sites offer free services to businesses, meaning social
marketing can be a cost-effective option to grow your business.
By establishing profile pages on the platforms that your customers are already using, they’re
more likely to follow you, and you’re more likely to achieve optimal engagement. In the event
that consumers are searching these platforms for your brand, you’ll be available to them. But
with an abundance of social sites available today, determining the platforms that consumers are
using can be challenging for those new to this space. Consider claiming your business’ listing on
Facebook Places, Twitter Places, foursquare and Yelp, to name a few (many of these services
offer window decals for display at your business to let shoppers know that you’re online and
open to feedback).
One of the key services, Yelp, acts as an Internet Yellow Pages (IYP) site in the form of business
listings and as a social-networking platform in the form of ratings/reviews. By appealing to
consumers looking for business information and peer recommendations, Yelp acts as a one-stop
solution in the search process. Plus, IYP searchers may be more inclined to leave feedback if the
option exists on the sites they’re searching. A new partnership has made it easier for consumers,
who have reviewed products on Yelp, to share their input via Facebook. It works like this:
After logging in on either Yelp or Facebook, users can click “Like” within business
profiles on Yelp.
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6. Clicking the “Like” button on Yelp integrates with Facebook’s social plug-in, meaning
users will also “Like” those businesses on Facebook. As a result, liked businesses will
show up on users’ Facebook profiles with links that redirect to Yelp’s business pages.
Once users click “Like,” new users who land on Yelp will be able to see which Facebook
friends also follow those businesses. Users will also have an opportunity to read friends’
reviews regarding their experiences.
Through Facebook’s Social Graph, the well-known “Like” button is appearing across the World
Wide Web. In short, it enables users to log in on Facebook, then like particular topics, posts,
reviews, etc. on third-party sites. The information is ultimately linked back to users’ Facebook
profiles. Now, you can even incorporate the Social Graph into your email campaigns, product
pages and blog. With one click of this button, users are increasing brand exposure on your
behalf, and you are identifying brand advocates to spread your messaging virally through word-
of-mouth advertising. In this regard, customers can act as sales associates, but with much
greater reach and influence among potential shoppers.
6. Actively participate.
Respond to consumer feedback with a little of your own. No matter how you solicit ratings and
reviews, always respond to the feedback — both positive and negative. Positive feedback should
be returned with a note of thanks, then share it with your internal departments so that they
know what is resonating with customers (positive reinforcement can go a long way). Negative
feedback, on the other hand, can be tricky, so let’s focus on social-networking sites to paint a
clearer picture.
According to our Local Search Usage Study 2010, 81 percent of social networkers believe that it
is important for local businesses to respond to questions and complaints on social sites. Based
on this research, consumers obviously want you to get involved. It also means that establishing
a social presence for your brand, only to abandon it, is considered a poor practice. If you enter
this space, you must engage your audience.
Since social sites come with the added luxury of instant feedback in the form of comments, you
can gain immediate insights into how consumers feel about your brand. This enables you to stay
in touch with customers and their wants, which, in turn, will enhance your company and
product development. If consumers are unsure about the products or services to purchase from
you, this is a prime opportunity to guide them in determining what will best meet their needs.
However, if consumers express dissatisfaction with your brand via social networking, inform
them that you’ll address their concerns privately. Then, provide an email address or phone
number to handle the issue offline, so others aren’t drawn into the mix.
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7. Conclusion
Searchers today have become savvy and impatient, meaning you have very little time to appear
at the forefront of their search experience. And key ingredients in the search process — ones
that will help you convert leads into sales — are user-generated ratings and reviews. If searchers
cannot find this content about you, then they may bypass you altogether. Keep in mind that, in
the end, ratings and reviews are all about making smarter shoppers. The aforementioned
content improves the search experience and helps shoppers make confident decisions.
Finally, the presence of user-generated content can help small- and medium-sized businesses
compete in a saturated marketplace by adding brand visibility. Since a majority of consumers
prefer to stay within local markets to complete their purchase transactions, local businesses can
capitalize on this unique opportunity to instill trust, confidence and a positive brand reputation
among target consumers — all of which will, in turn, help local consumers pick local businesses.
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