Tag Archives: negative deviation

Customers have more power than ever before. The impact of customer reviews.

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In today’s digital era a single comment can make or break a business, it is the new world of online customer reviews. This blog is intended to show how with just a few clicks, buyers can leave a review that can potentially influence the buying decisions of others.

Why are online reviews valuable?

Let’s face it, we’ve all been there – scrolling through pages of reviews before making a purchase, hoping to find the perfect product or service. That’s why as a business owner, it’s crucial to pay attention to what your customers are saying about you online. These reviews, posted by real customers, provide a window into the experiences and opinions of others who have tried a product or service. They have the power to:

  • shape perceptions
  • build trust
  • build a positive reputation
  • drive business growth
  • lead to loss of customers

Positive reviews can draw in new customers, essentially serving as digital endorsements. On the other hand, negative reviews can signal a warning to potential buyers, directing them towards alternative options.

Why negative reviews are essential for companies and consumers | Bazaarvoice

Reviews also play a crucial role in search engine optimization (SEO).

For instance, Google take into account the quantity and quality of reviews when determining search rankings, as you can see in the photo. A high volume of positive reviews can improve a business’s online visibility, making it more likely to be discovered by potential customers.

Moreover, online reviews provide valuable insights for businesses to understand customer preferences, identify areas for improvement, and optimize their offerings.

Impact of customer’s feedback on others’ purchasing decision

The question to think about- when was the last time you bought something without checking out the reviews first?

Online reviews provide valuable insights into the experiences of other customers. Positive reviews can create a sense of trust and confidence in potential buyers, while negative reviews can raise concerns and prevent customers’  purchase.

Negative deviation

This can be clarified through the rational behavior hypothesis, suggesting that consumers strive to minimize online shopping risks. Hence, when there is poor comment information presented, consumers tend to choose not to buy the product.

Furthermore, according to studies conducted by Ahluwalia, Mayzlin and Chevalier – consumers generally believe that negative information is more valuable than positive information when making a judgment. For example, a single-star rating tends to have a greater influence on consumers’ buying tendencies than that of a five-star rating, a phenomenon known as the negative deviation.

And here is the dilemma for businesses: negative reviews have more impact on customers behavior, but people are more likely to leave feedback when they are unsatisfied rather than satisfied.

Negative reviews are usually inspired by emotional responses. Because of the way our brain reacts, negative emotions are processed more thoroughly. This is why negative experiences last longer in our minds and appear more urgent than negative emotions. In comparison, those with a positive experience may have already forgotten and may skip creating positive reviews online. 

How businesses can avoid the situation when their ranking is based mainly on negative reviews, though, those are also the positive ones?

Apparently, encourage reviews – actively ask customers to leave reviews after purchasing your product or using your service. Provide clear instructions on where and how they can leave a review, such as on your website, social media, platforms like Google.

Additionally, the best way to leverage online reviews for business growth is by providing exceptional customer service. By exceeding customer expectations, you can generate positive reviews that attract new customers and cultivate loyalty.

In conclusion, businesses can effectively leverage online reviews to drive growth, build trust, and create a positive reputation in the virtual world.

 It is also valuable to remember that negative reviews can be an opportunity to show professionalism, responsiveness, and dedication to customer satisfaction. By effectively operating with negative reviews, businesses can turn a potential drawback into a positive opportunity for growth and improved customer relationships.

Sources used:

https://www.google.com/maps

https://www.frontiersin.org/articles/10.3389/fpsyg.2022.865702/full

https://www.quora.com/Why-unsatisfied-customers-are-more-likely-to-leave-bad-reviews-than-the-satisfied-customers-leaving-good-reviews

https://www.forbes.com/sites/forbestechcouncil/2022/08/16/online-reviews-the-customer-reference-that-never-sleeps/?sh=7ad5d98e2921

https://www.bigcommerce.com/blog/online-reviews/

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