In today's digital age, online reviews are invaluable. They help customers to make decisions about what to buy or use. In fact, Smart Money People's research from October 2022 showed that 84% of customers trust reviews from other customers. In this article, I'll explain why online reviews are so important.

Building credibility and trust

One of the main reasons why online reviews matter for companies is that they help to build trust and credibility with potential customers. Today, customers are sceptical and rely on the opinions of others to help them make decisions. Online reviews show that a company is active and credible, and companies with a high number of positive reviews are often perceived as more reliable and reputable. So when a potential customer sees positive reviews from past customers, they're more likely to trust them.

Influence purchasing decisions

The majority of customers read online reviews before making a purchase or using a service. So online reviews have a significant influence on purchase decisions. Positive reviews can sway potential customers to choose one business over another, while negative reviews can deter them from making a purchase altogether. In fact, our October 2022 research found that 69% of customers are likely to change their mind after reading reviews. This demonstrates the importance of reviews and having a strong online reputation.

Providing vital feedback

Online reviews also provide companies with valuable feedback from their customers. Positive reviews show what they're doing well, while negative reviews highlight areas for improvement. This feedback helps them to make changes and improve products, services and customer experience. Reviews also provide companies with insights into their customers' needs and goals, which can be used to develop new products or services, improve marketing strategies, and make more informed decisions.

Building brand awareness

Online reviews can help companies become more well-known, boost visibility and attract new customers. When customers leave feedback on platforms like Smart Money People, they showcase the company to others. Responding to reviews also helps companies improve their image and build stronger customer relationships. Additionally, having a high number of positive reviews can also help differentiate a company from its competitors and establish itself as a reputable and trustworthy brand.

Addressing customer concerns

When a customer leaves a negative review, it's essential for companies to address their concerns quickly. This shows that they value their customer and want to learn and get better. By addressing negative reviews and resolving issues promptly, companies can improve their service and increase customer loyalty. At Smart Money People, we notify companies as soon as a customer leaves a review, so they can respond straight away.

Conclusion

It's clear that online reviews matter for companies. From building trust and credibility to influencing purchase decisions and providing valuable feedback, online reviews play a crucial role in a company's success. It's essential to actively manage and respond to feedback left at review sites like Smart Money People, both positive and negative, to maintain a positive online reputation and attract and retain customers. So make sure you use the power of online reviews to your advantage. Finally, remember that online reviews are not just about managing your online reputation, but also about understanding your customers, improving your products or services, and growing your company.

By Jess Rushton, Head of Business Development