More people are likely to trust product reviews from other customers, than industry experts, professional reviewers, and companies or brands, according to new research* from Smart Money People, the UK’s dedicated financial services review site.
New products or services (41%) and being unfamiliar with the company (41%) were the factors most likely to encourage shoppers to seek out reviews.
When asked specifically about taking out financial products such as credit cards, insurance, or loans, the top two influences were informative websites (44%) and family and friends (31%). More people were likely to follow advice from customer reviews (23%) than from a financial advisor (17%).
Customer reviews are highly influential
Both positive and negative reviews have a substantial impact on consumers’ decision-making.
- 68% of respondents claimed they would make a purchase after reading positive reviews from other customers.
- 69% would change their mind about a purchase after reading negative reviews.
It would appear that no reviews at all can be just as damaging as poor reviews, with 22% of people putting off buying something if there are no reviews available.
Nearly three quarters of people are more likely to leave positive reviews
Whilst the assumption might be that people only leave a review when they’ve had a negative experience, the stats say otherwise. When asked whether they tend to leave more negative or positive reviews, 72% said positive.
- Women were more likely than men to leave positive reviews.
- Over 55s were more likely to leave a positive review rather than a negative one compared to other generations.
Men were twice as likely as women to leave a negative review in order to damage a company’s reputation.
What motivates people to leave reviews?
The research revealed that consumers feel particularly committed to helping others out. Half of respondents said they leave reviews in the hope that other customers will find them helpful. In particular, they believe they have a duty to make others aware of the pros and cons of a product or service.
- Over a third (36%) hope businesses will accept their feedback and change their products or services accordingly.
- One in 10 do so in the hope of getting a direct response from the company in question.
Thirty-nine per cent said they leave reviews simply because they’ve been asked to by the company.
Jacqueline Dewey, CEO at Smart Money People said: “There’s a real sense of community when it comes to customer reviews. People are genuinely keen to help other customers out, providing useful insights to help them reach the right decision. Even with negative reviews, the focus is on offering constructive criticism in the hope that improvements can be made.
“This is great for consumers, as it raises standards, but it also offers a real opportunity for businesses too. Reviews can significantly increase sales, as well as provide valuable insights for driving improvements in all areas, from customer service, to product design. And best of all, in many cases, all they have to do is ask.”
