Debunking myths about customer reviews

Despite the undeniable benefits of customer feedback, some misconceptions remain about the value and impact of reviews. Reviews can be a powerful asset for companies seeking to build trust, enhance their proposition and connect with their audience.

In fact, our research shows that:

• 84% of consumers trust reviews from other consumers
• 69% of consumers are likely to change their mind after reading reviews
• More people use reviews (23%) to decide which financial products to use than asking an adviser (17%)*

In this blog, we’ll debunk some of the most common myths about customer reviews.

Myth 1: Negative reviews are always harmful

One of the most comment myths about customer reviews is that negative feedback is always harmful to companies. While it’s true that having a large amount of unaddressed negative reviews could be damaging, constructive criticism presents valuable opportunities for improvement. It allows companies to identify areas where their offerings may be falling short, and take proactive steps to improve. By carefully responding to negative reviews and applying the necessary changes, companies can turn bad customer experiences into positive ones.

Myth 2: Reviews are unreliable

Another misconception is that customer reviews are biased and unreliable, as they’re subjective assessments based on individual experiences. Of course, individual reviews are ultimately subjective. But their collective wisdom provides valuable insights into overall trends and sentiments. By analysing patterns and trends across a diverse range of reviews, companies can identify common themes and make more informed decisions.

Myth 3: Reviews only benefit large companies

Some people believe that customer reviews only benefit large companies with extensive resources and brand recognition. However, reviews are a great way for small and medium-sized companies to establish their presence and differentiate themselves in the marketplace. Positive feedback acts as social proof – building credibility and trust with potential customers. And remember, reviews are a valuable source of feedback for smaller companies looking to enhance their proposition and better meet the needs of their audience.

Myth 4: Reviews lead to unfair criticism

Finally, there's a perception that customer reviews can lead to unfair criticism, as individuals may express dissatisfaction over minor issues or personal preferences. While some reviews may seem overly critical or subjective, each piece of feedback provides valuable insight into the customer experience. When companies listen to all customer feedback, they gain a deeper understanding of their audience's preferences – allowing them to continuously improve and innovate. And responding empathetically to all reviews, regardless of their tone or content, demonstrates a commitment to customer satisfaction.

Summary

In conclusion, customer reviews are invaluable for companies seeking to build trust and connect with their audience. By putting aside the myths and recognising the positive impact of reviews, companies can use the power of customer feedback to their advantage.

*Smart Money People research, October 2022