With a 95 percent increase in conversion rates at stake, how strong is your online review game?
It’s no secret that positive customer reviews are important, but according to a new body of research, they have the potential to increase a brand’s conversion rate by up to 95 percent.
Bazaarvoice’s survey of 2,000 shoppers and 400 brands has revealed that online consumer reviews can have a big impact on retailers’ revenue. In fact, of the brands surveyed, 100 percent of them experienced a lift in revenue per visitor when customers could access online reviews.
For instance, customers who interact with online reviews at Cellarmasters are 58 percent more likely to make a purchase. Health and beauty brand, Jurlique has also experienced a 317 percent increase in conversions from customers who interacted with reviews over the last five months.
These success stories are echoed by L’Oreal’s Kiehl brand, with the company’s Director of E-Commerce in Australia, Amanda Green saying online reviews impact sales both in-store and online.
“Kiehl’s customers are five times more likely to buy a product when reviews are displayed on their website,” she said. “We also know that reviews are playing a big role in influencing in-store purchases. Fifty-eight percent of health and beauty shoppers read online reviews before making a purchase in-store.”
Officeworks has also seen positive growth both in-store and online after integrating online reviews on its website.
“The vast quantity of syndicated reviews has helped us to deliver substantial growth in key metrics, primarily in conversion. We’ve seen a 200 percent increase in some categories,” Toby Watson, the general manager of merchandise at Officeworks said.
“No matter what the channel – mobile, store, or online – customers are becoming increasingly reliant on online research to make purchasing decisions. The availability of reviews and social content is integral to our customers, and lets us establish and maintain credibility and trust.”
According to Bazaarvoice’s Shopper Experience Index, these individual brand results are being replicated across the industry, with 45 percent of shoppers interacting with reviews and other consumer-generated content before making a purchase decision.