For many consumers, navigating the modern marketplace can be unnerving at times. They want to know if they can trust a business, and if the product they’re considering is worth it. That’s why they use reviews. However, when trying to research purchases, one in four customers report having been fooled by a fake review.
For UK customers, fake reviews on products alone cost an estimated £50m to £312m in total every year. At a time when costs are increasing and disposable income is declining, consumers are more cautious when spending the cash they do have, especially online.
As a result, authenticity is high on the list of values people look for when engaging with brands. Consumers want to spend money with brands they can trust. Feedback and insights platform Feefo report seeing a 29% increase in customer reviews mentioning authenticity and trust over the last year. This means there is a real opportunity for companies that are prepared to listen to their customers.
Though online reviews have been around for many years now, it is understandable that brands can still be wary of collecting and displaying negative feedback. Why would a business want to show off instances where it failed a customer? But as Kerry Leighton-Bailey, chief client & marketing officer at Feefo points out, a negative review can be a way to demonstrate that a brand is willing to both listen and respond to customers: “Brands should respond to reviews, particularly negative reviews, because it’s the response to those which demonstrates your values.”
Knowing that a brand is willing to respond to negative feedback can be as valuable as the most glowing review
Responding to positive reviews is easy and it can be tempting to ignore those that point out flaws, or detail a negative interaction with your brand. But these are actually the interactions that can provide the most value. “If you deal with negative reviews professionally, accept the feedback and demonstrate that you’ve acted on it, that’s the crucial moment where you’ve got the potential to turn a detractor into an advocate,” says Leighton-Bailey.
It’s an almost inevitable fact of business that at some point a customer is going to have a bad experience. But knowing that a brand is willing and able to step up when that happens can be as valuable as the most glowing review. In fact, 96% of consumers report seeking out negative reviews of products and services they are considering spending money on. So, a brand that’s willing to address poor reviews and engage with them respectfully can actually turn them into part of the sales process.
Meeting consumer values isn’t about presenting an authentic appearance; it’s about creating genuine two way communication with customers. Listening to authentic consumer feedback allows brands to discover more about who their customers are, how they use products and what they’re looking for.
Brand authenticity should be about long term engagement with customers as part of a wider strategy to develop products and services that better meet their needs. This allows businesses to open up opportunities, rather than just firefighting immediate problems.
Leighton-Bailey puts it this way: “Reviews are so much more than stars on a website. They are the start of harnessing the power of advocacy. They’re a vital part of the learning process, giving you valuable feedback which gives you the insights to ultimately boost profits. They are advocacy in action.”
Legislation has a part to play in consumer trust - the Digital Markets, Competition and Consumers Bill came into law in May, introducing new rules banning companies from publishing fake or misleading reviews. Though many of these practices have resulted in prosecution under pre-existing legislation, this is the first time they have been explicitly banned.
Ultimately, consumers want to engage with brands they can trust, and for brands to be perceived as authentic, they must listen to what consumers are telling them. Businesses will obviously want to avoid the legal consequences of generating fake positive feedback or hiding negative reviews. But they should also be aware of the consequences of ignoring customer feedback - and the potential that could be unlocked if they start listening.
