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How does online rating have such an extreme influence on our life?
As the internet continues to advance its many applications, the 21st century witnesses the booming of industry conversions such as e-commerce, digital publications, taxi platforms which drive traditional industries to enormous concerns. But not many people know that online review could generate revenue to not only businesses but reviewers as well. For many people, especially experts who we could call “social influencers” or “professional reviewers”, it seems like their personal viewpoints have significant impact on decision-making of consumers and brand awareness for businesses.
Statistics from Oracle indicate that consumers are 80% likely to research on products and services online before purchasing, and nearly 90% of them trust online reviews as their personal recommendations — which pushes the position of online reviews further up the ladder of importance.
So how does online rating have such an extreme influence on our life?
Breaking it down
The most important reason is probably belief. 72% of consumers are more willing to trust a business if they read positive reviews about it. Thus, customer confidence is where smart businesses put a lot of resource and focus to establish and grow, and online review seems to resolve it all. According to Market Watch, a one-star rating is able to increase business revenue by 5–9%. It is reasonable for 92% of customers are willing to use a local business if it has at least 4 stars of rating. Clearly, smart marketers ought to have an overview of how consumers are talking about their products or where there products compare with others through online review. In some way, many businesses nowadays want their products or services to be easily evaluated and appreciated by customers. Typical evidence is that consumers are free to review a product in their Facebook page, Google review, e-commerce websites they bought products on like Ebay, Amazon, Lazada, etc. The more reviews businesses received, the more that benefits them.
Another subject that should be included in our discussion is Reviewers. “How do I get paid from reviewing products and services?”, “How do I generate money from blogging?”, “Tips to getting paid by reviewing.” One could easily find out about this by just one click on the internet. Rating and reviewing a product seems to be considered as a career path to many people. To be more specific, unboxing, best/worse products, product A vs B videos, etc. are having the most viewers on Youtube. Of course, vloggers who authored these videos received not a small amount of revenue. Consequently, understanding of how consumers want to know about products and services, and making them attractive, are some of many skills that an influencer or an expert in review should have. From there, their opinions play an important role in many business marketing campaigns because it could have extreme impact on consumer behaviours.
There is much more to discuss about online reviews and the future implications. Check our site frequently for the next instalment.