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Word of mouth has become even more important today. This is due to the fact that for a single product, there are so many options that consumers get overwhelmed and intimidated by the decision making process. In a nutshell, if someone a customer trusts has used the product and he has a positive review or recommendation for the said product, he is more likely to purchase that product.

 

The tolerance of bad reviews is dependent primarily on age groups. For instance, 28% of the 45-54 age group and 33% of 55-64 year olds would most likely not purchase a product after reading two bad reviews, when compare to just 10% of 18 to 24s. It also depends on the type of product that is being sold. A book, game, or film will frequently divide opinion, but reviews of electrical products which pinpoint flaws is more likely to turn off other consumers from buying. A lot of this depends on the context and the way reviews are seen. Here are the top reasons why consumer reviews is important for businesses.

 

Understand Consumer Needs

 

Through reviews, stores can understand the needs of the customers - what customers expect from the business or product, and how can these needs can be fulfilled. It helps businesses determine which products customers are happy with and the ones they do not like. In this way, they can maintain or increase stock for products that are liked by customers and decrease the number of products that are disliked by customers. If you want to learn more about consumer electronics, you can visit https://en.wikipedia.org/wiki/Electronics#History_of_electronic_components.

 

Reviews Increase Conversion

 

By posting consumer reviews on an online store here, a business can potentially drive incremental sales of their products. The research is quite conclusive - 61% of customers read online reviews before buying a product and 63% of customers are more likely to make a purchase from a website that shows user reviews. A study also suggested the potential sales boost from showing reviews can be as much as 18%.

 

Establish Trust

 

Why are reviews so essential? The implied transparency helps boost authenticity and trust among customers. More than just the advantages of increased conversion and better SEO, customer reviews provide vital perspectives on the user experience. If all you do is show glowing, positive reviews, it actually lessens credibility. It has been shown that the majority of consumers actually look for negative reviews as a way to verify credibility, and also determine which points in the negative reviews appear relevant.