Today’s consumers are doing more and more of their shopping online. And since they cannot touch or see an item in person, online ratings and reviews have become an integral part of e-commerce shopping. Most consumers rely on reviews to provide them with the information they need before purchasing. In fact, 90% of consumers read online reviews before visiting a business and 92% will use a local business if they have a 4-star rating.
The Importance of Reputation Management
All companies need to invest in their reputation management systems in order to be able to monitor their customer experience. Incorporating reviews and ratings on your company’s website, local review sites, or social media platforms increases the customer’s trust in your brand. Customers are able to review previous purchases, which reassures them before they purchase. The higher your business’s rating, the more confidence consumers will have in your company or product.
Reputation Management Rating Systems
There are multiple reputation management rating systems to have your customers review your business or product. Some of the most common are thumbs, starts, or numbers. But what is the best way for your customers to measure their experience?
Thumbs have been used as a general way to express good or bad.
Pros: They are fast and easy for consumers to use, and easily recognizable. Since they are easy for consumers to use, they tend to generate a higher response rate.
Cons: While thumbs do match with social platforms, they are limited. They don’t give other feedback besides yes, the consumer likes it, or no, they do not. Collecting more nuanced feedback can better convert consumers that require more details when making a purchase decision.
The stars rating is usually a range from one to five stars. This type of rating system is often used by large e-commerce platforms or customer service-driven companies to help buyers with their decisions. For large platforms with many items for sale, this prevents the buying process from being overwhelming.
Pros: Displaying stars in Google results can help your business stand out from the competition. This can increase the click-through rate and lower the cost-per-click. Since customers give a more detailed response, better data is generated as compared to the thumbs method.
Cons: This system is still limited for consumers. Response rates might be lower than thumbs due to additional survey choices. And customers tend to vote on either end of the spectrum, either 1 or a 5, which can skew the data.
Net Promoter Score (NPS)
NPS is the most comprehensive management rating system. By asking customers to rate on a scare of 0-10, your business can gain great information about your customers and brand loyalty. It divides respondents into three categories: Promoters (scores of 9-10), Passives (7-8), and Detractors (0-6) for better understanding of customer loyalty. The NPS is calculated by finding the percent of promoters minus the percent of detractors.
Pros: This system gives businesses detailed data on what is working for customers and what is not. It has been used for a long time, so customers are familiar with it and it is user-friendly. By using one main question, the likelihood that a customer will respond is high. This translates to higher response rates.
Cons: The standard NPS question, “On a scale of 0-10, how likely are you to recommend this to a friend?” is broad. Customers may answer based on overall brand impression rather than the quality of the product/service itself.
Why NPS is Best
Reputation management is now more important than ever and monitoring customer loyalty is one of the keys to success for any business. NPS increases the chances for more responses and best manages a business’s online reputation by identifying the biggest supporters. NPS gathers more response rates and positive reviews, which increases retention rates. Your team can handle customer issues quickly and effectively to boost your reputation management. Finally, it gives your business an idea of how it stacks up against the competition.
Reputation management rating systems can help your business understand how to better service your customer. Popular brands such as Amazon, Apple, and Tesla use their NPS score to improve both their processes and their products. Centinal utilizes NPS because it is backed by research to give you a clearer picture of customer sentiment. Contact us if you want to drive online reviews and help your business grow.