79% of ‘Young Consumers' Trust Online Reviews as Much as Personal Recommendations

 A  poll by SEO specialists, BrightLocal.com, finds that 69% of people trust online customer reviews as much as personal recommendations. This figure rises to 79% among 16-34 year olds and remains strong for the growing numbers of online and IT literate baby boomers (62%).
Other stats include;

• 70% of people have used the internet to find a local business in the last 12 months
• Younger consumers use the internet more frequently to find local businesses than older consumers
• 67% of local consumers have consulted online customer reviews of local businesses
• Younger consumers are more influenced by positive online reviews that older consumers
• Female consumers are more likely to select a local business that has positive customer reviews
• 69% of local consumers trust online reviews as much as personal recommendations

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The Customer is King...

.....  and Customer Experience is the way to his heart.  The latest Customer Experience Report North America sponsored by RightNow has some great stats that should be taken on board by all businesses, large and small.   Topline summary:

CUSTOMER EXPERIENCE.   It's Make or Break
•    82% of consumers have stopped doing business with  a company as a result of a negative experience.
•    55% became a customer of a company because of their reputation for great customer service
•    40% began purchasing from a competitive brand simply because of their reputation for great customer service
•    85% of consumers said they would be willing to pay more over the standard price in order to ensure a superior customer experience.

Of those who decided to stop doing business with an organization,
•    73% was a reaction to rude staff
•    51% reacted to unknowledgeable staff
•    55% were because of issues that weren’t resolved in a timely manner

BEWARE THE POWER OF WORD OF MOUTH
•    79% of consumers that had a negative experience with a company told others about it.   Because….
  o    85% wanted to warn others about the pitfalls of doing business with that company
  o    66% wanted to discourage others from buying from that company
  o    55% wanted to vent anger or disappointment
  o    24% wanted to see if the company would take action to resolve their issue

•    76% of consumers said word of mouth most influenced their purchasing decisions, followed by
  o    customer reviews and online feedback at 49%,
  o    product review web sites at 41%,
  o    magazine articles at 23%
  o    reputation on social networking sites 7%.

YOU CAN TURN THE TABLES
All is not lost if a company trips up.  In today’s transparent environment, owning up to your mistake and taking action yields positive results.

•    92% of consumers said they would be willing to go back to a company after a negative experience if they ..........
•    Received a follow up apology/correction from a supervisor/head office (63%)
•    Were offered a discount (52%)
•    Or were offered proof of enhanced customer service (49%)

YOU MUST RESPOND
•    58% of respondents would like the company to respond if they left a comment on a social networking site like Facebook or Twitter.
•    But only 22% of those who actually did leave a comment on a social networking site got a response.
•    42% expect a response within a day
•    39% within a week
•    7% within an hour
•    2% within a minute

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Latest Stats for the statisticians amongst us

58% of Americans now report that they perform online research concerning the products and services that they are considering purchasing. That is an increase from 49% vs. 2004.
The number of those who do research about products on any given day has jumped from 15% of adults in Sept 2007 to 21% in Sept 2010.
24% of American adults say they have posted comments or reviews online about the product or services they buy.
"Many Americans begin their purchasing experience by doing online research to compare prices, quality, and the reviews of other shoppers” 
“Even if they end up making their purchase in a store, they start their fact-finding and decision-making on the internet.” says Jim Jansen, Senior Fellow at the Pew Research Center’s Internet & American Life Project and author of a new report about online product research.
Find full report here

The Power of Reviews 3

According to a survey by business management consultants Deloitte LLP,  when it comes to online product reviews across all web sites, 51% say that an online review has influenced their decision to make a purchase and 50% say a review helped persuade them not to buy.
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The Power of Reviews 2

If you sell TVs or consumer packaged goods (CPGs), you’d better keep an eye on what customers are saying about you on product review Websites: According to a study of nearly 1,500 consumers by Epsilon, those sites are the most influential source of buying information for shoppers.
Product review sites were almost the most influential source for shoppers looking to book a hotel or sign up with some sort of communication service, according to the survey. People shopping for phones, computers, and credit cards, however, relied more on family and friends, while those in the market for auto insurance said that brand Websites were most influential.
Read full article on Direct Magazine