It’s already well known that online ratings and reviews are extremely influential when it comes to making purchase decisions. In fact, a recent study found that user-generated content influences 90% of shoppers’ purchase decisions. While many companies might not be too keen on knowing that their reputations are almost entirely in the hands of their customers, consumers wield more power than ever before in the world of marketing. In fact, the studies also prove that the voice of the consumer is now vastly more influential than traditional advertising.
Although brands no longer have a great deal of direct control over their reputations, they can help themselves immeasurably by leveraging the potential of online reviews and other user-generated content (UGC). Of course, there may be negative feedback from time to time, but in the modern world of business, transparency is no longer optional. In fact, companies can profit enormously by using the feedback provided by UGC to improve their services and build customer relations. Here are three of the most important reasons why managing UGC is so important:
#1. Reduce Costs
Once the word is out, a great brand should advertise itself to a degree. While there are numerous tried and tested ways to raise awareness, such as business blogging, search engine optimization, and social media marketing, UGC doesn’t cost a thing. On the other hand, negative feedback, when handled improperly, can end up costing your business dearly. The empowerment of the modern consumer to leave publicly visible reviews is one thing, but it’s important to remember that people also hate to be ignored.
If someone has taken the time to leave a review, it’s a good idea to respond. Of course, this might not always be practical or necessary, but being consistently present is just a matter of offering good customer service. This fact is doubly important when managing and responding to negative reviews. By keeping on top of your brand image, you’ll be able to reduce costly disasters and leverage UGC to its fullest potential.
#2. Embrace Authenticity
For the modern consumer, authenticity is extremely important when it comes to influencing purchase decisions. Any company can proudly boast about how great its products or services are, but there’s usually minimal authenticity when it comes to traditional advertising. Branded content that adds genuine value, such as giving useful information away for free, can help build authenticity; but nothing beats consumer reviews when it comes to getting an unbiased view.
Traditional advertising might still have its place, but its authenticity that defines a brand’s reputation, and building that authenticity is something that you can only rely on your customers to do. You should take every possible step to encourage people to leave feedback online. After all, there’s a good chance that people who have never even heard of you will first find out about your brand from someone else’s review.
#3. Manage Your Reputation
Many brands still have something of a phobia of online ratings and reviews. They might think it’s difficult to track and measure and that they no longer have any degree of control over their reputations. Fortunately, UGC is a lot easier to manage than you may think, even though it’s usually posted on media properties that don’t belong to your company. In fact, there are now online reputation management companies that offer solutions specifically tailored to help companies build and protect their digital footprint.