Word of mouth has always had a major influence on people’s buying behavior. Popular products or services were recommended by family, friends, or acquaintances. Word of mouth worked precisely because it was based on trust – and this is still true today. Many purchases are made because prospective customers carefully read ratings or reviews of a product. They place their trust in other consumers. The rating portals Check24, Yelp, or Tripadvisor are particularly well known. Today, it is impossible to imagine life without ratings. Consumers trust seals of approval, such as those from Trusted Shops.
This often goes even further, with users no longer even looking at the company’s own product descriptions, but scrolling directly to the customer reviews. Here they usually find the exact information they were looking for, plus customer reviews offer more trustworthiness to prospective customers. Positive and even negative reviews play an important role in the buying process. In addition, they are also valuable feedback for the company. In fact, bad reviews can actually help to improve the product or service and be more responsive to a customer’s wants and needs.
There are different reasons that make people look at other customers’ reviews. Often, the product descriptions do not contain the information that users are actually looking for. This includes, for example, exact or alternative uses. Many users also trust the reviews of other buyers more than the advertising by the brand itself. Here they can read honest opinions and experiences with the product or service. It makes logical sense that there are undoubtedly no companies that badmouth their own products in their descriptions or even list their disadvantages. Interaction with other buyers is important for many people; experiences and tips for use can be shared in this way. Regarding this, a survey was conducted in 2019 where 4,278 people were asked about their trust in internet reviews. 52% said they moderately trust reviews; 2% of respondents said they fully trusted customer reviews.
A new-ish phenomenon is product recommendations by influencers. It’s no coincidence that they are jokingly called “opinion leaders.” Influencers also have a major influence on buying decisions of many people, including the younger generation in particular. Influencers give their opinion and experience on products and services on social networks. For example, they share their reviews on their Instastories, Snapchat, YouTube, or blogs. Many industries already work with influencers, and in some cases, the influencers are paid for this, receive discount codes, or are provided with products free of charge. In 2018, a study by the Bundeverband für Digitale Wirtschaft showed that about 59% of the companies surveyed cooperated with influencers or utilized influencer marketing.
Many people buy products or services that are promoted by influencers. They appear more authentic to their audience. In 2018, most purchases made through influencers were initiated by YouTube videos.
In the future, it is foreseeable that reviews and influencer marketing will assume an even larger role in the buying process. In addition, free feedback will continue to give sellers the opportunity to focus more and more on what customers want and to perfect their products and services.
