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DATE:
AUTHOR:
ResellerRatings Release Team
Product Reviews Seller Ratings Analytics

Turn Actionable Insights from Reviews into ROI

DATE:
AUTHOR: ResellerRatings Release Team

It's time for some e-commerce buzzwords... Actionable Insights.. what does this mean? How do reviews play directly into this? How can those actionable insights turn into ROI for your company?

As an e-commerce store owner, you're likely always looking for ways to increase your return on investment (ROI). One effective way to do this is by leveraging online reviews. According to a survey conducted by BrightLocal, a staggering 91% of consumers read online reviews before making a purchase. But the benefits of online reviews go beyond just helping consumers make informed decisions – they can also directly impact your e-commerce store's ROI by providing actionable insights.

Actionable insights refer to specific, actionable recommendations that can be made based on data analysis. In the case of online reviews, businesses can gain insights into what aspects of their products or services are not meeting customer expectations, what their strengths are, and what their target audience looks like. These insights can then be used to make data-driven decisions that improve customer satisfaction, engagement, and ultimately, revenue.

Here are three specific ways online reviews can boost your e-commerce store's ROI:

  1. Increase conversion rates: Customer reviews can help build trust with potential customers and increase conversion rates. According to a study by Spiegel Research Center, products with reviews have a 270% higher chance of being purchased than those without. Additionally, a study by Yotpo found that displaying reviews on product pages increased conversion rates by 166%.

  2. Reduce returns and improve customer retention: Negative reviews can provide insights into common issues with your products, allowing you to make improvements that can lead to fewer returns and improved customer retention. According to a study by Narvar, 95% of consumers would purchase from a retailer again if they had a positive return experience. By addressing issues mentioned in negative reviews, you can improve your customer's experience and increase their likelihood of returning.

  3. Improve search engine optimization (SEO) and drive traffic: Positive reviews can improve your e-commerce store's SEO, making it more visible to potential customers. According to a study by Moz, online reviews are the third most important factor in determining local search ranking. Additionally, a study by ReviewTrackers found that businesses with a higher overall rating get more clicks to their website. By encouraging customers to leave reviews and responding to them, you can improve your store's SEO and drive more traffic to your website.

To sum everything up, online reviews are a valuable tool for e-commerce stores to increase their ROI. By leveraging reviews to increase conversion rates, reduce returns and improve customer retention, and improve SEO and drive traffic, e-commerce stores can make data-driven decisions that result in higher customer satisfaction, engagement, and revenue. As an e-commerce store owner, it's essential to prioritize your online reputation management and use customer feedback to drive business success.

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