From employing 64% of the US workforce in 1970, to employing over 84% of the today, the service sector continues to grow.
In the UK, the change is just as profound - 33% of workers were employed in services before the 1900s. Today, it is a staggering 81%.
Today, more people need more services, and services they can trust at that.
It’s in the field of trust building where reviews shine. Here’s how:
1 - Reviews increase customer retention rates
Displaying customer reviews is one of the most efficient ways to increase brand loyalty.
Reviews showcase your reputation. New customers see what you’re doing right, and existing customers shop with you again.
And if there are negative reviews, your mature responses show you’re always working on creating the best customer service.
The probability of selling to an existing customer is around 70%.
A prospect? Just 20% - max. And with new customer acquisition costs around six to seven times higher than simply selling to current customers, opening up to online reviews helps:
- Reduce customer acquisition cost
- Increase sales (if done right)
- Build brand loyalty
- Build trust
So get feedback and you’re more likely to keep all your customers smiling.
2 - But don’t stop with just collecting customer feedback...
If you segment feedback into particular themes, you can target your future communications to address the pains or praise of your customers. That helps your customers see that you care, and that it’s not just an automated process.
Research shows that increasing customer retention by 5% can lead to a 25% - 95% increase in company profits. So display your reviews on site in the right places, keep responding to feedback, and keep learning from what you customers tell you.
3 - Is less more? Not in customer service
Bad customer service - you’d think it would be impossible with the plethora of tips online to fight it.
Yet it still exists, along with other things we’d thought would die out by now, like the fax machine, or people saying 'expresso' instead of espresso.
Customers are four times more likely to shop with a competitor if they encounter poor customer service, rather than poor product quality.
But don’t just be reactive and put on a good face when customer service issues arise - talk to your customers, send out customer satisfaction surveys, ask for reviews, and get proactive about building that trust.
4 - Know your weaknesses, build your strengths
As much as it scares businesses, gathering feedback helps you see your limitations. And if customer service is your limitation, there is only one person who will tell you - the customer.
After all, around 80% of your revenue will come from 20% of your existing customers, so it’s important to keep them happy and keep showing them that you’re the trusted business you say you are.
Don’t be afraid to refer to the fundamental principles of building trust: the use of humor, sympathy, emotion, and genuine care.