TIP OF THE MONTH: Increase transparency to increase traffic

January 26, 2010 | Posted by Carolyn Pikoulas
According to a report by the Nielsen Company, 90% of consumers trust recommendations from people they know. Even more interesting: a whopping 70% of consumers trust opinions posted online from users they don't know. What this tells us is that consumers are no longer just buying products - they're selling them, too.

Nowadays before there is a purchase between a consumer and a brand, there is a connection between consumers that build trust for that brand. It's been shown that user reviews improve customer loyalty and even increase traffic. But one big concern from companies is how to deal with negative posts about their business or product. It's true that peer reviews allow very little control over what people say about your company. On the other hand, even negative reviews don't seem to harm sales. It's also worth noting that most consumers are compelled to leave reviews by a sense of goodwill. In fact according to market research from Keller Fay Group, 87% of consumers tend to write reviews when they have something positive to say.

Peer reviews can also help to increase traffic to your site. The content that's created when a user posts a review may be the answer to another user's question. For example, someone in the market for a mobile phone might be concerned if a particular model has received negative reviews about its interface. Asking the search engine about interface reviews could actually result in a product listing from an online shop. If the user is satisfied with the answer there, they may choose to simply make the purchase.

Allowing someone to speak their mind on a particular product or service creates a silent dialogue between the user and the company. If there are lots of negative reviews, the company can respond more effectively by addressing the problem. For example, when Dominos Pizza received negative feedback about their signature product, they were able to go back to the drawing board -- or in this case, the kitchen -- to fix the problem. Ever since Dominos Pizza had admitted to the world that their old recipe was terrible and that they have "solved" the issue, their stock price has risen by 45%!

Listening to your customers is important, and responding to their feedback is the best way to prove that you're on their side. Companies that don't accept to the new standards in today's consumer-run market may soon find themselves struggling.