There is another new study that points to a direct correlation between customer reviews and revenues for the businesses who receive them. Conducted by a leading social analytics firm and the Paley Center for Media, this study measured exactly how much more people were willing to pay for products based on the reviews they had read.
Nearly 6,000 people were studied, and many variables were introduced, including whether the reviews came from online strangers or social media friends (who the user would be likely to know in real life). According to the study’s findings, highly positive online reviews can generate an increase in purchase intent by up to 10 percent. On the flip side, negative reviews can reduce purchase intent by 11 percent.
When Customers Will Pay More
The research concluded that people are often willing to pay more for a product based on a positive online review (in a review forum like Angie’s List, Yelp, or the Amazon reviews section below product listings). They may also be willing to pay more if they see the product recommended via a share on social media (such as a Facebook share, a positive tweet or a Reddit post). When it comes to an iPad, for example, the consumer would pay $22.26 more based on a positive review by a stranger, and even more ($27.42) if the recommendation came from a friend or family member.
Pro Tip: The more positive reviews people see, the more they will be willing to buy from you – and, perhaps even spend a little more than they had budgeted (i.e. home automation).
Still, for products like electronics, reviews conducted by professionals carry even more weight. If a professional in the industry gave a positive review or share to a product, consumers were willing to pay up to $31.13 more. That’s evidence that reviews have real, meaningful influence. Likewise, bad reviews drove down the price that consumers were willing to pay for the same iPad – up to $32.30 less, in fact.
How this Applies to Home Security Companies
How is this relevant to reviews for electronic security companies? Your security system products and your customer service can all be reviewed by average consumers on review forums, and they can also be subject to feedback on the social media platforms listed here. The more positive reviews people see, the more they will be willing to buy from you – and, perhaps even spend a little more than they had budgeted. Likewise, negative reviews will have the opposite effect. That’s why it’s so crucial to get as many positive reviews of your business as you can, on every possible online platform.
Get More Positive Reviews Now
If you get more online reviews from your most satisfied customers, everyone from strangers online to their friends and family can see those reviews and make informed purchasing decisions when it comes to your electronic security business. To learn how to get those reviews, contact us today to discuss Reputation Marketing. We will be glad to help!
Ignite Security Marketing is an inbound marketing agency that specializes in marketing and salesforce automation for the security industry. Since 2008, we have been the marketing partner of choice for SDM 100 corporations and SMB’s around the nation.