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From: Jared Hamilton
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Mary-Kelly Gaebel

Mary-Kelly Gaebel Manager - Reputation Management Team

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New Study Reveals Reviews are The Tipping Point in the Buying Process

New Study Reveals Reviews are The Tipping Point in the Buying Process
Proliferation of Mobile and Down Economy Cause Reviews to Gain Traction

 

We all know reviews are critical to the modern consumersbuying process, but according to a study by Cone Communications (http://www.coneinc.com/consumers-confirm-recommendations-online) reviews are more important than ever. The study showed that four-out-of-five consumers changed their mind about a recommended purchase based solely on negative reviews. Your customers are savvier than ever; with advancements in technology and online communities controlling the conversation about your business, you can’t afford to ignore the fact that “…personal recommendations alone are no longer enough to guarantee a purchase, as three-quarters of consumers (77%) agree they are more likely to purchase products or services when they can find additional recommendations about them online.”

Two Reasons Dealership Reviews Are Gaining Momentum

  • The mobile phenomenon is only adding fuel to the fire. With so many consumers relying on tablets and mobile phones as their shopping device of choice, reviews are more easily accessible than ever. According to the study, “Survey data suggest this year-over-year increase in online verification may be attributed to near-universal access to the Internet and the pervasiveness of the smartphone. Today, online product or service information is literally at consumers’ fingertips with nearly three-out-of-five (59%) reporting that they are more likely to research recommended products online because they can easily access applications on their mobile phones, and 81 percent crediting wide-spread access to the Internet.”

     
  • The second reason is that, due to a depressed economy, consumers are relying more heavily on reviews for large-scale purchases, like cars!  “The increase in online purchase verification may also be attributed to careful spending. Americans are nearly 25 percent more likely to verify recommendations for high-cost purchases, such as cars, today than they were in 2010 (89% today vs. 72%), while moderate- and low-cost purchases did not experience the same jump.”

There’s always a silver lining however; just as a bad review can be a deal-breaker, it can also be the zero moment of truth:  The same study shows that 87 percent of consumers agree that a favorable review has confirmed their decision to purchase.


As a Reputation Management Specialist for ADP/Cobalt I work with my clients to turn negative reviews in to positives for their business, staff and their bottom line. How you handle negative feedback says a lot about your business and your people. So with that in mind, remember that when it comes to responding to unhappy customers via online channels… the customer is always right. With-four-out-of-five consumers basing their purchasing decision on negative reviews, you can’t afford not to take the high road. In some cases, depending on how you handle the situation, you can ask a customer to retract their negative review if the dealership was able to resolve the issue in question. But being proactive will always win the day– it’s all about great customer service, more great customer service and then asking your happy customers to tell the world how you did.

 

Mary Kelly Gaebel is a Reputation Management Specialist at ADP Digital Marketing Cobalt. She works with dealers to increase dealership awareness and branding via social media outlets. She has a B.A. in Communications from the University of Washington.

 

Larry Schlagheck
Great post Mary. Thanks for sharing.
Eric Miltsch
Yes! - Great stats Mary! Shoppers are tired of hearing the same tired pitches from brands & their sales teams - bake the value in and your customers will sell for you in the form of positive reviews.
Jim Bell
Of course I have to agree with it being a great post. One thing that cars.com found in their study was that new car buyers are looking at service related reviews, not the buying process reviews. They want to see how they will be treated after the sale which I thought was very interesting.

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