While the most influential form of word of mouth recommendations come from those you know personally, such as family and friends, online ratings and reviews can have significant influence as well. A recent study by the University students examined the relationship between the number of online reviews and sales.
Reviews increase sales
“Using data collected from a large online retailer over a six-year period, the researchers found that the number of reviews has a very positive effect on sales of items that are perceived as working well by shoppers, while sales are significantly less positive on products with poor ratings,” the study said.
Other benefits to ratings and reviews
•Search engine optimization
Reviews increase the amount of original content on the site. If that content is topically-relevant, it stands to reason it will help increase SERPs.
•Increased user-engagement
Visitors will return more often to read recently updated reviews. It is even better if RSS feeds can be tied to product reviews so updated information is delivered to subscribers.
•Increased traffic from return visits. If your ecommerce site offers a rating/review system and your competitor does not, it stands to reason the customer will visit you and not them. You gain competitive advantage.
•Increased trust. If word of mouth is a highly-trusted source (and it is), the fact you offer a rating/review system will lend itself to increased trust in your site.
•Word of mouth marketing.
See some example of eXcommerce customers using ratings and reviews.
Clic products (norway)
Smashbox (denmark)