Negate the Social Risk of Negative Reviews

A survey sponsored by Boston-based brand consultants Cone finds a significant increase in the power of negative online reviews. About 85% of respondents said they’ve changed their minds about making a purchase based solely on negative information they found on the internet. This compares with about 65% last year. The sample consisted of 1,054 U.S. adults selected to reflect the demographic composition of all U.S. consumers.
     Based on the pattern of findings, the Cone researchers conclude that the increase in the influence of negative information is because of more widespread internet access. I’ll go beyond this to suggest that what we’re seeing is not so much that the shopper can access ratings as that the shopper figures their friends and family can access the ratings. Consumers are concerned that if they select a product with negative reviews online, others will think less of them.
     It’s a matter of social risk: “If the people I admire know I’m using this product or service, what is the danger I’ll fall out of favor with them?”
     What to do? Here are three tips, with a bonus tip attached to each:

• As a retailer, acknowledge the negative review. Researchers at European University Viadrina find that when a salesperson does this, the shopper becomes more likely to trust everything the salesperson says. But keep the words and logic simple. The researchers find that if there’s too much complexity, the shopper won’t hook the talk of negative information to the salesperson’s credibility.
• Offer a liberal money-back guarantee known about and trusted by the shopper. Research findings from University of California-Berkeley and Hebrew University of Jerusalem indicate that if your store does this, any negative reviews become much less important to making the sale. Then for any return, ask the customer the reason. This improves merchandising and curbs fraud. Make it a service-oriented inquiry, not an inquisition. Keep questions brief. If a customer asks, “Why do you need to know this?,” reply “So we can do a better job of stocking the right merchandise for your needs.”
• Once the customer makes the selection, talk about positives. But if the shopper seems to be backing off from the purchase, ease the stress, while not letting the customer leave altogether, by saying, “I suggest I help you find some of the other items you’re shopping for here today, and then we can come back to considering this decision.”

Click below for more:
Reduce Unwanted Risks for Your Shoppers
Disclose Product Cautions
Simplify Item Returns for Customers
Attend to Negatives When High Time Pressure