It was recently reported that Amazon is experimenting with removing customer ratings from its product search results page, a test that the retailer says could make it easier for shoppers to scan its vast selection of products.
The “limited test” affects only a small set of products, the company told Fortune, and only affects the search results page, with star ratings and review count totals still available on individual product pages.
Despite this move by Amazon that the retailer says could make it easier for shoppers to scan its vast selection of products, the power of customer reviews cannot be overstated.
Our research found that 84% of consumers trust reviews from other consumers.
And in our industry, more people use reviews to decide which financial products to use than asking an adviser.
Those stats are certainly impressive, and show that companies really need to take their feedback seriously.
But you might still be wondering – why do so many consumers read and trust reviews in the first place? Here’s five reasons why consumers read reviews.
1. Validation and trust
Reviews offer a collective voice that validates or challenges a particular product or service. As our research shows, consumers trust the collective wisdom of their peers, preferring to find assurance in numbers rather than simply relying on what the company say themselves.
2. Real-world experiences
Reviews provide valuable insights into the real-world experiences of other consumers. Unlike polished adverts showcasing everything that’s good about a product, reviews reveal the all-important finer details – the pros, cons, and unexpected nuances.
3. Risk mitigation
Purchasing a product or service usually involves an element of risk – the risk of dissatisfaction, disappointment, or even regret. Arguably, such risks are only heightened when considering the purchase of a financial services product. By reading reviews, consumers can mitigate this risk by learning from the experiences of others.
4. Quality assurance
With so much choice available on the market, reviews act as quality assurance guides, helping consumers find the very best products and services. Whether it’s a five-star rating or a cautionary tale, reviews contribute to the ongoing challenging of finding products that are better than the competition. Reviews help to differentiate products and services when there’s little difference on price, too.
5. Saved time
Life is fast-paced, and reading reviews can make the decision-making focus much faster. Rather than engaging in extensive research or trial-and-error, consumers can save time by tapping into the collective knowledge of reviewers, and quickly assess whether a product or service will be likely to meet their needs.
It’s clear why so many consumers read and value reviews from other consumers. From seeking validation to minimising risks and saving valuable time, it’s no wonder consumers see reviews as a key part of their decision making process.
In fact, as a final nugget from our research, 69% of consumers are likely to change their mind after reading reviews.
So reviews aren’t just a piece of text or a rating out of five. They act as a validator, a guide, and a testament to the power of customer feedback.
Jess Rushton is head of business development at Smart Money People
