Document Actions
December 22 2008
Online reputation now a key deciding factor with internet shoppers
65% of consumers check into an internet retailer's reputation before making a purchase and most are now happy they get the same level of service online as they do in-store
Nearly two-thirds of consumers check the internet for information about an online retailer before committing to a purchase, according to a survey of 1,600 consumers commissioned by web hosting provider 1&1 Internet.
46% of Britons now read online reviews or recommendations on a specific product before buying it and 32% are willing and able to publish a review online — but only 19% would be prepared to write a letter to a retailer.
27% of Brits actively look for a retailer's customer service commitment on its website. But word of mouth is still the most popular method of sharing online shopping experiences, with 52% regularly sharing experiences with friends and family.
Two-thirds are confident they receive the same standard of service online as they do 'over the counter', but there are geographical variations. In Belfast 80% of those surveyed agreed but in Sheffield the number fell to only 59%. Londoners expressed the second lowest level of confidence in online at 60%.
The size of an online retailer is now only important to 13% and its location is only a factor with 21% of online shoppers.
The research found that age does play a part in how likely a shopper is to check out the reputation of a retailer or a product online before buying. 70% of over 55s regularly research in this way, compared to only 53% 16-24 year-olds.
Men are also more likely to use customer reviews than women, with 44% of men and 34% of women saying they routinely rely upon independent star ratings and rankings.
"Britons have clearly learned to do their homework before they buy online," says Oliver Mauss, CEO at 1&1 Internet. "It is significant that the average online shopper will now invest time in appraising a retailer's online reputation as an integral part of their buying decision".
"At a time of advertising-overload, consumers clearly see great value in sharing their knowledge," he added. "This is perhaps contributing to their growing confidence to experiment with smaller online retailers. It is impressive that Britons are as keen to contribute as they are to consume market intelligence".
by Sarah Clark (Web Editor)
The Retailers New Year Resolution: Personalisation to all
So, at the top of retailers' New Year’s resolution list should be the need to review their 2009 customer care initiatives. Our recent study concluded that the two biggest factors, likely to influence consumer spending during a credit crunch, are competitive prices (79%) and a combination of good prices AND good customer service (72%). Retailers relying on brand pedigree, product uniqueness or reputation to see them through the downturn in spending may come unstuck as these were listed as the three least influential factors.
Joe Brown, General Manager, EMEA, RightNow
jgbrown@rightnow.com
Engage your customers in these tough times - Web 2.0 and personalisation are key
In the current economic climate, consumers will be more prudent with how they spend their money. As the research shows, they will be looking to their peers for recommendations. Therefore, those sites that interact with consumers and allow them to leave comments and recommendations to benefit fellow users will surely be the most popular. This is particularly important as increasingly we are seeing that even the best known and most established brands suffer from a loss of consumer confidence. So anything that a brand can do to engage its customers will help it secure their trust and loyalty.
In my opinion, Joe Brown is right when he states that personalisation is key for those who don't want to fall foul of the tough economic conditions. The consumer must feel that their online experience is personal to them, so it is important for online retailers to understand the needs and demands of their target demographic. As the research shows, different age groups respond best to different online features and e-tailers need to be aware of this. For example, over 55s are more likely to check up on a retailer by reading reviews and visting online forums than the 16-24 year-old age group, who are more driven by access to dynamic multimedia content. If online retailers can offer the right tools to cater for their consumers' needs and offer them an engaging and personalised experience then they will be well placed to weather the storm.
Guy Westlake, Senior Product Marketing Manager EMEA, Vignette