Online Word of Mouth
I spotted a couple interesting articles about the power of online reviews (word of mouth). Articles in BizReport.com and Internet Retailer report on Forrester Research’s recently released report called ‘Myths and Truths About Online Customer Reviews’.
Forrester Research indicates that while 81% of people look for information online, and are influenced by what they read — they also do not base their purchase decisions on that information. In fact only 14% always trust an online review. There are slight variations by target audience and category, but the good news is that bad online reviews can be survived. In spite of bad reviews, people sought additional information either from a professional reviewer (37%) or followed up directly with the company (7%).
My view is the lack of personal connection with the reviewer made their motives and credibility suspect. We don’t have a context for why they provided a poor review. Was it a disgruntled employee or a customer with unreasonable expectations? People want to make their own decision and online reviews are a research tool as part of the decision-making process.
However, compare that with an offline review — word of mouth from someone we know. What makes off-line reviews so powerful is that we know the person, we trust them and therefore their views are already in the context of a credible reviewer. We may already have discovered similarities in expectations that align with our own values, so their opinion holds special value.
A bad review online may not be a death knell, but bad offline reviews from someone we know will surely have an enormous impact on any business.
When I do customer service training, I spend a lot of time discussing WHY word of mouth is so effective. I generally cite three basic reasons: first of all, the business loves it because it’s free. Also, in contrast to paid advertising, it’s almost 100% “on target”: the message generally gets to people who are actually potential customers. And finally, as you say, credibility. I agree with you that credibility is the real energy of word of mouth. Online reviews for the most part lack that credibility, to be sure. Do not, however, let that lull you into a state of neglecting your online presence and reputation. The “public review” sites can be very powerful, and you neglect managing them at your own peril. -James Kohn, http://www.JamesKohn.com
I think you hit the nail on the head with “My view is the lack of personal connection with the reviewer made their motives and credibility suspect.”
I’d believe people would place more weight on comments from followers or people they had some sort of connection/relationship with. If the review was from someone or some site that the reader held little respect for its value would be less.
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