Bazaarvoice, Inc., a provider of product reviews and user-generated content (UGC) solutions, has released its latest research, based on a survey of more than 10,000 global shoppers. The report explores the effect fake reviews and authenticity have on customer trust, and the subsequent actions shoppers take based on that trust. Brands and retailers need to embrace the fact that while allowing or creating fake reviews on their website may seem like an easy way to gain customers, they actually very much hurt businesses – and their bottom lines.
“We’re well aware of the importance of UGC and the need to ensure that it is genuine and authentic,” said Nicolas Fillat, Marketing Business Leader, Customer Care and Feedback at Adeo. “To do this, we need a trusted third party and a partner with significant functional experience and expertise regarding reviews. Our partner Bazaarvoice comprehensively delivered on those requirements.”
Global survey highlights include:
Fake reviews break trust: 52 per cent of consumers said fake reviews make them lose trust in the brand
Loss of trust is costly: 81 per cent said they would avoid using a brand again after losing trust in it, while 48 per cent would leave a negative review, and 16 per cent would post about the company on social media
One fake review spoils them all: 75 per cent said that if they notice a fake review for a product on a site, it would impact their trust in reviews for other products on the same site
It spoils the sale as well: If they suspect fake reviews, 56 per cent wouldn’t buy the product, 50 per cent wouldn’t trust the brand, 34 per cent wouldn’t trust other reviews, and 25 per cent wouldn’t buy from the site
People actually like negative reviews: 85 per cent think negative reviews are either as or more important than positive ones
They want rules for fake reviews: 70 per cent think the retail industry needs a new set of standards to combat fake reviews. They want the standards to dictate that only verified customers be able to post reviews (59 per cent), all products be tried and tested among legitimate consumers before launch (56 per cent), daily reviews of customer content to weed out fake reviews (49 per cent), and websites publish the reviews process or third party they use (40 per cent)
They want consequences, too: Most people (27 per cent) think 21-30 per cent of revenue should be fined as punishment for brands in breach of these standards
They don’t know what current laws are: 48 per cent said they have no idea what their consumer rights are when it comes to fake reviews and 45 per cent) said that they have a little bit of information
When UGC is trusted, it sells: People trust UGC when used in an ad (42 per cent) more than brands advertising without UGC (31 per cent). In fact, people most like to see UGC everywhere they shop online (48 per cent).
“Brand trust is one of the most valuable assets on the balance sheet,” said Zarina Stanford, Bazaarvoice CMO. “Harnessing the power of the voice of the customer is crucial for today’s always-on commerce. Authentically posted reviews – both positive and negative – is by far the most powerful way to utilize the voice of your customer to earn trust and purchase conversion. “
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