Customer-Centricity Tutorials

Why Online Reviews are Important for Your E-commerce Bussiness

Emre Calisir
May 14, 2022

What Online Reviews Mean for Your business?

E-commerce provides businesses with cheaper and more efficient distribution channels for their products or services. If you have an e-commerce business or are planning to establish it, this article will be useful for you. We will touch on one of the critical points of managing an e-commerce business: the importance of online comments for e-commerce.

Before this, let's look at some statistics that show the growth of the e-commerce industry. As seen below, global e-commerce sales are expected to grow by 385% from 2014 to 2013. So, if you want to be a part of this growth, it is not late.

You can start with online reviews.

Source

What do online reviews provide?

Social Proof

Social proof is that someone can be persuaded to try a service or product because they see a positive review or read an expert quote linked to the product.

So, online reviews are organic ways of social proof of your business. You don’t have to make an extra effort to increase your credibility. Your customers will do it.

Customer Engagement

A report published by Podium suggests that businesses ignore a major opportunity when they do not engage with customers to leave reviews. 

Businesses need to encourage customer reviews. To collect reviews, you can share customer experiences via social media, create an online raffle, send small gifts with the order, and so on. This will increase the possibility of customers’ reviewing.   

Customer Attraction  

Considering that 90% of online shoppers read online reviews, and 83% are influenced by online reviews on their purchase decisions, we can say that online reviews will affect potential customers’ decisions before making a purchase. 

Create Customer Loyalty

Leaving a review and establishing a relationship with your business allows consumers to feel like they have a voice even behind a desktop and/or mobile and/ or tablet screen and can provide feedback in a positive and meaningful way.

The value of Analyzing Online reviews

You can discover key features of your product

The discovery of key features enables you to educate yourself and drive engagement from within your product. When it comes to using feature discovery in your product, the most crucial thing to remember is you need to put your consumers first. 

By analyzing online reviews, you can discover your product’s key characteristics that consumers are satisfied with or dissatisfied with. This type of analysis conducted on online reviews will provide a ground to catch customer perspective.

You can discover areas of improvement for your products 

Product improvement aims to bring about significant changes to get new clients, retain existing users, and recapture lost customers. By doing an online reviews analysis, you can detect the strengths and weaknesses of your product, which will give an idea of how you can improve it. 

This is especially a live-saver for Research and Development (R&D) departments tasked with improving existing equipment and developing new products and solutions.  

You can optimize your marketing campaigns with better copywriting

Deciding on copywriting strategy is easier with an online reviews analysis; you can shape your marketing strategy based on customers’ needs and demands. So, these reviews will provide a source to decide on your copywriting content. 

For example, if you have a shampoo brand and your customers are satisfied that shampoo solves the dandruff issue, you can establish your copywriting strategy by emphasizing this topic. 

You can create content based on why people love products

As well as copywriting, you can create various content such as blog posts, social media posts, or a newsletter. Considering what people talk about, you can catch the customers' attention because you will give them the thing they have already talked about. 

So, following your customers’ words and creating your content accordingly will provide you with attention.

You can compete with your competitors if your product already has what’s demanded already in the market

The only target is not your customers; tracking your competitors’ customers can help attract new customers who need a product or service you provide.

How to analyze online reviews by using Pivony?

Now, you have an idea about the importance of online reviews for your business. The next step will explain how to learn from them.

You can’t simply read thousands of online reviews manually – not if you don’t want to stay inefficient. 

The manual time-consuming process of a decade ago is no longer needed. The actual procedure to analyze hundreds of reviews is a simple four-step process that could hardly be easier:

  • Select Data Source
  • Analyze 
  • Generate Insights
  • Take Actions

Here’s where Pivony’s e-commerce intelligence comes into play. So, I’ll explain what e-commerce intelligence is and how to use it to maximize your benefits from the analysis. 

1. Data Sources

You can analyze online reviews from e-commerce platforms like Amazon.

The only thing you should do is copy-paste the product URL you want to analyze, and Pivony's AI engine will work for you to extract the best data.

Pivony's automated AI engine summarizes all of these reviews for you to get the best insights in no time by extracting data from e-commerce platforms. 

You can discover the key features of products from the customers’ point of view. You can also compare products against each other and gain groundbreaking insights.

2. Analyze

After you submit it, you will see a Dashboard that gives the user a general overview of the topics that are mostly addressed in the content. 

Commonly discussed topics generated by AI enable you to detect the issues easily without any need for any manual effort. 

Source

Here, you see a bubble view of commonly discussed topics in the AirPods pro Amazon reviews.

Besides, topics are classified according to their sentiment. Green bubbles mean positive sentiment, while red bubbles indicate a negative sentiment. 

Let's click on a bubble and see what happens. I'm clicking on charging case.

Clicking this bubble displays an overview of topic-specific data, including intent, rating, and sentiment analysis about charging case. So, you can have a general idea about charging case topic. Besides, reviews regarding charging case will be showed. By seeing related reviews at the same time on one page, you can quickly catch insights.

3. Generate Insights

The third step is generate insights. Reviews regarding charging case indicate that some people are complaining that the charging case is damaged. Creating this insight will show you the scope of the issue like how many people possibly are received a damaged charging case.

So, 7 people say that they have received a damaged charging case. However, it doesn't mean that only 7 people are facing the same problem. There may be those who have the same problem and do not leave a comment.

At this point, Pivony calculates the number of potential affected users so you can see the real impact of the issue on your customers.

4. Take Actions

Assigning Tasks

Pivony has integration with Trello and ClickUp. So, you can directly assign a task to the relevant person or department about your insight.

Get Notified

Integration with Slack provides you with notifications if you have a Dynamic Dashboard. You can choose to be notified by email also.

User Audiences

You can classify your customers based on their common expectations. So, you can take actions directly targeting these classified customers.

E-mail marketing

You can create a marketing e-mail campaign for your customers using Pivony. 

Emre Calisir
Emre is the Founder and CEO at Pivony. He has 10+ years of experience in Research & Development.

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