Chapter seven of Groundswell explores how powerful product ratings and reviews are in terms of marketing and advertising. While this concept seems simple enough, I think we as consumers tend to overlook what this means for the company.
Initiating a very basic rating system on your product, assuming you are producing a well-made product, could create a new hands-off approach to advertising. Your customers could be the driving force behind an increase of sales, while you sit back and watch.
Product rating is the new word of mouth.
While reading this chapter I couldn't help but think that yes ratings and reviews are a good idea in theory, but what if it back fires and you receive more negative reviews than positive ones?
This reminded me of working in a restaurant in high school. Our managers would always emphasize the importance of quality service by reminding us that if a guest has an exceptional meal at a restaurant they might tell one or two people, but if they have a horrible experience at a restaurant they will tell everyone they see. When comparing this logic to online purchasing I assumed the same would be true. However I really like the way Groundswell explained the importance of negative reviews.
According to the chapter, 80% if reviews would be considered positive. This chapter also emphasizes that negative reviews are essential to the credibility of the site. This is a very true statement. If a website only displayed positive reviews then most consumers would assume the reviews were false testimonials created by the company. With the initial risk of online shopping, purchasing from a website with fake reviews would greatly reduce the trust you had in that company and the odds of you buying any of their products.
It will be interesting to see what role ratings and reviews will play in the future of advertising as they become more prevalent.
This blog aims to explore the effects of trending social media news. It will investigate new facets of social media and determine how they will or can effect current societal norms. Some of the main components making up this blog include, social media marketing/advertising, social media in popular culture, popular social networking sites (Twitter, Facebook), emerging social media sites (Quora, Tunerfish, Hunch), as well as reactions to social media literature.
Showing posts with label groundswell. Show all posts
Showing posts with label groundswell. Show all posts
Sunday, March 6, 2011
Sunday, February 27, 2011
How social media effects the relationship between company and consumer
Chapter 6 of Groundswell, a book about how to cater social media to your specific needs, the author places an emphasis on how companies need to create a presence in social media in order to truly listen to the needs of their consumers.
The chapter highlights the recent shift in the relationship between companies and consumers because of the encompassing nature of social media. It has shifted any company's ability to gain access into the thoughts of their consumers.
Before consumers were actively voicing their opinions on Facebook, Twitter, blogs, and Yelp companies were relying on market research to gain consumer feedback. Market research however, while helpful, really only operated as a one way communication tool where consumers answered questions asked by the company. While this gave the company more control over conversation content it also limited the scope of the conversation. Consumers were only giving their opinion on what they were asked about, not necessarily what they really wanted to say. Companies were missing out on some of the most helpful information, the stuff they didn't know to even ask about.
Social media has completely transformed so many avenues of communication, including business. We are living in a rapidly changing society where the consumers have more control than the companies. The power is shifting and I predict it will only become more consumer driven in years to come. Social media's influence on society is only beginning.
The chapter highlights the recent shift in the relationship between companies and consumers because of the encompassing nature of social media. It has shifted any company's ability to gain access into the thoughts of their consumers.
Before consumers were actively voicing their opinions on Facebook, Twitter, blogs, and Yelp companies were relying on market research to gain consumer feedback. Market research however, while helpful, really only operated as a one way communication tool where consumers answered questions asked by the company. While this gave the company more control over conversation content it also limited the scope of the conversation. Consumers were only giving their opinion on what they were asked about, not necessarily what they really wanted to say. Companies were missing out on some of the most helpful information, the stuff they didn't know to even ask about.
Social media has completely transformed so many avenues of communication, including business. We are living in a rapidly changing society where the consumers have more control than the companies. The power is shifting and I predict it will only become more consumer driven in years to come. Social media's influence on society is only beginning.
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