BUSINESS INSIGHT: CUSTOMER REVIEWS
THE POWER OF CUSTOMER REVIEWS - IGNORE AT YOUR OWN RISK
As a DIY retailer, you’ll know a particular kind of customer well: the reliable tradespeople who know what they’re talking about, know what they’re after and know you are the brand of choice for them. While trade makes up a substantial amount of your customer base, when it comes to the new and infrequent do-it- yourselfers, do you still have the same confidence that you understand their needs? By Mike Fantis, Managing partner and VP, DAC.
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f not, trying to find the pertinent customer insights can sometimes feel like trying to find a bubble for a spirit
level – a bit of a joke. But DIY brands are not apprentices under initiation and there’s actually an easy fix… customer reviews. When it comes to the trades, consumers already pay close attention to reputation, thanks to sites like Checkatrade, but this is also true for retailers themselves. 98% of consumers say reviews and ratings are the most influential factor in making a purchase decision. Yet, 90% of UK businesses are challenged by online reputation management and DIY businesses can’t afford to ignore
this vital
feedback channel. In fact, reviews matter now more than ever for home improvement retailers looking to build customer loyalty and drive sales in a competitive market segment. For too long, DIY brands and
retailers alike have relied on their salience - price and location - rather than their online reputation. And against the backdrop of consumers tightening their purse strings, something needs to change if businesses in this category are to keep up.
Reviews as feedback loop A brand can quickly come under fire
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in the wake of bad reviews, which is why it’s so important - in part - to put a reputation management strategy in place. However, even a poor review can present an opportunity if it is managed carefully and the feedback is both acknowledged and addressed. Reviews are a direct feedback mechanism from your customers. They essentially provide retailers with timely (and free) ‘market research’ that enable multiple areas of the business to make changes where and when they are needed. They provide useful information on the quality of your products and on the overall shopping experience, whether that’s on or offline. In the first case, this can then be relayed to the buying or manufacturing teams to help with business decisions. Comments on the customer experience can be used to improve the functionality of the online store, or staff training, stock, and other aspects of the shop floor in a bricks and mortar context. As such, it’s crucial that both head
offices and individual stores pay close attention to reviews and factor this feedback into their strategy. It could be the difference of a customer choosing you vs. another brand nearby.
The power of the personal Addressing criticism in a proactive and positive way helps to alleviate negative impressions and
Mike Fantis, Managing Partner and VP, DAC
strengthen ties to your customer base.
As such, reviews should be viewed as a direct line of communication to customers, giving retailers the chance to connect with them on a deeper level. Responding to questions, acknowledging someone’s positive feedback humanises your brand and shows you value your customer’s opinions. DIY covers a vast range of
hardware stores and specialist providers, both online and offline. Though the supplies you offer may seem somewhat menial, what they represent isn’t. A hammer could be the vital tool Jane Smith needs to fix a dearly cherished family heirloom, so she really needs the right advice and reassurance. Jane’s likely to choose the brand and, potentially the specific store, that’s been singled out for its customer service.
For now Jane is a potential customer, in future she may become a reviewer herself, a brand advocate. It’s worth looking at the customer behind the name.
The search factor Responding to Google reviews in the right way is vital. Not only does it demonstrate the expertise held in store and build trust, reviews have a direct impact on search rankings.
Google’s algorithm favours active listings and responding to reviews improves visibility by pushing your business further up
the search engine results page. Brand awareness and offline word-of-mouth can’t factor into search, so managing your digital presence is an active and ongoing process.
Suddenly Jane Smith’s hammer takes on a much greater significance… While peer reviews can convince customers to make the purchase, responding and reacting to reviews at a local level also shows a level of care for the surrounding community. Take the recent chaos caused by storms Babet and Ciaran for example, retailers that built up stocks of fencing, roof tiles and so on in those areas most likely to be hit hardest would have bolstered sales. Those that also invested in their digital response would have done the same for their reputation. Businesses that respond to
reviews, ideally at a store level, will not only be more visible on search, but also on Google Maps. Search providers reward commitment at a local level, as will your customers. Reputation management is fundamentally built on a feedback loop of listening, communication and action. No brand, even the biggest ones, can rely on brand equity online without nurturing their reputation. Those that invest in customer engagement with all audiences and across physical and digital touchpoints will foster brand loyalty and increase repeat purchases. It is those businesses that will be best placed to weather the economic downturn.
NOVEMBER 2023 DIY WEEK 17
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