Net Promoter Score vs Star Rating

Aside from the popular Five Star rating system found on most review sites, a popular alternative is the Net Promoter Score (NPS).  The rating system chosen by a business can provide very different levels of insight. But was exactly is the Net Promoter Score, and what makes it a good choice as a rating system?

NPS Score

For those unfamiliar with the Net Promoter Score, the rating system is based on a customer rating that ranges from 0 for worst to 10 for best.  A rating of 9 or 10 are Promoters, a rating of 7 or 8 are Passive, and a rating of 6 or less are Detractors.  Promoters talk about how great your business is whereas detractors talk about how awful it is.  Passives typically take a neutral stance and stay quiet about your business.  To arrive at the single-numbered NPS Score, the percentage of Detractor scores is subtracted from the percentage of Promoter scores.  Therefore, NPS can range from as low as -100 to +100.  If you have a score of +100, it means that every customer that rated your business is a Promoter.

Advantages and Disadvantages of Net Promoter Score

While the five star system appeases analysts and researchers, the Net Promoter Rating System provides more depth. The 11 point (0 though 10) rating system can both give the appearance of greater complexity, but it can also steer a consumer away from making a choice. And while ReviewInc does a masterful job of doing so, the full number range for NPS is more challenging to display on a mobile device.

Advantages and Disadvantages of the Five Star Rating System

The Five Star Rating system is by far the most popular and most recognized rating system on the planet.  Virtually all review sites use the Five Star rating system.  As such, the sheer consumer familiarity with this rating system is a huge advantage.  Most adults learned to appreciate star stickers as the award of choice in kindergarten, which bolsters its popularity.

There are a few disadvantages of the Five-Star rating system. First, while the NPS rating allows for a 0, the Five-Star rating system often times does not. What’s more is the Five-Star rating system doesn’t allow any wiggle room for discerning reviews that like to reserve the perfect school for a select number of businesses. The NPS, however, allows for a customer to give a rating of 9, which is still considered a “Promoter” score.

Other Rating Systems

There are alternatives to the NPS and Five-Star rating systems. The most popular is known as the Emoji Rating Systems.  Also known as Millennial Sentiment Scoring, this system offers really a very simple decision, and can even be a binary choice. Are you Happy or Sad?  Alternatively, are you Happy, Just OK, or Sad?  These rating systems require very little thought and appeal to gut emotions.  The theory is that the consumers, inundated with requests for ratings, don’t have to think too much and will quickly provide a selection.  Of course, this can lack depth, and it is more difficult to spot small improvements in overall ratings.

What Consumers Say

So which rating system to consumers prefer?  We put it to a test of over 3,000 U.S. Internet users.  We presented them with images of the rating systems and asked them  “When rating your experience with a company or business, which of these rating methods would you prefer to use?”

The result of this survey was surprising.  We had expected the simpler rating methods to be more popular.  Instead, the Emoji-based systems were the second most popular kinds of rating systems.  The Net Promoter Rating system was the least popular.  But, by far, the most popular rating system was the familiar Five-Star rating system.

Gender Differences

Males indicated a higher preference for the Net Promoter Score and a higher preference for the Happy/Sad (i.e. binary) rating system than Females. Meanwhile, females indicated a higher preference for the Five-Star and the Tertiary rating system of Happy/OK/Sad.


Age Differences

When examining preferences by age group, the results were also insightful.  The 18 to 24 year old demographic showed a lower preference to the Five Star system than any other age group.  At the same time, they showed the greatest preference for the Net Promoter Score.  The 65+ age group showed the greatest preference for the Five-Star rating system, and least for the Emoji-based rating systems.

Response Rate

While customers may express their preference of a rating system, their response rate to each rating method was quite different.  ReviewInc’s analytics team collects data on how well customers responded (or abandoned) a review request with different rating systems.

ReviewInc offers the option of use any of these rating systems and even allows you to customize colors, shapes and images.  To learn more about the customizations or the response rates, contact one our online reputation management experts.

Review Management Software

Review Management Software

The internet has taken over every part of our lives. It helps us connect with friends and family while providing information, access and entertainment. But one surprising thing that has happened in the past several years is the aggregated knowledge and wisdom that are review sites.

Yes, a lot of us ask a friend here and there what kind of vacuum to buy or who is the best dentist, but now it’s just as easy to Google the BEST vacuum, dentist, restaurant, or car dealership local to you. It’s true: we trust the internet like an old and dear friend, so it’s no wonder that we as consumers are putting our lives in the hand of ratings and reviews online.

Look Who’s Talking Now

If we as consumers are influenced by reviews online, we as business owners are directly affected. Review sites have gained importance over the past several years by a factor of over 19%. Everyone from Baby Boomers with discretionary income to Millennials are contributing to the popularity of review sites. In fact, when people were asked what is most important when choosing a service or professional, a recent study conducted by ReviewInc showed that 40% of those surveyed said they relied on review sites including Google, Facebook and Yelp to help determine which product or service they choose.

How Does This Affect Your Business?

If your business has ten locations or even one, chances are your business can be found online. Whether you like it or not, people are judging your business, often by a count of stars. This is your business reputation and it’s in the hands of the public where potential customers read these reviews, and choose your business over a competitor.

Even if your star rating is high, it does not mean that you are getting customers in the door. You are still competing with other like businesses in the virtual world and some of these businesses may have a higher star rating than your business, a larger review count, and a more established online presence.

Alternatively, let’s say that you are the business with the established online presence, however just one poor rating posted recently can directly affect your business in a negative way. Since most review sites have the option of showing the most recent reviews, customers may see the recent negative review as a change in the quality of your product or service and steer away from your business.

Time Is Money

Now that you know that your business has an online reputation to manage, there are a few other things to keep in mind. After you’ve established your online business presence and claimed all of your business pages, there’s a matter of management.

More and more, you’re engaging with customers on and offline. Following up with every single customer can be time-consuming, especially when you don’t always see all of the reviews posted all the time. This is an added (and necessary task) on your plate to deal with, and time is money.

The Solution: Review Management Software

Recent studies have illustrated just how critical the right reviews are when it comes to the revenue and growth of a company. As we say at ReviewInc, “Negative reviews hurt emotionally and financially and they are not going away on their own!” The solution to this problem is none other than review management software.

There are plenty of sufficient review management systems out there, however your question should be, how can the software accommodate your need?

Age Is But a Number

In our last post, we discussed how age and gender affected consumerism. Women over the age of 55, the largest consumer group worldwide, are a part of the group that read the most reviews. Millennials, often described as born between 1980 and 1996, makes their choices through conversations. That’s why it is so important to not just be visible online, but to have a conversation and connect with those customers leaving and looking for reviews.

Review management software should meet this need. This software should let you see all of the reviews from review sites pulled in under one main dashboard, and should also allow you to respond easily with just one click.

Engage!

These days, people don’t want to be told what they want. They want to choose for themselves. This is the case with older generations but is especially the case for the Millennial Generation as they reach their peak consumer spending.

But before they even leave a review, why not connect with your customer before they even leave a review? Great software should also be able to allow you to upload contacts or automatically pull in contacts from CRMs so you can easily message customers and see what they have to say. Once you’ve seen this feedback, you can engage with them in a way that will positively impact your business.

The Cherry on Top

It’s not just seeing everything and engaging. Review management software should also have additional components to make managing your reputation easier. For example, being able to create testimonial pages for your business website and Facebook page highlight all of that positive private feedback you’ve been getting in the platform.

But there should be so much more reputation software should do. If you are on the go or tend to use a tablet, you should be able to see and do everything in the platform. It is important to find something that doesn’t just provide a “light” app but allows you 24/7 secure and stable access whether you’re in your office or on the go.

Where Can You Find This Software?

Luckily, there is a review management software available that does all of these things and so much more. It also comes with professional reputation management experts available during regular business hours. Want more information? Interested in a free consultation with an expert? Click below!

Online Reviews Prove Most Influential in Remodeling and Furnishing Buying Decisions

ReviewInc recently surveyed 1,500 consumers on how they would make a selection when choosing to remodel or furnish their home. The results were staggering as demonstrated in the charts below:

chart1.3

Reviews on review sites were the most influential (35.4 %) in deciding on a company to remodel or furnish a home. It was surprising to see that more people used the traditional yellow pages than online advertising. However, this appears to be a generational choice. (see next chart)

chart2.3

Interesting that ALL age groups showed a high preference for selecting a remodeling or furnishing company based on online review sites. However, aged 55 and over showed a more than twice the younger generation a preference for use of the traditional yellow pages.

The study included consumers from across the United States ranging in age from 18 years old to 55+ years old of both males (629 respondents), females (544 respondents) and unspecified (353 respondents).

Each answer choice order was randomized for each respondent. Each respondent could only choose ONE of the responses, thus forcing them to choose the most influential answer. Because personal referrals were already known as one of the highest selection methods, we chose to exclude it from the questions, but respondents could specify “friends” or “people I know” and other such answers in the “Other” field.

eMarketer Highlights ReviewInc

eMarketer_Title

Recently, Krista Garcia of eMarketer reached out to ReviewInc’s Chief Operating Officer, Henri Isenberg for their article titled “Online User Reviews: Building Trust and Boosting Sales”.    ReviewInc and Mr. Isenberg were highlighted with other industry experts from TripAdvisor, Yelp, Bazaarvoice, and TrustPilot.  The article provided research results and expert opinions related to subjects that included: Perceptions of Fake Reviews, Why Reviews Matter, Influence of Reviews on Sales, Trust in Reviews, and How to Build Trust in Reviews.   The article quoted many of the findings of ReviewInc’s research (ReviewInc’s University Study) along with quotes from Mr. Isenberg on various topics.

On the topic of lack of reviews, eMarketer wrote:  ReviewInc’s Isenberg noted that a lack of reputation is just as bad as a poor one: “That’s what social media has done.  It’s moved us to a realm where you expect to find someone’s reputation online.  You have to have reviews.”

Mr. Isenberg was also quoted on ReviewInc’s views of fake reviews:  “From my experience, most consumers have a pretty good BS meter built in,” said Henri Isenberg, COO of ReviewInc, a software provider that monitors reviews and enables businesses to share them. “I think that we don’t give enough credit to consumers to look at stuff and really tell on their own, ‘Wait, this doesn’t look right.’”

eMarketer concluded that “Consumers haven’t lost confidence in user reviews, but companies still need to remain vigilant” and that “To maintain authenticity, new standards are constantly being developed.”  But ultimately, “Consumers deserve credit….a majority of US internet users are seasoned social media users and online buyers… Most internet users have the experience and sense to detect when something seems too good to be true or looks suspect.”

To download this article, go to: http://www.emarketer.com/Article/Users-Seek-Truth-Online-Reviews/1009656