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!

New ReviewInc App Available on HootSuite

HootSuite Owl
ReviewInc’s industry leading monitoring capabilities are now available in HootSuite! ReviewInc supports over 200 popular review sites across over 100 countries, and organizes positive reviews for sharing on social media outlets. The ReviewInc app for HootSuite allows you to monitor multiple streams of reviews, engage with customers, and share positive testimonials of your business with your social networks via HootSuite.

Enhance Customer Engagement

Give recognition to your supporters; let your customers know that they’ve been heard and you appreciate their feedback. The ReviewInc app for HootSuite allows you to easily share all your online reviews across your social networks.

Create Social Buzz

If your location is getting a heap of positive reviews, it’s time to let the rest of the world know. Become the talk of the town by spreading the word through the words of your customers.

Are You a Social Media Manager?

With multiple account support, the ReviewInc app for HootSuite is a great tool for agencies and social media managers, who manage accounts on behalf of clients and other brands.

What Can We Do For Enterprises?

In one centralized platform, you can see all your company reviews segmented in every way possible with the filter options (i.e. international, national, regional, local, workflow state, share state, review site, keywords, etc.). With a large organizations, you can create an infinite number of sub-accounts with finely tailored access for your corporate, regional and in-store management.

If you’re already a HootSuite user, install the ReviewInc App in HootSuite.

or

Sign up for HootSuite and install the ReviewInc App

The app is free with your current ReviewInc subscription.

What is HootSuite?

HootSuite is a social relationship platform for businesses and organizations to collaboratively execute campaigns across multiple social networks from one secure, web-based dashboard. Launch marketing campaigns, identify and grow audiences, and distribute targeted messages using HootSuite’s unique social media dashboard. Streamline team workflow with scheduling and assignment tools and reach audiences with geo-targeting functionality. Invite multiple collaborators to manage social networks securely, plus provide custom reports using the comprehensive social analytics tools for measurement.

Key social network integrations include Facebook, Twitter, LinkedIn, and new Google+Pages, plus a suite of social content apps for YouTube, Flickr, Tumblr and more.

 

 

Review Site Series: 5-Star vs. Alternate Rating Scales

In this installment of our Review Site Series, we wanted to focus on the rating scales used by different review sites. Most review sites use a 5-Star rating scale, but others, such as Zagat use an alternate rating scale. (Zagat uses a 30-point scale.)

We at ReviewInc feel that having a scale other than the standard 5-Star rating scale can be a little confusing for consumers. People generally associate leaving reviews with a 5-Star system and it seems to be the simplest form of rating scale.

Interestingly enough, although Zagat operates on a 30-point scale, it’s still almost as if they operate on a 5-star scale.

Zagat Rating Scale

Essentially, ‘5 Stars’ would be “26-30 | Extraordinary to Perfection”, ‘4 Stars’ would be “21-25 | Very Good to Excellent”, ‘3 Stars’ would be “16-20 | Good to Very Good”, ‘2 Stars’ would be “11-15 | Fair to Good, and ‘1 Star’ would be “0-10 | Poor to Fair”.

Zagat, who was bought out by Google, used to aggregate its scores towards Google+ Local listings. However, Google has now switched back to the 5-Star rating scale.

Another example is a percentage rating scale used by sites such as Citysearch, which is determined by a simple ‘thumbs up’ or ‘thumbs down’. (Or a 2-point rating scale, if you will). While this scale is far more simple than the 5-point rating scale, it’s important to note that when you have a scale like this, it takes a lot of people to participate in order for the data to be truly meaningful.

Citysearch Rating Scale

What do you think? Do you think that a 5-Star rating scale is the best form of rating scale? What are others that you think are more beneficial or accurate? Let us know in the comments below!

Review Site Series: Review Minimum/Maximum Length

limits

This week we wanted to focus on the review minimum/maximum length imposed by review sites. Many review sites require a certain amount of characters before being allowed to post a review. Conversely, some review sites impose a maximum amount of characters that are allowed in a review.

For example, Yahoo! Movies requires a minimum of 400 characters before you can post a review. On the flip side of that, Foursquare only allows a maximum of 200 characters. It’s interesting to note that one review site’s maximum length is half that of another review site’s minimum length. Granted, it all depends on the review site’s nature of reviews. In this case, movie reviews generally would require more detail, whereas Foursquare check-ins encourage “tips” rather than actual full-length reviews.

We at ReviewInc feel that there are definitely pros and cons to both.

Review Minimum Length Pros:

-Prevents spam
-Forces reviewers to give a little more detail about their experience that in essence makes the review site more effective for consumers.

Review Minimum Length Con:

-Does not allow for legitimate reviewers who have very little to say about their experience to post a review.

Review Maximum length Pros:

-Prevents spam
-Makes it so that everyone is not posting lengthy novels about their experiences and every review is concise enough to be skimmed through quickly. Quality control, if you will.

Review Maximum length Con:

-Does not allow for legitimate reviewers who genuinely have a detailed description about their experience to go as in depth as they’d like about their experience.

What are your thoughts on review minimum/maximum word limits? What are some pros and cons of your own? Tell us in the comments below!