How to use product reviews for making smart merchandising decisions
If you are managing an online brand or have in the past, you probably know how important it is to have product reviews on your site.
Here are a few examples of why it is so important:
Increase conversion rate and sales – Product reviews are an important tactic within stores’ conversion rate optimization strategy. Reviews create a social proof for your brand and build trust among your customers. A fair number of good reviews could be the deciding factor that will convert a customer and make them purchase a specific product.
SEO – Reviews are content. Specifically, content that helps your brand be more visible and could assist the brand’s SEO efforts. You can look at it as customer curated content working for you – the customers are sharing their experience and you’re leveraging relevant, product-focused content for your SEO and marketing efforts.
Retention – Reviews & comments are an invaluable opportunity to communicate with your customer base. It increases their engagement with the brand, creates a 2-way street relationship and improves retention.
Product performance analysis – product reviews are essentially, feedback from your customers on your products. That is an important parameter that can help you analyze your product performance, explain its conversion rate (good or bad) and help you understand what to emphasize or correct in the product description and marketing message (for example, if people really liked a certain feature, talk about it in the message).
Using reviews when making merchandising and marketing decisions will boost conversion rate by up to 15%
Product reviews, as mentioned above, help with analyzing products performance, improve conversion rate and boost sales. Therefore, it is an important parameter to take into consideration when making merchandising decisions, such as collections sorting and deciding which products to promote on marketing channels.
Working with our customers, we have seen an improvement of 5%-15% in a store’s conversion rate when using the product reviews smartly.
Here are 2 main ways you should use it:
Collection sorting – when forming a sorting strategy, it is recommended to take multiple parameters into consideration, such as, sales, conversion rate, inventory, days to finish inventory, margin and more.
The product review ratings and the number of reviews are highly important parameters as well as they will help boost conversion rate and sales. As high-rated products have a better chance of converting, pushing them to the top of strategic collections and across the site, will improve your store’s conversion rate in a big way.
In addition to that, you can also make sure that products with low ratings don’t end up at the top of the collection page and reduce your conversion rate.
On Facebook or Google ads:
When creating a Facebook or Google ad, you can filter only products with good reviews to make sure these are the most converting products. Of course, there are more parameters to consider, such as the current conversion rate, inventory and more.
You can do that automatically by creating smart automated collections that connect to the ad via the product feed.
How can you do it?
Check out how Kimonix allows to create and sort smart collections using product’s rating and number of reviews for store and marketing