By Mark Davidson
Online retailers that use public reviews and recommendations as part of their online strategy can see sales rises of 18 per cent, new figures from leading social commerce and customer review business Reevoo show.
The uplift is worth a potential £8 billon to UK retailers who adapt their online sales tactics compared to a possible 20 per cent decline in market share for those who do not move to improve social commerce.
Reevoo’s figures show that when reviews are read by customers, conversion rates increase by 177 per cent and the average value of the products purchased almost doubles.
Speaking to Retail Gazette in January, CEO and co-founder of Reevoo Richard Anson commented on the importance of social commerce and how he believed customer reviews should be the cornerstone of online retail plans.
Reflecting on the latest figures, he added: “Social commerce should now be a core strategy for every retailer, one discussed right at the top of the company - or it will, eventually, have serious consequences for the bottom line.
“With average disposable income likely to become tighter and tighter, there is no room in anyone’s wallet for ‘buyer’s remorse’; people will increasingly adopt a buying process that minimises the likelihood of such regrets.”
Reevoo’s data was collected using information from the company’s 100-plus partners, which include Tesco Direct and Sony. Reevoo’s website is set up to provide online shoppers with impartial advice on a wide range of products.