Even bad product reviews boost sales

AlpacaDirect.com, always offered a page full of cherry-picked customer comments raving about the site's alpaca sweaters, socks and yarn. But recently Hobart, [the owner,] decided to take the idea a step further: He hired PowerReviews, whose software lets shoppers write their own product reviews directly on the retailer's Web site.

It was a risky move for the four-year-old company, based in Brentwood, Calif. Hobart was effectively paying to host bad press -- such as posts by customers who described AlpacaDirect's golf cardigan as "kinda sweaty" and a "poor fit." Both awarded the cardigan three out of a possible five stars.

But a month after installing the PowerReviews service, Hobart saw sales climb 23% on items that had customer reviews.

The increased sales include items that have negative reviews.

Your customers are already talking about your products. Why not make it convenient for them to do that onsite -- where everybody gets the benefit of their testimonials? 

Hat-tip to socialnomics.net, which goes on to talk about how companies can benefit from negative feedback.

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