It’s reported that 60% of online retailers are using consumer generated ratings and reviews to help customers make more informed purchased decisions. It’s also reported 61% of consumers rely on online ratings and reviews before making a purchase. Clearly, online ratings and reviews are changing the buying process by bringing forth authentic consumer voices and transparent business practices.

For the WOMMA Measurement & Metrics Guidebook, Melissa Douglas, Manager of Social Analytics at Bazaarvoice, contributed an in-depth article about measuring the impact of consumer generated ratings and reviews on a business.

I asked Melissa a few pointed questions about her article. Her responses make for good reading for every marketer and product manager.

1. Besides increasing conversion rates, what are some other benefits to a brand sharing Ratings & Reviews of products online?
“There are various benefits to bringing user-generated content (UGC) to your brand. User-generated content not only influences your top line numbers, such as increasing sales, but also impacts your bottom line. Metrics such as conversion, product abandonment, customer service interactions, and return rates can impact both your top and bottom lines. For example, by taking action on poorly rated products or assuring these reviews stay live on your site, you can easily decrease customer service support and return rates. Negative reviews help set proper expectations with your customers and give internal teams the necessary information to optimize the product catalog and improve products. And featuring highly-rated products in marketing campaigns can directly impact conversion rates and call attention to those products that your community considers the best.”

2. What types of businesses can benefit most from Ratings & Reviews? Conversely, what businesses would benefit least?
“All types of industries benefit from UGC. Most obviously, retailers benefit when customer-contributed content helps shoppers find the right products for them on ecommerce sites. But we’ve seen UGC benefit our clients across all verticals. Manufacturers can syndicate their UGC through the channel to numerous retailer sites, helping potential customers wherever they shop. Our clients in the travel industry receive the highest average user contributions per day, as travelers often book online and are eager to share their experiences. Shoppers on financial services sites click to “Read Reviews” even more often than most other verticals – for these highly researched purchase decisions, UGC satisfies the increased demand for information. And UGC helps entertainment providers attract highly-engaged contributors, as customers are eager to share their experiences from shows and artists they are passionate about. In short, any industry would benefit from authentic word of mouth.”

3. What’s the most important Ratings & Reviews metric for a business to measure if its goal is to increase sales?
“Some of the key metrics to take into consideration when measuring ROI include review volume and the percentage of products that contain reviews. Looking at depth and breadth of your review content is critical for success. Keeping your review content evergreen is important, and it’s key to continuously encourage reviews for new products as they are released and sold.”