In the world of e-commerce, customer feedback and trust are extremely important. When people buy something online, they like to see what other people have experienced. This gives them confidence. Most people shop online these days, so any company that operates online should incorporate customer feedback and social trust into its marketing. Social trust is the concept that people look at what others have done or said – and make decisions based on that. In online shopping, this is most often seen in the form of customer reviews, ratings, photos and comments.
This article will explain why customer feedback and social trust are important, how they affect customers, and how companies can use them effectively.
We’ll also look at some real-world examples where companies have used customer feedback to increase both sales and trust.
What is social trust in e-commerce?
Social trust means – when people see that many people have already bought something, and they are happy with it, then new people also feel more confident in buying it.
There are many forms of social trust in the online world. Such as:
Main forms of social trust in e-commerce
Customer reviews and ratings:
Customers write their opinion and give ratings about the thing they buy. This gives the new customer an idea of how the product is.
User-generated content (UGC):
Testimonials:
Some customers or experts praise something, due to which other people start trusting it.
Discussion or famous people on social media:
When a famous person promotes something, people pay attention to it quickly.
Trust Marks (Badges and Certificates):
Certificates or badges like “100% Authentic”, “Secure Payment”, “Best Quality” also increase trust.
How does this change customer behavior?
1. When people read good things about something, their trust increases.
2. It makes it easier for them to take decisions.
3. The brand name becomes good.
4. Customers buy the product again and again and also tell others about it.
Some real examples
Amazon:
Every product on Amazon has reviews and ratings. This makes it easier for people to take decisions. This is its biggest strength.
Netflix:
Netflix understands from the way its users watch what, and suggests shows accordingly.
Walmart:
Walmart corrects its stock and prices by looking at the data of customer purchases, so that the customer gets the right product at the right time.
Target:
Target predicts what customers want from their shopping habits and sends them offers based on that.
Spotify:
Spotify understands your preferences from your listening habits and suggests new songs every week.
UPS:
UPS uses data to optimize its delivery routes, saving petrol and delivering items faster.
How to add social trust to your business?
Create a clear goal:
First, decide what you want to achieve – more sales, better customers or more trust.
Collect the necessary information:
Customer feedback, website data, what’s happening on social media.
Use the right tools:
Tools like Google Analytics, Power BI make data easy to understand.
Teach your team:
Tell your team that it’s important to look at data before making decisions.
Keep improving:
Frequently check what’s working, and change what’s not.
Why Are Customer Reviews and Social Proof So Important in E-Commerce?
1. Building trust and confidence
When people buy online for the first time from a new or unknown brand, they are a bit hesitant – they are afraid of getting scammed. Good customer opinions and testimonials reduce this fear. If many people are already happy with the brand, the new customer thinks, “Okay, I might as well.”
2. Making the purchase decision easier
According to a survey (BrightLocal), 79% of people trust online reviews as much as a friend’s recommendation. If something has good reviews, people are quick to make a purchase. And if there are bad reviews, most people don’t buy it.
3. Ranking higher on Google search (helps with SEO)
When a brand has a lot of customer opinions and ratings, it appears higher on search engines like Google. Google ranks websites that have more and good reviews higher. This leads to more people visiting the website and increasing the chances of them buying something.
4. More people complete the purchase (increase conversion)
When a customer sees good feedback about a product, it becomes easier for him to make a decision. According to a Nielsen report, 70% of people trust reviews and ratings more than an advertisement. This means that if a product has a good rating, people will buy it.
5. Suggestions for improvement are received
Customer opinions are not just for showing to others – the brand also learns from it. If a customer is angry with something, the company can understand that and improve it. And if someone is happy, the company knows that something is going well.
3 big benefits of customer reviews and social proof
1. Increases customer trust and confidence
2. Increased sales and earnings
Good reviews and social proof directly make the decision to buy the same thing easier. When customers see that many people bought that thing and liked it, they also quickly decide to buy the same thing. This increases both the sales and earnings of the company.
3. Retains old customers
People who read reviews or give reviews themselves feel a sense of belonging to that brand. When they see that many people have had a good experience with that product, they themselves prefer to buy from the same brand again and again. This way customers stay connected for a long time.
How to leverage customer reviews and social proof in your eCommerce strategy (in simple terms)
1. Collect and display customer reviews
Have a system in place on your website or on a trusted site (e.g. Google, Trustpilot, Yelp) that allows customers to easily leave reviews. Display good reviews prominently on your product pages to help new buyers.
Best practice:
Ask for reviews: When a customer buys something and is happy, ask them to leave a review. You can send an email or SMS.
Show reviews: Display the rating and written review on your product page at the top or near the product description.
Reward long reviews: Give customers who leave long and good reviews a small discount or points.
Example: Amazon has thousands of reviews under every product. It sends out emails asking customers to leave reviews. This helps new buyers make the right decision.
2. Show customer generated photos and videos (UGC)
When customers share photos or videos of your product, it is very effective. This helps new people understand what the product really is like.
Best way:
Encourage customers: Ask them to share their experience on Instagram or Facebook with #hashtag.
Put photos/videos on website: Put photos/videos of real customers on the product page.
Hold a contest: Hold a small competition in which people can win prizes by sharing photos or reviews.
Example: A beauty company named Glossier shows photos of its customers on its website and Instagram. This builds trust and also creates a good community.
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3. Get promotion done by social media influencers
Nowadays, influencers have a lot of influence on platforms like Instagram, YouTube. Getting promotion done by them increases both brand recognition and sales.
Best practice:
Choose the right influencer: Choose someone who has followers similar to your customers and seems trustworthy.
Create authentic content: Their promotional videos or posts should be natural and in-line with your brand.
Track results: See how many people visited their website from their posts, what they bought, etc.
Example: The Daniel Wellington watch company gifted a watch to an influencer and asked him to post a photo on Instagram. He also gave a discount code. This made the brand very popular and sales increased.
4. Display trust badges and certificates
When your website has security and trust badges, customers are more likely to make purchases. This makes them feel that both their information and money are safe.
Best practice:
Display an SSL certificate: This shows that the website is secure.
Display trusted payment options: Display names like Visa, MasterCard, PayPal so that customers can trust it.
Display third-party certificates: Like the logo of the Better Business Bureau or an industry body.
Example: Shopify is a website building platform. It allows websites to be given a trust badge, which assures customers that the site is safe.
Conclusion
Customer reviews and social proof are essential tools for building trust, increasing conversions, and boosting sales in e-commerce. Positive reviews, user-generated content, influencer endorsements, and trust badges serve as powerful endorsements that can reassure potential customers and influence their purchasing decisions. Brands like Amazon, Glossier, and Daniel Wellington have successfully used these strategies to grow their businesses and increase customer loyalty. To leverage the power of customer reviews and social proof, businesses should focus on collecting and showcasing reviews, incorporating user-generated content, partnering with influencers, and using trust badges to build credibility. As consumers continue to rely on social validation when making purchasing decisions, integrating social proof into your e-commerce strategy will be a critical factor for long-term success.
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