Earlier this week, I attended a briefing with a vendor around analyzing and structuring consumer ratings and reviews; the vendor aims to give companies more guidance during the product development stage or help them understand where a current product is in its life cycle depending on the number of reviews that product is getting compared with its competitors.
The concept is interesting, but it got me thinking about the process of ratings and reviews a bit more. How many people are actually giving ratings and reviews, who are they, and why are they giving feedback?
Forrester’s Consumer Technographics® global online benchmark surveys in Q2 2012 revealed a wide variation between countries in terms of the share of the online population that actually gives feedback. In metropolitan India and China, about three-quarters of online consumers post ratings/reviews of products or services at least monthly; in Brazil, it’s about a third; while in the US and Europe, it’s less than 20%.
However, far more people rely on ratings and reviews than give them — particularly in the US and Europe. More than 50% of US online consumers check ratings and reviews regularly, for example. And consumer reviews and ratings are the second most trusted source of online shoppers when buying a product, after family and friends.
Your customers are consumers too. They don’t turn into business bots when they set foot in the enterprise. Whether your organization sells a product or a service to enterprises or consumers, you’re interfacing with consumers who have opinions about security and privacy. S&R pros, you already know that you have to be on top of things like regulatory compliance (Hello HIPAA! Hi EU Data Protection Directive!) when creating policies and implementing controls. But what about consumer perceptions and behavior? Consider that*:
49% of US online consumers are concerned about security and privacy when purchasing products online
44% of EU online consumers say the same about sharing personal information to access a website
39% of US online consumers express security and privacy concerns over sharing personal information to participate on a website (e.g, discussion boards, writing reviews)
20% of EU online consumers are concerned about their security and privacy when downloading apps to their mobile phone
Mobile payments saw continued innovation and competitive disruption throughout 2012, but consumer adoption lagged behind the industry hype. The Forrester Research Mobile Payments Forecast, 2012 To 2017 (US) shows that US consumers will adopt mobile payments at an accelerating rate over the next five years, reaching $90 billion by the end of 2017. Lower barriers to adoption, increased convenience, and early entrants striving for scale will be important drivers of growth.