Social commerce company Reevoo released figures illustrating the extent to which consumers rely on recommendations and reviews, from friends and strangers alike, before they decide what to buy – and the speed at which such purchasing behaviour is becoming the rule rather than the exception…
Social commerce company Reevoo released figures illustrating the extent to which consumers rely on recommendations and reviews, from friends and strangers alike, before they decide what to buy – and the speed at which such purchasing behaviour is becoming the rule rather than the exception.
The results offer a sharp contrast to the general perception of travel reviews, with the sector seemingly permanently embroiled in arguments over the authenticity and source of reviews, and the Advertising Standards Authority currently investigating TripAdvisor over complaints its reviews are not fair or accurate.
Richard Anson, founder and chief executive of Reevoo, said: “We have this awkward situation in which people’s trust in travel reviews has declined at the same time as dependency on social sources for recommendations is rising quickly. It feels like an inherently unstable situation, and what no-one wants to see is the whole concept devalued because consumers are unsure about what or whom they can trust.”
“The travel industry needs to react correctly and quickly to rebuild consumers’ confidence in what they read by adopting ‘best practice’ where reviews are concerned,” he urged.
Reevoo acquired its statistics by repeating a tranche of research first conducted in March 2011 and comparing the two set of results. This analysis show that the reliance on social sources is increasing rapidly by almost every measure and across all age-groups. Among the key trends identified are:
– 68% of consumers usually read reviews before booking hotels, holidays or tickets. This compares to 59% of consumers who always or often read reviews before buying a car, and 37% who read reviews before buying or renewing insurance.
– Bricks and mortar travel agents should expect to see more potential customers using their mobile phone to surf the internet during the sales consultation process. In general, 28% read reviews on their mobiles, while 9% (up from 6%) use their phone to read customer reviews while on the premises.
– Shoppers are increasingly turning to Facebook for product recommendations: 24% now use it to see what their friends have liked (up from 22% in March), 27% ask friends for product recommendations (up from 19%) and 21% see what products their friends have bought and recommended (up from 15%).
– Friends’ recommendations remain the most important factor in making a purchase decision. They are now ranked as important by 74%, up from 70% in March. The importance of consumer reviews written by strangers is also up, from 62% to 65%.
– Even older consumers, traditionally less tech-savvy, are increasingly turning to reviews before making a purchase decision. 32% of over 65s and 27% of the 55-64 age-group always read reviews before making a purchase (up from 21% and 22% respectively in March).
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
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