In our constant scanning of industry news, one particular article (Social Media Gold: Ratings and Reviews) by Search Engine Land columnist Lance Loveday really caught our attention and excited us this week. Part of what Wendy and I do at SSG is to help our clients plug into what consumers are saying about their products/services/brands, and to help make sense of what is often an overwhelming flood of information.

Though much has been said of the influential blogger, the collective voice of the individual consumers who leave product reviews is having enormous influence on product sales. While this is something we have observed in our work, today’s article provided some compelling figures from organizations that have been measuring the influence. Most interesting for this blog, the article sited recent research by NetShops that showed that products with reviews garner 29 percent higher sales; it also stated that products with reviews have a lower rate of return. This information alone should be enough for companies selling products to evaluate their online strategies.

While this particular article refers to reviews that appear on company websites, opinions expressed via other channels should also be on organizations’ radars. (Think sites like epinions which attracts close to 4.5 million US visitors each month.)

We could use a number of overused and already dated buzzwords like transparency, but the simple truth is that consumers trust joe public much more than they trust what companies are saying about their products. Here’s just a little more proof.

But the value of online reviews doesn’t end here. Listen to what your customers are saying and use the feedback to improve your products; your customer service; to even possibly guide product development, (and more). If you don’t already have a thick skin, you may have to develop one. Some reviews can really sting! But think of it as constructive criticism and use what your consumers are saying to your advantage. While not a novel concept at its core; one worth employing in today’s social media environment.

-Angela