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Why customer reviews are important for business growth


In this digital age, customer reviews are an important part of any online business.

Not only do reviews impact your business’s reputation, but websites such as Google, Yelp and Trustpilot also play a part in customer retention.

As co-founders of Tonic, Australia’s first pharmacy delivery app, we understand the importance of creating a customer service experience to not only gain, but retain customers.

We developed Tonic based on our existing knowledge of the industry, coupled with the rise of the delivery service market, and noticed a strong consumer opportunity for a service that delivers medication.

As an online retailer, customers trust us to deliver products to them quickly and seamlessly. We encourage customers to write reviews and publish them on our website for other customers to read. Through feedback, we continually improve our services to provide the best experience for our customers.

According to research from Roy Morgan, which looked at customer satisfaction among Australia’s leading pharmaceutical companies, the highest rating of 93 per cent (%) went to Guardian, while Priceline Pharmacy had 92% and TerryWhite Chemmart had 91%.  

With our focus on ensuring customer satisfaction, Tonic has an above average satisfaction rating of 96% among our consumers.

Here are some of our insights into the importance of online customer reviews for business growth.

Understand your customers and improve satisfaction

Customer reviews are a quick and efficient way to gain insight into consumer needs and how you can tailor your business to meet these demands. They also allow you to resolve issues that may arise and increase overall customer experience.

This builds trust amongst your customers and can also increase your business’ reputation. Many businesses will be competing for the same customer loyalty, so fostering and maintaining relationships with customers is the key to success.

Credibility and social proof

According to research from ReviewTrackers and Invesp, 63.6% of consumers look at reviews on Google before visiting a business, while 88% of consumers trust online reviews as much as a personal recommendation.

This shows online customer reviews can act as social proof your business is credible, and that customers are satisfied with their experience.

Allow customers to have a voice and build loyalty

Reviews allow customers to feel heard and know their feedback is having an impact on the business. Customers who take the time to leave an online review are far more likely to feel a certain loyalty to your business and keep coming back.

Facilitate communication with customers and find out what makes them happy or frustrated. Knowing how to add value to your customers with your product or service and their overall experience will keep them coming back.

Improve rankings

Encouraging customers to leave reviews is an effective way to improve your business’ rankings on review sites. It is also important to be proactive when replying to reviews, especially negative ones.

Responding effectively to negative customer reviews can allow your business to address the issue, mitigate the negative impact and show you value customer feedback and are willing to make changes to suit their needs.

Figures from ReviewTrackers reveal 53% of customers expect businesses to respond to negative reviews within a week, while 63% say a business has never responded to their review.

Online marketing

Positive online customer reviews are invaluable. They can offer your business benefits that a simple marketing campaign cannot.

For instance, figures from Yelp show on average a one-star rating increase can lead to a 5% to 9% increase in a business’s revenue, while one negative review can lose a business 30 customers.

Online reviews can also have the opposite effect, with 94% of consumers saying a negative online review has convinced them to avoid a business.

Before looking to expand your business, make sure your customers are satisfied with your product or service, otherwise you could find it difficult to maintain their loyalty.

Guy Mckenzie and Adam Gilmore are co-founders of Tonic, Australia’s first pharmacy delivery app. Guy and Adam also founded PharmaData in 2010, a software program which provides real-time tracking of medicine and sales data for pharmacies and pharmaceutical companies. In 2015, PharmaData was recognised as one of Queensland’s fastest-growing tech companies at the Brisbane Lord Mayor’s Business Awards.