Shopper marketing blog

Introducing new products at the start of the year can be quite a journey. The path to success for any new product development is fraught with challenges and often leads to a dead end. According to Harvard Business Review, 90% of new products fail within their first year despite significant investments by FMCG companies.

To give your new products the best possible start in the New Year, we will highlight the crucial importance of consumer reviews. Here are four strong reasons why obtaining a substantial number of consumer reviews as early as possible is crucial for the success of your new offerings.

1. TO BUILD CONSUMER CONFIDENCE
2. TO DRIVE CONSIDERATION
3. TO CREATE AN AURA OF POPULARITY
4. TO KEEP UP WITH THE COMPETITION

* Coke Image from Coca-Cola, final image copyright CheckoutSmart

PS For even more on why reviews are critical for NPD, see our post 10 Reasons why Shopper Reviews are Vital for Successful New Products.

Every Quarter, we analyse the Top 150 UK FMCG manufacturers and their online reputation in supermarkets. Our key reputation KPI is the percentage of SKUs that need new reviews. The fewer the number, the better the manufacturer is managing its reputation.

Based on our research and that of some business school professors in the US, the three key measures that go into whether a SKU Needs new reviews are:

1. Minimum of 30 reviews: This involves checking if the SKU has at least 30 reviews in that retailer. If it does, we move on to section 2. If not, it requires new reviews.
   
   
2. Top 3 Fresh: Looking at the latest three reviews on the retailer's website, e.g., Tesco.com, which is displayed as the newest first, are any more than six months old? If yes, it needs new reviews; if not, go to 3.
   
   
3. Top 3 Fair: Look at the latest three reviews and their ratings out of 5. Are any of these more than 1.5 Stars different from (above or below) the average rating for the SKU in that retailer? If yes, then it needs new reviews. If "No," then this SKU in this retailer is optimised right now.

We check this data daily in every retailer and automatically get new reviews from 100% verified shoppers until they are no longer required. Working with our clients, we know that this kind of Always On program provides an exceptional ROI return of between 6 and 12 at a gross margin level.

That's £6 - £12 back for every £1 you spend on the program. Where else can you get that kind of return on your spending?

Where did you finish?

At the request of one of our brand partners, we are stepping into the world of FMCG brand tracking. We are going to research some of the top brands in the UK and find out what shoppers think of them in terms of buyer recommendation, and the results may surprise you. 

These are the brands we included were:

NB All these brands are "Top" brands in the UK. They were chosen after shoppers selected ones they bought regularly from a long list of brands to ensure a significant number of responses for every brand. As a result, this list's "bottom" performers are still amongst the most frequently bought and top recommended brands in the UK.

Introduction

In the fiercely competitive beverage industry, standing out on the shelf involves more than just striking designs and impactful displays. Today's consumers seek authenticity and trustworthiness in the brands they select. This is where genuine customer reviews become crucial, significantly swaying purchasing decisions.

Recognising this trend, Heineken launched an innovative campaign for Inch’s Cider, utilising CheckoutSmart’s SmartReputation program to tap into the power of genuine customer feedback. This case study delves into how CheckoutSmart assisted Heineken in transforming ordinary customer reviews into a compelling shopper marketing program, enhancing the brand's reputation and influencing buyer behaviour across Tesco and Sainsbury's.

Images from Heineken materials

When a product’s rating falls below the critical 4.0 mark, it is easy to panic or bury your head in the sand. After all, consumers rely heavily on reviews to guide their choices, and a poor score can signal trouble ahead for your products. Yet, rather than viewing these ratings as a dead-end, they can represent a valuable opportunity for growth and improvement.

At CheckoutSmart, we see these poor reviews not as a problem but as a unique opportunity to transform your product with SmartReformulation.

The Hidden Opportunity in Poor Reviews

Our analysis reveals that the bottom 20% of products with at least 30 reviews in UK supermarkets since 2023 have an average rating of less than 4.0. This figure underscores a vital truth: these products don’t need more reviews—they need reformulating to succeed.

Instead of trying to drown out the negativity with more reviews (which is rightly banned under recent legislation), it’s time to listen to your customers. Using the right tools, these less-than-ideal reviews can become a goldmine of insights that guide product improvement, revitalise your brand, and boost your sales.

Every Quarter, we analyse the Top 150 UK FMCG manufacturers and their online reputation in supermarkets. Our key reputation KPI is the percentage of SKUs that need new reviews. The fewer the number, the better the manufacturer is managing its reputation.

Based on our research and that of some business school professors in the US, the three key measures that go into whether a SKU Needs new reviews are:

1. Minimum of 30 reviews: This involves checking if the SKU has at least 30 reviews in that retailer. If it does, we move on to section 2. If not, it requires new reviews.
   
   
2. Top 3 Fresh: Looking at the latest three reviews on the retailer's website, e.g., Tesco.com, which is displayed as the newest first, are any more than six months old? If yes, it needs new reviews; if not, go to 3.
   
   
3. Top 3 Fair: Look at the latest three reviews and their ratings out of 5. Are any of these more than 1.5 Stars different from (above or below) the average rating for the SKU in that retailer? If yes, then it needs new reviews. If "No," then this SKU in this retailer is optimised right now.

We check this data daily in every retailer and automatically get new reviews from 100% verified shoppers until they are no longer required. Working with our clients, we know that this kind of Alway On program provides an exceptional ROI return of between 6 and 12 at a gross margin level.

That's £6 - £12 back for every £1 you spend on the program. Where else can you get that kind of return on your spending?

Where did you finish?

Product reviews play a significant role in helping potential customers make informed decisions about purchasing a product or service. In the UK, specific laws and legislation regulate product reviews and testimonials. Businesses must understand and comply with these laws to avoid legal consequences and maintain customers' trust in reviews and review sites:

1. Prohibition of Fake Reviews: Under UK law, businesses are prohibited from pretending to be customers and writing reviews about their products or other businesses' products. Commissioning third parties to write fake reviews is also considered illegal, and businesses may be liable for their actions.

2. Transparency and Inducements: Offering inducements, such as money or gifts, to customers in exchange for positive reviews is against the law. Review transparency is essential, and any payments provided for reviews must be disclosed to the reader to ensure they are aware of potential bias.

3. Compliance Requirements: Businesses should not pretend to be customers and write reviews, commission third parties for fake reviews, or offer inducements for positive reviews. Businesses can maintain consumer trust and contribute to a fair and transparent online marketplace​​​​by complying with these requirements.

See the full article for more, including the vital Do's and Don'ts:

NB This article has been written with best efforts based on current (16/07/24) publically available information. It is not intended as legal advice or to be relied upon in any way. For advice or questions, consult a specialist lawyer.

Transform your FMCG brand with CheckoutSmart's innovative 3C Consumer Experience framework. Focus on complaints, complacency, and compliments to discover how continuous consumer feedback can enhance your consumers' experience.

Consumer-facing brands should leverage bespoke consumer feedback data to train or fine-tune AI / ML models to get ahead. These expert models can help them gain valuable insights into consumer preferences, behaviours, and sentiments, enabling them to optimise product descriptions, packaging design and advertising copy.

One application we have developed for such AI models is to assess and classify product reviews with helpful tags. Using consumer feedback as the basis, we have created proprietary measures of product reviews, such as how influential an individual review is and how strongly it reviews the product's taste or effectiveness.

By analysing these new measures, brand owners can identify their performance and patterns in consumer reviews, generate new insights, compare themselves to competition and even highlight individual reviews for a specific purpose, such as "suitable for advertising". 

Using bespoke shopper data to train AI models represents a significant opportunity for consumer-facing brands to enhance their understanding of consumers and markets.

Paul Lees our MD sat down with Francis Nicholas of eStoreMedia to talk about the ratings and reviews in the Moisturiser category. In 25 minutes they covered which retailers carry reviews, how many there are, which brands have them, whether they have enough reviews and then some fascinating insights from the reviews themselves.

1. There are 7 dimensions to Moisturiser according to the shopper reviews and Nivea does very well in 4 of them, giving them a strong position.
2. Individual reviews matter when it comes to reviews it is not just about numbers. Shoppers read the top few reviews they see regardless of how many there are in total.
3. We have a measure of how influential reviews are: "Influence score". This shows that L'Oreal has the most influential reviews and Olay from Procter & Gamble (P&G) has the lowest in the category.

This kind of category work providing market coverage, opportunities and category insights is available for all categories. Contact us to understand what we can do for you.

Meanwhile, please watch and learn more about reviews and moisturisers: