Shopper marketing blog

Most FMCG teams still obsess over their average star rating, but what if that number isn’t doing the heavy lifting? Independent business school research and our research data show that shoppers don’t buy based on ratingsalone  – it’s what the reviews actually say that makes the sale. If your top reviews are old or unfair, you’re losing customers even with a 4.5-star average.

In this article, we break down why review sentiment matters more than stars and how brands can use this fact to drive measurable sales uplift.

This article was originally inspired by: HU, Nan; KOH, Noi Sian; and REDDY, Srinivas K. Ratings Lead You to the Product, Reviews Help You Clinch It? The Dynamics and Impact of Online Review Sentiments on Product Sales. Singapore University.

​In the UK grocery market, own-brand products have transitioned over the last 100 years from mere cheaper alternatives to branded goods to becoming central pillars of supermarket strategies. With private-label sales growing at double the rate of branded goods in 2023, retailers are increasingly focusing on enhancing their own-label offerings. Amidst this evolution, one potent yet often underutilised tool stands out: the strategic use of product reviews.​

Product reviews are a hot topic in FMCG and eCommerce, but we regularly hear feedback from some that just don’t stack up against the data. Whether it’s scepticism about their impact on sales or outdated beliefs about how shoppers engage with reviews, these misconceptions can hold brands back. We will cover:

• The impact of product reviews on sales is minimal
  Based on case study data, we’ll show how reviews drive long-term sales growth.
• Reviews only matter to online shoppers
  In-store shoppers use reviews too—66% check them before purchasing.
• If my product is good, I can ignore negative reviews
  A product with an average rating below 4.0 is losing trust and sales—here’s why.
• Product reviews are just for retailer websites
  Smart brands use advertising, packaging, and in-store reviews to boost conversions.
• Reviews don’t matter for own-label products
  The gap between branded and own-label reviews is growing—own-label needs to catch up.

Now, let’s examine myth and reveal the truth about the power of product reviews.

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.

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.

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.

The recent meteoric rise of artificial intelligence (AI) models is revolutionising how we interact with computers and access information online. But has AI made a significant difference in ratings and reviews, and is it what shoppers want?

Amazon has rolled out generative AI to create succinct product-level summaries of reviews for many of its products to support shoppers' decision-making process. Several clients have asked us to explore how this has impacted a shopper’s experience when using Amazon and understand how these features are perceived compared to ‘traditional’ ratings and reviews.

To do this, we created a study to research how regular Amazon shoppers use the site. The study simulates the shopping process for a selection of grocery category products. 

We received over 2500 responses, and our key findings challenge the notion that AI automatically benefits users.

The 4 key takeaways are:

1. Individual Ratings and reviews are as important as ever
2. Shoppers don't hang around when shopping for groceries on Amazon
3. Amazon's AI features are hardly used or even noticed
4. There is little evidence of AI improving the shopping experience, but the generations split opinion

The 3Ps of Supermarket Shopper Marketing

When launching your long-planned and lovingly-developed grocery NPD into supermarkets, it’s critical that it appeals to and is tried by the target consumers. Getting it into the hands, baskets and homes of the right grocery shoppers can be a daunting task, but here’s what you need to remember and how to go about it.

Supermarket shoppers are the key to NPD success as they are the ones who actually pick the product off the shelves and take it home, regardless of whether they, or someone else in their household is the end consumer. This is the crux of  Shopper Marketing and understanding the art  of getting shoppers to Pause, Pick up & Pay for your product is known as the 3 Ps of shopper marketing.