Amazon is, without a doubt, one of the most customer-centric companies in the world. The company continuous to focus on their Customers’ Experience. So, it shouldn’t come as a shock how important customer reviews are to Amazon Sellers. But are they used to their full potential?
Customer reviews are the evaluation of a product made by a customer after receiving it. The average rating of a product reflects all other customers’ opinions. Yet, looking only at that average rating is not even close to how deep you should be looking.
Before tackling where and what to look for, it is important to get over the – why are we doing this?
All customer feedback/reviews tell us so much about their experience. The good and the bad, and how we can improve if we look at the right places.
Conducting a thorough and deep Review Analysis can help with:
- Coming up with product development ideas. – Figure out ways to stand out from your competition. Develop unique features that can make your product better. Find out ways to reduce costs by removing features customers are not crazy about.
- Setting your priorities straight. – We all have tasks we like more than others and sometimes that makes it harder to rank what needs to come first. Your customers know better than anyone what are the most urgent issues. The ones that are hurting your ratings the most. These may be the right ones to start with.
- Improve or abandon ship? – When a low-margin product goes on a downwards trend, you should assess if it’s worth fixing the issues. Your time and effort may be better spent in other AISINs with better margins and ratings.
- Spot production mistakes. – Working with new manufactures can be tricky. We always want the best quality for the best price possible. But mistakes and faulty products are bound to come your way, and your customers will be the ones to point them out. Make sure to listen and report and take quick action before it happens again.
- Create products that respond to the demand. – If you are lucky enough to get descriptive reviews, at times you may get inspiration for new products. Your product couldn’t fix their issue because they had a very specific problem? It could be your next niche audience.
But how much can you retrieve from a couple of stars and some text?
The answer? A ton! And to make it even better, that’s not the only place you can get precious information. Amazon has different metrics that rate you and your products:
1. Customer Feedback
“Customer Reviews” are often confused with “Customer Feedback”. They are two different tools used by Amazon.
The second evaluates the seller and fulfillment experience, rather than the product. The buyer has the option to select a star rating, but from a pre-defined set of reasons. Customers can also leave their comments as free-form texts if they wish to do so.
Like on customer reviews, to leave feedback, the buyer must use a 5-star system:
- Positive feedback: 5 or 4 stars.
- Neutral feedback: 3 stars.
- Negative feedback: 2 or 1 star.
Sellers can request the removal of positive or negative feedback. If the entire comment is a product review, as in any other of the following cases:
2. Voice of the Customer (VoC)
Another hub you can see your customer feedback on, is the Voice of the Customer dashboard. It displays the health of your offers, customer comments, product, and listing issues. It is also where you can act to resolve problems.
The Voice of the Customer expresses the Customer Experience Health. In a nutshell, it is a metric used to comprehend how each of your products perform. It compares your products to similar ones, based on recent orders and feedback.
Through this dashboard (VoC) and metric (CX), you can identify issues such as:
- Defective products.
- Inaccurate or incomplete detail pages.
These can help you identify urgent issues to fix. Any negative feedback related to delivery problems does not affect your CX health.
The CX Health has 5 categories:
- Excellent (green).
- Good (light green).
- Fair (yellow).
- Poor (orange).
- Very poor (red).
Having a high rate of negative customer experience, can get your offer suppressed. You would see under this dashboard a warning “Action required”. You can then click “resolve issue” to review the feedback. Try to understand if there are systematic issues with your product or listing.
3. Other tools to retrieve relevant data to optimize your CX:
- Customer Experience
- Customer Engagement
- Brand Analytics
- Account Health
How to analyze reviews
Now that you have all this data, how do you extract, combine, and in general…analyze it?
This is one of those cases where the cheapest way is not at all the most time efficient. Extracting the data can be very time consuming, and it does at best that – extract. I.e. – Reviews get extracted in the respective languages, if you sell in different countries.
On the flip side, if time is money to you, then using service providers to help with this step might be the best option. If you have the internal expertise, you can develop your own API and own data scrapper tool.
Important metrics to watch:
- Rating average per AISIN – 30 days, 90 days, 6 months and yearly.
- Rating distribution per AISIN – how many 1-3 stars out of your total reviews?
- Sentiment distribution – Are most reviews positive, negative, or neutral?
- Which markets are performing better and worse.
- Trending keywords in positive reviews.
- Trending keywords in negative reviews.
- Return rates per AISIN.
- CX Health Rate.
Overcome negative reviews and feedback
The first step is identifying what went wrong, in each negative feedback. Was it an isolated incident or is there a pattern forming?
Our advice is to avoid patterns at all costs, chase and nail down every problem as it surfaces, when possible.
It is also possible that a bad review comes from a competitor. So make sure to confirm all claims and ensure there is an actual problem. Report all reviews that are not according to the regulations.
Review Analysis lead to customer loyalty and satisfaction
Creating an excellent customer experience starts with listening to your customers. Is there a better time to listen than when they are either praising or complaining?
Under “customer reviews”, you can reach out to each customer that left a review under 4 stars. Amazon gives you a template message to respond to every 3, 2 and 1 stars review. (to all customers that have their communications turned on).
When there’s negative feedback, you can reply by private message, or post a public response. For the first option, customers need to agree with communications from sellers.
Recently, Amazon announced that sellers will be able to send free marketing emails. This creates a new opportunity to:
- Engage with your customers.
- Ask for feedback.
- Create strategies which promote a higher satisfaction and customer lifetime value.