Study: how does business online reputation impact the buying decision?

Business online reputation has become an essential topic in just a few years. More and more, consumers check the various pieces of information visible on the Internet about companies and their products before making a purchase. That’s why we wanted to survey the French, in order to better understand how business online reputation impacts them as consumers. This survey, conducted by IFOP for Semji, highlights data collected from a sample of 1,003 people, representative of the French population.

Below, discover our analysis of the survey results as well as our infographic.

Key figures on the impact of business online reputation on the buying decision

– On the Internet, 85% of consumers make purchases and 80% do research before buying

– No fewer than 96% of Internet users are influenced by a company’s or brand’s online reputation when making a purchase

– 88% of individuals consult consumer reviews, forums or blogs before making an online purchase, 73% before an in-store purchase

– Negative reviews are likely to deter 85% of consumers

– Online reputation has a multichannel influence: nearly 90% of respondents research online when they are interested in a TV ad or a flyer

On the Internet, 85% of users make purchases and 80% do research before buying

In light of the first two elements of our survey, it quickly becomes clear that a well-managed online reputation is an essential element for ensuring the success and longevity of your business.

Among the many uses of the Internet, purchasing and gathering information beforehand stand out by a wide margin.

Among the many uses of the Internet, purchasing and gathering information beforehand stand out by a wide margin.

Question: “What are your uses of the Internet?”

85% of French Internet users make online purchases, a score that almost equals keeping up with the news (87%). This practice surpasses communicating with one’s personal and professional circle (80%), entertainment (78%) and completing administrative procedures online (77%).

The Internet is an essential channel for purchasing but also for supporting the purchase decision, whatever the future purchase channel (Internet or physical store). 80% of Internet users say they use the Internet to research a product or service before buying, a score that reaches 87% in the Paris region and 92% among liberal professions and senior executives.

Knowing this and working on your online reputation must become a priority for companies. Indeed, what Internet users find online strongly shapes their decision; for the consumer, the choice is no longer just a matter of weighing price and quality: it is now the company, through its values and its actions, that is being judged.

Almost all French Internet users (96%) made at least one purchase online in the past twelve months

Question: “Have you made at least one purchase on the Internet in the past 12 months?”.

96% of Internet users answer yes, but that’s not all. Among the remaining 4%, half say they intend to do so soon. We can therefore assume that this figure will rise toward 98% during 2015.

Among the people who made at least one purchase online, a majority (58%) made more than 5 purchases and 31% more than 10. This last figure is higher within certain “prescriber” targets: 37% among 25-34 year-olds and 44% for liberal professions and senior executives. 58% made more than 5 purchases.

96% of Internet users are influenced by the brand’s or company’s online reputation when making a purchase

Question: “You want to buy a product from a retailer (store, online sales site, etc.) that you do not know. If you find negative reviews online about this retailer, which option do you prefer?”

In the age of the “expert consumer”, very well informed and increasingly putting brands into competition, almost all respondents (96%) highlight the negative impact that a poor online reputation can have on their decision to purchase a product:

– In 66% of cases, unfavorable comments lead the consumer to postpone the purchase, either by taking additional time to think it over (39%) or by going to a store to see the product directly (27%). These reactions are more frequent among respondents aged 35 to 49 (71%) and in households of 3 or more people (70%).

– In 30% of cases, respondents go so far as to give up on the purchase, either by choosing another retailer (12%) or by not buying the product at all (18%). This refusal to buy is more common among men (34%) and retirees (40%).

Before making a purchase, Internet users research online

Question: “Before making a purchase on the Internet, would you say that you sometimes…?”

Turning to online reputation is an integral part of this pre-purchase step. Before making an online purchase, 88% of individuals consult consumer reviews, forums or blogs.

Moreover, half of respondents consult reviews on social media before buying online (52% overall, 70% among 18-24 year-olds and 66% among 25-34 year-olds).

Regarding in-store purchases, the figures drop only slightly and gathering information online remains a very widespread practice.

Before making an in-store purchase, 73% of Internet users consult consumer reviews, forums or blogs.

Moreover, 44% of respondents consult reviews on social media before buying in-store (59% among 18-24 year-olds and 57% among 25-34 year-olds).

In light of these elements, protecting yourself from negative content on the Internet therefore appears obvious. All the more so since we will see in the next question that the presence of negative results such as blogs or consumer reviews very strongly affects purchase intent.

The presence of negative content online affects purchase intent in 94% of cases: which elements are the most impactful?

Question: “Would you say that the following elements can deter you from making a purchase on the Internet?”

Regarding online purchases, negative reviews from consumers on blogs, forums or consumer sites are likely to deter 85% of respondents from making a purchase on this channel. Press articles mentioning negative information have the same deterrent impact: 87%. To a lesser extent, the low reputation of the sales site is also a barrier to purchase in 79% of cases.

Buyers under 35 place more importance on these elements than average. In addition, the importance given to negative online reviews increases with the number of purchases made over the past 12 months: 89% among respondents who made 6 or more versus 79% among those who made between 1 and 5.

These results establish a strong correlation between a drop in revenue and a poor online reputation. If negative elements appear, your customers and prospects are strongly deterred from buying. That’s why you need to take care of the results that appear when someone types your brand or company name into the Internet and search engines, to make it attractive and give it a positive image. Of course, the most important work is to be done on the first page of search results, since 85% of Internet users do not go beyond it(1), and on Google, which holds 90% of market share worldwide, a figure that rises to more than 95% in France2.

Brands must be vigilant even outside the buying process: 58% of Internet users do research without any intention to buy

Question: “When you look for information about a company or a brand, a store or an online sales site, what means do you use to form an opinion of their image, their reputation?”

When they want to learn about a brand, 58% of French Internet users use an online search. This practice is more widespread among those under 35 (72%), upper socio-professional categories (74%), and people with at least one child (67%). In detail, 47% look for information on forums or consumer sites, while 17% go to blogs and 12% to social media to find out more.

Online reputation is a constant effort; if you enter consumers’ memory in a negative way, they will remember it and will avoid calling on you as much as possible!

Online reputation directly influences offline advertising spend: nearly 90% of respondents research online when they are interested in an ad or a flyer.

Question: “You receive a flyer about a new product or service that interests you; what do you do?”

While the flyer is an offline means of communication, 85% of respondents who decide to research do so on the Internet. Only a third go to a point of sale: 36%, while 8% send an email or letter to the address printed on the flyer. Finally, 6% call a listed number.

Question: “If you watch a TV ad about a new product or service that interests you, what do you do?”

While they are watching their television, an offline advertising vector, 88% of respondents who decide to research do so on the Internet. At the same time, only a third go to a point of sale: 31%, while 6% send an email or letter to the address printed on the flyer. Finally, 8% call a toll-free number or a point of sale offering the product/service.

In light of the results of these last two questions, one piece of advice is clear: take care of your online reputation so as not to waste your marketing spend. Your investments in print or TV advertising can be penalized by poor management of your image on search engines. Indeed, the people you have captured with your advertising may be deterred by negative elements appearing on the Internet.

Mastering online reputation is an indispensable element that must be integrated into companies’ digital strategies. Your image is precious; the brand represents more than 60% of a company’s value in the consumer goods or mobile services industries, and more than 80% of that value in the luxury industry3.

Your marketing, advertising and public relations efforts must therefore be supported by work on your online reputation; it is essential to monitor, optimize and protect the image that your brand projects on the Internet and on search engines. This is to ensure a ROI that meets your expectations, revenue that follows a positive curve and an image that stays in top shape.

Remember, whether you are an e-commerce merchant or not, your customers and prospects Google you!

Sources:

1. http://blog.paradiseo.fr/google-repartition-des-clics-sur-les-resultats-de-recherche,39.html

2. http://www.blogdumoderateur.com/chiffres-google/

3. Edouard Fillias and Alexandre Villeneuve, E-Réputation – Stratégies d’influence sur Internet, Paris, Ellipses, “Actu’ Gestion”, 2012, 325p.

Methodology: IFOP survey for Semji. Conducted online with a sample of 1,003 people, representative of the French population aged 18 and over. Quota method (gender, age, profession)