Product development and optimization are closely connected processes within a product’s lifecycle. In e-commerce, reviews and ratings are the voice of the customer. Several successful brands have realized the importance of ratings and review monitoring for product development.
At MetricsCart, we conduct in-depth customer review monitoring. Our customized dashboard integrates the Voice of the Customer data from all marketplaces in one place, making it easy for brands to analyze data.
Review Analysis in Product Development vs. Product Management
In the e-commerce environment, brands can leverage customer ratings and review analytics for both product development and product management.
Product development teams use customer feedback to:
- Identify product features that resonate with customers and replicate the same in new products
- Gain insights into customer preferences and innovate new products
- Spot issues and introduce better versions of a product that exceed customer expectations
Product management occurs after a product is developed and launched in the market. The aim of optimization is to:
- Make the product more desirable for customers to own it
- Improve the performance of the product aligning with market demands and business objective
- Reduce the manufacturing cost and increase the profitability of the company
Development focuses on product innovation, while product optimization aims to maintain a competitive edge in the market. The ultimate objective of both processes is to ensure that the product meets customers’ expectations and drives product success.
Thus, ratings and reviews help brands achieve the goal of product development and management.
How Do Ratings & Reviews Help Brands in Product Development?
Review analysis in e-commerce provides valuable insights into customer preferences, pain points, and trends.
Drive Innovation
Customer feedback acts as a catalyst that fosters new ideas and rapid product improvements. For example, a product may be more popular in certain locations in a country.
Different versions of products can be introduced based on the location-wise product rating, especially for CPG goods.
Identify Trends
High ratings validate that customers accept specific product features well. This data can be used as a benchmark when creating new products.
By identifying recurring themes in customer feedback, businesses can develop new features that meet the evolving needs and expectations of their target audience.
Review analysis can reveal emerging trends in consumer preferences, allowing businesses to develop those features and stay ahead of the competition.
Gauge Product Performance
A high average rating indicates a product’s strong market performance and customer satisfaction. Over time, if a product rating changes, it signals a change in trends and the need for product adjustment to make it more receptive to customers.
Brands can pay close attention to issues that lower the overall product rating and fix them to improve it.
Negative reviews often highlight common issues or defects in a product. By systematically analyzing these complaints, businesses can identify and rectify flaws, leading to improved product quality and customer satisfaction.
Benchmark Against Competitors
Ratings give a snapshot of how a product measures up against competitors. This competitor analysis can help in devising marketing strategies to better compete in the market.
By understanding what customers appreciate or criticize about competing products in review analysis, businesses can identify areas for differentiation and improvement and better compete in the market.
READ MORE | Want to know the benefits of price monitoring? Check out the article on Competitor Price Monitoring Solution for E-Commerce.
Industry Examples that Use Review Analysis in Product Development
Several companies in the US utilize customer reviews and feedback as part of their research and development (R&D) process to enhance product offerings and better meet consumer needs. Procter & Gamble, Nike, Starbucks, Tesla, Unilever, and Coca-Cola are some of the brands that engage with consumer feedback through reviews or social media.
Amazon analyzes customer sentiments in reviews to recommend products on its platform and improve its private-label brands, such as AmazonBasics.
READ MORE | Offering a better-quality product at a reasonable price may help you outsell AmazonBasics. Gain insights into the performance of Amazon private labels in Digital Shelf Insights: Top AmazonBasics Product Categories.
The Honest Company: An Exemplary Example of Product Development from Customer Reviews
In 2011, after reading product reviews, actress Jessica Alba realized that there was no transparency and safety in household and baby products. This is when she, along with her business partner, launched The Honest Company.
The fact that the brand resonates with consumers and meets their needs not only fosters customer loyalty but also helps the company stay agile in a competitive market.
How Do Negative Reviews Impact Brands?
Several instances have occurred where products have been removed from the market due to negative customer feedback and poor acceptance.
In 2006, Microsoft introduced Zune to compete with Apple’s iPod. However, the product was discontinued in 2011 as it failed to gain significant market share. Zune received mixed reviews on Amazon.
Similarly, released in 2013 as an innovative wearable technology, Google Glass failed to pick up sales because of the negative reviews it received for its high price, privacy concerns, and limited practical use. Though still used in specific industries, in 2015, the product was removed from the online retail shelves.
Brands can constructively use negative reviews to re-evaluate their offerings and re-launch a better-developed product.
MetricsCart Review Analysis: Your Best Partner for Product Development
In summary, e-commerce review analysis provides actionable insights that drive product innovation and improvement in product performance that enhance customer satisfaction.
If you want our expertise in providing in-depth analytics and review monitoring across e-commerce channels, send a message about your availability, and our representative will contact you.
