![]() ![]() Brand building was a very long game.Īnd what you’re seeing as a result now is new brands disrupting spaces that had been held by longstanding brands-as this new kind of dynamic plays very well to the disruptor in that sense. In the world before reviews, you needed the marketing to tell you what the product was like, and you needed the brand to give you confidence that “I know the other things that I bought that had this name on it were good, and so this next one should be good.” And quality was a much longer play, longer game, and longer bet. But I think that, for sure, as Chauncey said, the product is becoming the marketing. I don’t know if that’s one you could ever answer quantitatively, at least at a macro level. Chauncey Holderĭave Fedewa: That’s a great question. Going solely into the store and observing what’s on the shelf or any traditional marketing lever-that’s the old world. If you’re a consumer and your choice is to either put more weight on a signal that the marketer is giving you or more weight on the signals that actual consumers who are using the products are giving you, well, which one do we think most consumers will eventually default to? And we are absolutely seeing that. Going solely into the store and observing what’s on the shelf or any traditional marketing lever-such as the power of the brand, the availability in the store, or some sort of in-store promotion-that’s the old world. So, if you think about it, the pandemic has accelerated a fundamental change in consumer behavior. But I’m not sure how much practitioners appreciate the tectonic shifts that we are going through at the moment. Roberta Fusaro: I’m curious, then, what would you say affects consumer’s purchasing decisions more, these online reviews or companies’ marketing campaigns?Ĭhauncey Holder: We are in a fundamental paradigm shift. Traditional marketing is a thing of the past And probably, if you’re like me, you’ve been in a store and flipping through your phone recently, right?ĭave Fedewa: Like, I’m not buying this thing until I read a few reviews. You may have ended up in a store to finish it, but you started that process online. But just think about the last few big purchases you made. And I think that has also increased substantially. The second really interesting thing, which is frequently overlooked, is how reviews affect offline shopping at a traditional brick and mortar. I think everybody’s realized this is an easier, more convenient, and, frankly, more transparent way to shop, and I’m not going back. ![]() I think that pace may have slowed some, but it hasn’t gone backward. And so when you think there have been ten years of reviews before that, that’s a lot of reviews in a very short period. And so really what you do is you get similar products at roughly the same price point, and now it’s just a matter of ratings and reviews.Īnd some of our proprietary research has suggested as much-that the increases in e-commerce penetration due to COVID-19 are not likely to recede or regress to prepandemic levels, which means that particular behavior has been adopted widely by consumers.ĭave Fedewa: I think the total number of global reviews something like doubled in the year after COVID-19 started. When consumers have essentially transparent information about the product that they’re purchasing, it gives them permission to trial as much as they want across the category, right? You don’t have to rely on brand. COVID-19 essentially forced the trial of a number of new categories, and consumers had no choice in the early part of the pandemic but to trial e-commerce as a channel. Online ratings have been with us for a long while, but why are they more important now than ever before?Ĭhauncey Holder: COVID-19 is the short answer. Roberta Fusaro: Chauncey, Dave, thanks so much for joining us today. Why customer reviews matter now more than ever The McKinsey Podcast is hosted by Roberta Fusaro and Lucia Rahilly. The following transcript is edited for clarity. After, meet Princess Daisy Akita, a mathematician, lawyer, and currently an early-tenure consultant at McKinsey. In this episode of The McKinsey Podcast, Roberta Fusaro speaks with McKinsey partner Dave Fedewa and McKinsey senior expert Chauncey Holder to understand how and why businesses must prioritize customer reviews-or risk falling behind agile competitors. McKinsey research has shown that peer purchasing insights seem to have more influence on consumers than any marketing strategy. ![]()
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