As a consumer, we live in a time where our opinion about products is important information for companies. This also applies to how consumers rate a company and its services (product). The problem is that with so many ways consumers can share their thoughts about a business, it’s hard to know how to look at a business’s ratings and know what the numbers, letter ratings, number of stars, or thumbs up mean. . At some point, it’s easy to wonder if any of those entries are important.
However, recent research shows that while it can be difficult to get a 100% accurate assessment of a company’s value, a company’s rating does matter. The onus is on the consumer to be willing to put in the effort in trying to figure out how these ratings allow them to make the best decision possible.
As a consumer, it’s important to look for basic ways to break down information, such as company ratings, regardless of the rating system used. If a rating shows 5 out of 5 stars, for example, but only three reviews have been submitted, that rating may not be the most reliable. Perhaps a rating system will allow reviewers to give a “thumbs up” if they are fans. This looks fun and easy to use, but is there an easy way to give a “thumbs down”? Without being able to appeal to all kinds of reviews, the result of the ratings is now not so clear.
Ratings are highly subjective, and as a responsible consumer, it’s important to keep this in mind when reviewing a company’s ratings. Sometimes humans may not use the best reasoning in their evaluation of a company. For example, when you read ratings and reviews online, a product/service is given 1 out of 5 stars, but when you read the actual review, you may find that the reviewer is generally dissatisfied with products/services like the one being reviewed, but not necessarily that specific product/service. Not only does that provide an inaccurate view of this company’s product/service, but the company is now seeing its overall ratings plummet.
Consumers react quickly when something does not interest them and make their opinion known. Take the time, however, to look at the review. If someone decides that a restaurant cooked a steak incorrectly and gives it a negative rating and review, does the review indicate if the reviewer ordered a new steak? If someone wants to return items to a department store without a receipt, but feels they should get a full refund, does the review describe the company’s return policy and other options in the event there is no receipt? In other words, are companies allowed to remedy a less-than-ideal situation before it becomes a mark on their overall record?
In short, yes, a company’s ratings do matter. While there are times when you as a consumer have to go through reviews to get to the bottom of things, a business’s ratings generally provide a pretty reliable view of how well the business is doing. These numbers create a sense of trust in a company, and with so many review platforms available, the consumer has the advantage of being able to find the products and services that they need.