Simonkucher : The Rating Economy - Company Survey
Ratings affect brand building, lead generation and conversion
Why do companies pay attention to ratings? Because many companies believe that ratings have a decisive influence on important business factors. Ratings are seen as having high importance for brand building, lead generation and conversion. Among these three, brand building is the most important one. Not surprisingly, the “Frontrunners” put most importance on ratings – more than twice as much as the “Laggards” do.
Good ratings are valuable to companies
Being rated significantly better than competitors has a visible effect on the top and bottom line: They bring sales and allow for price changes. Interestingly enough, companies see more upside potential for sales volumes thanks to well-rated products (on average +15.4%) than they see risk for losing sales (-14.3%) with badly-rated products. Also, they don’t exaggerate price increases for well-rated products (+9.5% overall average) and would reduce prices for badly-rated products a bit more (-10.5%) than they would increase the price in the opposite case.
All these numbers underline how valuable it is for any company to develop and implement a sound rating strategy.