Simonkucher : The Rating Economy - Company Survey
Ratings: lots of potential, not enough strategy
Companies are starting to realize the importance of customer ratings. But similar to the digitalization trend about five years ago, companies have understood that there is a trend – but they are not yet sure on how to act on it. While over 80% of companies in the survey say ratings are (at least somewhat) important, only 15-16% have a sound rating strategy in place.
Companies fall into 4 categories of rating maturity
Companies in the survey can be categorized into four groups according to their rating maturity. Only the most advanced group, the “Frontrunners”, seems to really act on ratings within a clear strategy, the others are either still missing a strategy or say they have a strategy but there’s no proof of how it is followed through.
The “Frontrunners”: big and online-savvy
The “Frontrunners” seem to be the companies with the highest level of professionalism and a highly developed online channel. They tend to have a higher turnover and higher EBITDA margins than the other groups.
Interestingly, all four groups are relatively evenly spread across industries. While consumers perceive ratings to be by far most important in the Travel & Hospitality and Consumer Electronics sectors (see our accompanying consumer survey on this topic), the company survey didn’t suggest that these industries are also most advanced when it comes to strategically dealing with ratings.