How In-Store Ratings and Reviews Drive Smart Business Decisions

Written by: Tone Loberg
Posted on: March 16, 2023

Jonny Hansen, COO at Lipscore, argues that ratings and reviews from physical stores are not just customer feedback; they are crucial management tools for retail chains. These in-store service reviews provide invaluable insights that form the backbone of strategic business decisions.

Unpacking Customer Data for Retail Success

Collecting customer reviews helps to answer key questions that management needs to consider. Which stores are exceeding expectations? Which are falling short or failing? How do profit margins correlate with customer satisfaction levels? Why might customer satisfaction vary between two stores in the same town? Addressing these questions helps retailers identify problem areas, whether they are related to store location, staff performance, opening hours, or other factors.

The Importance of High-Quality, Actionable Data

To make data-driven decisions, a substantial number of reviews are needed. “Continual feedback from 20-30% of customers provides a solid dataset for analysis,” Jonny notes. Unlike sporadic assessments from mystery shoppers or generic in-store smiley buttons, in-store ratings offer a more comprehensive view of customer satisfaction.

“Consistent feedback is required to make well-informed decisions,” Jonny emphasizes. Ratings and reviews collected via Lipscore guarantee authentic customer input. On average, Lipscore collects feedback from 19% of customers, thereby enabling businesses to quickly accumulate meaningful, high-quality data.

Omnichannel Retail: The Need for Robust Analytical Tools

Many retail chains amass vast amounts of customer data, but often struggle with its effective utilization. Lipscore aims to simplify this challenge by providing analytics tools capable of deciphering large data sets, which ideally should encompass both online and in-store customer reviews.

Recognizing the Power of Quality Data

Many retail giants, such as Elgiganten, Power, and Lipscore client Skeidar, have realized the transformative potential of quality data for actionable insights. For example, Skeidar removed certain products from its range due to consistent negative feedback, acknowledging that regaining customer trust is far more costly than the initial loss.

The Rise of Click and Collect in Modern Retail

Click and collect has surfaced as a pivotal sales channel in today’s retail landscape. This makes it imperative for online stores to offer exhaustive product information. It also reinforces the need for customer reviews to evaluate service levels at the pickup locations. “If nine out of ten stores excel at this, you’ll want to know why the tenth doesn’t,” adds Jonny.

Data-Driven Insights: A Valuable Asset for All Business Units

Lipscore’s customer data serves multiple roles within a company, not just e-commerce or online conversion teams. It can help category managers, product managers, brand managers, and even individual store managers make more informed decisions based on customer feedback.

Unlock the Power of Customer Feedback with Lipscore

Lipscore ratings and reviews enable you to measure and improve customer satisfaction across your retail spectrum—both online and in physical stores. This rich customer data equips you to refine your omnichannel strategy effectively.

Book a meeting with one of our experts to delve deeper into what Lipscore can offer you.

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