Using a rating system to create a competitive advantage and retain customers
Discover how rating systems can be used to change provider behavior and retain customers
Reviews are powerful, having been found to have a comparable effect to word-of-mouth recommendations, yet they can make or break a service provider; when 95 percent of online reviews are positive, the five percent that are negative are more significant and can have a major impact on provider behavior and customer retention.
Speaking during All Access: Customer Loyalty and Retention 2024, Arne De Keyser, Professor of Marketing at EDHEC Business School, discusses how his new research found a direct link between low ratings and the future behavior of service providers using Airbnb and Lyft.
Through analyzing incremental and average ratings systems, Professor De Keyser has uncovered the pros and cons of each system, illuminating ways that review systems can be used to change provider behavior and, ultimately, retain customers.
Click here to read the full event round-up from All Access: Customer Loyalty and Retention.
