If you want to build a world-beating firm, you need a product that stands head and shoulders above the competition. It has to be worth customers spending the extra money to use your services.
The best way to do that is to collect data on what customers want from you – getting it from the horse’s mouth, so to speak.
The problem is that most firms are still bogged down in the old way of doing things. If they want to develop a new product, they call in a bunch of specialists and get them to design it. They don’t listen to the very people they’re selling to and ask what they want.
For this reason, we see renewed interest in applying big data techniques to online product reviews. Savvy bosses can see that these customer evaluations contain actionable insights that they can use to improve their product offerings and set development paths.
The practicalities of extracting useful data from online reviews, however, is another but easy, as the following infographic points out. There are both statistical and qualitative challenges. Data gleaned from customer reviews may not always be reliable.
Online reviews are also a significant source of risk for firms. Most consumers don’t have a deep understanding of statistics. So when they see star-ratings based on a few responses, they often take them just as seriously as star-ratings based on more responses. If you’d like to know more about the relationship between online reviews and product development, check out the following infographic.
Infographic by University of Alabama Birmingham