Bad reviews can make you more money - wait, what?

No, you didn't read that wrong. Apparently even bad products reviews can help increase online sales.

CNN Small Business recently profiled AlpacaDirect.com, a website that sells Alpaca products such as sweaters, scarves, socks, and yarn (unfortunately no Alpacas themselves). AlpacaDirect installed PowerReviews Express software that allows customers to post critiques of products they have purchased. Jim Hobart, the owner, was surprised to see that sales of products with reviews - even bad reviews - increased.

Hobart was effectively paying to host bad press -- such as posts by customers who described AlpacaDirect's golf cardigan as "kinda sweaty" and a "poor fit." Both awarded the cardigan three out of a possible five stars.

But a month after installing the PowerReviews service, Hobart saw sales climb 23% on items that had customer reviews (even that cardigan, which garnered an average of four stars).

Online customers today are looking for great deals, but they are also looking for retailers to be honest about what they are selling. The best way to be completely honest about a product is for customers themselves to post their thoughts. People are more likely to trust a review that discuses both the negatives and positives of a product than one-sided marketingspeak talking up the latest widget.

The Takeaway for Website Owners

The huge lesson in this is that customers want a website to be honest - they are looking for a business to care enough about customers to post potentially bad reviews or comments.

Successful businesses open a dialogue with their customers (or between customers) by allowing ratings or feedback on their products. Shopping cart software often comes with this built in, or it can be added on (Drupal's Ubercart shopping cart module integrates nicely with Fivestar, for example). Or, if your site isn't eCommerce, you could start a blog to open the discussion.

Customers want to do business with companies that are open an honest about the products they sell. Help your business and your website by taking steps to make that honesty know.

Source: Even bad reviews boost sales (CNN Money)