Editors’ Note: We’ve found one more — possibly the most important — thing to consider when encouraging your customers to refer their friends to you. This blog post now goes to 11. See below for item #11 and learn how to move from affinity to advocacy.
Email can be a powerful marketing channel for e-commerce if you leverage it properly. If you think about it, a customer’s inbox is basically a distraction-free zone you’ve been invited into, giving you more opportunity to capture attention with highly-targeted offers than in any other digital medium out there.
The problems with 5-star rating systems and how to fix them
Does your business rely on a 5-star rating system for feedback? New research suggests you might want to rethink this approach. The truth is that 5-star systems are good at weeding out very low-quality businesses or products, but they make it hard to separate the good from the great. Why? Well, the 5-star system has built-in selection biases. Without incentives to rate businesses or products, most customers who leave feedback have either had a very good experience or a very bad one. Also, some businesses inflate their ratings system, meaning that 4.8-star average score might not be as exceptional as you think. The solution? Show customers an average rating for products or suppliers in that sector. Or, adjust user ratings based on differences in their reviewing behaviour. Follow the few easy tips laid out here to make your rating system more meaningful.
Employee perks at a 12-year low
The total number of people receiving taxable job perks from their employer fell 600,000 to 3.6 million in the last year, the lowest point since 2007. The reason? Corporations are cutting costs as a response to the threat of economic uncertainty from the 2008 crisis and, more recently, Brexit. Confusion around which of these perks are tax-exempt has also likely pushed a lot of small businesses to leave employee perks in the past. When done right, employee perks can slow turnover and encourage staff performance. However, it looks like many businesses are viewing the cost and hassle as too high to justify the gains.
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