A recent study by Deloitte & Touche LLP not surprisingly shows that consumers read and heed online reviews. What was surprising was the number of consumers.

The Deloitte study found that 62% of respondents said they read consumer-written product reviews online. Of those, 82% said those reviews directly influenced their buying decisions and 69% passed reviews on to family and friends.

The results were consistent across most age groups. For instance, 57.6% of those aged 17-21 said they had ever read an online consumer-written review, compared with 68.4% of those 22-29, 65.5% for those 30-44 and 63.2% of those 45-60. That response rate dropped off to 51.8% for those 61-74. In every age group from 17 to 74, at least 97.8% rated consumer reviews as credible, dropping to 93.3% for those 75 and older.

“In the past, clever marketers and advertisers shaped brands, but now consumers are increasingly empowered, everyone has a voice, and information and opinions are instantly dispersed. Consumer product companies need to determine how best to capitalize on this new landscape. Clearly, there will be consequences for those who don’t.” said Pat Conroy, vice chairman and US consumer products group leader at Deloitte & Touche USA LLP.

The consistency across all age groups shows that reputation and word of mouth, both greatly influenced by online reviews, are the key factors that influence consumers’ decisions to purchase a new product or brand. Pat Conroy makes a great point and reflects the fundamental shift that is underway in marketing. The growth of social media sites likes YouTube and the increase in User-Generated content (UGC) online, means that the success or failure of a marketing campaign is often in the hands of a select few influencers online. It is these influencers who are determining the future of many brands online, not the brand managers or ad agency.

“In order to successfully compete, it’s imperative for consumer brands to build and maintain their images, create differentiation, and enhance loyalty says Conroy. “And co-opting customers to create value with the company can create not only loyal customers, but also brand emissaries.”

It is this thought that is keeping brand managers or ad agencies awake at night. It takes a very brave brand manager to turn part of their brand reputation over to brand emissaries online. The brands that can successful manage to traditional and new world of brand reputation will be the ones who are gaining market share over the next couple of years.

Tweet This Post