Harnessing power of resident reviews isn’t as hard as you might think. And it’s definitely worth the effort. Recent studies* indicate a power shift when it comes to factors influencing a purchasing decision: away from big marketing budgets and message repetition and in favor of company/product ratings and reviews. And the internet makes consumer reviews easier than ever to find.
Consider these findings from Lightspeed Research in a March 2011 study: Over 60 percent of people read product or business reviews online before purchasing, and more importantly, trust other consumers’ opinions about the purchase in question. This number is likely much higher for ‘considered’ purchases (such as their next apartment). The study also shows that as few as two or three negative reviews can cause consumers to change their mind about a potential purchase. Finally, a 2008 study by iPerceptions showed that 63% of consumers are more likely to purchase from a site if it shows product ratings and reviews.
What does this mean for apartment managers? First, it means that ratings and reviews cannot be ignored as an important factor driving potential renters’ purchasing decision. Second, it is critical to monitor and optimize online reviews, since even a few negative reviews can have a significant effect on your prospects. And finally, posting ratings and reviews on your property websites can help renters make the decision to lease. (Interestingly, the Lightspeed study showed only seven percent of people turn to their social networks for reviews.)
As property management professionals, it’s time to recognize the impact resident ratings and reviews can have on marketing efforts. Remember, potential renters are more likely to trust resident reviews than your own advertising or property description when making a decision to rent at your property. Adopting an integrated ratings and reviews system can provide properties with some of their most effective marketing material and help property managers keep up with what their residents love about their community. This then leads to a culture of responsiveness that actually builds loyalty among residents and prospects.
In addition, using your own ratings and review system can help you monitor and respond appropriately to negative reviews. Keep in mind, a negative review isn’t the kiss of death. It’s actually a great opportunity to show prospective renters the quality of service your residents can expect to receive. The 2011 Retail Consumer Report shows that when reviewers who complained about a business were subsequently contacted by that business in an attempt to rectify the issue, 67 percent of those clients either deleted their negative review, or —get this— actually posted a positive review of that same business! These results can’t happen if properties don’t actively monitor and respond to their residents’ reviews.
Finally, while there are a number of generic ratings and review sites that potential residents may access to find out about your property (we’re looking at you ApartmentRatings.com and Yelp), the most significant site for ratings and reviews is your own community website. Incorporating current resident ratings and reviews into your property’s website can influence prospective renters as much as (or, arguably more than) amenities lists and property details. Plus, as a bonus, fresh user-generated content can help boost your website’s Google page ranking and improve SEO.
Sound overwhelming? It’s not. Property Solutions websites include a Ratings and Reviews feature that makes it easy for residents to submit reviews in the Resident Portal, and automatically displays reviews on the property website. Managers receive instant notices when a review is submitted and can choose to display and/or respond to reviews as the situation warrants. No more surprises! Thousands of residents submit reviews through our system every month. Are you taking advantage? Hear what Virginia Love from Waterton has to say in the video below (check her out at 0:54). Or find out more information on our website.
