Entertainment-Industrie: Unternehmen unterschätzen Konsumenten-Bewertungen
According to a recent study, consumer ratings in the entertainment industry are becoming more important and making a permanent impact on purchasing behavior and brand loyalty.
Across all industries, ratings have become a significant factor for purchasing decisions, with 71 percent of customers worldwide considering ratings important or very important. This trend also applies to the entertainment industry. Before deciding to buy a computer game or subscribe to a streaming service, a growing number of today’s customers consult reviews. Over 40 percent of respondents said they read reviews regularly before making a purchase, and half believe ratings get them more for their money because they feel they are making better decisions. The majority of companies in the entertainment industry are aware of the significance of ratings. Sixty-three percent consider ratings to be important or very important for the industry. However, many don’t seem to know how to address this trend, with only 14 percent having a strategy in place to improve their customer reviews. These were the key findings of an entertainment focus group conducted as part of the study Trend Radar 2019 – The Rating Economy* by the global strategy and marketing consultancy Simon-Kucher & Partners.
Ratings come before brand as a criterion
The results of the survey also showed that ratings are the third most important criterion in purchasing decisions after product characteristics and price, meaning they are even more important than brand. “Companies shouldn’t underestimate the power of ratings in the purchasing process,” said Lisa Jäger, Partner in the Media & Entertainment practice at Simon-Kucher.
“Many companies are slowly starting to approach the topic, but most measures seem to be in a very early stage. The industry has a lot of catching up to do,” added Jäger.
Companies recognize the opportunities and risks of ratings but lack the measures
Companies in the entertainment industry are well aware of how important ratings are. Fifty-five percent of companies surveyed in the industry believe that good ratings can increase their sales by up to 10 percent, which would allow them to increase their prices by 10 percent. Many have also already identified the potential harm ratings can do. Forty-two percent are aware that poor reviews can lead to lower sales volumes, making it necessary to reduce prices. According to Jäger, “These figures make it all the more surprising that only 18 percent of companies incorporate ratings in their pricing strategy. Only nine percent of companies surveyed stated they dynamically adjust their prices depending on ratings. This is where companies are leaving potential untapped.”
“Given that over 40 percent of entertainment companies will be increasing their marketing budget over the next few years, part of this budget should go to developing a strategy and process for using ratings to fine-tune products and their prices,” added Jäger.
*About the study: Trend Radar is a two-part study conducted by Simon-Kucher & Partners for the first time in 2019 (March/April). With a focus on “The Rating Economy 2019,” part 1 of the study surveyed approximately 6,400 consumers in 23 countries worldwide about their rating behavior. In part 2, more than 1,600 companies from all industries answered questions about their rating strategy.
Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power®. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Simon-Kucher & Partners is regarded as the world’s leading pricing advisor and thought leader. The firm has over 1,400 employees in 39 offices worldwide.