Ratings and reviews are found on many websites, publications, and marketing materials for a wide range of general insurance and banking products. But what do they mean? And how should they be used when making a financial decision?
A consumer review is where a customer writes up a personal review of their experience of a product and/or service. There are several third-party platforms available for consumers to upload a rating and write a review. These ratings and reviews are then collated and made available to the general public.
Consumer ratings and reviews are an important and powerful tool. However, the very nature of them means they may be biased and in many cases, especially where general insurance and banking products are involved, highly emotive.
They’ve also come under increased scrutiny in the last few years with fake reviews coming to light. However, many platforms have responded to ensure consumers that they’re doing all they can to combat the publication of fake reviews.
Expert ratings are typically based on facts and not opinions. They provide an independent and unbiased industry standard for indicating where a product sits within the market.
For example, Defaqto Star Ratings give a financial product or proposition a rating of 1 to 5, depending on the quality it offers. The organisation rates financial products in terms of feature quality and comprehensiveness.
Defaqto employs expert analysts to continually monitor the market, ensuring that the information provided is accurate and up to date.
Make use of both
Word of mouth is one of the oldest marketing tools in the box. In the age of social media, it’s easier than ever to create and share a review. Consumer ratings can give a view of the typical service a customer can expect. But, as they’re based on opinions, it’s important to use more factual information to support any consumer ratings you’ve found.
Expert ratings provide an at-a-glance view of the features, benefits and comprehensiveness of a financial product to help you better understand what a policy may cover in the event of a claim.
Understanding the difference between expert ratings and consumer reviews will help you to apply both to your decision-making process.
Oftentimes, if you’re seeking financial advice, the adviser uses expert ratings to help them easily compare and recommend the most suitable products to their clients. So, by familiarising yourself with the different kinds of ratings and how they work you’ll have better-informed conversations leading to better-informed financial decisions.
Content provided by Defaqto. For more information visit their website www.defaqto.com