What Happens When Companies Pay Customers to Write Reviews?

The vast majority of consumers read product reviews before making an online purchase, suggesting that most of us understand the value of honest, accurate reviews. Nevertheless, new research suggests that if you offer a financial incentive to customers in exchange for writing the review, they’re significantly more likely to write a positive review — even though the incentive is not at all contingent on the content of the review. Based on a series of studies, the authors found that offering an incentive as low as $0.20 or $1.00 increased the positivity of reviews by 40 to 70%. That said, the authors also note some situations in which incentives aren’t effective: Specifically, they won’t work to counteract negative sentiment in the face of a major public scandal, and they can also backfire if new customers feel that the reviews are positive to the point of inaccuracy. But in general, this research suggests that offering a financial incentive can be an effective strategy to help companies source more positive reviews.