We provide customer reviews through a partnership with Trustpilot, a consumer review platform that lets users rate companies around the world. These reviews can form part of an investment or business decision based on how happy customers are with companies or certain aspects of products. This is especially useful for more obscure companies that have little in the way of traditional media coverage, such as those that are still small and private.
Trustpilot rating on the CityFALCON mobile app
How it Works
After someone buys a product or service from a company, they may be invited to review the company/product on TrustPilot. The buyer can provide their experience and give a star rating to encapsulate that experience in a single number. TrustPilot aggregates all of these reviews and publishes them for the world. Since companies are unable to control what customers say about them, this platform can provide external information on the company that is less biased than company-approved press releases and marketing materials.
Of course, Trustpilot reviews cannot be forced on users, so you shouldn't use this as the final deciding factor. Moreover, there is selection bias at play here, because only very happy or very angry customers are likely to take the time to leave reviews. Nonetheless, this rating can be used in a preliminary screening or as a way to get an idea about a company before spending more of your limited time researching it. For example, if every single review is terrible, then you may want to consider spending less time researching the company as it may not fit well in its current market.
Example Use Cases
We could think of at least a few use cases for consumer review data, and we're sure you can think of plenty more. Customer reviews cannot be the only deciding factor, but they can point you in the right direction.
- Gauge how customers feel about a new company before making an investment
- Gauge popularity of the company based on the number of reviews
- Uncover clues as to the strengths and weaknesses of the company
- Compare customer satisfaction between two otherwise similar companies
- See how new products are received and how loyal customers are
Implementing customer reviews as part of your alternative data tools will improve the accuracy and efficacy of your due diligence.