What is Average Number of Reviews per Item (SKU)?

Understanding Average Number of Reviews per Item, commonly referred to as SKU (Stock Keeping Unit), is pivotal for ecommerce businesses. This metric provides an assessment of the average number of reviews collected for each specific SKU listed on the ecommerce platform. SKU reviews incorporate both positive and negative responses from customers who have purchased and interacted with the product. This average helps to gauge the popularity, user interaction, and potential areas of improvement for each product listed under the given SKU.

Formula

Average Number of Reviews per SKU = Total Number of Reviews / Total Number of SKUs

Example

Let’s say an ecommerce store sells 100 units of SKU A, and it receives 500 reviews. The Average Number of Reviews per Item for SKU A is then calculated as 500 reviews / 100 units = 5 reviews per SKU A.

Why is Average Number of Reviews per Item (SKU) important?

The Average Number of Reviews per SKU is a significant ecommerce metric as it drives shoppers’ purchasing decisions. These numbers demonstrate the level of customer engagement, satisfaction, and product performance insight. Oftentimes, a high average suggests a well-liked item, while a low average may indicate dissatisfaction, lack of awareness, or a missed opportunity for obtaining customer feedback.

Which factors impact Average Number of Reviews per Item (SKU)?

This metric can be influenced by a variety of factors such as product performance, user experience, brand reputation, and the quality of after-sales service. Effective pricing strategies and product uniqueness can also significantly impact Average Reviews per SKU.

How can Average Number of Reviews per Item (SKU) be improved?

Improving Average Number of Reviews per SKU may involve strategies such as encouraging product reviews through follow-up emails or offering incentives for reviews received. Additionally, ensuring customers have a transparent, easy-to-use platform for submitting their reviews can significantly increase this metric.

What is Average Number of Reviews per Item (SKU)’s relationship with other metrics?

There’s often a strong correlation between Average Number of Reviews per SKU and other ecommerce metrics such as conversion rate, customer retention rate, Net Promoter Score (NPS), and customer lifetime value (CLV). For example, a higher average typically leads to improved conversion rates, as potential customers may find the product more trustworthy. Similarly, it accelerates the NPS as customers are more likely to promote products they have reviewed positively.