Fame has a price

This week, we’re talking about word of mouth and what happens to it as a brand grows. New research shows reviews don’t treat every brand equally, and bigger brands pay the price. So what should they do about it?

—Elena

Chick-fil-A’s 3.36-star rating jumps to 4.06 once you adjust for company size.

A Journal of Marketing study of reviews across Yelp, Amazon, X and Instagram found ratings drop as companies grow, even when the product is just as good.

Small brands get grace. Big brands get graded.

Why do bigger brands get worse reviews?

Empathy. People root for small businesses, so they are more apt to forgive misses. As brands grow, they lose that grace and have more expected of them. Rob saw it with Apple. Steve Jobs once said he’d rather be a pirate than join the Navy. Now Apple is the Navy.

Your ratings trail a smaller rival. Now what?

Find out what’s behind the gap. Do you have a real experience problem or just a big-brand standard? The first means fixing what’s broken. The second means showing customers a more personal side.

When should you stop leaning on word of mouth?

Sooner than you think. Word of mouth depends on who happens to be talking and whether their friends happen to need you right now. You can’t control either one. Once you’ve proven demand and the economics work, start advertising.

Can ads get people talking?

Yes. Small and big brands earn trust differently. Small brands tell the founder story. Big brands show why everyone loves them. Then give people a line, character or jingle they’ll repeat to friends long after the ad ends.

Listen in on our discussion.

“Why Do Small Brands Get Better Reviews?”

This summary from the AMA explains why bigger companies get lower ratings, even when their product is just as good. They also cover how big brands can close that gap, and how small brands lose their headstart when they break customer trust.

Read the article.

The bar only goes up.

“One thing I love about customers is that they are divinely discontent. Their expectations are never static. They go up. It’s human nature.”

— Jeff Bezos, 2017 Amazon shareholder letter

This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts.