Study on location-based services and customer feedback in Europe: How do consumers evaluate local companies?


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Linking social networks, geolocation functions and mobile technologies today presents marketers with dramatically new challenges: customers can now, on the spot, comment on a service or product, rate it and quickly share it on social networks. And even more: search engines, especially Google, meanwhile in their algorithms, the user feedback as well as the location-based information of great importance. A trend that will become even stronger in the future. Reason enough to investigate in a comprehensive study: How and, above all, what do customers say about location-specific information? Company?

Nomao study

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Simone Janson Simone JansonSimone Janson is publisherGerman Top20 blogger and Consultant for HR communication.

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Background to the study

Nomao, a European regional referral search engine, has evaluated well over 100 millions of posts from Internet users across five European countries from the 9 millions of sites it searches on a daily basis.

In France, England, Germany, Italy, Spain and France, not only country-specific differences but also questions such as: Which Company are rated? Which social networks are used for this? How often is commenting? Which expressions are used? And finally: Which content tendency do the comments have?

The results of the study

In the five largest European countries, eight times more comments were made about local businesses within four years. This figure will increase further in the coming years, for several reasons:

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  • More and more people own smartphones: between 2010 and 2011, the number of smartphones increased by 44 percent.
  • More spread of apps on phones2: More than 1 million apps were 2011 in circulation.
  • Creation of ever-new Internet favors on niche markets such as Yelp or tripadvisor.

Although the Europeans comment on the same addresses, the amount of content produced differs depending on the countries of origin and the local markets:

  • 40% of all places annotated in the European Internet refer to gastronomy.
  • The accommodation sector is average with 12 opinions the area that is most commented on.
  • A place in the UK has an average of seven opinions: twice as much as other countries surveyed.

European Internet users prefer to make favorable recommendations, but not to publish negative reviews or to criticize them. The way of describing a location differs depending on the origin of the users:

  • 80% of reviews of local businesses by internet users are positive.
  • The Italian comments on companies are 2,5 times longer than Spanish.
  • The service and the location are the most important criteria for the internet users.
  • If the internet users comment on an address, the price is clearly not the most important factor.
  • Only 1% of commented restaurants and 3% of hotels receive more than 200 reviews.

Nomao study

The short version of the online study is available at this link :.

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