Product Reviews are Leading Indicators of a Product’s Performance

Share on facebook
Share on twitter
Share on linkedin

Are you getting pressure to measure sales and sales alone? Revenue and Profit are critical metrics, no doubt. Unfortunately they are they are focused on the past. A sale does not forecast a future sale. But there are metrics that can help you accurately predict sales. Let’s contrast these two indicators.

Lagging vs. Leading Indicators

Metrics like Revenue, Profit and Cost are Lagging Indicators which means they can only record what has happened in the past. Lagging Indicators tell you what happened but cannot predict what is going to happen. All too often, we only focus on these results, because they are easy to measure.
Leading Indicators, on the other hand, can predict how you’re progressing toward corporate goals. Some examples of Leading Indicators include:

  • Customer Service Complaints
  • Return & Warranty Rates
  • Product Reviews

Benchmark & Leverage Product Reviews to Affect Outcomes

product reviews leading indicators
Each of the Leading Indicators above can be measured both Quantitatively and Qualitatively. Let’s take a look at Product Reviews.

Quantitative Measurement

The beauty of product reviews is that the stars are very structured. Customers assign a rating, 1 through 5. This is simple to quantify. And there’s one more thing to quantify: volume. The sheer number of product reviews is another quantitative metric that can help you predict a product’s performance.

Qualitative Measurement

Then there’s the unstructured part of product reviews: the text. Between slang, misspellings and double meanings, it may be difficult to quantify the text. That’s where a knowledgeable partner comes in who can help you parse, analyze and assign sentiment to what is being said.
At Channel Signal, we use Drivers as part of our Qualitative measurement. Drivers are Key Performance Indicators found in the text of product reviews. The term Drivers is fitting, because these are the topics that drive¬†your product’s performance in the marketplace. Here are some examples:

  • Defects
  • Leakage
  • Battery Life
  • Portability


  • Materials
  • Weight
  • Large Fit
  • Small Fit


  • Zipper
  • Handle
  • Packaging
  • Counterfeit


  • Warranty
  • Taste
  • Smell
  • Straps

And the list goes on. The Channel Signal team specializes in this type of analysis and the platform is designed to help you uncover these KPIs in order to take action.


Of course, a measurement is not that useful if you have nothing to compare it to. In order to be reliable as a Leading Indicator, Quantitative and Qualitative Product Review metrics should be benchmarked against another data set. This could be another date range, another product or category, or another brand (even a competitor). Again, the Channel Signal platform is designed to do just this.

Taking Action

The great thing about Leading Indicators is that they aren’t final. They allow you time to assess and pivot in order to achieve your goals. Once an insight is uncovered, some of the swift actions you can take include:

  • Initiate product engineering change orders to fix problems that are detrimental to performance.
  • Edit product descriptions and information to clarify and address misconceptions
  • Re-allocate marketing budgets to promote products that are showing early signs of performing well with customers.

Don’t fall into the trap of focusing on sales and not product performance. Product Reviews are steadily becoming the leading predictor of product sales. Listen to them using the #1 product review analysis platform, take action, and the sales will come.

16 thoughts on “Product Reviews are Leading Indicators of a Product’s Performance”

  1. Hello my loved one! I wish to say that this article is awesome,
    nice written and come with almost all vital infos.
    I’d like to see extra posts like this . asmr 0mniartist

  2. Hello would you mind letting me know which web host you’re utilizing?
    I’ve loaded your blog in 3 different web browsers and I must say this blog loads
    a lot faster then most. Can you suggest a good internet hosting provider at a
    reasonable price? Many thanks, I appreciate it! 0mniartist asmr

  3. Does your website have a contact page? I’m having a tough time locating
    it but, I’d like to send you an email. I’ve got some ideas for your blog you might be interested in hearing.
    Either way, great site and I look forward to seeing it expand over time.
    0mniartist asmr

  4. Hello, yes this article is really pleasant and
    I have learned lot of things from it on the
    topic of blogging. thanks. asmr 0mniartist

  5. Pingback: Google

  6. Heya i am for the primary time here. I came across this board and I find It
    really helpful & it helped me out a lot. I hope to present one thing again and help others such as you aided me.

  7. Howdy! I know this is kinda off topic but
    I was wondering if you knew where I could get a captcha plugin for
    my comment form? I’m using the same blog platform as yours and I’m having problems finding one?
    Thanks a lot!

  8. Hello I am so thrilled I found your blog page, I really found you by error, while I
    was searching on Bing for something else, Anyhow I am here now
    and would just like to say cheers for a incredible post and a all round interesting blog (I also love the theme/design), I
    don’t have time to go through it all at the moment but I have book-marked it and
    also added your RSS feeds, so when I have time I will be back
    to read much more, Please do keep up the excellent job.

  9. I was suggested this web site by my cousin. I am not sure whether this post is written by him as nobody
    else know such detailed about my problem. You are amazing!

  10. Pingback: Google

  11. Appreciating the dedication you put into your blog and detailed information you offer.
    It’s awesome to come across a blog every once in a
    while that isn’t the same unwanted rehashed material.

    Excellent read! I’ve saved your site and I’m including your RSS feeds
    to my Google account.

  12. Hi, Neat post. There’s a problem together with your web site in internet explorer,
    would check this? IE nonetheless is the marketplace leader and a big component to folks will
    pass over your magnificent writing due to this problem.

Leave a Comment

Your email address will not be published. Required fields are marked *