Average Item (SKU) Rating represents the mean rating that consumers give to a specific Stock Keeping Unit (SKU).
In the world of ecommerce, Average Item (SKU) Rating is a metric that provides pivotal insight into customer satisfaction and product quality. It's a measure that reflects a product's overall value by analyzing the average score assigned by consumers on a particular SKU. Generally, consumers rate SKUs on multiple parameters like quality, price, specification compliance, and overall satisfaction.
Average Item (SKU) Rating = [Sum of All Rating Values Received on a SKU] / [Total Number of Ratings Received]
Assume a T-shirt (SKU1) received ratings from four customers as 5, 4, 5, and 4. The Average Item (SKU) rating would be (5+4+5+4)/4 = 4.5.
Average Item (SKU) rating is an important metric as it helps businesses gain insights about their product or service quality from the customer's perspective. Furthermore, high Average Item ratings can lead to increased sales as consumers often perceive higher ratings as a mark of quality.
Multiple factors can impact Average Item (SKU) Rating, including product quality, accuracy of product description, customer service, and experience, competitive pricing, and timeliness of delivery.
Average Item (SKU) rating has a strong correlation with other ecommerce metrics. Higher ratings can improve the Buy Box percentage and impact the conversion rate positively. Also, products with high SKU ratings tend to have lower return rates, as customer satisfaction is usually high.