Barcamp Talk: Growing A Business With Online Reviews
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An introduction to using online reviews, presented at the Barcamp tech conference in Sydney, late 2008.
Transcript of Barcamp Talk: Growing A Business With Online Reviews
- 1. Growing A Business With Online Reviews
- 2. Filling In The Gaps
- Online reviews
- 3. Number of years each channel took to reach a market audience of 50 million? Radio: 38 Television: 13 Internet: 4 Souce: http://www.un.org/cyberschoolbus/briefing/technology/tech.pdf
- 4. 87% of Australians have purchased something over the Internet. 53% of Australians made a purchase in the last month Source:ACNielsen Global Online Shopping Habits Study
- 5. Source: Consumer survey, JC Williams Group, 2006 91% of survey respondents cited consumer content as the #1 aid to a buying decision
- 6. The crowd is building a new channel to drive their buying decisions
- 7. Customers can get advice from each other directly
- 8. For many businesses, your actions speak louder than your advertising department
- 9. What Determines Reviews?
- 10. Audience Factors
- Education level (Selling to experts or businesses)
- Enthusiasm (Customer word-of-mouth)
- 11. Market Factors
- Long tail or emerging markets (Limited exposure from traditional media)
- Commoditisation (Ease of comparison)
- Low barriers to entry
- Customer lock-in
- Market maturity (Ability to innovate)
- Lack of incumbents (Brand experience)
- 12. Product Factors
- Product is sold in volume / Service is repeatable (Reviews are reliable)
- Upfront pricing
- Ongoing expenses
- Complementary products
- Information assymetry (Buyers know more than sellers)
- 13. Hints For Small Business
- 14. Most Word Of Mouth Is Positive
- 80% of product ratings on the Bazaarvoice review site are 4 or 5 stars out of 5.
- Small businesses usually don't have economies of scale, or well-established brands.
- Differentiated on service? Good word of mouth is a cheap way to grow.
- Online reviews magnify word of mouth... 10x, 100x, even 1000x
- 17. How Do You EncourageReviews? Got a store? Add a point of sale reminder Track how your customers find you: Referrer logs Customer surveys
- 18. Take Direct Action
- Contribute to an independent wiki page
- Add customer testimonials and case studies to your site
- Track blog mentions and embed them as an RSS feed
- Start you own company blog
- 19. How Do Reviews Fit Into Existing Channels? Channel Independent Expert Comes To You Based On Customer Experience Direct Advertising Indirect Advertising Professional Reviews Amateur Reviews
- 20. Crowdsourcing Is Powerful
- Reviews from fellow consumers have greater influence than those by professionals.
- Source: comScore/The Kelsey Group, October 2007
- 21. What Makes A Good Customer Reference?
- Customers who are the most similar to you
- Case studies from impressive customers are not as valuable as case studies from happy, but typical customers
- 22. The internet lets your customers unionise against you But they don't strike, they just go your competitors.
- 23. Future Of Review Sites?
- Hybrid of professional reviews and moderation atop amateur content?
- May not be entirely advertising supported. Can use referral fees or negotiate pooled funding from businesses
- Niche review sites run by enthusiasts will always have a place
- Existing media voices and brands may extend their websites to provide online reviews of their own products, eg David Jones, Vogue or Microsoft
- 25. Example Australian Review Sites Review Space Site General Reviews Yabble Restaurants Eatability Teachers Rate My Teacher ISPs Whirlpool Web Hosting Hosting Jury Wikis Wiki Matrix Employers Revyr
- 26. Discussion Time Presented in Sydney, AU on 15 Nov 08 by David Soul Originally posted on david-soul.com