Social Commerce: The Case for User Reviews
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Transcript of Social Commerce: The Case for User Reviews
The Case for User ReviewsEvidence that user reviews drive traffic, conversion, order value, and reduce returns...
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Dr Paul MarsdenSocial Media StrategistSyzygy Group
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The Case for User Reviews & Ratings
User ratings and reviews boost sales by;
1) Increasing traffic (search engine visibility)2) Improving conversion rates3) Enhancing average order value4) Decreasing returns
User ratings and reviews influence by offering shoppers trustworthy ‘social proof’ of product quality
Did You Know? 80% of product ratings are 4 or 5 stars out of 5 (average = 4.3)
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Source: http://www.bazaarvoice.com/resources/stats#Power (“J Curve,” Bazaarvoice and Keller Fay)
User reviews are a powerful form of advertorial content
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Source: http://www.bazaarvoice.com/resources/stats#Power (“J Curve,” Bazaarvoice and Keller Fay)
Consumer recommendations and opinions are the most trusted source of product info (Nielsen 2009)
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Source: Nielsen Global Online Consumer Survey July 2009 (n = 25,000 consumers from 50 countries)
61% of people rely on user reviews for product information or research before a buying decision is made
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Source: http://www.bazaarvoice.com/resources/stats#Power (Razorfish, 2008)
84% of consumers are more likely to check online for reviews prior to purchasing vs. twelve months ago
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Source: http://www.bazaarvoice.com/resources/stats#Consumer-Demand-RR (Retail Bulletin, October 2009)
63% of consumers indicate they are more likely to purchase from a site if it has product ratings and reviews
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Source: http://www.bazaarvoice.com/resources/stats#Consumer-Demand-RR (iPerceptions study, January 2008)
eSpares A/B test proves user reviews drive up to 14.2% conversion increase
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Source: http://www.bazaarvoice.com/resources/case-studies/ab-test-proves-reviews-drive-142-conversion-increase
Conrad visitors who read reviews convert 178% more often
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Source: http://www.bazaarvoice.com/resources/case-studies/shoppers-who-read-reviews-convert-178-more-often
QuickBooks ProAdvisors with reviews get 5X more referrals
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Source: http://www.bazaarvoice.com/resources/case-studies/quickbooks-proadvisors-reviews-get-5x-more-referrals
Dell customer conversion rate doubled on products that had visitors engage with the reviews content
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Source: http://www.bazaarvoice.com/resources/case-studies/ratings-reviews-help-dellcom-shoppers-make-purchase-decisions
3 Mobile (Australia) emails with reviews saw 40% higher click-through rate
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decisions
Source:http://www.bazaarvoice.com/resources/case-studies/review-readers-40-more-likely-start-checkout-process-3-mobile-australia
Review-readers on French retailer Wanimo’s site convert 85% more often
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Source http://www.bazaarvoice.com/resources/case-studies/review-readers-french-retailer-wanimo-s-site-convert-85-more-often
Average order value for Rubbermaid customers who read reviews was 5% higher
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Source http://www.bazaarvoice.com/resources/case-studies/rubbermaid-products-reviews-show-increased-revenues
Rubbermaid coupons with review saw a 10% redemption lift
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Source http://www.bazaarvoice.com/resources/case-studies/coupon-review-sees-10-redemption-lift
Halfords review readers/writers have 82% higher conversion rate
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Source: http://www.bazaarvoice.com/resources/case-studies/user-generated-content-increases-conversion-doubles-page-views-halfords
Argos reviewed products convert 10% more
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Source: http://www.bazaarvoice.com/resources/case-studies/product-reviews-increase-conversion-argos
Northern Tool & Equipement email with customer reviews drives 10% increase in conversion
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Source: http://www.bazaarvoice.com/resources/case-studies/email-customer-reviews-drives-10-increase-conversion
Wehkamp visitors clicking on "read all reviews" convert 116% more
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Source: http://www.bazaarvoice.com/resources/case-studies/ratings-reviews-drive-116-conversion-dutch-retailer
Mistergooddeal conversion increased by 40% for top rated products after reviews implemented
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Source: http://www.bazaarvoice.com/resources/case-studies/mistergooddeals-conversion-surges-40-time-site-increases-24-ratings-reviews
QVC (UK) visitors clicking on “read all reviews” generated23% higher revenue per session
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Source: http://www.bazaarvoice.com/resources/case-studies/uk-shoppers-respond-product-reviews-qvcukcom
Products with reviews have a 20.4% lower return rate than those without reviews
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Source: http://www.bazaarvoice.com/resources/stats#Return-Rates
Zales saw a 38.7% incremental increase in conversion for products with reviews
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Source: http://www.bazaarvoice.com/resources/case-studies/user-generated-content-increases-all-online-product-sales-plus-39-those-reviews-zales
Netshops (Hayneedle) saw a 26% same-product sales increase after reaching 3-5 reviews per product
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Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf
User reviews for Diapers.com resulted in a 48.8% search traffic increase and 33.2% search-related sales increase
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Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf
Mountain Gear email campaign featuring Top Rated products increased average order value 81% - 85%
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Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf
Golfsmith saw a reduction in returns from 5.2% to 2.7% following the implementation of reviews
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Source: http://www.e-tailing.com/content/wp-content/uploads/2008/12/2008_WhitePaper_0204_4FINAL-powerreviews.pdf
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Summary Case for User Reviews & Ratings
User ratings and reviews boost sales by;
1) Increasing traffic (search engine visibility)2) Improving conversion rates3) Enhancing average order value4) Decreasing returns
User ratings and reviews influence by offering shoppers trustworthy ‘social proof’ of product quality