Social Commerce - The Case for user Reviews - The facts on how user ratings and reviews increase traffic, improve conversion, enhance order value and reduce returns

1. 1
The Case
for User
Reviews
Evidence that user reviews
drive traffic, conversion,
order value, and reduce
returns...
Dr Paul Marsden
Social Media Strategist
Syzygy Group
p.marsden@syzygy.net

2. 2
The Case for User Reviews & Ratings
User ratings and reviews boost sales by;
1) Increasing traffic (search engine visibility)
2) Improving conversion rates
3) Enhancing average order value
4) Decreasing returns
User ratings and reviews influence by offering shoppers
trustworthy ‘social proof’ of product quality

3. 3
Did You Know? 80% of product ratings are 4 or 5 stars
out of 5 (average = 4.3)
Source: http://www.bazaarvoice.com/resources/stats#Power (“J Curve,” Bazaarvoice and Keller Fay)

4. 4
User reviews are a powerful form of advertorial content
Source: http://www.bazaarvoice.com/resources/stats#Power (“J Curve,” Bazaarvoice and Keller Fay)

5. 5
Consumer recommendations and opinions are the most
trusted source of product info (Nielsen 2009)
Source: Nielsen Global Online Consumer Survey July 2009 (n = 25,000 consumers from 50 countries)

6. 6
61% of people rely on user reviews for product
information or research before a buying decision is made
Source: http://www.bazaarvoice.com/resources/stats#Power (Razorfish, 2008)

7. 7
84% of consumers are more likely to check online for
reviews prior to purchasing vs. twelve months ago
Source: http://www.bazaarvoice.com/resources/stats#Consumer-Demand-RR (Retail Bulletin, October 2009)

8. 8
63% of consumers indicate they are more likely to
purchase from a site if it has product ratings and reviews
Source: http://www.bazaarvoice.com/resources/stats#Consumer-Demand-RR (iPerceptions study, January 2008)

9. 9
And if we can’t trust what people say...
...Let’s look at what they do.

10. 10
eSpares A/B test proves user reviews drive up to 14.2%
conversion increase
Source: http://www.bazaarvoice.com/resources/case-studies/ab-test-proves-reviews-drive-142-conversion-increase

11. 11
Conrad visitors who read reviews convert 178% more
often
Source: http://www.bazaarvoice.com/resources/case-studies/shoppers-who-read-reviews-convert-178-more-often

12. 12
QuickBooks ProAdvisors with reviews get 5X more
referrals
Source: http://www.bazaarvoice.com/resources/case-studies/quickbooks-proadvisors-reviews-get-5x-more-referrals

13. 13
Dell customer conversion rate doubled on products that
had visitors engage with the reviews content
Source: http://www.bazaarvoice.com/resources/case-studies/ratings-reviews-help-dellcom-shoppers-make-purchase-decisions

14. 14
decisions
3 Mobile (Australia) emails with reviews saw 40% higher
click-through rate
Source:http://www.bazaarvoice.com/resources/case-studies/review-readers-40-more-likely-start-checkout-process-3-mobile-australia

15. 15
Review-readers on French retailer Wanimo’s site convert
85% more often
Source http://www.bazaarvoice.com/resources/case-studies/review-readers-french-retailer-wanimo-s-site-convert-85-more-often

16. 16
Average order value for Rubbermaid customers who read
reviews was 5% higher
Source http://www.bazaarvoice.com/resources/case-studies/rubbermaid-products-reviews-show-increased-revenues

17. 17
Rubbermaid coupons with review saw a 10% redemption
lift
Source http://www.bazaarvoice.com/resources/case-studies/coupon-review-sees-10-redemption-lift

18. 18
Halfords review readers/writers have 82% higher
conversion rate
Source: http://www.bazaarvoice.com/resources/case-studies/user-generated-content-increases-conversion-doubles-page-views-halfords

19. 19
Argos reviewed products convert 10% more
Source: http://www.bazaarvoice.com/resources/case-studies/product-reviews-increase-conversion-argos

20. 20
Northern Tool & Equipement email with customer reviews
drives 10% increase in conversion
Source: http://www.bazaarvoice.com/resources/case-studies/email-customer-reviews-drives-10-increase-conversion

21. 21
Wehkamp visitors clicking on "read all reviews" convert
116% more
Source: http://www.bazaarvoice.com/resources/case-studies/ratings-reviews-drive-116-conversion-dutch-retailer

22. 22
Mistergooddeal conversion increased by 40% for top
rated products after reviews implemented
Source: http://www.bazaarvoice.com/resources/case-studies/mistergooddeals-conversion-surges-40-time-site-increases-24-ratings-reviews

23. 23
QVC (UK) visitors clicking on “read all reviews” generated
23% higher revenue per session
Source: http://www.bazaarvoice.com/resources/case-studies/uk-shoppers-respond-product-reviews-qvcukcom

24. 24
Products with reviews have a 20.4% lower return rate
than those without reviews
Source: http://www.bazaarvoice.com/resources/stats#Return-Rates

25. 25
Zales saw a 38.7% incremental increase in conversion for
products with reviews
Source: http://www.bazaarvoice.com/resources/case-studies/user-generated-content-increases-all-online-product-sales-plus-39-those-reviews-zales

26. 26
Netshops (Hayneedle) saw a 26% same-product sales
increase after reaching 3-5 reviews per product
Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf

27. 27
User reviews for Diapers.com resulted in a 48.8% search
traffic increase and 33.2% search-related sales increase
Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf

28. 28
Mountain Gear email campaign featuring Top Rated
products increased average order value 81% - 85%
Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf

29. 29
Golfsmith saw a reduction in returns from 5.2% to 2.7%
following the implementation of reviews
Source: http://www.e-tailing.com/content/wp-content/uploads/2008/12/2008_WhitePaper_0204_4FINAL-powerreviews.pdf

30. 30
Summary Case for User Reviews & Ratings
User ratings and reviews boost sales by;
1) Increasing traffic (search engine visibility)
2) Improving conversion rates
3) Enhancing average order value
4) Decreasing returns
User ratings and reviews influence by offering shoppers
trustworthy ‘social proof’ of product quality