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
Net Promoter and Social Media - A Strategy for Retailers
Social Commerce: The Case for User Reviews
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
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