Steve Mulder Why and how to implement  ratings and reviews Your users trust each other,    not you
Why implement  ratings & reviews?
People don’t  trust you
76% of American consumers believe companies don’t tell the truth in advertising Yankelovich (2005)
 
60% have a much more negative opinion of marketing & advertising than a few years ago Yankelovich (2004)
People do trust  each other
78% say consumer recommendations are the most credible form of advertising Nielsen (2007)
83% say online evaluations and reviews influence their purchasing decisions Opinion Research Corporation (2008)
84% trust user reviews more than  critics’ reviews MarketingSherpa (2007)
Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers Edelman Trust Barometer (2006, 2...
Think beyond products Content Topics Features People Places Companies Events
76% use online reviews to help make purchase decisions Forrester Research (2007)
63% of consumers are more likely to purchase from a site offering ratings/reviews eVOC Insights / RelevantView (2006)
69% of those who read online reviews share them with friends, family, or colleagues Deloitte & Touche (2007)
What about B2B?
93% consider ratings and reviews valuable or very valuable for the business user Christian C Carlsson dissertation researc...
58% have removed a supplier as an option because of a negative rating/review Christian C Carlsson dissertation research (08)
What do the adopters think?
Although only 25% of top ecommerce sites have ratings and reviews so far… Forrester Research (2007)
96% of those sites rate them as an effective or very effective merchandising tactic Forrester Research (2007)
Reasons merchants added online reviews <ul><li>Improving the customer experience </li></ul>E-Tailing Group (2008) 58% Buil...
What’s the ROI?
Impact of ratings/reviews on online retailers <ul><li>reported site traffic increases </li></ul>E-consultancy and Bazaarvo...
NetShops found that reviewed products experience a 26% lift in sales College of Information Science,  University of Nebras...
Petco let users sort products by rating and saw sales increase 41% per visitor Petco (2007) Before rating sort After  rati...
Bass Pro Shops users who viewed Top Rated Products had a 59% higher conversion rate Bass Pro Shops (2007) Average visitors...
Impact goes beyond the sale <ul><li>higher satisfaction reported for sites with reviews </li></ul>ForeSee Results (2007) 1...
SEO
Customer support
200% ROI in one year Forrester’s calculated ROI for ebags.com implementation of ratings/reviews
Benefits beyond the Web
Petco saw a 500% increase in email  clickthrough after including ratings/reviews Petco (2008) Before ratings After  ratings
93% of adults research products online before purchasing in a store BIGresearch (2007)
24% of those online have used online reviews before buying a  service  delivered offline comScore /  The Kelsey Group (2007)
 
The challenge of  negative reviews
“ People only write reviews when  they’re mad or disappointed”
80% of reviews are positive  Forrester (2007)
Breakdown of ratings submitted on all Bazaarvoice client sites 1 2 3 4 5 70% 60% 50% 40% 30% 20% 10% 0% Bazaarvoice (2006)
“ Negative reviews scare others away”
Conversion rates are higher for products  with positive  and   negative  reviews <ul><li>Negative ratings and reviews… </l...
Negative reviews can lead to  product improvements
Turning a negative into a positive
Best Practices
Best Practices Item Page
Make ratings & reviews discoverable: location, context, prominence
Stick to what’s familiar: stars
 
Use the familiar 1-5 scale
Consider ratings by attribute
Show date of review
… and reviewer info
<ul><li>Name/nickname </li></ul><ul><li>Contributions  </li></ul><ul><li>Relevant profile (e.g., location) </li></ul><ul><...
<ul><li>Badges </li></ul><ul><li>Stats </li></ul><ul><li>Personal info </li></ul><ul><li>Connections </li></ul>
Reviewer actually owns it
<ul><li>Helpful votes </li></ul><ul><li>Report/offensive </li></ul><ul><li>Comments </li></ul>
Respond to negative reviews
Average rating and number of ratings
Distribution of ratings
Trend over time
Sort reviews (also by helpful)
Friends’ reviews
Summary of reviews
Parsing by attribute
Cross-selling / merchandising
Best Practices Beyond the Item Page
Show ratings on listing pages
Search results pages too
No ratings shown???
No way to filter or sort by rating???
Sort by highest rating
Filter by rating
Filter by rating
Give users more control
Show ratings from people like me
Promote using ratings
Merchandise/promote  using “top” lists
Cross-sell using “top” lists
Best Practices Eliciting Reviews
19% of US online adults write an online review at least monthly Forrester Research (2008)
Step 1: Ask!
Step 2: Invite reviews via email follow-up
Step 3: Invite reviews via your site
Incentives can help, but rarely needed
Recognize top reviewers
The easier the better
Clean design, few distractions, helpful tips
Keep registration  barrier low
Encourage detail, prod with questions
Don’t go insane
Let people preview their review
Set expectations for posting
Moderate lightly
Implementation options
[email_address] Let your customers talk slideshare.net/MolecularInc
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Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews

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Ratings and reviews have been a staple of good online experiences for years, yet many organizations still resist the onslaught of user opinions on their own sites. Are ratings and reviews right for my business? How much do my users want them? What\'s the ROI? How do I deal with negative reviews? And if I go ahead with ratings and reviews, what are best practices for designing and implementing them? How do I make them useful and usable? Learn the answers in a session jam-packed with strategies and data for the business folk and practical tips and examples for the design folk. Presentation by Steve Mulder.

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  • Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews

    1. 1. Steve Mulder Why and how to implement ratings and reviews Your users trust each other, not you
    2. 2. Why implement ratings & reviews?
    3. 3. People don’t trust you
    4. 4. 76% of American consumers believe companies don’t tell the truth in advertising Yankelovich (2005)
    5. 6. 60% have a much more negative opinion of marketing & advertising than a few years ago Yankelovich (2004)
    6. 7. People do trust each other
    7. 8. 78% say consumer recommendations are the most credible form of advertising Nielsen (2007)
    8. 9. 83% say online evaluations and reviews influence their purchasing decisions Opinion Research Corporation (2008)
    9. 10. 84% trust user reviews more than critics’ reviews MarketingSherpa (2007)
    10. 11. Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers Edelman Trust Barometer (2006, 2007)
    11. 12. Think beyond products Content Topics Features People Places Companies Events
    12. 13. 76% use online reviews to help make purchase decisions Forrester Research (2007)
    13. 14. 63% of consumers are more likely to purchase from a site offering ratings/reviews eVOC Insights / RelevantView (2006)
    14. 15. 69% of those who read online reviews share them with friends, family, or colleagues Deloitte & Touche (2007)
    15. 16. What about B2B?
    16. 17. 93% consider ratings and reviews valuable or very valuable for the business user Christian C Carlsson dissertation research (08)
    17. 18. 58% have removed a supplier as an option because of a negative rating/review Christian C Carlsson dissertation research (08)
    18. 19. What do the adopters think?
    19. 20. Although only 25% of top ecommerce sites have ratings and reviews so far… Forrester Research (2007)
    20. 21. 96% of those sites rate them as an effective or very effective merchandising tactic Forrester Research (2007)
    21. 22. Reasons merchants added online reviews <ul><li>Improving the customer experience </li></ul>E-Tailing Group (2008) 58% Building customer loyalty 47% Driving sales 42% Maintaining a competitive advantage 37%
    22. 23. What’s the ROI?
    23. 24. Impact of ratings/reviews on online retailers <ul><li>reported site traffic increases </li></ul>E-consultancy and Bazaarvoice (2007) 77% reported improved conversion rates 56% reported higher average order values 42%
    24. 25. NetShops found that reviewed products experience a 26% lift in sales College of Information Science, University of Nebraska (2007) Product with no review Product with reviews
    25. 26. Petco let users sort products by rating and saw sales increase 41% per visitor Petco (2007) Before rating sort After rating sort
    26. 27. Bass Pro Shops users who viewed Top Rated Products had a 59% higher conversion rate Bass Pro Shops (2007) Average visitors Viewers of Top Rated Products
    27. 28. Impact goes beyond the sale <ul><li>higher satisfaction reported for sites with reviews </li></ul>ForeSee Results (2007) 10% more likely to purchase from the retailer again 8% more likely to recommend the site to others 11%
    28. 29. SEO
    29. 30. Customer support
    30. 31. 200% ROI in one year Forrester’s calculated ROI for ebags.com implementation of ratings/reviews
    31. 32. Benefits beyond the Web
    32. 33. Petco saw a 500% increase in email clickthrough after including ratings/reviews Petco (2008) Before ratings After ratings
    33. 34. 93% of adults research products online before purchasing in a store BIGresearch (2007)
    34. 35. 24% of those online have used online reviews before buying a service delivered offline comScore / The Kelsey Group (2007)
    35. 37.
    36. 38. The challenge of negative reviews
    37. 39. “ People only write reviews when they’re mad or disappointed”
    38. 40. 80% of reviews are positive Forrester (2007)
    39. 41. Breakdown of ratings submitted on all Bazaarvoice client sites 1 2 3 4 5 70% 60% 50% 40% 30% 20% 10% 0% Bazaarvoice (2006)
    40. 42. “ Negative reviews scare others away”
    41. 43. Conversion rates are higher for products with positive and negative reviews <ul><li>Negative ratings and reviews… </li></ul><ul><ul><li>make the site (and its products) more credible </li></ul></ul><ul><ul><li>increase comfort in purchasing (weaknesses are now known) </li></ul></ul><ul><li>&quot;We're always surprised by how much negative reviews help drive sales.&quot; John Squire, VP of Product Strategy, Coremetrics </li></ul><ul><li>“ When customers see a mix of different ratings they are more apt to trust the review process…. Negative reviews help customers affirm they've vetted all concerns before making a purchase decision.” Don Zeidler, Director of Direct Marketing, Burpee </li></ul>
    42. 44. Negative reviews can lead to product improvements
    43. 45. Turning a negative into a positive
    44. 46. Best Practices
    45. 47. Best Practices Item Page
    46. 48. Make ratings & reviews discoverable: location, context, prominence
    47. 49.
    48. 50. Stick to what’s familiar: stars
    49. 52. Use the familiar 1-5 scale
    50. 53. Consider ratings by attribute
    51. 54.
    52. 55.
    53. 56. Show date of review
    54. 57. … and reviewer info
    55. 58. <ul><li>Name/nickname </li></ul><ul><li>Contributions </li></ul><ul><li>Relevant profile (e.g., location) </li></ul><ul><li>Member since </li></ul>
    56. 59. <ul><li>Badges </li></ul><ul><li>Stats </li></ul><ul><li>Personal info </li></ul><ul><li>Connections </li></ul>
    57. 60. Reviewer actually owns it
    58. 61. <ul><li>Helpful votes </li></ul><ul><li>Report/offensive </li></ul><ul><li>Comments </li></ul>
    59. 62. Respond to negative reviews
    60. 63. Average rating and number of ratings
    61. 64. Distribution of ratings
    62. 65. Trend over time
    63. 66. Sort reviews (also by helpful)
    64. 67. Friends’ reviews
    65. 68. Summary of reviews
    66. 69.
    67. 70. Parsing by attribute
    68. 71. Cross-selling / merchandising
    69. 72. Best Practices Beyond the Item Page
    70. 73. Show ratings on listing pages
    71. 74.
    72. 75. Search results pages too
    73. 76. No ratings shown???
    74. 77. No way to filter or sort by rating???
    75. 78.
    76. 79. Sort by highest rating
    77. 80. Filter by rating
    78. 81. Filter by rating
    79. 82. Give users more control
    80. 83. Show ratings from people like me
    81. 84. Promote using ratings
    82. 85. Merchandise/promote using “top” lists
    83. 86. Cross-sell using “top” lists
    84. 87. Best Practices Eliciting Reviews
    85. 88. 19% of US online adults write an online review at least monthly Forrester Research (2008)
    86. 89. Step 1: Ask!
    87. 90. Step 2: Invite reviews via email follow-up
    88. 91. Step 3: Invite reviews via your site
    89. 92. Incentives can help, but rarely needed
    90. 93. Recognize top reviewers
    91. 94. The easier the better
    92. 95. Clean design, few distractions, helpful tips
    93. 96. Keep registration barrier low
    94. 97. Encourage detail, prod with questions
    95. 98. Don’t go insane
    96. 99.
    97. 100. Let people preview their review
    98. 101. Set expectations for posting
    99. 102. Moderate lightly
    100. 103. Implementation options
    101. 104. [email_address] Let your customers talk slideshare.net/MolecularInc

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