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Social Commerce: The Case for User Reviews

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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

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


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  • 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