Klaggle Webinar: Are you leaving money on the table

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Are you Leaving Money on the Table: Understanding the New Info Shopper to Increase Sales

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Klaggle Webinar: Are you leaving money on the table

  1. 1. Are You Leaving Money on the Table? Understanding the New Info-Shopper to Increase Sales July 2011
  2. 2. Webinar Agenda <ul><li>The Online Info-Shopper is the New Reality </li></ul><ul><li>Independent Retailers as a Point of Online Research and Influence </li></ul><ul><li>How Social Content Plays a Role in Consumer Purchasing Decisions </li></ul><ul><li>Cutting Through the Clutter </li></ul><ul><li>Real Retailers Experiencing Real Results </li></ul><ul><li>Q&A </li></ul>
  3. 3. The Online Info-Shopper
  4. 4. Personal Technology Shoppers Research Products Online Before Making a Purchasing Decision 97% Source: Lightspeed Research 2011 Consumer Research Online Report
  5. 5. Personal Technology <ul><li>THE most popular category to be researched online – 26% more than computers or clothing/apparel </li></ul>79% of personal technology shoppers will ALWAYS research online vs. 58% that conduct in-store research Source: Lightspeed Research 2011 Consumer Research Online Report
  6. 6. Info-Shoppers Older - Educated - Affluent Source: The e-Tailing Group 2011 Social Shopping Study
  7. 7. Changing Consumer Shopping Dynamics % of Overall Shopping that Involves Researching Products Online Source: The e-Tailing Group 2011 Social Shopping Study
  8. 8. Mobile Online Research <ul><li>Shopper access via mobile puts even greater pressure on Retailers to provide a comprehensive information experience. </li></ul>36% of shoppers research products via mobile devices before visiting a physical store. 38% research retailer websites via mobile devices during an in-store visit. Source: Deloitte 2011 Spring Consumer Pulse Survey
  9. 9. Mobile Online Research Also Takes Place In-Store
  10. 10. Personal Research Drives Consumer Confidence 83% feel more confident about their purchase when doing research online vs. 15% talking to a knowledgeable sales person
  11. 11. Saves Significant time 79 % of shoppers state that online research saves them time vs. traditional in-store research Source: The e-Tailing Group 2010 Social Shopping Study
  12. 12. Choosing a Reputable Retailer 58% of shoppers select which retailer they will purchase from based on their online research. Trust is a Critical Factor A trustworthy retailer is so important that 1 in 12 consumers would pay a higher price for a product. Source: Reevoo 2011 Consumer Purchasing Report
  13. 13. Offline Sales 45% of in-store purchases are directly influenced by online research Source: Forrester
  14. 14. Retailer Sites as a Critical Point of Influence
  15. 15. Retailer Sites Not the Starting Point but the Destination and Point of Consumption is YOU!
  16. 16. Research Starts with Search ..but is conducted on Retailer sites Source: The e-Tailing Group 2011 Social Shopping Study
  17. 17. Critical Point of Research <ul><li>Retailer Sites are the No. 1 destination for product research and information for Electronics </li></ul>Source: The e-Tailing Group 2011 Social Shopping Study
  18. 18. Research Tools Valuable on Retailer Sites Source: The e-Tailing Group 2011 Social Shopping Study
  19. 19. Most Important Capabilities on a Retailer’s Site % of very to extremely important when it comes to ultimately selecting and purchasing a product Source: The e-Tailing Group 2011 Social Shopping Study
  20. 20. Social Content <ul><li>Social— “Everybody is doing it!” Yes…and No </li></ul>Source: The e-Tailing Group 2011 Social Shopping Study
  21. 21. The Role of Social
  22. 22. Consumers Expect Social Tools in the Online Shopping Process The Basics Continue to be Important Source: The e-Tailing Group 2011 Social Shopping Study
  23. 23. Consumer Information Experience Validation Trust Satisfaction Confidence 87% Check Online Reviews Prior to Making a Purchase 92% Trust Peer vs. Expert or Manufacturer Reviews Influence of Consumer Product Reviews Most Important Capability for a Retailer to have on their site Product Ratings and Reviews have become the one of the most critical parts of the shopping research experience 83% Have More Confidence in Online Consumer Review Content than they do from a Sales Clerk 87% Will Not Purchase a Brand New Product Before Reading Review Content
  24. 24. Packing the Most Powerful Punch 90% of Product Purchasing Decisions (online and offline) are influenced by Consumer Review Content – up dramatically from 71% in 2010 Consumer Product Review Content offers “Social Proof” of Product Quality. 63% of Consumers are More Likely to Buy from a Retailer with Consumer Product Reviews Source: The e-Tailing Group 2011 Social Shopping Study
  25. 25. Consumers Seek Review Content on Retailer Sites
  26. 26. Retailer Problem Many Independent Retailers find it difficult to create sufficient product review content from their customers 65% of shoppers will leave a site with no review content
  27. 27. Lost Opportunities More Reviews Sell More Product
  28. 28. More Reviews Lead to Higher Conversion Source: Reevoo 2011 Six Essentials of Social Commerce Report
  29. 29. Presenting Balanced Perspectives Trust and confidence are enhanced when shoppers see ratings and review content that reflects mixed reviews Source: Reevoo 2011 Consumer Purchasing Report
  30. 30. Negative Reviews Are Not Bad “ A counterintuitive theme that has emerged is that reviews that rate products negatively can be associated with an increase in product sales if the review text is informative and detailed.” “ If the negative review attributes of the product do not concern the consumer as much as it did the reviewer, the such informative statements can lead to increased sales.” New York University Study on Consumer Reviews Source: A. Ghose, P. Ipeirotis, Estimating the Economic Impact of Product Reviews
  31. 31. Cutting Through The Clutter
  32. 32. Time Spent Researching Information-Intensive Products 40% of shoppers spend a day or less research products online Source: The e-Tailing Group 2010 Social Shopping Study
  33. 33. The Need for Immediacy 67% of shoppers spend less than 30 minutes researching a product online before making a decision
  34. 34. Understanding Review Content Quickly Number of reviews needed for consumers to feel confident about their research Source: The e-Tailing Group 2010 Social Shopping Study
  35. 35. Preference Products have multiple attributes and different attributes can have different levels of importance to consumers. Tastes for product attributes tend to vary across individuals. Thus, unless the person reading a review has the exactly the same preferences as the person who wrote the review, a single number, like an average product rating, is not sufficient for the reader to extract all information relevant to a purchasing decision. New York University Study on Consumer Reviews Source: A. Ghose, P. Ipeirotis, Estimating the Economic Impact of Product Reviews “ By compressing a complex review into a single number, we implicitly assume that product quality is one-dimensional.
  36. 36. Determining Relevancy New York University Study on Consumer Reviews “ Consumer reviews are complicated, since consumers may provide a mixed review by praising some aspects of a product, but criticizing others such as “this camera has great picture quality but its too big and heavy”. The importance of breaking out individual product features is critical in a consumers’ choice process.” “… reviews are allowed to be only rated as an integer from 1 to 5. Therefore, the average star rating assigned to a product may not convey a lot of information to a prospective buyer who is trying to understand which aspects of the product are important.” Source: N. Archak, A. Ghose, P. Ipeirotis, Deriving the Pricing Power of Product Features by Mining Consumer Reviews
  37. 37. Consumer Relevancy “ Manufacturer-provided product descriptions are static and do not contain information about intangible product features such as the quality of design, ease of use, robustness and so on, yet they are important determinants of consumer buying decisions.” “ Consumer shopping decisions are not only affected by the average rating, but by the actual textual contents of the reviews. Since intangible product features are hard to measure objectively, the most relevant information the consumer can rely on is users’ opinions about features that are embedded in in the reviews to identify product features that are most frequently discussed by consumers.” Source: N. Archak, A. Ghose, P. Ipeirotis, Deriving the Pricing Power of Product Features by Mining Consumer Reviews
  38. 38. The Need to be Brief “ While longer reviews may theoretically provide more information about a product, they may also be perceived as more bloated, about ego, less relevant and helpful.” “ Thus, everything else being equal, consumers have a preference for shorter, more readable reviews, which can have a strong positive effect on sales.” Source: N. Archak, A. Ghose, P. Ipeirotis, Deriving the Pricing Power of Product Features by Mining Consumer Reviews Bottom Line Make information easy to find and consume
  39. 39. Summarized Product Review Content <ul><li>Consumers are busy </li></ul><ul><li>You have little time to catch their attention </li></ul><ul><li>Preference and relevancy is different for every consumer </li></ul><ul><li>Ratings and reviews on product features are much more relevant to shoppers and can increase sales </li></ul><ul><li>Keep it brief </li></ul>
  40. 40. Summarized Product Review Content
  41. 41. Real Retailers Real Results
  42. 43. <ul><li>Brick and Mortar Retailer – 8 stores </li></ul><ul><li>Avg. Product Page Views 140,953 </li></ul><ul><li>Bounce Rate Dropped 53% </li></ul><ul><ul><li>22.09% to 10.39% </li></ul></ul><ul><li>Time on Site Increased 37% </li></ul><ul><li>June 2011 – 588 Carts (up from 245) </li></ul>“ Klaggle content gives us the ability to provide valuable information to shoppers, draw more visitors to our website and assist with our in-store sales. We highly recommend Klaggle ratings and review content” Bob Buzzell CEO, Penn Camera
  43. 45. <ul><li>Brick and Mortar Retailer – 1 store </li></ul><ul><li>Conversion rate increased 275% </li></ul><ul><ul><li>2% to 7.5% </li></ul></ul><ul><li>Cost of Acquisition reduced to $23.81 </li></ul><ul><li>Return Rate dropped 40% </li></ul>“ Incorporating PowerReviews content into search and navigation was a no brainer. User reviews are one of the best way to sell a product or seal a deal” Sarah Marcus Director of Marketing, Abes’s of Maine Source: PowerReviews Case Study
  44. 47. <ul><li>Brick and Mortar Retailer – 1 store </li></ul><ul><li>Avg. Product Page Views 33,040 </li></ul><ul><li>Overall Sales Increase of 23% </li></ul><ul><ul><li>12% Online </li></ul></ul><ul><ul><li>11% In-Store </li></ul></ul><ul><li>Bounce Rate Dropped 75% </li></ul><ul><ul><li>23.59% to 5.93% </li></ul></ul><ul><li>Time on Site Increased 31% </li></ul><ul><li>June 2011 – 145 Carts (up from 70) </li></ul><ul><ul><li>43% conversion rate </li></ul></ul>“ Klaggle helps us be more competitive with larger retailers. With the Klaggle ratings and reviews, our sales have increased by as much as 23% and have helped us increase our sales results with customers outside our typical geographic market area by 15%. We love the Klaggle content!” James Wyner Director, Fotofriends
  45. 48. Are You Leaving Money on the Table?
  46. 49. Take Aways <ul><li>Consumers are in control of the product research experience </li></ul><ul><li>Think “trust” and the influence of all content and how consumers will react and respond </li></ul><ul><li>Ensure your site is a destination that well serves the information hungry shopper </li></ul><ul><li>Present a product page complete with strong descriptions, in-depth user-generated content, rich media and recommended products. </li></ul><ul><li>Place prominence on consumer review content and present the whole picture to garner the greatest trust </li></ul><ul><li>Monitor and embrace social media in order to understand customer behavior that sets the stage for future selling efforts </li></ul>
  47. 51. Thanks for Coming Stephen Candelmo, CEO Klaggle [email_address] 800-670-4615 For a copy of this presentation, please send me an email!

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