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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, 2007)
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 research (08)
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 ,[object Object],E-Tailing Group (2008) 58% Building customer loyalty 47% Driving sales 42% Maintaining a competitive advantage 37%
What’s the ROI?
Impact of ratings/reviews on online retailers ,[object Object],E-consultancy and Bazaarvoice (2007) 77% reported improved conversion rates 56% reported higher average order values 42%
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
Petco let users sort products by rating and saw sales increase 41% per visitor Petco (2007) Before rating sort After  rating sort
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
Impact goes beyond the sale ,[object Object],ForeSee Results (2007) 10% more likely to purchase from the retailer again 8% more likely to recommend the site to others 11%
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 ,[object Object],[object Object],[object Object],[object Object],[object Object]
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
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Reviewer actually owns it
[object Object],[object Object],[object Object]
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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