Shop.org 2017 Tech talk the future of the transpararency economy power_reviews_caponi
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This document discusses the importance of transparency for consumers when making purchasing decisions. It notes that consumers' brains require seeing the full picture in order to feel, remember, interact with others, and make informed choices. Reviews and recommendations from friends and family have the strongest influence on purchasing decisions. Providing an ideal average star rating of 4.2-4.5 on reviews can increase purchase probability. Every few additional reviews provided doubles the conversion rate for products. The future is transparency through end-to-end consumer feedback solutions that provide reviews, ratings, questions and answers to give consumers the information they need.
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Shop.org 2017 Tech talk the future of the transpararency economy power_reviews_caponi
- 1. The Future of Transparency Todd Caponi Chief Revenue Officer, PowerReviews #ShopOrg17 @tcaponi
- 2. 2 The Brain Making the connection through Transparency Midbrain • Feel • Remember • Interact with Others Reptilian Brain • Survive • React • Repeat, Repeat, Repeat Neocortex • Talk • Think • Move • Create • Learn
- 3. 3 Consumers’ brains require the full picture Source: PowerReviews, Mapping the Path to Purchase, 2016. A Search engine (45%) Amazon (25%) Another brand or retailer (20%) Other (10%) Where do shoppers go if they can’t find reviews (or enough reviews)?
- 4. 4.2-4.5 is the ideal average star rating for purchase probability Source: From Reviews to Revenue, a joint study with Northwestern University, September 2015
- 5. 5 Why the Number of Reviews Matter Every few reviews doubles the conversion rate 6-10 Reviews 74% Conversion Rate 21-25 Reviews 120% Conversion Rate 46-50 Reviews 220% Conversion Rate
- 6. The Future is Transparency Top 10 Marketing Influences by Channel, 2016 - Extent of Influence, Global Friends / family recommendations 62.8% Independent consumer reviews 50.3% Loyalty rewards program 49.7% TV commercials 45.4% Friends’ social media posts / mentions 42.9% * Source: Euromonitor International Consumer Trends Survey, 2016 In-store advertising 40.5% Print 37.0% Social media posts from brand / company 36.1% On-site booths or reps at events 34.6% Brand or retailer ads on social media 34.4%
- 7. End-to-end consumer feedback solutions 7 Network Syndication Product Sampling Seller Ratings Questions & Answers Ratings & Reviews Find PowerReviews at booth #732
Editor's Notes
- Section 3: Why reviews where your consumer makes decisions matter (slide tbd) Points to make: We have all been taught to sell as though our product is perfect. We are taught to help consumers make decisions using logic....which only involves the neocortex. All three parts need to be satisfied for a purchase to take place. No wonder shopping cart abandonment is so high. We haven’t made the connection to the whole brain. All are required. Fear of the unknown is paralyzing. The brain requires information to help the consumer connect the right brain (emotion / creativity) with the left brain (logic & value). Again, people make emotional decisions, then justify those decisions later using logic & value. Works on a website, because it keeps the consumer there. One stop for all required information for a consumer. Without it, that consumer will seek outside information (i.e., leave your site...then may or may not come back) if the information they require isn’t there Works because the brain requires it. Decisions made for both rational & emotional reasons, but ultimately made on feeling & emotion 94% of Amazon shoppers regularly use reviews and 99% have used reviews It’s part of what we expect The only time I don’t use reviews is if it’s something I’ve purchased before...logic & emotional elements are already checked.
- Section 4: Why negative reviews matter (slide with research data from Northwestern study?) Points to make: Study w/ northwestern university confirmed Purchase likelihood peaks when the avg star rating of a product is between 4.2 and 4.5 and starts to drop as it approaches a perfect 5. But we all sell as though our product is a perfect 5. Consumers trust other consumers more than they trust the brands themselves. You don’t lose power by showing vulnerability...you gain it! Transparency wins...higher conversion, faster cycle, higher customer satisfaction, more trust, more long term value.
- Slide 6: The data proves it Points to make: We see it in every study. Reviews & recommendations have taken the lead. Consumers now trust other consumers more than they trust the brands / retailers themselves. So much investment is made in retailer communication...1-to-1 communication. Embracing UGC must be the next evolution in consumer outreach & education to increase traffic, conversion & insights: Friends and family recommendations play one of the top roles, as a 2016 consumer survey from Euromonitor finds that 63% of consumers say friends and family are “extremely influential.” ‘The next three most influential marketing influences respectively are independent consumer reviews, loyalty rewards programs and TV commercials,” the report finds. ”For brands looking to develop retail strategies, looking at marketing strategies that align with the factors most influential on consumers should be a priority.”
- Slide 7: How PowerReviews enables the Transparency Economy Points to make: Who we are What we do What value it drives / how we enable the brain to make effortless decisions How to get started Add plug to visit booth 732 to talk to our team