Web 2.0 Fueling Multichannel Marketing

Brett HurtFounder and CEO, Bazaarvoice

29 April 2008

Are consumers hearing you?

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71% of online shoppers read reviews, making it the most widely read consumer-generated content – Forrester

70% of UK online researchers find product ratings/reviews most helpful when researching for an online or offline purchase – Jupiter Research, 2008

69% of consumers who read reviews share them with friends, family or colleagues, thus amplifying their impact – Deloitte & Touche

82% of those who read reviews say their purchasing decisions have been directly influenced by those reviews – Deloitte & Touche

78% rank consumer recommendations as the most credible form of advertising – Nielsen, “Word-of-Mouth the Most Powerful Selling Tool”

97% of online researchers in the UK are willing to trust online customer reviews – Jupiter Research, 2008

39% of those who bought from sites with reviews cite the reviews as the primary factor influencing the purchase decision – Foresee Results Study, 2006

62% of consumers read consumer-written product reviews on the Internet –

Deloitte & Touche

94% of UK online researchers use online customer reviews – Jupiter Research, 2008

Two thirds of UK social networkers (66%) are more likely to buy a product as a

result of a recommendation – Royal Mail’s Home Shopping Tracker Study 2007

55% of surveyed Internet users consulted other people’s opinions online,

making reviews the #1 resource for product research – Avenue A/Razorfish “Digital

Consumer Behavior Study,” 2007

86.9% of respondents said they would trust a friend’s recommendation over a

review by a critic, while 83.8% said they would trust user reviews over a critic –

Nielsen, “Word-of-Mouth the Most Powerful Selling Tool”

91% of moms prefer brands that other moms have recommended – Marketing VOX,

2006

58.7% of shoppers said they used product reviews to make decisions. Reviews

rated higher than clearance sale pages (56.4%) and featured sale pages (51.3%) – Shop.org, 2007

To sum it all up:

CUSTOMERS WANT TO HEAR FROM OTHER CUSTOMERS, NOT ADVERTS!

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» Percent of 4 and 5-star reviews across all Bazaarvoice US and UK clients:

» UK – 88%

» US – 81%

UK customer feedback is very positive

0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4 5

UK

US

Leverage UGC throughout the buying cycle and within all channels

User-generated content (UGC) enhances all touch points, all purchase stages, and drives post-purchase engagement

and loyalty

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UGC makes your brand stand out

Customer voice fuels research, drives awareness through

» Natural search (SEO)

» Syndication

» Social networks

» Advertising

» Mass Media

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UGC amplifies natural search

» 60% growth week over week

» 70% of traffic is new

» 17% more revenue than paid search

» 97% more revenue than general natural search

» 82% more page views per visitor

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Ratings & Reviews make in-store ads engaging

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Product ratings draw attention in mass marketing

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UGC gives consumers confidence to buy

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Customer voice builds interest and trust» Product-page

» E-mail

» Site merchandising

» In-store displays

» Catalogs

» On-air, on your channel

Reviews drive conversion on the product page

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» 12.5% higher conversion for products with reviews

» 83.85% higher conversion for products with 20+ reviews

» Look-to-book ratio 4x lower (better) for reviewed products

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»Ratings integrated with site navigation and merchandising

»“Top-Rated” browsers:

»49% higher conversion

»63% higher AOV

UGC-based merchandising drives conversion and AOV

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»“Sort by rating” searchers:

»20% higher conversion

»10% higher AOV*

»Sort by rating so successful it’s now default sort option

Ratings aid product discovery and drive conversion

* Compared to all browsers

Ratings & Reviews enhance in-store merchandising

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Mobile reviews support consideration ANYWHERE

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»Enable store customers to look up reviews on product in the stores.

»Other mobile opportunities:

» Cross sell

» Couponing

» Analytics

» Display product specifications

» Research and polling

User-generated Q&A drives conversion

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» Only 4% of “question askers” and 25% of “contributors” have previously written a review, thus capturing a new part of the community.

18.26%18.26%

22%

One question with one answer

At least two questions, each

with answers

UGC drives loyalty, engagement, and community

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Customer voice drives ongoing engagement

» Post-purchase review requests

» Reward loyal customers with advance review opportunities

» “Expert” reviewer badging

» Use UGC to fuel marketing messages

UGC drives trust and loyalty

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» 78% of consumers have more trust for brands with reviews1

» Consumers are 18% more likely to buy again from a retailer with reviews2

1: buySAFE2: ForeSee Results, Jan. 2007

UGC ensures more satisfactory purchases

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» Return rates decrease 20.4% for products with reviews for PETCO

» Return rates drop 45% for products with 25+ reviews

Encouraging post-purchase feedback fuels multichannel marketing

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Receipt Integration

Circular Integration

Shelf Tags

Q&A

Please visit stand #W464 to learn moreabout Bazaarvoice

Brett HurtCEO and Founderbrett@bazaarvoice.comwww.bazaarvoice.com www.bazaarblog.com

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