The Case for User ReviewsEvidence that user reviews drive traffic, conversion, order value, and reduce returns...

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Dr Paul MarsdenSocial Media StrategistSyzygy Group

p.marsden@syzygy.net

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The Case for User Reviews & Ratings

User ratings and reviews boost sales by;

1) Increasing traffic (search engine visibility)2) Improving conversion rates3) Enhancing average order value4) Decreasing returns

User ratings and reviews influence by offering shoppers trustworthy ‘social proof’ of product quality

Did You Know? 80% of product ratings are 4 or 5 stars out of 5 (average = 4.3)

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Source: http://www.bazaarvoice.com/resources/stats#Power (“J Curve,” Bazaarvoice and Keller Fay)

User reviews are a powerful form of advertorial content

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Source: http://www.bazaarvoice.com/resources/stats#Power (“J Curve,” Bazaarvoice and Keller Fay)

Consumer recommendations and opinions are the most trusted source of product info (Nielsen 2009)

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Source: Nielsen Global Online Consumer Survey July 2009 (n = 25,000 consumers from 50 countries)

61% of people rely on user reviews for product information or research before a buying decision is made

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Source: http://www.bazaarvoice.com/resources/stats#Power (Razorfish, 2008)

84% of consumers are more likely to check online for reviews prior to purchasing vs. twelve months ago

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Source: http://www.bazaarvoice.com/resources/stats#Consumer-Demand-RR (Retail Bulletin, October 2009)

63% of consumers indicate they are more likely to purchase from a site if it has product ratings and reviews

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Source: http://www.bazaarvoice.com/resources/stats#Consumer-Demand-RR (iPerceptions study, January 2008)

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And if we can’t trust what people say...

...Let’s look at what they do.

eSpares A/B test proves user reviews drive up to 14.2% conversion increase

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Source: http://www.bazaarvoice.com/resources/case-studies/ab-test-proves-reviews-drive-142-conversion-increase

Conrad visitors who read reviews convert 178% more often

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Source: http://www.bazaarvoice.com/resources/case-studies/shoppers-who-read-reviews-convert-178-more-often

QuickBooks ProAdvisors with reviews get 5X more referrals

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Source: http://www.bazaarvoice.com/resources/case-studies/quickbooks-proadvisors-reviews-get-5x-more-referrals

Dell customer conversion rate doubled on products that had visitors engage with the reviews content

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Source: http://www.bazaarvoice.com/resources/case-studies/ratings-reviews-help-dellcom-shoppers-make-purchase-decisions

3 Mobile (Australia) emails with reviews saw 40% higher click-through rate

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decisions

Source:http://www.bazaarvoice.com/resources/case-studies/review-readers-40-more-likely-start-checkout-process-3-mobile-australia

Review-readers on French retailer Wanimo’s site convert 85% more often

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Source http://www.bazaarvoice.com/resources/case-studies/review-readers-french-retailer-wanimo-s-site-convert-85-more-often

Average order value for Rubbermaid customers who read reviews was 5% higher

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Source http://www.bazaarvoice.com/resources/case-studies/rubbermaid-products-reviews-show-increased-revenues

Rubbermaid coupons with review saw a 10% redemption lift

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Source http://www.bazaarvoice.com/resources/case-studies/coupon-review-sees-10-redemption-lift

Halfords review readers/writers have 82% higher conversion rate

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Source: http://www.bazaarvoice.com/resources/case-studies/user-generated-content-increases-conversion-doubles-page-views-halfords

Argos reviewed products convert 10% more

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Source: http://www.bazaarvoice.com/resources/case-studies/product-reviews-increase-conversion-argos

Northern Tool & Equipement email with customer reviews drives 10% increase in conversion

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Source: http://www.bazaarvoice.com/resources/case-studies/email-customer-reviews-drives-10-increase-conversion

Wehkamp visitors clicking on "read all reviews" convert 116% more

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Source: http://www.bazaarvoice.com/resources/case-studies/ratings-reviews-drive-116-conversion-dutch-retailer

Mistergooddeal conversion increased by 40% for top rated products after reviews implemented

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Source: http://www.bazaarvoice.com/resources/case-studies/mistergooddeals-conversion-surges-40-time-site-increases-24-ratings-reviews

QVC (UK) visitors clicking on “read all reviews” generated23% higher revenue per session

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Source: http://www.bazaarvoice.com/resources/case-studies/uk-shoppers-respond-product-reviews-qvcukcom

Products with reviews have a 20.4% lower return rate than those without reviews

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Source: http://www.bazaarvoice.com/resources/stats#Return-Rates

Zales saw a 38.7% incremental increase in conversion for products with reviews

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Source: http://www.bazaarvoice.com/resources/case-studies/user-generated-content-increases-all-online-product-sales-plus-39-those-reviews-zales

Netshops (Hayneedle) saw a 26% same-product sales increase after reaching 3-5 reviews per product

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Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf

User reviews for Diapers.com resulted in a 48.8% search traffic increase and 33.2% search-related sales increase

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Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf

Mountain Gear email campaign featuring Top Rated products increased average order value 81% - 85%

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Source: http://www.powerreviews.com/assets/docs/reviews_ds.pdf

Golfsmith saw a reduction in returns from 5.2% to 2.7% following the implementation of reviews

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Source: http://www.e-tailing.com/content/wp-content/uploads/2008/12/2008_WhitePaper_0204_4FINAL-powerreviews.pdf

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Summary Case for User Reviews & Ratings

User ratings and reviews boost sales by;

1) Increasing traffic (search engine visibility)2) Improving conversion rates3) Enhancing average order value4) Decreasing returns

User ratings and reviews influence by offering shoppers trustworthy ‘social proof’ of product quality