Press Release
New “Social Shopping Study” from the e-tailing group and PowerReviews; Discovers New Breed of Shopper - “The Social Researcher”
Social Navigation Gains Significant Interest and Popularity Among Consumers
Millbrae, Calif., November 12, 2007 - PowerReviews (www.powerreviews.com), a leader in customer reviews and social merchandising solutions for online retailers, announced today findings from a recently completed study by the e-tailing group, “Social Shopping Study 2007”. The study, commissioned by PowerReviews, surveyed 1,200 consumers who shop online at least four times per year, spending $500 or more annually. The speed at which reviews are being widely adopted by all types of retailers has made peer reviews easily accessible to nearly all online shoppers.
There were two key parts to this study - to understand how online shoppers use reviews today to make informed buying decisions, and to explore consumers’ preferences and interests in ‘Social Navigation’ which is the ability to narrow product selections based on reviews from like-minded people with similar interests
The first area of research uncovered a new breed of online shopper, the ‘Social Researcher’, who places increased significant emphasis on peer feedback in product reviews when making purchasing decisions.
“I knew there was significant interest in customer reviews but I was startled at the passion, intensity of interest and the integral nature that reviews play in online and cross-channel shopping. This influence turns the table on the customer/merchant relationship and ensures that reviews are only the beginning of this new shopping dynamic,” said Lauren Freedman, President of the e-tailing group.
Of the respondents in the study, 65 percent were identified as Social Researchers - consumers that actively seek out and read customer reviews prior to making a purchase decision always or most of the time. In addition, this group engaged in the use of reviews across all behavioral areas at a rate 20 percent higher than average online shoppers per the following:
- 78 percent of these respondents indicated they spent more than 10 minutes of time in the review reading process
- 86 percent of Social Researchers find customer reviews extremely or very important
- And customers should not have to visit the store to get an unbiased product recommendation.
- 76 percent of Social Researchers find “top rated product” lists to be extremely or very important
- 64 percent of Social Researchers research products online more than half the time, no matter where they buy the product (store, Web, catalog, etc.)
Additionally, nearly all respondents indicated that product reviews would be very helpful in shopping for products in a wider variety of online categories outside of electronics including toys and video games, sporting goods, gifts and specialty foods as well as health and beauty products.
The second part of the study focused on understanding how online shoppers, particularly Social Researchers, perceived Social Navigation, especially as it bridges the gap between the ideal offline and online shopping experience. An amazing 82 percent found reading reviews better than researching a product in-store with a knowledgeable sales associate. The study further revealed:
- Social Researchers were 76 percent more likely to shop on a retailer’s Website vs. their competitor site if it offers social navigation (Social Researchers were 76 percent more likely).
- Study participants found it extremely or very helpful to narrow product selection based on feedback from people “just like them” – people with Like Interests (64 percent), with Similar Uses (59 percent) for the product such as “for travel” or “for home office” and who sought out the same product “Pros” (56 percent) such as durable, lightweight or easy to use.
This study also revealed that shoppers prefer to use customer reviews throughout the entire shopping process given the following:
- Currently, 81 percent of consumers use customer reviews to decide between two or three products or to confirm that their final selection is the right one.
- Only 40 percent of consumers, though, actually start the shopping process using reviews; meaning many shoppers leave retail sites during the shopping process seeking out reviews.
Lastly, the Social Shopping Study authenticated the growing importance of customer reviews in the online shopping decision-making process with 93 percent of consumers indicating they are likely to start their shopping process on a Website that offers Social Navigation.
About the e-tailing group
The e-tailing group, inc. serves as the multi-channel merchant’s eye, bringing a merchant’s sensibility to evolving the multi-channel shopping experience. A Chicago-based consultancy, they provide practical strategic perspectives and actionable merchandising solutions to merchants selling online as well as to enabling technology firms.
For more background about this research study or additional information on the e-tailing group, inc. please contact Lauren Freedman at lf@e-tailing.com or visit the e-tailing group website www.e-tailing.com.
About PowerReviews™
PowerReviews is an enterprise solutions company that provides customer reviews and social merchandising solutions to multi-channel retailers, driving higher conversion and increased purchase satisfaction. PowerReviews’ patent-pending PowerTags™ technology captures customer opinions in their own words, making reviews more useful for shoppers, empowering them to make more informed and confident purchase decisions. Its customers include Staples, ToysRus, the Wine Enthusiast, NetShops, REI, Ritz Camera and over 100 more. With the introduction of Buzzillions.com, the company has entered the consumer shopping portal market, leveraging its tag-based technology to introduce social navigation and affinity recommendations into the shopping research process for consumers. Based in Millbrae, California, PowerReviews is a privately held company with funding from leading venture capital firms Menlo Ventures and Draper Richards. For more information visit www.PowerReviews.com.To experience the shopping benefits from Buzzillions.com, visit www.Buzzillions.com.
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Editor's Contact:
Lisa Tarter
TidalWave PR
415-440-4278
lisatarter@yahoo.com