One of the best parts of my job at PowerReviews is sitting down with our customers to learn about the challenges and opportunities they face each day. Earlier this month, I had the opportunity to chat with Ken Bausch, Vice President of Global Digital Marketing at World Kitchen. World Kitchen may not be a name you’re familiar with, but you probably recognize the company’s iconic kitchen brands, like Pyrex, Corelle, Corningware, and Chicago Cutlery.
Ken and I chatted about how ratings and reviews and Q&A drive traffic and sales and help brands and retailers identify ways to improve the consumer experience. Here are three takeaways from our conversation.
Reviews are Key for Sales Consumers trust the reviews of other consumers. And reviews are an incredibly important part of the purchase journey, helping shoppers determine the products that best fit their needs.
Q&A Can Help Identify Missing Content When World Kitchen first turned on Q&A on their site, they received a high volume of questions. World Kitchen identified common themes in questions — such as inquiries about product dimensions — and used this as an opportunity to add additional content on product details pages that provides customers with the information they need to make a purchase.
Syndication Amplifies the Impact of Reviews In addition to collecting reviews, World Kitchen also syndicates these reviews to about a dozen retailers in the U.S. and Canada. World Kitchen has found the syndication process to be very simple, yet incredibly impactful.
Want to hear what else Ken had to say? Watch the full interview.
Last week, I had the opportunity to attend the CMO Argyle Executive Forum in Chicago, an event that brings together CMOs and marketing leaders from various industries to discuss strategies and best practices in a discussion-based format.
I engaged in some great conversations and heard from some of today’s top marketing executives. But one presentation that really stuck with me was a session called “Data Capital” from Jeff Gallagher, Group Vice President of Big Data at Oracle. Jeff started off his presentation with these thought provoking statistics:
Uber is the world’s largest taxi company, but owns no vehicles
Facebook is the world’s most popular media owner, but creates no content
Alibaba, one of the world’s largest retailers, has no inventory
Airbnb is the world’s largest provider of accommodations, but owns no real estate
The Transparency Economy: Made Possible by Ratings and Reviews None of the companies I mentioned above sell a “product” in the traditional sense, yet each and every one is growing quickly, thanks, in large part, to data. For many of these companies, a large amount of that data is being generated by ratings and reviews. In fact, I’d argue that ratings and reviews are the biggest reason some of these companies have managed to survive — and thrive.
Think about it for a minute. Would you book a room on Airbnb without first reading the reviews from previous travelers? Would you get in an Uber driver’s car if she had a low rating? I know I wouldn’t.
Ratings and reviews promote accountability and trust which drives traffic and conversions. The provider — for example, the person renting out his home through Airbnb — is held accountable for providing a good experience for visitors. If he doesn’t, he’ll get negative reviews, which will make future travelers think twice before booking. And the consumer looking for a place to stay on Airbnb reads the reviews of previous travelers to build confidence before making a purchase.
Ten years ago, it was unheard of to stay in a stranger’s house while on vacation or to get in a stranger’s car so they could give you a ride to the airport. But today, both of these practices are commonplace thanks to ratings and reviews.
The Latest Crackdown by the UK CMA Urges Brands and Retailers to Clean Up Their Act
The UK Competition and Markets Authority (CMA) has been keeping a watchful eye on online reviews. Last year, the organization launched a thorough review of the online reviews and endorsements industry in the UK. But they didn’t stop there. Last month, the CMA called out five websites for shady review practices like censoring negative reviews, publishing fake reviews, and failing to mark paid endorsements as such. The organization also issued a warning that more enforcements for online review breaches are coming in 2016.
Consumers trust reviews as the authentic voice of the customer. That’s why it’s crucial for brands and retailers to ensure they’re preserving the credibility of reviews. Unethical review practices not only tarnish the trust you’ve built with consumers, they also put you at risk of breaking the law.
Read on for three best practices for preserving the authenticity and credibility of reviews.
Don’t Delete Negative Reviews Every once in awhile, you’re bound to get a negative review or two. While you certainly don’t want to aim for negative reviews, allowing them on your site brings authenticity to your review content and helps you build trust with shoppers. Plus, our research with Northwestern University found that the occasional negative review can actually have a positive impact on your bottom line. The probability of a product being purchased peaks when its average star rating is between 4.2 and 4.5 stars. After the average star rating surpasses 4.5, purchase probability declines because consumers perceive perfect ratings as too good to be true.
Be Transparent About Who’s Writing Reviews Providing incentives, such as entrance into a sweepstakes or a coupon code for free shipping, is a great way to increase your review volume. In fact, a sweepstakes is proven to increase review generation by up to 100%. But when it comes to incentives, it’s key to be transparent. Ask your ratings and reviews provider if they allow you to indicate whether a reviewer received some type of incentive in exchange for writing a review.
Prevent Fake Reviews If the recent CMA rulings have taught us anything, it’s that fake reviews can damage the trust you’ve worked hard to earn. That’s why it’s important to have measures in place to ensure your reviews are authentic and fraud-free. At PowerReviews, we use advanced fraud technology to prevent fraudulent reviews, slander, and foul language. Then, each piece of content is reviewed by a member of our human moderation team before the content goes live on a brand or retailer’s site. But we never make changes to the reviews themselves. Shoppers’ voice are heard as they are.
Now, more than ever, it’s crucial to ensure you’re abiding by ethical best practices. Consumers trust reviews because of their authenticity, and it’s the responsibility of brands and retailers to ensure they’re providing authentic, transparent content that consumers can trust. Brands and retailers who choose not to heed the CMA’s warnings risk losing customers — and breaking the law.
Last week, guest speaker Sucharita Mulpuru, Vice President, Principal Analyst at Forrester Research joined us for our monthly webinar to discuss how the growth of mobile is creating opportunities (and challenges) for retailers. Read on for our takeaways on the state of mobile today, as well as 3 recommendations for brands and retailers looking to leverage the shift toward mobile.
Mobile is Growing — And Retailers Are Taking Note It’s no secret that mobile is growing quickly. For many retailers, mobile traffic is creeping up on desktop traffic. In fact, it’s not uncommon for a retailer to see 50% or more of its traffic coming from mobile. And mobile sales are making up an ever-increasing portion of overall online sales.
According to The State Of Retailing Online 2016: Key Metrics, Business Objectives, And Mobile, a February 2016 Forrester Research report based on a study conducted with Shop.org, mobile currently accounts for 44% of online traffic (with 29% coming from smartphones alone). And mobile (including phones and tablets) accounts for an average of 31% of online sales.
It’s clear retailers are taking note of this growth in mobile. The same report referenced above found that mobile tied with marketing for the top priority of surveyed retailers in 2015.
Consumers are Using Their Phone for Many Shopping Related Activities Consumers are using their phones throughout the purchase journey — even when they’re in a physical store. In-store shoppers are using their phones for research-related activities, including comparing prices, redeeming coupons, and looking up product information.
3 Recommendations for Retailers Sucharita gave 3 key recommendations for retailers looking to leverage the shift toward mobile.
Ensure your mobile content addresses shoppers’ questions. Now, more than ever, consumers are using their mobile devices to find information while researching products. Make sure it’s easy for shoppers to find all the information they’re looking for — including pricing, reviews, and store hours — regardless of the device they’re using.
Enable product information to be visible on third party sites, too. Shoppers aren’t just visiting brand and retailer sites to find product information. They’re also gathering information on search engines, maps, and third party shopping aggregators — just to name a few. Make sure the information your shoppers want is available on these third party sites.
Keep an eye on the bright, shiny objects. But don’t be distracted by them. It’s import to stay abreast of the latest trends and developments in retail and ecommerce technology. But that doesn’t mean you need to immediately invest in every new innovation you hear about. Sometimes, it pays to wait it out.
How Brands and Retailers Can Kick-Start Their Centennial Strategy
Centennials. Generation Z. Regardless of what you choose to call them, the next generation of shoppers, age 13-18 and born around the turn of the century, are growing up fast. Today, this generation has $44 million in annual spending power. And this number will continue to grow as Centennials age and enter the workforce.
Now is the time for brands and retailers to better understand the shopping habits of Centennials and start thinking about how to be successful with the next generation of shoppers. Read on for four steps to kick start your Centennial strategy, based on data from our recent Centennial Shopper Study.
1. Put review content front and center on your website
95% of Generation Z shoppers read reviews prior to making a purchase and 64% read at least four reviews before they buy. It’s clear that the next generation is hungry for information, so it’s important to make it easy for Centennials to find what they’re looking for. Prominently display review content on the category and product details pages of your website, rather than burying it behind tabs or at the very bottom of the page.
2. Optimize your website for mobile
More than half of Centennials prefer to browse for products on a laptop or desktop computer, but mobile phones are a close second. In fact, 37% of Centennial shoppers prefer to browse for products on a mobile phone. It’s essential that your website is optimized for mobile so shoppers can find the information they’re looking for and have a positive experience on your website — regardless of the device they’re using to browse and purchase.
3. Collect photos and videos as part of reviews.
It’s clear that reviews are an important part of the purchase journey for Centennials. But when it comes to review content, don’t just look at using text. Centennials want to see photos of the product in action — how other people like them are using the product in real life. In fact, 40% of this generation won’t purchase a product if there are no photos of people using the product. So, it’s important to allow your shoppers to submit a photo or video as part of their review.
4. Insist on transparency and authenticity
Centennials are smart. They know that a product can’t be all things to all people, and if all the reviews for a product are positive, they get suspicious. In fact, nearly half of Centennials said they wouldn’t trust a product’s reviews if there were no negative reviews present. Consumers trust reviews as the true voice of other consumers, so it’s key to have measures in place to ensure your reviews are transparent and authentic. For starters, don’t delete negative reviews. And identify reviews that resulted from promotions or free samples. Embrace transparency and trust consumers to make up their own minds.
If your brand making it a priority to engage Centennial shoppers? Please share in the comments below.
Next week, part of PowerReviews team will be heading to sunny Palm Springs, CA for eTail West, an annual conference for ecommerce and multichannel executives. Each year, eTail provides an unmatched opportunity to connect with industry professionals and learn about the latest in marketing, analytics, mobile, social, email, personalization and more.
This year will be no exception, with an agenda chock full of great keynotes and breakout sessions led by thought leaders (and PowerReviews clients) including Fanatics, Nine West, Rock/Creek, Aeropostale, and evo, just to name a few. Conference attendees are sure to leave eTail West with new connections (there will be 2,500 professionals in attendance!) and lots of practical ideas to implement to improve their business.
Stop By Our Booth If you’re attending eTail West next week, I hope you’ll take the opportunity to connect with PowerReviews. Stop by booth #801 in the Exhibit Hall to discuss your business’ challenges, learn what’s new at PowerReviews, see our products in action, and get a free consultation. The Exhibit Hall will be open:
Tuesday, February 23 from 7:25am-6:25pm
Wednesday, February 24 from 7:45am -5:35pm
In addition, we’ll be releasing a new study we conducted with Northwestern University, which explores how reviews vary depending on whether they’re written by verified buyers or anonymous consumers. We’re looking forward to sharing the results with you.
We hope to see you next week in Palm Springs!
Last fall, Amazon.com made waves when they opened their first brick and mortar retail location, joining a growing list of other online retailers that have opted to open physical store locations — Warby Parker, Birchbox, and Rent the Runway, just to name a few.
And it seems the company’s first store, called Amazon Books, has been a success. Last week, the CEO of General Growth Properties, a real estate investment trust that owns and manages shopping malls, made a statement on an earnings call indicating that Amazon plans to open between 300 and 400 new locations. General Growth Properties later issued a retraction, saying the CEO’s initial statement “was not intended to represent Amazon’s plans.”
Amazon’s response to this statement? “No comment.” The company is keeping their expansion plans (or lack thereof) under wraps. This isn’t surprising, considering Amazon’s secrecy around other initiatives, including the opening of their first store location.
Only time will tell what Amazon’s plan is for additional store locations, but it’s looking like the eCommerce giant plans to add at least a few more retail locations. One of the biggest clues is that Amazon is actively recruiting for a location in La Jolla, California.
Regardless of whether Amazon open 3 or 300 stores, there are plenty of lessons brands and retailers can learn from Amazon’s foray into brick and mortar.
There’s Value in a Physical Storefront
Everywhere we turn, we hear about the growth of digital and mobile. In fact, a recent report from Forrester Research predicts that online sales will grow by an average annual rate of 9.32% over the next 5 years.
But today, the majority of retail sales still happen in a store. A brick and mortar presence allows customers to experience a brand’s products firsthand before making a purchase. In a store, consumers can hear the sound quality of a TV, sit on a chair to feel how comfortable it is, or determine if a pair of boots runs true to size. Plus, in-store shoppers can experience instant gratification. They see something they want, and they can take it home that day.
In addition, physical stores add a human element to a brand. A consumer’s connection with a sales associate in a brick and mortar store can not only lead that consumer to make a purchase, but also turn her into a brand advocate.
And it’s not just the older generations who are opting to shop in-store. A recent survey we conducted of Generation Z (age 13-18) shoppers found that while nearly all of them do their shopping research online, 46% prefer to make the actual purchase in store, compared to 37% of Millennials who prefer to purchase in-store.
Reviews are Key For In-Store
It’s largely understood that reviews play a key role in converting online browsers to buyers. But remember: reviews are also important for in-store purchases. A survey we conducted last year found that 70% of shoppers want to access product ratings and reviews while shopping in a store.
Reviews play a starring role in Amazon’s storefront location. For starters, the books available in the store are chosen primarily based on reviews — most items in the store have an average star rating of at least 4 stars on Amazon.com.
In addition, Amazon prominently displays reviews for the books available for purchase in their store. A review card is displayed under nearly every book with a star rating, a review from someone who purchased the item from Amazon.com, and a barcode. The barcode, when scanned using the Amazon app, takes the consumer to the item’s product page on Amazon.com so he or she can see the reviews for the item.
Amazon clearly understands the importance of providing shoppers with all the information they’re looking for, regardless of whether they’re shopping online or in-store.
Online and In-Store Should Complement, Not Compete
Stop thinking about brick and mortar and online retail as competitors and start thinking about how the two can work together to provide a great experience for your customers.
Multi-channel retailers can use online and in-store purchases to better target their marketing efforts. For example, ask your in-store associates to capture customer emails through your existing rewards program. That way, you can send post purchase emails asking for reviews for those products, along with promotions and offers that are relevant to shoppers that purchase a particular product. I’m willing to bet that if you purchase a book from Amazon Books, that item will be factored in to the recommendations Amazon offers up the next time you sign on to their website.
What do you think Amazon’s plans are for expansion? Please share your thoughts in the comments below!
Soft Surroundings is a leading women’s clothing and bedding retailer, with more than 30 store locations throughout the United States. Reviews play a key role in Soft Surroundings’ business. Because the company designs and makes their merchandise in-store, they rely on the insights gleaned from reviews to improve products and better serve customers.
However, Soft Surroundings wasn’t happy with their former ratings and reviews provider and saw this as an opportunity to find a solution that would better suit their needs. After a few initial meetings, the company decided to partner with PowerReviews.
The Implementation Process PowerReviews and Soft Surroundings worked together to ensure the implementation process was simple and straightforward. Open communication allowed for a seamless process, and the team at Soft Surroundings was pleased to find that the implementation caused very little disruption to the team.
“Since we finished the implementation with PowerReviews, things have been running really smoothly,” said Gail Buffington, eCommerce Manager at Soft Surroundings. “And we’ve been able to get any outstanding items resolved quickly.”
Retailers have established techniques to attract shoppers to spend with them. But strategies that have successfully enticed previous generations may not hold the same power for the next generation of shoppers — the Centennials.
Read on to learn what entices Generation Z shoppers to make a purchase, as well as 3 tips for brands and retailers looking to convert more Centennial browsers to buyers.
Reviews Are More Important to Centennials Than Brand Name and Free Shipping Our study shows the presence of online reviews is more valuable to Centennial shoppers than a brand name, or free perks such as free shipping. Retailers can no longer rely on brand name alone to appeal to Centennials, who are brand-mobile and equipped to do their research wherever they are. They want to be convinced that a product is right for them before they buy.
Price Comes Second to Brand for Centennials While a brand name may not be as important as reviews to a Centennial, it does trump price for these resourceful shoppers. In fact, the majority (57%) of Centennials are likely to spend more money on a well-known brand than purchase a lower-priced item from an unfamiliar brand.
If you’re a new brand or an existing brand promoting new products, reviews are imperative. Over half of Centennials say they want to read reviews when they’re unfamiliar with a brand or retailer, suggesting that third party endorsements through reviews can give Centennials the confidence they need to make a purchase.
Centennials Want Instant Answers Twenty-four-hour access to technology has made modern consumers impatient when it comes to getting answers to their questions. And if they can’t get the information they need from retailers and brands immediately, they’ll turn to a competitor that readily provides this information. In fact, as well as reviews, nearly half of Centennials we surveyed said they wouldn’t buy a product if they couldn’t ask a question about it.
The study shows that Centennials want to engage with retailers directly on their website and expect one-to-one attention. Q&A on brand and retailer websites are important, and nearly two thirds of Centennials prefer having their questions answered by previous customers rather than the retailer. As such, it’s key for brands and retailers to invest in Q&A technology and allow current product owners to answer questions from prospective customers.
Centennials Crave Real Conversations Of the Centennials who have written reviews, 89% said they hadn’t consequently been contacted by the brand in question. Positive or negative, a review is a golden opportunity to engage with your customers. Acknowledging the feedback can make a difference to the customer who posted the review, as well as every other consumer that views that conversation. And using insights from review content can help improve your product and help you deliver products and experiences that meet and exceed consumer expectations.
3 Tips for Converting Centennial Browsers to Buyers What can brands and retailers start doing now to attract Centennial browsers and convert them to buyers? Here are three key tips.
Highlight new products: Validate fresh to market products with reviews on your own website as well as third party websites. Consider Product Sampling to generate more reviews for new products, seasonal promotions, or other targeted products in need of more reviews. Make sure Centennials are assured of the quality and value of your products.
Talk with your customers: The majority of Centennials will be looking for what you have to say while they’re researching products. They’re waiting to listen.
Turn customers into brand ambassadors: Consumers trust other consumers. Invest in Q&A software so your existing product owners can answer questions from other shoppers.
Today, Centennials already have $44 million in annual spending power, and that number will continue to grow as this generation grows up. Now is the time for brands and retailers to identify how to hone their marketing plans to best influence this demographic.
