Sam Decker Pizza Throwdown puts Domino’s Pizza Turnaround to the test

February 8th, 2010 by Sam Decker Chief Marketing Officer

They called it the “Pizza Turnaround.”

The Bazaarvoice Pizza ThrowdownTaste tests and focus groups had execs at Domino’s Pizza cringing as unhappy pizzaphiles gave brutally honest feedback on the taste of their pizza. Domino’s executives had a choice to make: go about their business – as many brands would – or learn from this negative feedback and change their 50 year old recipe.

Domino’s chose wisely, embracing customer oxygen and revamping their recipe. We hear the “what about negative reviews?” question all the time. What Domino’s finally realized is an idea Bazaarvoice promotes to our clients each day – negative reviews are a gift, an opportunity to improve your products and services to further delight your customers. We’ve seen this philosophy work wonders for clients like Oriental Trading Company and Land of Nod.

Where many brands would privately have gone about their business by rationalizing or ignoring the feedback, Domino’s did the opposite. And the pizza chain took their efforts a step further, launching a national campaign promoting how bad their pizza used to be. Their message was simple: “We were failing you. We finally heard you. Here’s what we did about it. Won’t you try us again?”

As passionate advocates of customer oxygen, we naturally applauded these campaigns. But we were curious, as the ads no doubt intended – is the new Domino’s recipe really better? We decided to conduct our own scientific test (NOT… but we think close enough) to see how listening to and acting on the opinions of their customers had benefited the chain.

The Bazaarvoice Pizza Throwdown

Tasters' stated preferences before the taste test

Tasters' stated preferences before the taste test

We found ten self-proclaimed pizza connoisseurs to participate in a taste test of Domino’s against its top two national competitors – Pizza Hut and Papa John’s. We ordered large cheese pizzas with original crust from each, testing the competitors on the pizza basics.

Before the test, we asked the tasters to tell us which pizza they thought they liked best. Papa John’s was the clear favorite, with 60% of the vote.

Each taster was blindfolded to ensure responses were based solely on taste. They were then asked to taste a slice of each competitor’s pizza, and give their reviews, rating each pizza on sauce, crust, cheese, and overall taste.

The Results

Tasters' choices for best overall taste

Tasters' blind choices for best overall taste

We weren’t sure what to expect. Even if Domino’s didn’t win, we thought they still had a great story to tell, as they’d demonstrated action and accountability to customer feedback. But fortunately for this story and for Domino’s, the new and improved pizza was the clear winner, with 50% of the tasters picking the chain’s new recipe as the tastiest pie.

Domino’s outperformed the competitors in every aspect of the test, earning 3.8 out of a possible 5 stars for overall taste.

Pizza components' taster ratings

Pizza components' taster ratings

You can watch how the taste test was done in our video here and on Youtube:

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By embracing their customers’ negative feedback, Domino’s was able to improve their product quality and impress their customers. And not only are customers happy with the change, but so are shareholders! Apparently the campaign is expected to be a sales hit – Domino’s stock is up close to 50% over prices three months ago.

Domino's three month stock prices

Domino's three month stock prices

Operationalizing customer feedback to radically improve an entire organization is something we help our clients do every day. Does your business have the tools to embrace the voice of the customer?

Meghan Meehan Overcoming Your Fear of User-Generated Content: A Webcast for Highly-Regulated Industries

February 4th, 2010 by Meghan Meehan Client Success Director

Webinar RegisterIt’s a fact: consumers want to hear from others like them when they shop for insurance, banking, healthcare – just as when they shop for everything else. How do you conquer corporate fear, consumer privacy, and liability concerns to give potential customers what they really want?

This webcast gets to the heart of these concerns, explaining how Nationwide Insurance tackled these issues – and won big with consumers.

Join us and see how Nationwide partnered with Bazaarvoice and Rosetta to:

  • Overcome organizational concerns about posting user-generated content on their website
  • Assess the issues and find the right solutions
  • Measure the results of user-generated content across the entire business

Thursday, February 11, 2010
11:30 to 12:30 EST

Speakers

Sue McManus
Leader of Nationwide Direct and Customer Solutions
Nationwide Insurance

Shawn Morton
Director of Social Media
Nationwide Insurance

Adam Cohen
Partner, Social Media Lead
Rosetta

Marc Ostryniec
Vice President of Financial Services Division
Bazaarvoice

Webinar Register

Sam Decker Don’t Dare a Hot Dog

January 30th, 2010 by Sam Decker Chief Marketing Officer

Sometimes you have to risk a little dignity to motivate people or make a point. And that risk goes up when video is involved. If you’ve seen our “More than Words” video or “Freedom” video you’ll see we’re no stranger to this kind of sacrifice.

So maybe it’s not surprising that my events manager, and a collection of Bazaarvoice executives, would put themselves on the roof of our garage in exchange for the Bazaarvoice team breaking the quarter’s Social Commerce Summit registration goals (it’s selling out fast, actually!). We blew away the stretch goal, so Sarah fulfilled her commitment to dance in her hot dog suit, with a few condiment executives joining.

If that’s what it takes, then that’s what it takes!

YouTube Preview Image

Tung Huynh Consumers engaging with Burt’s Bees through user-generated stories

January 29th, 2010 by Tung Huynh Client Success Director

Burt's BeesOne of my favorite things about being a Community Manager is partnering with brands that I love and support. Many people recognize and love Burt’s Bees for their Beeswax Lip Balm, and to date, Burt’s Bees has collected over 500 customer reviews for that single product alone. I’m a big fan myself of this lip balm, but what truly connects me with the Burt’s Bees brand is their commitment to the greater good. This commitment is a core part of their company culture, and I see it not only in the products they create, but also in the people they hire. I also find it remarkable that the Burt’s Bees Greater Good Foundation is funded by 10% of the company’s overall retail sales.

Over the winter holidays, Bazaarvoice partnered with Burt’s Bees to help them launch their “Who’s Your Reason for Giving?” Stories campaign. Over 200 heartwarming stories started pouring in from their community shortly after launch. I had the opportunity today to catch up with Molly Fisher from the Burt’s Bees team:

What is your role with Burt’s Bees and what role does social marketing play for your organization?

I am Burt’s Bees’ Interactive and eCommerce Manager. Social Marketing has quickly become a leading way for consumers to engage and interact with our Brand. Burt’s Bees has had a loyal following from very early on, but social marketing avenues have empowered us to have a transparent conversation with our consumers, engage them on a personal level, and more deeply reinforce the values and mission of this company. This depth of engagement has been valuable in helping us shape our ideas and gain a robust picture of our consumers.

What inspired the Burt’s Bees team to come up with its Who’s Your Reason for Giving campaign?

With any campaign we launch at Burt’s Bees, we try to add elements of doing good and paying that goodness forward. In the midst of a second Holiday season made difficult for many by the economic downturn, our team felt that a return to simple values was meaningful and appropriate. We started asking the questions “Who inspires you to be more giving? Who makes you happy just by being them?” Let’s honor people who make a difference and inspire others no matter their situation.

How has the Burt’s Bees community responded to this campaign?

The response was amazing – We saw a higher than expected participation rate largely driven by media, PR, and messaging to our existing email base. We (and our consumers) were overwhelmed by the heartfelt, beautiful, inspiring stories we read.

Were there any customer stories or types of story that particularly stood out to you or that you weren’t expecting?

We quickly noticed a powerful theme of “everyday heroes”…strong mothers, good friends battling breast cancer, co-workers going above and beyond with courage and enthusiasm. This was more than just a fun campaign, it served as an invitation to stop for a moment and thank someone.

Living the Greater Good is a large part of your company culture. What are some of the ways that Burt’s Bees gives back to its community?

Living the greater good is the “how” and “why” we do what we do. It’s about operating our company with the highest level of social responsibility – focusing on three key areas: natural well-being, environmental sustainability and social responsibility. Working at Burt’s Bees requires a steadfast commitment to these core values.

What advice would you give others on how to engage their communities through customer stories?

Media messaging used to be about telling consumers what to do and touting all the bells and whistles of your product or service. Social media allows for a more natural decision making process and ideally a longer-term loyalty. Invite consumers to engage with your brand in a personal way (reviews, stories, opinions, etc.) and you will be surprised how they will not only share, but also become advocates of your brand. Also increasingly important, give them the tools and technology to make it easy to participate and invite others in their networks as well.

Meghan Meehan Reviews drive social commerce success for LendingTree

January 28th, 2010 by Meghan Meehan Client Success Director

LendingTreeChoosing a mortgage can be difficult, so LendingTree empowers consumers to make informed decisions and take control of their financial destinies – it’s the cornerstone of their popular “You to the Rescue” campaign.  The site offers free tools and personalized advice to give consumers  confidence in their choices. Ratings & Reviews is an integral part of this strategy.

LendingTree recently measured the success of Ratings & Reviews, tracking visitor behavior for their primary site performance metric – completion rate of new loan requests. They found that site visitors who first read customer reviews went on to fill out loan requests 83% more often than those who did not read lender reviews. You can read the full case study here.

Tom O’Neill, Director of Site Innovation at LendingTree, sat down to chat about the results and the company’s vision of social commerce in 2010.

What’s the thinking behind the redesigned LendingTree site, featuring “You to the Rescue”?

We redesigned our website to make it more accessible to consumers as they move through the various stages of the loan process. Those phases could include people who are just starting to research their options, people who are seeking advice on specific topics (how to save for a down payment, for example), and people who are ready to start the loan process. Ratings & Reviews is an essential part of the new LendingTree site, because in its very nature it adds a community aspect to the site. It allows borrowers to hear from consumers like them and get advice before making a purchase decision.

How did you measure the ROI of Ratings & Reviews?

We wanted to understand the impact of Ratings & Reviews on the main event that we measure success by on the website. For LendingTree, that event is completing a new loan request form. We integrated Bazaarvoice with our web analytics tool and tracked visitors’ behavior over three months. We segmented visitors who read reviews versus those who did not, and looked at the completion rate  of the loan request form. We compared the numbers, and discovered that people who read reviews are 83% more likely to complete a new loan request form than those who don’t read reviews!

The results are quite significant to LendingTree, as we saw a direct impact on our primary success metric from launching Ratings & Reviews. The results have told us that investing in social commerce is worthwhile. We have lots of initiatives lined up for 2010 to build out the community elements on our site and on partner sites, using several Bazaarvoice offerings.

How did you implement social commerce and how has it impacted the business?

The biggest thing we did was get buy-in upfront from our lenders for the program. We wanted to make Ratings & Reviews as easy for them to use as it is for consumers, so we put together a handbook on UGC for them. The handbook included everything from operational tasks to marketing advice. It explained how reviews work, who to email at LendingTree with questions, customer service best practices, and how to make sure you’re proactively asking customers to review your services.

Our lenders frequently share stories about the success they’ve seen from embracing the program and making it part of their business processes. We continually communicate those success stories to our network of Lenders, as well as internally at LendingTree.

The entire organization has visibility to the program! One new practice we’ve initiated is a weekly cross-functional status update on our UGC. Every Friday a member of our Customer ExcellenceGroup sends an email with the weekly performance stats, and two new reviews – one that’s very positive, and one that shows an opportunity for improvement. This email reaches our Marketing, Product and Management teams, so Ratings & Reviews is always top of mind across the organization.

Where do you see LendingTree taking social commerce in a year?

We really want to knock it out of the park with community on our site this year! Our goal is to foster conversations between consumers and loan officers or other experts who can help them meet their financial needs. We’re launching Ask & Answer and Social Alerts to facilitate those conversations. In the end it comes down to a belief that knowledge is power. LendingTree wants to provide consumers with the information they need to make the right decision for their specific situation, removing barriers to purchase along the way, and Bazaarvoice is a key part of that strategy.

Marc Ruesing Highly positive German consumers create a great opportunity for local merchants

January 27th, 2010 by Marc Ruesing Sales Director - Germany, Austria & Switzerland

Bazaarvoice has served German customer reviews for some of Germany’s top brands, including neckermann.de, Karstadt and QVC, and now we’ve opened an office in Duesseldorf – I’m excited to be heading up this new effort.

We’ve seen that 84% of product reviews from Germans are positive (4 or 5 Stars) with an overall average rating of 4.24 out of 5 stars. This is another great example of the classic review “J-Curve” we have consistently seen in the UK and US markets thus far.

Average German star rating

Reviews important to German shoppers, merchants falling behind

German research company Fittkau & Maass recently highlighted the importance of customer ratings and reviews in their most recent 2009 W3B study of German internet users and usage. The research shows that about 80% of German online shoppers frequently read reviews before making a purchase decision.

The results of the W3B study also showed that German online shoppers mostly read reviews on price comparison sites (64%), likely  due to the fact that only about one third of German online shops feature product reviews in their online shops, according to a recent Study by German eBusiness solutions provider novomind. The result that only 24% of the W3B study respondents said that they frequently read product reviews in online shops is most probably strongly influenced by the fact that most online shops don’t offer product review functionality.

Multiple Bazaarvoice case studies show that having product reviews  directly correlates with a significant uplift in conversions for products with reviews, as the following illustration shows:

Average conversion before ratings & reviews

German online retailers should take note, as shoppers who value reviews will leave the purchase funnel on the retailer’s website and will be exposed to alternative offers (e.g. on price comparison sites, search engines, etc.), which could mean lost sales for retailers.

Amber Quist Webinar Recap: Participate. Interact. Sell. Building Relationships Online

January 25th, 2010 by Amber Quist Senior Marketing Manager

Building on one exchange to create another, more valuable one: that was the focus of the Bazaarvoice  webinar last week with Ze Frank and Sam Decker, as they discussed their recent white paper, “Participation Chains Connect Customers to Your Brand.”

We see marketers today focusing on single actions when it comes to user-generated content – get a comment, get a review, answer a question. Sam and Ze discussed shifting that focus, recognizing that each time a customer engages with your brand is an opportunity to get them even further engaged, to turn reviewers into top contributors, then into loyal brand advocates and influencers. Moving from “How can I squeeze more dollars out of every customer?” to “How can I get each customer to contribute in ways that keep them engaged and bring in new customers?”

Ze and Sam decided to call this the participation chain – a strategy for cultivating user engagement such that each action builds upon the one before, building value along the way as the customer becomes more deeply engaged with your brand.

How to build your participation chain

Put yourself in your customers’ shoes. Invite reviewers to engage furtherWhen a customer makes the effort to review, they are invested in that review. They want to see the end result. We see 90% open rates and 50% click-through rates for email notifications notifying a consumer that their review has been posted to the site. When you’ve already got someone who is engaged and contributing, the next step is to encourage further contribution.

Consider what they want to achieve. Customers contribute for a number of reasons: to express themselves, to share information with their friends, to help the brand. Most often, customers contribute to help other shoppers. Build on this – give them more ways to help others.

Give them an opportunity to accomplish that goal. The key is to build a chain that keeps contributors engaged. Encourage them to publish their reviews to social networks. Invite them to answer other shoppers’ questions. Whatever the reason your customers are participating, create links in your chain that allow them to contribute in ways that meet each of these motivations.

Contribution encourages contribution. All these interactions deepen the contributor’s engagement with the brand. At the same time, this content lives on your site where it influences other shoppers, helping them make purchase decisions and become buyers. Encourage your customers to contribute in ways that help others, encourage others to contribute, and encourage others to buy. Word of mouth is the most impactful form of marketing, so each interaction is a building block, creating an authentic sense of community around your brand and your products.

Customer engagement cycle

How does the participation chain apply to your brand? Are you fostering engagement, or letting the conversation die? We’d like to hear your participation chain stories. Tell us about your best examples or plans in the Comments section for a chance to win a $100 AMEX gift card. Please submit your ideas in by Friday, February 12, 2010.

Jacob Salamon Announcing the Bazaarblog iPhone app

January 22nd, 2010 by Jacob Salamon Marketing Manager, International

Bazaarblog iPhone AppToday we are very proud to announce the launch of the Bazaarblog iPhone app, making it even easier to read Bazaarblog news stories, interviews, Social Commerce case studies, best practices, and more on your iPhone and iPod Touch. Also get access to the latest Tweets from our Bazaarvoice Twitter stream.

Using a very intuitive and exciting tool called AppMakr, we were able to develop this app in less than a day and deploy it to the iTunes App Store within a week. Now it’s time to see the user reviews trickle in!

iPhone and iPod Touch Users No iPhone?
iPod or iPhone Google Chrome
Download from the App Store Play with the App Online

Meghan Meehan Rubbermaid benefits from goal-oriented conversations

January 21st, 2010 by Meghan Meehan Client Success Director

RubbermaidThese days it’s easy for companies to become enamored with flashy social applications that promise “community,” glossing over the inability to monetize the investment. But at Bazaarvoice, we’re manically focused on the ROI of Social (it’s just part of our DNA!). In my opinion, that is the most exciting aspect of the Community Management role – the opportunity to help my clients create goal-oriented conversations on their site. This term simply means that each social initiative should be tied to a clear objective, whether it’s conversion, engagement, retention or another valuable metric for the business.

Rubbermaid is a prime example of a client that has created a loyal community, benefiting both the brand and the consumer. When Rubbermaid launched Ratings & Reviews in July of 2008, Jim Deitzel (eMarketing Manager for Rubbermaid.com) had two primary goals: provide additional product information and listen to what consumers say about the brand. These types of goals are common for consumer packaged goods (CPG) clients, especially if their website doesn’t primarily sell to consumers. CPG brands value the real-time consumer feedback, sharing it with their product management and customer service teams. As Jim shared in a previous blog interview, Rubbermaid frequently mines their review content for opportunities to better satisfy customers. This can have a direct impact on consumer loyalty, a benefit no company should overlook when creating a social commerce strategy.

Just this week we released a joint case study with Rubbermaid, tracking the impact of customer reviews on the site’s key performance indicators, including conversion, revenue per visit and engagement. Over a 5-week period, Rubbermaid saw the following results:

  • Review readers showed a 10% incremental increase in revenue per visit, compared to consumers who did not engage with content.
  • Average order value for review-readers was also 5% higher.
  • Rubbermaid also saw a 5% incremental increase in conversion for review readers.
  • Finally, Rubbermaid saw that review readers were more likely to sign up for the Rubbermaid Club, increasing their overall engagement with the brand

As a true all-Star client, Rubbermaid isn’t settling for just online ROI from Ratings & Reviews. They’re taking their UGC offline, integrating the voice of the consumer with print media as well. This month they launched a national free-standing insert (FSI) for Rubbermaid Easy Find Lids, featuring review quotes and star ratings for the product. The truly unique aspect of this promotion is that the ad includes a unique coupon code, allowing Rubbermaid to track its redemption compared to traditional FSIs. Rubbermaid has bridged the gap between online and offline, merging the reach of print adverting with the measurability of online advertising. I’m excited to see the results of this campaign, benchmarked against FSIs without UGC.

Rubbermaid print ad featuring customer ratings & reviews

Ultimately, Bazaarvoice encourages clients to “plan with the end in mind” when it comes to social commerce. Rubbermaid is a perfect example of this mentality – Jim identified his goals for customer reviews, created a clear plan to execute against them, and consistently measured the results. Kudos to Jim and the entire Rubbermaid team! This is just the tip of the iceberg for this brand; look for many more innovative social activities from them in 2010.

Sarah Loyens Social Media Club kicks off at Bazaarvoice

January 20th, 2010 by Sarah Loyens Events Manager

Social Media ClubLast night Bazaarvoice hosted the 2010 kickoff for the Austin chapter of the Social Media Club. More than 100 members attended, ranging from college students to CEOs. Bazaarvoice’s own Michael Osborne kicked off the meeting, followed by Marcel Santilli from IBM’s Rational Software group.

If you missed it, you can catch up with the event on Twitter or attend the next meeting (held the third Tuesday of each month in the Bazaarvoice offices). For more on the Austin Social Media Club, here’s a message from Mike Chapman, one of the club’s founders:

We are thrilled to share our space with the Austin Social Media Club, and look forward to being its home for the months ahead!