Archive for the ‘Research’ Category

Amber Quist Participate – interact – sell: Building relationships online

January 11th, 2010 by Amber Quist Senior Marketing Manager

Every interaction with a consumer – no matter how small – drives conversations, which drive business results. Our recent white paper, “Get Them Talking: How Growing Participation Chains Will Grow Sales” shows how even small interactions can increase sales and loyalty – and every word counts. Read more about participation chains in this blog post.

Now we’re following up with a webinar featuring new media visionary Ze Frank and Bazaarvoice CMO Sam Decker: “Participate, Interact, Sell: Building Relationships Online.”

Tune in to learn:

  • How to create a participation chain strategy that captures every interaction possible
  • How top brands build successful participation chains
  • Top reasons people are motivated to participate or contribute content

Join Ze and Sam for this webinar on Tuesday, January 19, 2010, at 1 pm CST by registering here:

Register for the Webinar here!Download the free white paper, “Get Them Talking: How Growing Participation Chains Will Grow Sales,” here.

Download the white paper here!We look forward to talking more about how to get consumers participating – and buying.

Sam Decker CMOs Plan for Higher Social Media Measurability in 2010

December 17th, 2009 by Sam Decker Chief Marketing Officer

CMO ClubWe recently surveyed global CMOs in conjunction with the CMO Club, an organization of CMOs with both global and domestic P&L responsibilities. As suspected, social media initiatives will be even more important in 2010. What was surprising – and encouraging – is that CMOs realize their social efforts must track to the bottom line.

Here are the major points our survey found.

Social must drive revenues, not just web metrics. 81% of respondents expect to link their annual revenues to their social media investment in 2010, up from just 44% of CMOs in 2009. Social marketing metrics that focus solely on web goals (traffic, page views, fans) are starting to be supplanted by metrics like conversion, revenue, and average order value that track to the bottom line.

CMOs unsure about the exact impact of current social tools. 53% of respondents are unsure about their return on Twitter; 50% are unsure about the direct value of LinkedIn; and 50% are not sure how to measure the impact of industry blogs on business metrics. Customer ratings and reviews is the best understood marketing activity from an ROI perspective.

As social spending grows, so do revenue expectations: More than 64% of CMOs reported that they plan to increase their social media budgets within the next year. Nearly three-fourths of respondents (72%) who did not attach revenue to social spend in 2009 reported they would create such a link in 2010. CMOs who are already seeing a strong link between social media and revenue in 2009 expect this impact to be even more profound in 2010, with the majority of respondents (81%) expecting to attribute up to 10% of their 2010 revenues to their social media investments.

Social initiatives must now track to the bottom line. In 2009, the top metrics tracked for social media initiatives included site traffic, number of page views, and number of fans. In 2010, CMOs expect top metrics to track more closely to P&L business goals – not just web-related goals. The fastest-growing metrics for 2010 include revenue, conversion, and average order value, which grew 333%, 174%, and 150% respectively.

CMOs tap more consumer-generated content to shape products or services: Today, 80% of CMOs use customer insights to shape decision-making at the executive level and 90% of those surveyed use customer stories and product suggestions to shape a brand’s product or services. By the end of 2010, almost all CMOs say they plan to incorporate a broader range of content sources including customer reviews (59% increase), pre-sales Q&A (24% increase) and Twitter (407% increase) to influence product decisions.

In short, social isn’t just for the “cool” factor anymore – now it must drive real sales results, just like any other media. Download the full study here for all the details.

Download the White Paper here

Sam Decker Webcast: 120+ CMOs have spoken – a look ahead at Social in 2010

December 15th, 2009 by Sam Decker Chief Marketing Officer

cmo clubNo doubt: social media will dominate in 2010. So how do CMOs link social marketing with real, bottom-line results? 120+ CMOs shared their biggest challenges, plans, and expectations for social marketing in a recent survey by The CMO Club and Bazaarvoice.

We’ll share our findings and quiz a panel of top CMOs at this upcoming, insightful webcast.

Panelists include: Sonny Ganguly, Wedding Wire; Kent Huffman, Bearcom; Ted Rubin, e.l.f. Cosmetics; and Sam Decker, Bazaarvoice.

Webcast: 120+ CMOs have spoken – a look ahead at Social in 2010
December 17, 1:00 – 2:00 pm CST

Click here to reserve your seat now – attendance is limited.

Hear a panel of top CMOs share their views on:

  • Plans to blend social with commerce in 2010
  • Prioritizing the quality of social interactions over sheer quantity
  • Measuring social media’s direct impact on business metrics

Register Now

Sam Decker Interact, don’t just engage.

November 19th, 2009 by Sam Decker Chief Marketing Officer

Razorfish FEED 2009This year’s Razorfish Digital Brand Experience Study was particularly interesting to me, as its focus shifted to ways consumer interact with brands online. This tells me what we’re seeing more and more – a brand’s online presence doesn’t just exist to “tell and sell”; today’s consumers want more.

Razorfish reports that “the overwhelming majority of consumers who actively engage with a brand digitally—whether by entering a contest, “friending” a brand on Facebook, or even watching an advert on YouTube—show dramatic upticks across the entire marketing funnel.” In short, digital experiences create customers.

Here are a few key takeaways.

“64% of consumers have made a first purchase from a brand because of a digital experience such as a web site, microsite, mobile coupon, or email. No other medium has so impacted—or altered—the traditional marketing funnel this way.” And these purchases aren’t limited to online activities. A nearby local coffee shop has no website, but tweets special offers and events. With iTunes, DVRs, Tivo, and hulu, there’s no need for me to hear or see most ads anymore. Brands that aren’t present online – in multiple ways – are missing out on huge opportunities to reach consumers.

And this first impression is critical – these online experiences can also impact offline decisions.

“65% of consumers report that a digital brand experience has changed their opinion (either positively or negatively) about a brand or the products and services a brand offers. For those brand marketers still neglecting (or underestimating) digital, it’s as if they’ve shown up to a cocktail party in sweatpants.” We’re seeing more and more brands putting just as much into their online presence as they do their brick-and-mortar stores. Both experiences should help consumers not just buy, but engage with, a brand.

Content must be credible and relevant to draw consumers in, and user-generated content fits both of these criteria. Brands that ask shoppers and customers to engage – by answering questions, writing reviews, etc. – are building unbiased, authentic content from people who already have an online network. More and more content on the Web is created by consumers, but enabled by brands.

As Ze Frank and I wrote in our recent paper, “Participation Chains Connect Customers to Your Brand,” each contribution drives more contribution. When I share my review on Twitter or Facebook, my followers have a chance to see it. And once people start reviewing products online, others want to chime in with their opinions – it’s why an inexpensive dog treat, Greenies, has thousands of reviews on PETCO.com.

If you haven’t read the study yet, it’s full of insights about who’s online, how often they’re online, and how they engage with brands – not just their friends – online.

Sam Decker New “Participation Chain” White Paper – Tying contributions together to gain deeper customer engagement… and results!

November 17th, 2009 by Sam Decker Chief Marketing Officer

Download the white paper here!Ze Frank and I were having dinner a several months ago at a fantastic Thai “hole in the wall” in New York. The conversation turned to a subject we think about a lot, albeit coming from different perspectives. We  started talking about how conversations and ongoing touchpoints really make the difference – when actions build upon each other, it can be incredibly impactful. We decided to call this the “participation chain.”

Consider a research study that involved phone calls to Dallas residents from Hunger Relief Committee. One set of residents received a call asking if the organization could come to their homes to sell them cookies to benefit the charity; the second set of residents were asked the same question, but the caller first asked, “How are you feeling this evening?” and waited for an answer. This one question nearly doubled the number of positive responses from residents. Further, once the volunteers were in their homes, almost all participants who’d been asked this question actually made a purchase.

This one question made all the difference, showing that the more time a consumer spends with you (assuming it’s a positive experience, of course) directly relates to how likely they are to spend money with you. We’re constantly creating new ideas and ways for consumers to easily interact with brands – like voting for favorite stories. So how are brands reaching out – transparently, authentically – to encourage more interactions with consumers?

Participation Chain Engagement Cycle

We’ve all seen sweepstakes and other gimmicky ways that brands have basically tried to build their databases, but user-generated content on a site really gives brands opportunities to create real dialogue online that’s actually meaningful to other consumers. For example, we’ve seen brands have great success with topics and campaigns that don’t tie directly to products – like PETCO’s Howl-O-Ween campaign, which encouraged pet owners to share photos of their pets’ Halloween costumes. PETCO knows their target consumers love their pets and want to show them off, and this campaign gave customers and prospects a whole new way to connect with PETCO, which could pay off for months and years to come.

Amazon has a lot of ways for users to interact with their brand. Of course, they encourage product reviews, and also encourage voting on review helpfulness. They also allow users to create wish lists and registries, and customize recommendations based on the types of items they’ve purchased in the past.

Bazaarvoice clients are constantly finding new ways to interact with consumers online – responding to reviews, answering shopper questions online, and highlighting top participants in other media, like blogs. Free People does a great job highlighting their top reviewers, and a recent webinar discussed how brands make the most of their top contributors.

The new white paper Ze and I wrote together, “Participation Chains Connect Customers to Your Brand,” delves into how important an authentic brand/consumer conversation is, and the real impact it has on businesses. We also go into detail about maximizing the results of these interactions.

Download your copy of “Participation Chains Connect Customers to Your Brand.” We’d love to hear how increased interactions have helped drive increased sales (or other business metrics) for you.

Download

Sam Decker Coming soon: How participation chains keep the conversation going

November 12th, 2009 by Sam Decker Chief Marketing Officer

Time and money are two sides of the same coin.

  • Why do timeshare salespeople give so many freebies to get 90 minutes of your time? Because they know their chances of converting you to buy a condo on the beach goes way up with that much time. You’re participating in their process.
  • When I managed Dell.com consumer site, I added an interactive financing calculator to a page and saw abandonment drop in half? Why? Visitors were participating in something.
  • After you purchase something on Café Press you are asked to forward an invitation to that store to five friends. That works because people were engaged in purchase participation.
  • Freemium models for web apps and viral loops work because participation is required.

Each of these examples demonstrate the power of participation. Once a person engages with something in a participatory way, they are more likely to engage again. And if you can get someone to participate by contributing content, you can use that content to pull others in to participation. And so the cycle continues.

This was the gist of a conversation I had with Bazaarvoice advisor and new media visionary Ze Frank in a ‘hole in the wall’ Thai restaurant in New York several months ago. Several discussions and emails later, we had the beginning of a whitepaper on a new concept we call “Participation Chains.” We are talking about all the ways we interact – or want to interact – with brands, and how these interactions build relationships over time.

In short, the more brands start conversations with consumers, the more everyone can win. Ze and I outline a variety of ways to keep interaction going, and we outline the details of building an effective participation chain strategy.

Brant Barton UK Takes Lead in Online Advertising

October 12th, 2009 by Brant Barton Co-Founder and Chief Innovation Officer

eMarketer reported last week that in the first half of 2009, the UK became the first major economy to see online advertising spending surpass TV ad spending. According to the report, the Internet accounted for 23.5% of UK advertising revenue vs. 21.9% for television. This is big news and not without controversy, as the UK TV lobby is protesting the aggregate number reported for Internet ad revenue, which includes paid search (the largest category by nearly 3X), online classifieds, display media, and other formats.

While the experts argue over the math, I think that UK (and US) advertisers and consumers should celebrate this milestone. While the US Internet-TV ad spending gap is still sizable, the steady migration of dollars over the coming years will drive Internet industry growth and evolution, yes, but also a more customer-centric experience for consumers faced with hard decisions in an increasingly complex economic and marketing environment. Advertiser spending on social marketing/commerce applications is still significantly smaller than the leading categories of Internet ad spending mentioned above. However, as we have witnessed firsthand over the last 4+ years of building Bazaarvoice (and shared on many occasions on Bazaarblog), the social category offers perhaps the greatest opportunity for advertisers to think bigger than clickthroughs and conversion rates and instead focus on wholesale cultural and operational transformation of their businesses using the voice of the customer as a muse.

This news from the UK is timely, as we just wrapped up our second annual Social Commerce Summit in London, the European complement to our US Social Commerce Summit held in Austin every year. We now serve over 120+ customers across Europe, and the London Summit was a sold out event. In the coming days, we will share highlights from the Summit here on Bazaarblog!

Sam Decker Bazaarvoice #1 for Ratings & Reviews Among Internet Retailer 500

August 3rd, 2009 by Sam Decker Chief Marketing Officer

guideWe’re always excited to see the Internet Retailer Top 500 Guide, and the 2009 edition just came out. Not only does it list the top online retailers based on annual online revenue, but it also gives a breakdown of the top eCommerce vendors these top retailers use.

The intent of the vendor ranking is to help retailers make decisions about suppliers. Internet Retailer is a great organization and we’re happy to be listed as one of the top providers of customer reviews; however, we noticed that the numbers can be a bit deceiving. The breakdown cited Bazaarvoice as serving  40 of the Internet Retailer 500. In fact, we are proud that we partner with over 100 of the Internet Retailer 500, making Bazaarvoice #1 for ratings and reviews, not to mention for social commerce solutions.

Why did they cite only 40? In the case of the Internet Retailer Guide, the methodology is for retailers to self report about which eCommerce providers they used. It’s the prerogative of the one person who fills out the survey to choose or know who their provider is for each function of their ecommerce ecosystem. It’s possible larger clients are less inclined to divulge all their providers, or perhaps the person filling out the survey doesn’t know all of their providers. Either way, according to our actual client records, Bazaarvoice was vastly underreported in this year’s Guide. We noticed other large eCommerce providers, such as IBM and ATG, were also underrepresented in the survey.

You could also look at market leadership in terms of size of clients or business size. In the Internet Retailer Guide, no additional weight was given to the largest retailers – the #1 retailer is ranked the same as #500. While smaller retailers may serve niche markets, the huge mass retailers amass tons of internal knowledge and expertise to become the largest in the United States, and more of the larger retailers choose Bazaarvoice. Among the Top 50 retailers, Bazaarvoice outranks the closest competition by a ratio of nearly 7:1 with clients like Best Buy, Dell, QVC, Macy’s, Costco, Overstock.com, and more. And in the Top 100, we outserve our nearest competitor by a ratio of 4:1.  See our partial client list here (not all clients give permission to display their logos).clients
When you factor in retailers who don’t have reviews or host them in-house, Bazaarvoice’s leadership is even more pronounced, with more than 80% of the Top 100 retailers choosing Bazaarvoice. And we are just talking about our Ratings & Reviews product, not to mention our other social commerce solutions, such as Ask & Answer and Stories.

This is an important point because as a hosted provider, part of our value to each client is learning from the whole. We help shape and share best practices from innovative, smaller clients (such as Vintage Tub and Bath or Fair Indigo) to large multi-channel retailers, such as Best Buy, Dell, and Costco. We truly believe we are inventing the future with our clients, and with a cross-vertical client list across small and large clients, we are able to innovate products rapidly (every seven weeks) and share best practices that help all clients grow ROI from social commerce.

Today over 525 brands, including over 100 of the Internet Retailer 500, turn to Bazaarvoice because we are the leader in ratings and reviews…and moreover the leader in social commerce.  We’d rather not beat our chest about these things, but we are proud of the company we keep, proud of what we’ve accomplished, and believe it’s important that our clients know the facts.

Sam Decker Rosetta Stone customers share opinions

June 23rd, 2009 by Sam Decker Chief Marketing Officer

rosetta-stoneRosetta Stone, the leading provider of interactive language-learning solutions, launched Bazaarvoice Ratings & Reviews™ to help customers share their experiences with learning new languages. Now current customers can easily exchange their opinions on a wide range of language-learning solutions covering more than 30 languages, and new customers can browse customer-generated reviews to learn which solution is applicable to their interest and skill level.

Since the launch in April 2009, Rosetta Stone has already collected thousands of product reviews, with over 95 percent of the reviews having a 4 or 5-star rating. To further help visitors determine each review’s relevance, an extensive reviewer profile that highlights the reviewer’s previous experience with the language; reason for learning the language; next language to learn; and number of Rosetta Stone products owned are provided with each review.

According to Tom Adams, CEO of Rosetta Stone, “The positive response to Bazaarvoice Ratings & Reviews has been outstanding and we are eager to further listen, learn, and communicate with our customers and help them in their language learning journey.”

Read more about Rosetta Stone’s launch in our press release, and check out our related blog posts to see how other clients have used Bazaarvoice Ratings & Reviews to drive customer engagement for their own brands.

Sam Decker 2009 Summit Cliffnotes #3: How the New York Times is Using WOM Insights to Build ROI

May 28th, 2009 by Sam Decker Chief Marketing Officer

This series of blogs summarizes key takeaways from some of the presentations and panel discussions offered at the jeffreygraham2009 Social Commerce Summit.

“How the New York Times is using WOM to drive ROI” was the keynote given by Jeffrey Graham, Executive Director of Customer Insight for the New York Times, on April  29, 2009.

Readers tell the New York Times that they buy the paper or visit NYTimes.com because the content fuels their conversations. They like to be “in the know.” They want to be where the dialogue begins.

All media is social media – including newspapers, which are a forum for communicating issues of interest to the public. But the scope of media presentation has changed drastically within the past decade. The New York Times has pursued different ways to bring its content to a global audience.

Women Multipliers
Marketers have come to realize that women play a large role in decision-making, especially in non-traditionally female-targeted categories such as technology and automobiles. Further, there is a set of “multipliers” who spur and rely on word of mouth to extend trends.

In 2008, the Times conducted an online study of more than 3,000 affluent women with in-depth interviews in NYC and LA. The survey covered investments, fashion, travel, consumer electronics and automobiles and filtered for word of mouth factors:

  • Means of influence – personal communication with at least five people per day
  • Past recommendation behavior – looking for a history of word of mouth influence
  • Personality traits – a love for learning new things, sharing ideas, and offering advice

The results revealed that 92 percent of women multipliers mentioned preferred products or services in conversations, in contrast to 79 percent of average affluent women.

Multiplier word of mouth is more valuable because the multipliers consume in greater quantities, and speak up more often. Auto non-multipliers speak to two people, for instance; multipliers speak to 14 ppl. If you reach 40 percent of the multipliers within your media plan, you double the number of recommendations made. Media planners don’t analyze multiplier data yet, but they will.

Global Multipliers
Does this trend exist only in the US and Europe? Or is it a global phenomenon?

A 2008 Reuters study analyzed similar trends amongst 4300 affluent consumers from major global nations. Multipliers were recognized based on product engagement, purchasing power, and social influence in the areas of advocacy, finance, luxury, technology, and travel.

While affluent multipliers constitute only one percent of the population, they influence 20 percent of all travel expenditure – 241 million flights – as well as 26 percent of global technology and 18 percent of global luxury purchases.

The study found a shared group of traits that is consistent around the world. Seventy-two percent of multipliers stressed the importance of being the first to try something new. Early adopters drive profitability because they rapidly adopt new products and spread the word about them. Eighty-nine percent of multipliers feel a responsibility to share their experience, offering 2.5 times the number of average consumer recommendations. Technology multipliers are asked for product recommendations a whopping average of 8 times per week.

Hidden Business Decision Influencers (B2B)
In 2008, the Times spoke with several dozen B2B individuals from various fields about the people they influence, and the ones who influence them. An average of five other voices influence business decisions, with influence overlapping industries. Businesses are influenced by a wide network of people, with many chief decision makers heavily dependent upon multiple sources of information and early adaptation of new technology. Alumni networks are among the top second-degree influencers.

What Multipliers Represent
The return on investing in multipliers was Bazaarvoice clients’ success. The Times’s metrics showed that word of mouth is the new measure of effective advertising. The NYTimes.com has seen the following results:

  • #1 newspaper site on the Web
  • 20 million monthly unique users
  • Most blogged site on the internet – extends the NYT’s mission to inform people across the world
  • Numerous industry awards

How to Utilize the Multiplier Effect

  1. Multipliers like to spread the word – enable them to spread YOUR message
  2. Multipliers are info mavens – be their source for news and trends
  3. Multipliers like to be experts – target your media to bring them YOUR news
  4. Multipliers want to talk back – use online media to cultivate a dialogue
  5. Multipliers are very environmentally conscious – increasing sustainability is key
  6. Multipliers tend to be trendsetters for things to come

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