Archive for the ‘Word of Mouth’ Category

Sam Decker Forrester recognizes USAA as social media innovator

March 12th, 2010 by Sam Decker Chief Marketing Officer

Today Forrester released a compelling case study about USAA, “USAA Uses Social Media To Drive Sales, Product, And Service Strategies,” noting that they are a pioneer of social commerce in the financial services industry.

Forrester worked directly with Tom Vaughn, Director of Social Media at USAA , who spoke at length about their relationship with Bazaarvoice and impact of customer reviews on all areas of the business.

USAA created a social media strategy focused on four pillars: listening, engaging, strengthening relationships, and innovation. A year after offering Bazaarvoice ratings and reviews to its members on USAA.com, thousands of members have provided reviews, and USAA has used those reviews to drive product improvements, improve Web site conversion, and increase interactive marketing effectiveness.

Here’s the executive summary:

Financial services firm USAA created its first formal social media strategy in October 2008. In 2009, it further refined and represented the strategy as four pillars of focus: listening, engaging, strengthening relationships, and innovation. As a tactic of listening and engaging, USAA engaged Bazaarvoice to offer ratings and reviews to its members on USAA.com. Nearly a year later, the results are astounding. Thousands of members have provided reviews, and USAA has used those reviews to drive product improvements, improve Web site conversion, and increase interactive marketing effectiveness.

  • Situation: USAA Pondered The Role Of Social Media To Its Business
  • Best Practice: USAA Brings Social Media Tactics To eBusiness
  • Ratings And Reviews Provide The “Authentic Voice” Of USAA Members
  • USAA Has Achieved Tangible Results From The Use Of Social Media On Its Web Site

You can find the full Forrester case study online. And keep an eye on this blog for an interview with Tom Vaughn in the coming weeks.

Deborah de Freitas New video: transparency is “GOOD”

March 8th, 2010 by Deborah de Freitas Director, Marketing Communications

A colleague forwarded me this enjoyable little video from GOOD magazine the other day. In addition to some visually entertaining infographics, the video, titled “Transparency: Modern Retail,” is brimming with compelling stats on the ever-growing importance of UGC in online retail.

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A few highlights:

  • “Among people who planned to post reviews of their online shopping experience, 88% said the review would be positive.” At Bazaarvoice we call this the “J-curve.” Across all of our clients (even internationally) customer reviews are overwhelmingly positive.
  • “Online social network users are three times more likely to trust their peers’ opinions over advertising.” Capitalizing on this trust is key. With features like Facebook Connect, it’s now possible for shoppers to find out what their friends are saying about products. TurboTax’s “Friends Like You” feature not only allows shoppers to filter reviews by personal aspects like “bought a home” or “had a baby,” but also allows them to find reviews submitted by their connections on social networks like Facebook and Twitter.
  • “The highest performing businesses use customer insights in 80% of sales and merchandising.” We’ve seen clients infuse UGC into all of their multichannel marketing and advertising efforts with great success, from email to in-store, mobile and even paid search.
  • “The 2009 holiday season set a new record: 79% of online shoppers were satisfied customers.” UGC not only helps customers find the right products for them, it also helps to set realistic expectations. Together, these two benefits lead to more satisfied customers, fewer customer support contacts, and decreased product returns.

These are just a few of the great stats in the video, pulled together by eMarketer, BIGresearch, and the NRF, among others. For more social commerce stats, check out our Stats page.

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?

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!

Sam Decker Top 10 Bazaarblog Posts of 2009

December 30th, 2009 by Sam Decker Chief Marketing Officer

We’ve reached that time of year when everyone looks back. The lists of the year’s Trending Twitter Topics and Most Googled Words have made their rounds. Here’s a look at the Bazaarblog posts that topped 2009.

10. New “Participation Chain” White Paper – Tying contributions together to gain deeper customer engagement… and results! My white paper with Ze Frank explored the cycle of engagement brands should employ to keep the customer conversation going. You can download the full white paper here.

9. How one man got a whole mob dancing. A video from the Sasquatch Music Festival illustrated the ideal growth cycle of an online community.

8. Bazaarvoice Named #1 Place to Work. The Austin Business Journal recognized Bazaarvoice as the Best Place to Work.

7. “Bad” reviews are good for your brand. I addressed a common point of hesitation for brands considering embracing UGC – the fear of negative feedback.

6. Argos UK sets new Bazaarvoice record for number of submissions in one day! Our biggest European client doubled our previous submission record, thanks to an effective holiday review strategy.

5. The “Man Purse” in ‘The Hangover’. Our CEO Brett Hurt found humor in the very highly-rated “man purse” featured in Warner Brothers’ The Hangover.

4. Rubbermaid Improves Customer Experience through Ratings & Reviews. Manager of eMarketing & Brand Communications at Rubbermaid shared the brand’s strategy toward negative reviews.

3. Leadership Themes from My Talk at The Wharton School. Brett highlighted the key leadership themes from his talk at his alma mater.

2. Social media drives sales — if you know how to use it. I discussed the ways brands should use social media to drive real sales results – not just number of fans.

1. Netflix vs. Blockbuster: Round Four (Lights Out?). Brett analyzed the word-of-mouth lessons learned from Netflix’s (won?) battle with Blockbuster.

2010 promises to be a defining year for social commerce, so stay tuned to Bazaarblog. Happy New Year from all of us at Bazaarvoice!

Sam Decker Holiday shoppers relying on word of mouth more than ever

December 10th, 2009 by Sam Decker Chief Marketing Officer

Thanksgiving Week 2009 was a record-breaker for Bazaarvoice clients. Collectively, shoppers consumed more than 1.9 billion pieces of user-generated content across hundreds of client sites, up 58% over 2008. And they read much more than just reviews. Use of consumer questions during this time was up 122% over 2008 numbers, and use of consumer answers increased 124%.

While research such as the recent Shop.org/BIGresearch study continue to show that customer reviews are consistently among the most important features on retail sites for consumers, brands that have added community Q&A and shared stories campaigns have seen that this content is increasingly impacting site traffic and sales.

The spike represents a continuing fundamental shift in the way consumers do research and make purchases. UGC usage peaked at 11pm on Thursday night, as users researched Black Friday deals online. And our network saw a 61% increase in UGC served on Cyber Monday than the previous year, serving 28,000 pieces of content per second during peak usage.

Our data matches the findings of a recent comScore study, which found that 28% of shoppers who have started buying holiday gifts were influenced by social media. Of these, 13% were influenced by a customer review, and 9% were influenced by a connection’s shared opinion on Facebook or Twitter.

Social commerce is changing shopping on a deep level, bringing interaction between customers into the purchase path to help shoppers and drive sales. Expect this trend to continue throughout this holiday season and into the new year.

Heather Brunner Integrated campaign dramatically increases WOM for Roots

December 2nd, 2009 by Heather Brunner Chief Operations Officer

This blog post is guest-written by Lisa Tu, Community Manager at Bazaarvoice.

Roots in-store signageAs Canada’s leading lifestyle brand, Roots offers clothing, leather goods and home furnishings with an eclectic, earth-friendly sense of style. Its global fans are fanatics, and Roots wanted to highlight them on their site.

In March 2009, Roots added customer reviews to its site, Roots.com, to help shoppers make easier purchase decisions. Just a few weeks later, they kicked off a massive promotion to encourage customers to write reviews on their purchases. For six weeks, they offered the chance to win a $500 Roots shopping spree, promoting it through every channel possible – online, offline, and even beyond their customers.

To promote this contest, they sent an announcement email to their customer database, linking to a splash page that showing customers how to submit reviews. Multiple banners throughout their site and a rolling banner on the home page also called out the contest.

Promotion beyond the site

Roots promoted the contest through their popular Roots blog. They also promoted the contest via social networks, posing it on their fan page on Facebook – which has more than 5,000 fans – and on Twitter.

Original email to customer databasePromotion beyond the web

Additionally, Roots promoted the contest within their more than 120 retail locations. They used table cappers and bag inserts to encourage in-store shoppers to go online and review their purchases for a chance to win.

Promotion beyond their customers

Not only did they reach out to their customers, but Roots also did an internal campaign to boost reviews among their employees as well. All Roots employees had a chance to win one of three $50 Roots gift cards if they wrote a review during the six-week promotional period.

Campaign results

In the six weeks of the campaign, Roots gathered saw massive increases in their review volume. They then used this content to drive email interest through word of mouth. In May, just after the campaign ended, Roots sent out an email featuring customer reviews of dresses and skirts, with positive results:

  • Sales for the email were 29% higher than the monthly email average for May
  • Open rate was 2.73% higher than the monthly email average for May
  • Click-through rate was 2.3% higher than the monthly email average for May

Through touch points across channels, Roots drove review volume on their ecommerce site, building a database of rich information to benefit shoppers and fueling emails that drove new sales. This is just one of many instances of Bazaarvoice clients bringing the power word of mouth full circle for real results. Stay tuned to our blog for more client examples.

Heather Brunner Social is the new Holiday Card

November 24th, 2009 by Heather Brunner Chief Operations Officer

While designing this year’s Bazaarvoice holiday card, we wanted something more participatory than a traditional “Happy Holidays from Bazaarvoice.” Our clients use our products to start conversations with their customers; we wanted to use our holiday card to start a conversation with you.

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What’s more conversational than your holiday stories? We want to hear about your funniest gift, your worst travel experience, your favorite recipe, your most touching family moment – whatever story you feel like sharing with us.

But here’s the catch – you have to tell your story in 140 characters or less. Tweet us your stories on Twitter with the hashtag #bvhs between now and December 31st. We’ll choose the best tweets and post one a day to our Holiday Card page, coming soon. Each winner will receive a $10 gift card to Starbucks and a chance at the grand prize – a $500 AMEX card.

Here are a few examples for inspiration:

  • Wrapped all of our gifts before driving to Phoenix so the kids would be surprised. Left them under the tree at home. #bvhs
  • Got Mom a parka for the awful winters in Michigan. Next morning she announced she’s retiring to Florida. Always get gift receipts. #bvhs
  • Spent our first holiday together in a wooded cabin, nothing but the snow surrounding us. Peaceful bliss after a hectic wedding. #bvhs
  • Age 14: got a TV for my room… I had to share with my brother. The argument lasted well into the new year! #bvhs

For more inspiration (and a good laugh), see what others have already submitted by searching #bvhs. Be sure to follow @Bazaarvoice on Twitter so we can DM the winners!

Happy holidays from all of us on the Bazaarvoice team!

Sam Decker Facebook expands its reach, makes friends even more powerful

August 17th, 2009 by Sam Decker Chief Marketing Officer

Become our fan on FacebookWith Facebook’s recent search functionality improvement, it’s working to become more like Twitter. With the changes, Facebook hopes you’ll find information on important topics that your friends – and everyone else – are commenting on.

And Facebook’s acquisition of FriendFeed, an online tool that helps users share information with their friends, further underscores the power of friends and other “people like me.”

Bottom line? If you’re on Facebook, you likely care most about what your friends – and perhaps their friends – think. There’s a reason you’re on Facebook, to share information with the important people in your life.

The power of these people is one of the main reasons we created Social Network Accelerators. When you’re shopping – whether you’re looking for a TV, a new insurance policy, or your next vacation – you automatically ask the people you know best. Social Network Accelerators feed into this by integrating with Facebook. When you go to your favorite retailer’s site to browse, you can see reviews from your friends, and even ask them questions from the site.

With our Facebook Connect application, customers can now shop online with their smartest friends in tow, seeing the products they recommend (or don’t), stories, and questions they have asked or answered.

For years, Facebook users have been able to share their published product reviews with their Facebook friends through applications like ShoutIt!, so their friends can see products they prefer. Bazaarvoice’s Facebook Connect solution takes this a step further, showing friends’ preferences while a shopper searches for a specific product – and guidance on what to buy – online.

This is just one phase of the new Social Network Accelerators we’re developing, part of helping our clients gain value from all their social assets. As discussed in our blog introducing Social Network Accelerators, our Facebook Connect application helps distribute user-generated content among a user’s friends, lets profiles drive which content a Facebook user sees at a retailer site, and lets Facebook users participate on retailer sites when retailers enable users to submit stories, answers, and reviews directly through Facebook.

Sam Decker Word of Mouth spending on the rise

August 14th, 2009 by Sam Decker Chief Marketing Officer

WOM spending continues to riseOverall ad spending may be down, but word of mouth spending certainly isn’t. Research from PQ Media estimates total 2009 word of mouth spending at over $1.7 billion, up 10.2% over last year. They go on to project that this figure will continue to rise at 14.5% compounded annually between 2008 and 2013.

And these figures come at a time when budgets are being cut left and right. Recent eMarketer reports predict an 8.2% decline in total media ad spending over 2008. WOM spending’s “double-digit growth in this economic environment is a strong sign of an increasingly prevalent role in the future,” says Patrick Quinn, president and CEO of PQ Media.

What should all these additional dollars spent on WOM be targeting? “The most influential marketer in a consumer’s life is someone they know and trust, such as a family member, friend or colleague,” said Quinn. No surprise there – recommendations from friends and family are still the information source most valued by customers, followed by customer opinions posted online.

Social media has made these influencers more powerful and connected than ever before. So how can a brand capitalize on these opinions? By integrating with social media to help customers help each other.  The first step to getting customers to talk is to give them a voice. In generating word of mouth, amplifying this voice is the key to turning WOM into ROI.