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	<title>The Bazaarvoice Social Commerce Blog &#187; Amazon.com</title>
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	<link>http://www.bazaarvoice.com/blog</link>
	<description>Ideas to Help Customers Build Your Business</description>
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		<title>A dozen big trends and business model mash-ups</title>
		<link>http://www.bazaarvoice.com/blog/2010/05/01/a-dozen-big-trends-and-business-model-mash-ups/</link>
		<comments>http://www.bazaarvoice.com/blog/2010/05/01/a-dozen-big-trends-and-business-model-mash-ups/#comments</comments>
		<pubDate>Sat, 01 May 2010 21:01:05 +0000</pubDate>
		<dc:creator>Brett Hurt</dc:creator>
				<category><![CDATA[Thoughts on Social Commerce]]></category>
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		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/?p=3590</guid>
		<description><![CDATA[Buying a Kindle DX ten months ago and now an iPad (delivered in the first batch&#8230;]]></description>
			<content:encoded><![CDATA[<a href="http://gizmodo.com/search/ipad"><img class=" alignleft" title="iPad with keyboard docking station" src="http://www.treehugger.com/ipad-gizmodo.jpg" alt="iPad with keyboard docking station" width="138" height="91" /></a>
<p>Buying a Kindle DX ten months ago and now an iPad (delivered in the first batch on April 3rd), it really struck me recently how messy (or exciting!) everything is getting.  Mash-ups of business models are happening everywhere, and at an accelerating pace.  Here are a dozen big trends that I&#039;m watching for this year, some relevant to Bazaarvoice and others not so much:</p>
<ol>
<li>After Amazon.com launched the Kindle, it quickly became their number-one seller.  The free wifi to download a book from anywhere was just too compelling to pass up, along with the very easy to read screen.  Amazon projected that it would increase compulsive buying of books to the point where the wifi was subsidized by Amazon.com.  And it is working (for now).</li>
<li>And while we&#039;re talking about compulsive buying, consider Amazon.com Prime for  &#034;consolidated&#034; buying vs. other retailers.  Other retailers have tried to emulate Prime and failed to do so.  It is difficult to do &#8211; you have to be very quick to ship (i.e., many distribution centers), with the availability (i.e., tons of inventory), to really trigger the compulsive buying effect.  There are profound implications on the long-tail as Amazon.com expands.  And, in their most recent quarterly report, Amazon&#039;s same-store U.S. sales were up a staggering 75%.  It seems that both the Kindle and Prime are triggering the compulsive buying effect, coupled with Amazon&#039;s long-tail inventory.  Many retailers same-store sales are flat to down as we come out of the Great Recession, and Amazon.com&#039;s stellar performance has to be noticed by them.  Our Chief Marketing Officer, <a href="http://www.bazaarvoice.com/blog/2008/11/14/how-to-stop-losing-market-share-to-amazon/" target="_blank">Sam, blogged about this</a> in November of 2008 and it is even more true today.</li>
<li>Enter the iPad.  The week Apple launched the iPad it <a href="http://news.yahoo.com/s/nm/20100409/tc_nm/us_apple_4" target="_blank">sold 450,000 units</a> with <a href="http://www.businessweek.com/technology/content/apr2010/tc20100412_516320.htm?link_position=link1" target="_blank">600,000 books</a> (via iBooks) shortly after.  Now that I have had the iPad for awhile, I don&#039;t just think of it as competitive with the Kindle or other eReaders or &#034;tablets&#034; &#8211; it is also competitive with netbooks (another mash-up), <a href="http://www.pcmag.com/article2/0,2817,2358514,00.asp" target="_blank">as Steve Jobs eagerly stressed</a>.  Just project out a few years when the iPad has 256gb capacity, instead of the 64gb my model has today, combined with the new iPhone 4.0 OS (coming out at the end of this year) that enables multitasking, a micro-USB port or two, and wireless streaming everywhere allowing for seamless connectivity no matter where you are.  The iPad already has a keyboard docking station, which I also bought, and, of course, bluetooth for connecting to wireless keyboards.  And new TVs and DVDs are coming out with built-in home network and wireless capabilities, allowing you to stream TV to laptops, netbooks, desktops, iPads, iPhones, or whatever you choose to use around the house (or while you are on the road if you have a Slingbox or something similar).  The bottom line is that the genius author, Kevin Kelly, got it right in <a href="http://budurl.com/ipadwn" target="_blank">this Wired magazine article</a> (comparing tablets to a portable window into the world).</li>
<li><span id="more-3590"></span>Will the iPad hurt Kindle sales?  Many <a href="http://blogs.barrons.com/techtraderdaily/2010/04/01/amazon-time-to-cut-kindle-to-149-pipers-munster-says/" target="_blank">Wall Street analysts</a> and journalists think so.  My personal take?  Well, I was skeptical about whether or not I would enjoy reading books on it as much as I do the Kindle.  Initially we were just buying the iPad as a family device for watching movies, playing games, and keeping up with blogs, Facebook, and Twitter.  But now with the Kindle app loaded on my iPad, adjusted to a sepia &#034;paper&#034; color and 60% brightness, I can read for hours just fine.  But to really see how the iPad transforms books, just check out the book it comes pre-loaded with (a <em>Winnie the Pooh</em> children&#039;s book, which is, of course, in beautiful color).  No color on the Kindle.  Every try to read a no-color book to a child?  And then check out the app, <a href="http://boingboing.net/2010/04/01/the-elements-for-ipa.html" target="_blank"><em>The Elements</em></a>, which has gorgeous color, 3D illustrations, and full-on video.  Or look at what <a href="http://mashable.com/2010/02/16/wired-magazine-ipad-demo/" target="_blank">Wired magazine may be planning</a> to do with tablets.  I was watching <em>Alice in Wonderland</em> with our daughter recently, and Alice said (shortly before falling down the rabbit hole), &#034;What is the use of a book, without pictures or conversations?&#034;.  Just look back in history at the adoption rates once color television came out vs. black-and-white television.  It is just a matter of time before our children are carrying interactive tablets in their backpacks instead of heavy textbooks.  Yes, I think it is going to impact Kindle sales.</li>
<li>Ok, let&#039;s talk about mobile.  Google&#039;s Android (open platform) continues to gain traction vs. Apple&#039;s iPhone OS (closed platform).  It wasn&#039;t surprising to me when Eric Schmidt resigned from Apple&#039;s Board of Directors.  I moderated a <a href="http://blog.nrf.com/2010/03/04/panel-social-commerce-has-arrived/" target="_blank">panel of amazing venture capitalists</a> at NRF and Shop.org&#039;s Innovate conference back in March, where my good friend <a href="http://www.crunchbase.com/person/peter-fenton" target="_blank">Peter Fenton</a> of Benchmark Capital predicted that Android would overtake the iPhone OS over time.  Of course, Android will power tablets too.  We&#039;ve seen this movie before as Apple stayed closed vs. the PC world being open.  Will the movie be the same this time?</li>
<li>Mobile is now at a tipping point, with GPS built in, good camera phones, and great web browsers (e.g., Safari and Chrome).  We&#039;ll see a lot of mash-ups in this area as mobile is increasingly used by consumers while in stores, which will one-up <a href="http://www.bazaarvoice.com/blog/2009/01/20/the-year-of-mobile/" target="_blank">the mobile use we&#039;ve seen in social commerce so far</a>.  Interestingly, the <a href="http://events.nrf.com/innovate10/public/SessionDetails.aspx?SessionID=1100" target="_blank">VCs on my NRF and Shop.org panel in March</a> thought it would take several years, so our prediction about <a href="http://www.bazaarvoice.com/blog/2009/01/20/the-year-of-mobile/" target="_blank">&#034;the year of mobile&#034; in 2009</a> may have been a bit early, although I would argue that the iPhone&#039;s rapid adoption that year did change the game.  And it certainly hasn&#039;t slowed down Mary Meeker at Morgan Stanley to produce <a href="http://www.businessinsider.com/henry-blodget-morgan-stanleys-mobile-internet-report-complete-2009-12" target="_blank">the most comprehensive report</a> (at 424 pages) I&#039;ve ever seen on the state of the mobile industry, nor did it prevent NRF and Shop.org from having a <a href="http://events.nrf.com/bootcamp10/public/enter.aspx" target="_blank">Mobile Boot Camp</a> at the March conference.</li>
<li>How about blogging?  My guess is that blog-post length has decreased (this post aside!) as Facebook has increased to a longer status format and people have become more and more used to Twitter&#039;s 140-character length updates.  Perhaps blog views have also decreased.  This leads to more &#034;lightweight&#034;, or surface-level, conversations than the deeper-thinking conversations on blogs.  But we&#039;ll survive just fine.  I simply don&#039;t buy <a href="http://news.cnet.com/8301-13505_3-9962935-16.html" target="_blank">Nick Carr&#039;s arguments</a> but I&#039;ll debate that later if you wish.</li>
<li>Although this would be the obvious place to discuss this trend, I&#039;ll purposely stay away from Facebook Like vs. Google Buzz vs. Google AdSense as my co-founder and our Chief Innovation Officer, Brant, is addressing that in a future post.  But needless to say, social is permeating the Web and that trend is accelerating, so we will continue to innovate quickly in this area.</li>
<li>Let&#039;s talk about transparency.  At the <a href="http://www.libertynetleadersforum.com/" target="_blank">Liberty Interactive NetLeaders Forum</a> in 2008, I remember Rich Barton, founder of Expedia and Zillow, presenting, &#034;everything that can be reviewed will be reviewed [on the Web]&#034;.  He showed us examples of CEOs being reviewed on Glassdoor.com.  My opinion?  This will lead to a company culture revolution, which is part of the reason I feel so compelled to write my forthcoming book, <a href="http://blog.shop.org/2010/02/17/talking-with-bazaarvoice-ceo-brett-hurt/" target="_blank"><em>How to Make Your Company Suck Less</em></a>.  And Chris Fralic of First Round Capital as well as Kamal Kirpalani of Bazaarvoice recently asked me to review them on <a href="http://www.getunvarnished.com/" target="_blank">Unvarnished</a>.  <a href="http://budurl.com/bhwhar" target="_blank">I wrote about transparency</a> awhile back, based on a leadership talk I gave at The Wharton School.  In short, I think this is a very profound trend that will not only cause a renaissance in commerce but also in politics, government, and all types of human activities and relationships.</li>
<li>At Bazaarvoice, we&#039;re leading a revolution of marketing and merchandising with social commerce and user-generated content &#8211; or (my preference) digital word of mouth.  Digital word of mouth is quickly becoming the central point of insight for marketers and merchants.  We are writing the marketing and merchandising textbook of the future in our work with our clients (<a href="http://budurl.com/bv100b" target="_blank">read my previous thoughts on this</a>, from when we reached out 100-billion-impression milestone in February).  Digital word of mouth is getting mashed-up versus the aging focus group, NetPromoter, customer survey, and other methods that get &#034;close&#034; but aren&#039;t nearly as pure as how customers speak to each other with no bias vs. how they communicate while in the context of talking to the company.  Things for you to consider here: a) the market has always been based on conversations (<a href="http://budurl.com/bvclue" target="_blank">read this chapter</a> that was the namesake of our company), b) <a href="http://budurl.com/bvtri" target="_blank">reviews are the new advertising</a> as we are <a href="http://www.bazaarvoice.com/blog/2010/04/27/three-ways-consumer-packaged-goods-win-with-social-media/" target="_blank">already beginning to commonly see</a>, c) consumers <a href="http://www.bazaarvoice.com/about/press-room/keller-fay-group-and-bazaarvoice-study-finds-altruism-drives-online-reviewers" target="_blank">write reviews to help each other</a> (i.e., altruism, or with no bias), and d) this trend is why <a href="http://www.bazaarvoice.com/blog/2010/04/21/google-bazaarvoice-partnership-gives-consumers-greater-control-and-scores-big-for-brands/" target="_blank">Google</a> and <a href="http://www.bazaarvoice.com/blog/2010/04/15/nielsen-alliance-gives-bazaarvoice-clients-a-holistic-view-of-buzz/" target="_blank">Nielsen partnered with us</a>.</li>
<li>Channel marketing is becoming more wired.  We see a major trend in this area with <a href="http://www.bazaarvoice.com/blog/2010/04/20/informed-consumers-are-more-profitable/" target="_blank">the adoption of our BrandVoice and BrandAnswers solutions</a>.  We are at the beginning of this shift, and it is logical to think that, just as offline to advertising shift has fueled online advertising, we will see a similar accelerating trend as suppliers of retailers become more savvy at online channel marketing in a world where 80% of consumers read reviews while they are shopping (Nielsen&#039;s most recent stat).  And, of course, mobile is a major accelerant of this trend.</li>
<li>Finally, the digital executive will continue to rise in prominence as companies work hard to make sense of the rapid shift to a more digital, hyper-connected world.  For some early indicators of this, look at <a href="http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/01/25/daily71.html" target="_blank">Raul Vazquez&#039;s promotion</a> from CEO of Walmart.com to EVP and President of Walmart West.  Or Toby Lenk&#039;s, the founder of the original eToys, rise to <a href="http://www.gapinc.com/public/About/abt_leader_lenk.shtml" target="_blank">President of Direct at Gap</a>.  (I should mention that both are among the best speakers we have ever had at Shop.org events, where I proudly serve on the <a href="http://www.shop.org/About/BoardofDirectors" target="_blank">Board of Directors</a>.)  These are very exciting times for those who really &#034;get it&#034; in digital.</li>
</ol>
<p>For the long-term potential of the Web, I recommend you check out Kevin Kelly&#039;s speech at TED in Dec 2007 or his <a href="http://www.wired.com/wired/archive/13.08/tech.html" target="_blank">similarly brilliant article</a> in Wired magazine.  And if you have time to get really far out in thinking about technology&#039;s impact on the world, just read chapter 1 (trust me, it&#039;s enough) of Ray Kurzweil&#039;s <a href="http://www.amazon.com/Singularity-Near-Humans-Transcend-Biology/product-reviews/0143037889/ref=dp_top_cm_cr_acr_txt?ie=UTF8&amp;showViewpoints=1" target="_blank"><em>The Singularity Is Near: When Humans Transcend Biology</em></a> (thanks to my good friend, <a href="http://www.linkedin.com/in/ethanholland" target="_blank">Ethan Holland</a> at American Eagle, for suggesting it to me).<br />
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		<slash:comments>10</slash:comments>
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		<item>
		<title>Brett Hurt, Our CEO, Founder &amp; Friend, Named Austin&#039;s Entrepreneur of the Year</title>
		<link>http://www.bazaarvoice.com/blog/2009/05/31/brett-hurt-our-ceo-founder-friend-named-austins-entrepreneur-of-the-year/</link>
		<comments>http://www.bazaarvoice.com/blog/2009/05/31/brett-hurt-our-ceo-founder-friend-named-austins-entrepreneur-of-the-year/#comments</comments>
		<pubDate>Sun, 31 May 2009 15:39:30 +0000</pubDate>
		<dc:creator>Brant Barton</dc:creator>
				<category><![CDATA[@Bazaarvoice]]></category>
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		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/?p=1029</guid>
		<description><![CDATA[It’s been an exciting couple of weeks at Bazaarvoice. First, on May 21st,&#8230;]]></description>
			<content:encoded><![CDATA[<p>It’s been an exciting couple of weeks at Bazaarvoice. First, on May 21st, Bazaarvoice was named the <a href="http://www.bazaarvoice.com/blog/2009/05/22/bazaarvoice-named-austin%E2%80%99s-best-place-to-work/" target="_blank">#1 Best Place to Work in Austin</a>. We got a great photo of our entire team, including international team members who were in town for our quarterly company offsite at the Alamo Drafthouse, in front of our massive 52-inch Sabian Chinese gong in the <a href="http://www.bizjournals.com/louisville/othercities/austin/stories/2009/05/25/story11.html?b=1243224000^1833782" target="_blank">Austin Business Journal</a>.</p>
<p>Second, just one week later, our very own Brett Hurt was named Ernst &amp; Young <a href="http://austin.bizjournals.com/austin/stories/2009/06/01/focus4.html?b=1243828800^1836400" target="_blank">Entrepreneur of the Year in Austin</a> – one of four regional winners. The E&amp;Y Entrepreneur of the Year awards recognize entrepreneurs who demonstrate extraordinary success in the areas of innovation, financial performance, and personal commitment to their businesses and communities.</p>
<img class="aligncenter size-full wp-image-1018" title="Bazaarvoice CEO Brett Hurt named Austin Entrepreneur of the Year" src="http://www.bazaarvoice.com/blog/wp-content/uploads/brett.jpg" alt="Bazaarvoice CEO Brett Hurt named Austin Entrepreneur of the Year" width="427" height="640" />
<p>I can’t think of anyone who deserves this honor more than Brett. In the description above, the word that I would emphasize most in describing Brett&#039;s motivation as an entrepreneur is community. An Austin native, Brett is very mindful of the positive, profound, and multi-generational impact that a single entrepreneur and business can have on the prosperity of a community. He sees Bazaarvoice&#039;s success and his own as a win for all of Austin, and he sincerely hopes that Bazaarvoice&#039;s success will bring prosperity to our community not just in terms of job and wealth creation but in the form of many future companies that our team members will one day start.</p>
<p>When I worked for Brett at <a href="http://www.coremetrics.com/" target="_blank">Coremetrics</a>, the company he founded prior to Bazaarvoice, he was expecting his first child and was in the process of shopping for a new stroller. Like many first-time parents (I recently went through this process myself), he did a ton of online research, finally landing at <a href="http://www.amazon.com " target="_blank">Amazon.com</a> and finding an extremely long and detailed review contributed by an aerospace engineer who had methodically deconstructed and reconstructed the stroller in question, documenting the process and his observations on the stroller&#039;s design, materials quality, and workmanship at every step. This experience had a profound effect on Brett, as he imagined the power of this content for every shopper and purchase decision if it were available for every product and website. The idea for Bazaarvoice was born a few months later. Fast forward four short years and here we are &#8211; we have served 50+ billion reviews for 525+ global brands in 36 countries and we continue to <a href="http://www.bazaarvoice.com/jobs.html" target="_blank">grow (and hire!) like wildfire</a>.</p>
<p>Please join me in congratulating Brett for his many accomplishments as an entrepreneur (Bazaarvoice is his fifth start-up company!), for the positive impact he has had within the Austin business community, and for being a genuinely sincere and humble person. He never fails to show his appreciation for the team at Bazaarvoice, our customers and partners, and the many supporters that have helped the company and Brett personally along the way.</p>
<p>So far, 2009 has been a big year for us – and there&#039;s still six months left to go!</p>
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		<slash:comments>17</slash:comments>
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		<title>&quot;H&quot; is for Humor</title>
		<link>http://www.bazaarvoice.com/blog/2009/05/25/h-is-for-humor/</link>
		<comments>http://www.bazaarvoice.com/blog/2009/05/25/h-is-for-humor/#comments</comments>
		<pubDate>Tue, 26 May 2009 02:44:29 +0000</pubDate>
		<dc:creator>Brant Barton</dc:creator>
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		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/?p=913</guid>
		<description><![CDATA[In addition to tagging reviews, questions, answers, stories and other&#8230;]]></description>
			<content:encoded><![CDATA[<p>In addition to tagging reviews, questions, answers, stories and other customer-generated content with descriptive codes like &#034;CR&#034; for references to competitors and &#034;CS&#034; for customer service issues, I am starting to think that our content moderators should apply &#034;H&#034; to content that could dramatically boost a product&#039;s conversion rate (because after a fit of uncontrollable laughter and the delirium that follows you simply cannot resist the urge to buy the product that is the subject of the &#034;H&#034;). That&#039;s some actionable business insight for merchandising teams.</p>
<p>The inspiration for this post is the now infamous <a href="http://www.amazon.com/gp/product/B000NZW3IY" target="_blank">&#034;Three Wolf Moon T-Shirt&#034;</a>, currently the #1 selling Apparel product on <a href="http://www.amazon.com/" target="_blank">Amazon.com</a>. No, that&#039;s not a typo. I could efficiently end this post by just telling you to read a few of the reviews for this product. That would more than accomplish my goal of demonstrating the value of not taking yourself (or your brand) too seriously. But I have a minimum length requirement to meet, so I&#039;ll go on . . .</p>
<p>Our good friends at <a href="http://econsultancy.com/" target="_blank">Econsultancy</a> in the UK beat me to the punch with an <a href="http://econsultancy.com/blog/3876-ironic-user-reviews-boost-t-shirt-sales-by-2300" target="_blank">entertaining blog post</a> on the t-shirt. <a href="http://www.washingtonpost.com/" target="_blank">The Washington Post</a> published an <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/05/21/AR2009052104472.html" target="_blank">article</a> on the same day. No matter who you trust, that&#039;s one damn funny t-shirt. If you trust me and took my advice above to read a few of the reviews, I bet you are now making your way through the checkout process while you finish reading this nailbiter of a post. That&#039;s impressive multi-tasking.</p>
<p>We see our share of humorous reviews and many of those are just too inappropriate to post, but as reviews of the <a href="http://www.amazon.com/gp/product/B000NZW3IY" target="_blank">Three Wolf Moon T-Shirt</a> aptly demonstrate, there is a very fine line between inappropriate humor and pure genius, not to mention a word of mouth marketing bonanza. I won&#039;t speak for my colleagues at <a href="http://www.bazaarvoice.com/" target="_blank">Bazaarvoice</a> (you know who you are), but this t-shirt is responsible for a major drop in productivity last Friday because I was personally contributing to the millions of word of mouth &#034;impressions&#034; that the product received. While it may be difficult to put a dollar value on each of those impressions, you can most definitely put a dollar value on lost productivity.</p>
<p>In closing, if you offer customer reviews of your products and services, whether you are a <a href="http://www.bazaarvoice.com/" target="_blank">Bazaarvoice</a> client or not, I urge you to evaluate whether your definition of inappropriate is too strict and your tolerance of humor too low. Millions of dollars and an immeasurable wealth of customer word of mouth could be at stake!</p>
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		<title>Our Economy&#039;s Slow Climb to Recovery and Social Commerce</title>
		<link>http://www.bazaarvoice.com/blog/2009/02/15/our-economys-slow-climb-to-recovery-and-social-commerce/</link>
		<comments>http://www.bazaarvoice.com/blog/2009/02/15/our-economys-slow-climb-to-recovery-and-social-commerce/#comments</comments>
		<pubDate>Mon, 16 Feb 2009 01:12:09 +0000</pubDate>
		<dc:creator>Brett Hurt</dc:creator>
				<category><![CDATA[Thoughts on Social Commerce]]></category>
		<category><![CDATA[amazon]]></category>
		<category><![CDATA[Amazon.com]]></category>
		<category><![CDATA[Bazaarvoice]]></category>
		<category><![CDATA[BusinessWeek]]></category>
		<category><![CDATA[james cooper]]></category>
		<category><![CDATA[jim cooper]]></category>
		<category><![CDATA[mary-meeker]]></category>
		<category><![CDATA[morgan-stanley]]></category>
		<category><![CDATA[Social Commerce Summit]]></category>
		<category><![CDATA[social-commerce]]></category>
		<category><![CDATA[Wharton]]></category>

		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/?p=599</guid>
		<description><![CDATA[Every week, I enjoy reading BusinessWeek and one of the highlights is James&#8230;]]></description>
			<content:encoded><![CDATA[<p><img class="alignleft" style="float: left;" src="http://images.businessweek.com/gen/logos/bw/bw_255x54.gif" alt="BusinessWeek logo" width="255" height="54" />Every week, I enjoy reading <a href="http://www.businessweek.com/magazine/" target="_blank">BusinessWeek</a> and one of the highlights is James (Jim) Cooper&#039;s weekly article on the economy.  When I initially started to read Jim&#039;s article, many years ago, I had to struggle through it.  Even though I earned my MBA from <a href="http://www.wharton.upenn.edu/" target="_blank">Wharton</a>, some of the concepts were difficult to understand and my &#034;pattern recognition&#034; took awhile to form.  I&#039;m glad I stuck with it, as it has helped me understand business trends more quickly.</p>
<p>I&#039;ve been thinking a lot about the consumer in this economy, given that consumers drive about 70% of our economy in the U.S. and a large share of the world&#039;s economy (most notably China&#039;s).  We are the world&#039;s largest shopper.  <a href="http://www.businessweek.com/magazine/content/09_07/b4119000498291.htm?campaign_id=rss_topStories" target="_blank">This week&#039;s article by Mr. Cooper</a> really hit the nail on the head, leading me to believe that the recovery is going to take a lot longer than initially assumed.  This may be old news to some of you, but I have been consuming the data as it becomes available and seeing consumer saving increase so dramatically is a real turning point.</p>
<p>I believe that social commerce will shine in a gloomy time like this.  Consumers have always feared &#034;<a href="http://en.wikipedia.org/wiki/Buyers_remorse" target="_blank">buyer&#039;s remorse</a>&#034;.  With <a href="http://www.bls.gov/news.release/empsit.nr0.htm" target="_blank">U.S. unemployment at 7.6%</a> and rising, in addition to the multi-trillion dollar decrease in consumer wealth, purchases will be scrutinized like never before.  And I believe customer ratings and reviews, as well as all forms of customer-generated content (and word of mouth), will be leveraged like never before.  From reducing returns to increasing sales, it is clear that social commerce reduces buyer&#039;s remorse.  This isn&#039;t just a U.S. trend, as the economic problems are global and buyer&#039;s remorse is a common human behavior, and I believe this is the driver behind <a href="http://www.bazaarvoice.com/blog/2009/02/13/brits-shop-reputation-first-products-second/" target="_blank">Sam&#039;s recent post</a> on UK consumers flocking to social commerce.</p>
<p>If you missed Sam&#039;s post in November on Amazon, <a href="http://www.bazaarvoice.com/blog/2008/11/14/how-to-stop-losing-market-share-to-amazon/" target="_blank">I recommend you read it</a>.  They were one of the few retailers online that recently announced stellar results during such a challenging retail season.</p>
<p>Our clients have been stepping up their pace of innovation with social commerce.  You can see it reflected in our many blog posts in the last two months, especially the one from Heather about the <a href="http://www.bazaarvoice.com/blog/2009/01/16/ho-ho-whole-lotta-holiday-promotions/" target="_blank">unprecented number of holiday promotions</a> we helped drive with our Community Managers.</p>
<p>This will be a huge year for social commerce.  Our company is signing clients at a faster pace than ever before.  Innovation is accelerating rapidly, and <a href="http://www.bazaarvoice.com/blog/2009/01/20/the-year-of-mobile/" target="_blank">not just online</a>.  The <a href="http://www.bazaarvoice.com/blog/2009/02/02/key-takeaways-from-prove-it-real-world-roi-webinar/" target="_blank">ROI is very proven</a>.  And I&#039;m proud of <a href="http://www.bazaarvoice.com/blog/2008/09/24/21-case-studies-of-social-commerce-impact-yesreal/" target="_blank">the way we are helping our clients</a> in such a challenging time.</p>
<p>Come join us from April 27-29th in Austin at our <a href="http://www.socialcommercesummit.com/" target="_blank">Social Commerce Summit</a> to discuss how the best are leveraging social commerce.  We sincerely look forward to seeing you there.</p>
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		<title>Retailers: Now It&#039;s Time to Stress the Environmental and Cost Benefits of Shopping Online</title>
		<link>http://www.bazaarvoice.com/blog/2008/07/07/retailers-now-its-time-to-stress-the-environmental-and-cost-benefits-of-shopping-online/</link>
		<comments>http://www.bazaarvoice.com/blog/2008/07/07/retailers-now-its-time-to-stress-the-environmental-and-cost-benefits-of-shopping-online/#comments</comments>
		<pubDate>Mon, 07 Jul 2008 22:26:08 +0000</pubDate>
		<dc:creator>Brett Hurt</dc:creator>
				<category><![CDATA[Thoughts on Social Commerce]]></category>
		<category><![CDATA[amazon]]></category>
		<category><![CDATA[Amazon.com]]></category>
		<category><![CDATA[asleep at the spigot]]></category>
		<category><![CDATA[Bazaarvoice]]></category>
		<category><![CDATA[Blockbuster]]></category>
		<category><![CDATA[climate change]]></category>
		<category><![CDATA[d3]]></category>
		<category><![CDATA[d3 conference]]></category>
		<category><![CDATA[eBags]]></category>
		<category><![CDATA[ebags.com]]></category>
		<category><![CDATA[eCommerce]]></category>
		<category><![CDATA[end of late fees]]></category>
		<category><![CDATA[fedex]]></category>
		<category><![CDATA[freakonomics]]></category>
		<category><![CDATA[global-warming]]></category>
		<category><![CDATA[green-marketing]]></category>
		<category><![CDATA[jeff bezos]]></category>
		<category><![CDATA[Netflix]]></category>
		<category><![CDATA[ny-times]]></category>
		<category><![CDATA[shop.org]]></category>
		<category><![CDATA[ups]]></category>
		<category><![CDATA[usps]]></category>
		<category><![CDATA[walt mossberg]]></category>
		<category><![CDATA[WSJ]]></category>

		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/?p=311</guid>
		<description><![CDATA[Scott Silverman, Executive Director of Shop.org, recently asked a provocative&#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://69.90.174.253/photos/display_pic_with_logo/1325/1325,1127922360,1.jpg" target="_blank"><img class="alignleft" style="float: left;" src="http://69.90.174.253/photos/display_pic_with_logo/1325/1325,1127922360,1.jpg" alt="Out of gas" width="88" height="96" /></a>Scott Silverman, Executive Director of Shop.org, recently <a href="http://blog.shop.org/2008/07/08/is-it-time-to-connect-gas-prices-to-online-shopping/" target="_blank">asked a provocative question on the Shop.org Blog</a> on whether or not now was the time for online retailers to stress saving gas in their marketing message.  The short answer is &#034;yes &#8211; it is definitely time!&#034;.  The longer answer is that there are many word-of-mouth oriented reasons to do this now but I predict that it will be hard to make happen in most companies (to be explained below).</p>
<p>First, there has never been more of an emphasis on gas prices in my lifetime, and certainly not in the history of eCommerce (being a relatively new field).  On my flight up to Toronto yesterday, I was reading a NY Times article, &#034;<a href="http://www.nytimes.com/2008/07/06/business/06oil.html?_r=1&amp;bl&amp;ex=1215576000&amp;en=861dbfab1568a36c&amp;ei=5087%0A&amp;oref=slogin" target="_blank">American Energy Policy, Asleep at the Spigot</a>&#034;.  I was amazed to learn that oil was just under $10/barrel in early 1999.  It has increased 1450% since then, closing at a high of $145/barrel last Thursday.  Not surprisingly, most Americans are downsizing.  But what is surprising is how quickly.  Ford&#039;s SUV sales are down 55% this year, and their sales of the Ford F150 truck, the best selling vehicle in the U.S. for 26 consecutive years, is down 40% this year.  Detroit is reeling from this &#8211; this is an unbelievably massive change in consumer demand.  To put it mildly, gas prices are dominating word-of-mouth conversations all over the country.</p>
<p><span id="more-311"></span>Second, a huge share of word of mouth is focused on the global problem of climate change.  With gas prices running this high, it is easy to feel both guilty and financially irresponsible.  This gives you a dual opportunity to strike now with this marketing message.</p>
<p>Third, home delivery <em>is</em> more efficient.  Jeff Bezos&#039; clued me in to this <a href="http://wsj.com/article/SB121261272441346269.html" target="_blank">in his recent appearance at WSJ&#039;s D3 conference</a>.</p>
<blockquote>
<p class="times"><strong>MR. MOSSBERG:</strong> <em>Are you seeing the effect of this economic slowdown? Or do you worry about it?</em></p>
<p class="times"><strong>MR. BEZOS:</strong> As you can see from the last-quarter results that we just put out, we haven&#039;t seen that. You can never know for sure because I don&#039;t know what our growth rates would&#039;ve been in a stronger economy. There are some things working to our advantage in this kind of economy.</p>
<p class="times">Gasoline is expensive. Driving to the store is expensive. You take a 2,000-pound car to pick up five pounds of stuff. It&#039;s the least efficient transportation network in the world. So, there are some positive factors in our business in that regard.</p>
</blockquote>
<p class="times">To <a href="http://www.bazaarvoice.com/blog/2008/06/23/green-marketing-the-importance-of-authenticity/" target="_blank">my co-founder&#039;s point about the importance of authentic green marketing</a>, it is time for retailers online to emphasize this.  A very simple Web page devoted to educating consumers on why USPS, UPS, FedEx, and others are more efficient in their use of gasoline and, therefore, have less impact on the environment is all consumers need.  They are almost begging for this message.  Retailers should promote this message in stores, email, and throughout their website.</p>
<p class="times">But here is the rub.  It is hard to do because most retailers online are part of a huge multichannel business.  And I know from experience that the store managers will not embrace this message for fear of losing their sales.  Just like the book <a href="http://www.amazon.com/review/product/0061234001/ref=dp_top_cm_cr_acr_txt?_encoding=UTF8&amp;showViewpoints=1" target="_blank"><em>Freakonomics</em></a> educates us on the importance of incentives, incentives in these businesses need to change.  And that takes time.  So, this is probably an immediate word-of-mouth opportunity for online-only retailers, but I would love to be surprised and see multichannel businesses embracing this message and gaining share as a result.  I&#039;m confident that the in-store message could be figured out (e.g., &#034;buy accessories for this digital camera online instead of driving back &#8211; here is why it will cost you less and help our environment&#034;).</p>
<p class="times">What do you think?</p>
<p class="times">P.S., to learn more about why the time is now, check out my previous posts (<a href="http://www.bazaarvoice.com/blog/2006/02/18/bad-profits-and-the-incredible-power-of-word-of-mouth/" target="_blank">post1</a>, <a href="http://www.bazaarvoice.com/blog/2006/12/06/netflix-vs-blockbuster-round-two/" target="_blank">post2</a>, and <a href="http://www.bazaarvoice.com/blog/2007/01/17/netflix-vs-blockbuster-round-three/" target="_blank">post3</a>) on how Netflix attracted Blockbuster&#039;s customers with their simple marketing message, &#034;the end of late fees&#034;.  You will find that the battle of these two giants offers many fascinating word-of-mouth insights.</p>
<p class="times"><span style="text-decoration: underline;">Update 7/8</span>: Peter Cobb, co-founder and SVP at <a href="http://www.ebags.com" target="_blank">eBags</a>, just sent me the link to a recent email promotion (<a href="http://response.ebags.com/dm?id=756C40B8AB03D8547ED3CBAAE2B30425" target="_blank">here</a>) that they sent to customers, emphasizing free shipping and saving on gas.  I also like the fact that this campaign highlights eco-friendly bags.</p>
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		<title>Mary Meeker&#039;s June 20 Technology Trends Report</title>
		<link>http://www.bazaarvoice.com/blog/2008/06/28/mary-meekers-june-20-technology-trends-report/</link>
		<comments>http://www.bazaarvoice.com/blog/2008/06/28/mary-meekers-june-20-technology-trends-report/#comments</comments>
		<pubDate>Sat, 28 Jun 2008 21:10:05 +0000</pubDate>
		<dc:creator>Brett Hurt</dc:creator>
				<category><![CDATA[Thoughts on Social Commerce]]></category>
		<category><![CDATA[Amazon.com]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Bazaarvoice]]></category>
		<category><![CDATA[blackberry]]></category>
		<category><![CDATA[consumer-reviews]]></category>
		<category><![CDATA[customer-reviews]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[hi5]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[iphone-2]]></category>
		<category><![CDATA[mary-meeker]]></category>
		<category><![CDATA[morgan-stanley]]></category>
		<category><![CDATA[orkut]]></category>
		<category><![CDATA[personalization]]></category>
		<category><![CDATA[social-media]]></category>
		<category><![CDATA[Steve-Jobs]]></category>
		<category><![CDATA[Time-magazine]]></category>
		<category><![CDATA[time-person-of-the-year]]></category>
		<category><![CDATA[US-recession]]></category>
		<category><![CDATA[user-generated-content]]></category>
		<category><![CDATA[widgets]]></category>
		<category><![CDATA[Wikipedia]]></category>
		<category><![CDATA[YouTube]]></category>

		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/2008/06/28/mary-meekers-june-20-technology-trends-report/</guid>
		<description><![CDATA[Mary Meeker writes one of my favorite trends report each year, Morgan Stanley&#39;s&#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://money.cnn.com/2006/05/02/magazines/fortune/meeker_fortune_051506/index.htm" target="_blank"><img src="http://money.cnn.com/2006/05/02/magazines/fortune/meeker_fortune_051506/mary_meeker.03.jpg" border="0" alt="Mary Meeker of Morgan Stanley" title="Mary Meeker of Morgan Stanley" width="119" height="150" align="left" /></a><a href="http://en.wikipedia.org/wiki/Mary_meeker" target="_blank">Mary Meeker</a> writes one of my favorite trends report each year, <a href="http://linkback.morganstanley.com/web/sendlink/webapp/BMServlet?file=83509843-3f0b-11dd-bd8e-373ec13b9104&amp;user=7hmty017epl-564&amp;__gda__=1308603433_ef13f62e548b809ca5561555a03299b7" target="_blank">Morgan Stanley&#39;s Technology Trends</a>.&nbsp; This makes for great weekend reading.&nbsp; It gives you both a US and global perspective on the trends most affecting the technology industry broadly, primarily from a B2C perspective.&nbsp; It has already been forwarded to me by many of the most connected people I know in technology, such as <a href="http://redeye.firstround.com/" target="_blank">Josh Kopelman</a> (one of our investors), showing its broad impact. </p>
<p>While all of the findings are of interest (mobile, widgets, personalization, etc.), this year I was most struck by three big trends:</p>
<ul>
<li>&nbsp;The global traffic share gains of YouTube, Facebook, Hi5, Wikipedia, and Orkut &#8211; all making the global top-10 for the first time.&nbsp; I remember when <em>Time</em> selected &quot;You&quot; as the &quot;Person of the Year&quot; for their <a href="http://www.time.com/time/covers/0,16641,20061225,00.html" target="_blank">Dec. 2006 cover</a>.&nbsp; They may have called it too early.&nbsp; Social connection online has truly arrived.&nbsp; The growth of these sites are staggering, highlighting the power of community, user-generated content, and word of mouth online.</li>
<li><span id="more-302"></span>The share gain of Amazon.com relative to large, multichannel retailers.&nbsp; They led the way with customer reviews over 10 years ago, and have become a Wikipedia of sorts for broad, product-focused reviews.&nbsp; And they continue to innovate at a staggering pace, spending over $3 billion per year on R&amp;D.</li>
<li>The uncharted territory we are in with the recession, truly making this our most important presidential election in history.&nbsp; Although Bazaarvoice is growing at a very fast pace, <a href="http://www.bazaarvoice.com/about/press-room/bazaarvoice-extends-leadership-explosive-growth-q1-and-q2-2008" target="_blank">beating our financial projections repeatedly</a>, we are also cautious and watching the economy closely.&nbsp; And I know that most, if not all, of our clients and partners are doing the same.</li>
</ul>
<p> In case you missed the link above, you can <a href="http://linkback.morganstanley.com/web/sendlink/webapp/BMServlet?file=83509843-3f0b-11dd-bd8e-373ec13b9104&amp;user=7hmty017epl-564&amp;__gda__=1308603433_ef13f62e548b809ca5561555a03299b7" target="_blank">read the full report here</a>.</p>
<p>And if you have some more time this weekend, you may also want to check out <a href="http://events.apple.com.edgesuite.net/0806wdt546x/event/index.html" target="_blank">Steve Jobs&#39; recent keynote on the iPhone 2</a>.&nbsp; While I carry a BlackBerry myself (my wife carries an iPhone), the power of the iPhone&#39;s new programming language (and SDK) to deploy corporate applications as well as the new AppStore (reminds me of Salesforce.com&#39;s AppExchange) signal a new type of Apple.&nbsp; With these moves, they are embracing being an &quot;open&quot; platform and focusing on B2B at the same time.&nbsp; This should lead to <a href="http://www.businessweek.com/magazine/content/08_19/b4083036428429.htm?chan=search" target="_blank">an accelerated adoption of Macs in corporations</a>, as the iPhone uses the same OS and user behavior historically shuns change (or seeks familiarity; heck this is human behavior not just &#39;user&#39; behavior).&nbsp; In any case, his keynote may lead you to believe that the iPhone 2 will be the dominant mobile computing platform for corporations in our near-term future.</p>
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		<title>An Incredibly Transformational Time in History (Part 2)</title>
		<link>http://www.bazaarvoice.com/blog/2008/04/19/an-incredibly-transformational-time-in-history-part-2/</link>
		<comments>http://www.bazaarvoice.com/blog/2008/04/19/an-incredibly-transformational-time-in-history-part-2/#comments</comments>
		<pubDate>Sat, 19 Apr 2008 14:33:14 +0000</pubDate>
		<dc:creator>Brett Hurt</dc:creator>
				<category><![CDATA[Social Commerce Stories]]></category>
		<category><![CDATA[Amazon.com]]></category>
		<category><![CDATA[banner-ads]]></category>
		<category><![CDATA[Bazaarvoice]]></category>
		<category><![CDATA[bbs]]></category>
		<category><![CDATA[Best-Buy]]></category>
		<category><![CDATA[BusinessWeek]]></category>
		<category><![CDATA[customer-ratings]]></category>
		<category><![CDATA[customer-reviews]]></category>
		<category><![CDATA[five-forces]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[live.com]]></category>
		<category><![CDATA[luxury-apparel]]></category>
		<category><![CDATA[michael-porter]]></category>
		<category><![CDATA[millennial]]></category>
		<category><![CDATA[mitch-joel]]></category>
		<category><![CDATA[online-communication]]></category>
		<category><![CDATA[paid-search]]></category>
		<category><![CDATA[QVC]]></category>
		<category><![CDATA[SEM]]></category>
		<category><![CDATA[shop.org]]></category>
		<category><![CDATA[six-degrees-of-separation]]></category>
		<category><![CDATA[six-pixels-of-separation]]></category>
		<category><![CDATA[social-commerce]]></category>
		<category><![CDATA[social-media]]></category>
		<category><![CDATA[user-generated-content]]></category>
		<category><![CDATA[Victorias-Secret]]></category>
		<category><![CDATA[Victorias-Secret-PINK]]></category>
		<category><![CDATA[wal-mart]]></category>
		<category><![CDATA[Walmart.com]]></category>
		<category><![CDATA[Yahoo!]]></category>

		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/2008/04/19/an-incredibly-transformational-time-in-history-part-2/</guid>
		<description><![CDATA[Part 1 of this post hit a nerve.&#160; I received many emails from long-time&#8230;]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.bazaarvoice.com/blog/2008/04/17/an-incredibly-transformational-time-in-history-part-1/" target="_blank">Part 1</a> of this post hit a nerve.&nbsp; I received many emails from long-time industry friends as well as employees in our company.&nbsp; It makes me happy to know that a lot of you are thinking about the same profound issues that I am.</p>
<p>As I promised, Part 2 is more focused on the forces shaping global commerce that we directly see in our business, working with our clients and partners. </p>
<p>5.&nbsp;&nbsp;&nbsp; <strong>Digitally archived word-of-mouth</strong>: Blogs are here to stay (<a href="http://www.businessweek.com/print/bwdaily/dnflash/content/feb2008/db20080219_908252.htm" target="_blank">see BusinessWeek for a recap</a>).&nbsp; Word-of-mouth online is not a phase.&nbsp; It&rsquo;s a permanent shift.&nbsp; Word-of-mouth has always been with us (that&rsquo;s <a href="http://www.bazaarvoice.com/aboutBazaarvoice.html" target="_blank">why I named our company Bazaarvoice</a>).&nbsp; More than 70 of the top 100 retailers in the U.S. have, or are launching, customer reviews today.&nbsp; When Brant and I launched Bazaarvoice three years ago, only five retailers in the U.S. offered customer reviews, including Amazon.com.&nbsp; Over the past three years, we have served <em>10 billion</em> reviews to shoppers (<a href="http://www.bazaarvoice.com/about/press-room/bazaarvoice-serves-more-10-billion-user-generated-reviews-shoppers-worldwide" target="_blank">see our recent celebration of this and real-time counter</a>) and are on a current run-rate to serve another <em>20 billion</em> <em>over just the next year</em> of our business.&nbsp; Customer reviews are word-of-mouth.&nbsp; People speak the same way about products online as they do offline.&nbsp; We are literally <em>seeing</em> word-of-mouth for the first time in human history.</p>
<p>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; Luxury retailers are still vigorously debating this &ndash; not wanting to give up control and open up their brand.&nbsp; Like I do almost every week (it seems), I spent time on Wednesday in NYC debating this with the head of online marketing and merchandising of a luxury apparel retailer.&nbsp; Meanwhile, Best Buy and Wal-Mart have been launching incredible multichannel campaigns (see them <a href="http://www.bazaarvoice.com/blog/2008/01/23/using-reviews-in-advertising/" target="_blank">here</a> and <a href="http://www.bazaarvoice.com/blog/2008/01/06/wal-mart-goes-multichannel-with-user-generated-content/" target="_blank">here</a>), leveraging the power of customer reviews to drive sales online <em>and</em> offline.&nbsp; Wal-Mart and QVC have all of their online merchandisers plugged into our reports.&nbsp; They are having intense conversations with their suppliers to reduce returns, increase customer satisfaction, and ultimately evolve their offerings.&nbsp; The end-game?&nbsp; Better products and services for all of us.&nbsp; I knew we were on to something big when we started Bazaarvoice.&nbsp; But I had no idea it would affect this much change, this quickly.&nbsp; The fact that Wal-Mart launched customer-review-focused, in-store nationwide campaigns only six months after they launched with us online has staggering implications for the retail industry.</p>
<p>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; And it&rsquo;s not just limited to retail.&nbsp; Any market where word-of-mouth plays a significant role in driving the transaction are good markets for the type of transformation we offer.&nbsp; We are, or soon will be (due to signed agreements), powering customer reviews for some of the largest manufacturers of consumer products, banks, credit unions, insurance companies, portals, travel sites, and healthcare companies.&nbsp; We are doing this globally, in 20 international languages.&nbsp; We have four offices now &ndash; Austin, London, Paris, and now Singapore.&nbsp; This is a global movement.&nbsp; As an entrepreneur, it is impossible for me to not be passionate about helping clients lead this transformation.&nbsp; <strong>Word-of-mouth online is an incredibly disruptive force</strong>, and I mean this in a <strong>positive</strong> way if harnessed correctly.&nbsp; Why did I start this company after seven years at Coremetrics?&nbsp; Because I knew it worked &#8211; but I didn&#39;t realize that it worked as well as I know it does now.&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; Seven years ago, <a href="http://www.amazon.com/Strategy-Internet-HBR-OnPoint-Enhanced/dp/B00005REIP" target="_blank">Michael Porter wrote</a> about the Web&rsquo;s incredibly disruptive impact on the five forces (standard material for any MBA program).&nbsp; When I read this article in 2001, I thought, &quot;Porter is late to the game&quot;.&nbsp; Now when I re-read it in the context of the social media movement, I think he was incredibly visionary.&nbsp; Smart companies are reaping the rewards of that disruption, while others have been too slow to change and are going out of business.</p>
<p> 6.&nbsp;&nbsp;&nbsp; <strong>Six degrees of separation</strong> (tip of the hat to my brilliant and passionate friend, <a href="http://www.twistimage.com/blog/" target="_blank">Mitch</a>): Millennials are growing up connected to social networks, namely <a href="http://www.facebook.com" target="_blank">Facebook</a>.&nbsp; Their network of friends is intact for as long as they&rsquo;ve been in &ldquo;the system&rdquo;.&nbsp; They will be able to track their friends&rsquo; progress throughout life&rsquo;s many stages &ndash; forever.&nbsp; I&rsquo;ve been a programmer since I was 7 and have communicated online (via BBSs) since I was 8 (launching my own when I was 10).&nbsp; So I can relate.&nbsp; But I can&rsquo;t imagine all of the implications of all of this connectedness.&nbsp; What does it mean, as a human being, to be able to so easily track your friends evolution in life as they go from preteen to teen to college to career to marriage to parenthood and, ultimately, to death?&nbsp; <strong>A typical Millennial is connected to hundreds of friends on Facebook</strong>.&nbsp; By comparison, I personally keep in close touch with <em>only one</em> of my early childhood friends (a few more are reconnecting via Facebook, but I have missed decades of their life and its hard to relate to them anymore).&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; How will these Millennials be shaped by this as shoppers?&nbsp; As people?&nbsp; Obviously, social media <em>everywhere</em> will be an expectation.&nbsp; Ubiquitous Web access, via mobile, is rapidly coming.&nbsp; How will companies adapt?&nbsp; Typical Facebook banner-ads are getting .005% click-thru rates, as reported on the Web 2.0 panel at <a href="http://www.shop.org" target="_blank">Shop.org</a> last week by those helping their clients experiment with them.&nbsp; That&rsquo;s <em>pathetic</em> performance!&nbsp; Millennials don&rsquo;t want the disruption by brands when they are in the modality of friending &ndash; unless they actually help them enhance that experience.&nbsp; Being on Google, Yahoo!, or Live.com and clicking on a paid-search link when they are in a shopping modality is a whole different story, and obviously that works &ndash; ridiculously well.&nbsp; Facebook <em>applications</em>, however, are performing when they give unique value to these consumers.&nbsp; On that same Shop.org panel, the Victoria&rsquo;s Secret PINK Facebook application was pointed as one good example.&nbsp;</p>
<p><strong>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; What are the long-term implications of this connectedness?</strong>&nbsp; I don&rsquo;t know, but we&rsquo;re determined to help figure this out by working with all of our clients.</p>
<p>Thank you again for an amazing three years in business.&nbsp; It is a true honor to work with such smart clients, and I look forward to seeing you soon at our <a href="http://www.socialcommercesummit.com/" target="_blank">Social Commerce Summit</a>.&nbsp;</p>
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		<title>Bazaarvoice Research Discovers a New Holiday Tradition, and 71 Million Reviews Served on Cyber Monday</title>
		<link>http://www.bazaarvoice.com/blog/2007/12/01/bazaarvoice-research-discovers-a-new-holiday-tradition-and-71-million-reviews-served-on-cyber-monday/</link>
		<comments>http://www.bazaarvoice.com/blog/2007/12/01/bazaarvoice-research-discovers-a-new-holiday-tradition-and-71-million-reviews-served-on-cyber-monday/#comments</comments>
		<pubDate>Sat, 01 Dec 2007 14:07:35 +0000</pubDate>
		<dc:creator>Brett Hurt</dc:creator>
				<category><![CDATA[@Bazaarvoice]]></category>
		<category><![CDATA[Amazon.com]]></category>
		<category><![CDATA[Bazaarvoice]]></category>
		<category><![CDATA[Black-Friday]]></category>
		<category><![CDATA[comScore]]></category>
		<category><![CDATA[Coremetrics]]></category>
		<category><![CDATA[customer-generated-content]]></category>
		<category><![CDATA[Cyber-Monday]]></category>
		<category><![CDATA[Forrester-Research]]></category>
		<category><![CDATA[Jupiter-Research]]></category>
		<category><![CDATA[marketingsherpa]]></category>
		<category><![CDATA[nielsen]]></category>
		<category><![CDATA[ratings-and-reviews]]></category>
		<category><![CDATA[Ray-M.-Greenly-Scholarship-Fund]]></category>
		<category><![CDATA[reviews]]></category>
		<category><![CDATA[shop.org]]></category>
		<category><![CDATA[The-Home-Depot]]></category>
		<category><![CDATA[The-Keller-Fay-Group]]></category>
		<category><![CDATA[The-Kelsey-Group]]></category>
		<category><![CDATA[user-generated-content]]></category>

		<guid isPermaLink="false">http://www.bazaarvoice.com/blog/2007/12/01/bazaarvoice-research-discovers-a-new-holiday-tradition-and-71-million-reviews-served-on-cyber-monday/</guid>
		<description><![CDATA[This has been a busy week for Bazaarvoice Research.&#160; At 9:25pm EST&#8230;]]></description>
			<content:encoded><![CDATA[<p><img src="http://graphics8.nytimes.com/images/2006/11/24/us/24shop_slide1.jpg" border="0" alt="NY Times photo of Black Friday" title="NY Times photo of Black Friday" width="190" height="120" align="right" />This has been a busy week for <a href="http://www.bazaarvoice.com/resources/stats" target="_blank">Bazaarvoice Research</a>.&nbsp; At 9:25pm EST on Thanksgiving Day, we witnessed a new traffic peak across our client base.&nbsp; As consumers read retailer circulars to prep for a busy &quot;<a href="http://en.wikipedia.org/wiki/Black_Friday_%28shopping%29" target="_blank">Black Friday</a>&quot;, they also read reviews online.&nbsp; At that time (9:25pm EST), <a href="http://www.bazaarvoice.com/about/press-room/holiday-shoppers-read-online-ratings-and-reviews-shopping-stores" target="_blank">we peaked at 1,400 reviews read <em>per second</em></a> across our client base of over one hundred retailers.&nbsp; On Cyber Monday (November 26), we served 71 million reviews to holiday shoppers, up over 370% over last year&#39;s Cyber Monday figure.&nbsp; In the last 30 days, our systems have seen 7.4 <em>billion</em> hits and delivered 40 <em>terabytes</em> of traffic.</p>
<p>There have been many exciting research moments for our industry in the past two years:</p>
<ul>
<li>When <a href="http://www.bazaarvoice.com/blog/2006/05/08/ratings-j-curve/" target="_blank">we discovered the Ratings J-Curve</a>, including <a href="http://www.bazaarvoice.com/blog/2007/07/12/87-of-apparel-reviews-are-positive/" target="_blank">how it looks for apparel</a> (a category that many expected not to follow the J-Curve trend)</p>
</li>
<li>When <a href="http://www.bazaarvoice.com/blog/2006/08/15/new-jupter-report-on-ratings-reviews/" target="_blank">Jupiter</a> and <a href="http://www.bazaarvoice.com/blog/2007/04/26/wundermans-statement-on-social-marketing/" target="_blank">Forrester</a> showed how many shoppers read reviews (77% and 70%, respectively)
</li>
<li>When <a href="http://www.bazaarvoice.com/blog/2007/04/09/sherpa-study-58-prefer-sites-with-reviews/" target="_blank">MarketingSherpa showed</a> how many consumers preferred sites with reviews (58%)
</li>
<li>When we showed how <a href="http://www.bazaarvoice.com/blog/2007/07/07/summary-of-answers-for-what-about-negative-reviews/" target="_blank">negative reviews have a bigger positive impact on conversion</a> than positive reviews and how <a href="http://www.bazaarvoice.com/blog/2006/08/01/negative-reviews-do-not-hurt-a-product/" target="_blank">smart retailers think about negative reviews</a>
</li>
<li>When we worked with the Keller Fay Group to find out <a href="http://www.bazaarvoice.com/blog/2007/11/28/why-customers-write-reviews/" target="_blank">why consumers write reviews</a> (primarily, to help each other) and how many of them are buying offline and then reviewing their purchase online (66%)
</li>
<li>When comScore and The Kelsey Group showed how <a href="http://www.bazaarvoice.com/blog/2007/11/30/reviews-significantly-influence-offline-purchases/" target="_blank">online reviews impact offline purchasing</a> (released this week)
<p> <a href="http://www.bazaarvoice.com/blog/2007/11/30/reviews-significantly-influence-offline-purchases/" target="_blank"> </a></li>
<li>When we discovered <a href="http://www.bazaarvoice.com/blog/2007/10/23/ask-answer-increases-sales-conversion-22/" target="_blank">how Ask &amp; Answer impacts conversion</a> (up 22%), <a href="http://www.bazaarvoice.com/blog/2007/10/30/ask-answer%e2%84%a2-shows-promising-user-involvment/" target="_blank">how many users participate in questions and answers</a> even though it is such a new medium in eCommerce, and <a href="http://www.bazaarvoice.com/blog/2007/11/12/home-depot-canada-shares-their-experience-with-ask-answer/" target="_blank">how clients like The Home Depot are leveraging</a> this new offering to differentiate and benefit their customers
</li>
<li>When we saw <a href="http://www.bazaarvoice.com/blog/2007/07/31/the-long-tail-opportunity-of-consumer-generated-content/" target="_blank">how reviews impact customer acquisition</a> and <a href="http://www.bazaarvoice.com/blog/2007/08/11/new-whitepaper-boosting-natural-search-using-ratings-and-reviews/" target="_blank">documented our extensive findings in a whitepaper</a>
</li>
<li>When Nielsen announced that <a href="http://www.bazaarvoice.com/blog/2007/10/11/consumer-recommendations-are-most-trusted-form-of-advertising/" target="_blank">consumer recommendations are the most trusted form of advertising</a> (78% trust versus 34% for search-engine ads)<a href="http://www.bazaarvoice.com/blog/2007/10/11/consumer-recommendations-are-most-trusted-form-of-advertising/" target="_blank">
<p> </a></li>
<li>When Deloitte (one of my former employers) showed <a href="http://www.bazaarvoice.com/blog/2007/10/02/new-deloitte-study-62-read-reviews-82-influenced/" target="_blank">how many consumers are influenced by reviews</a> (82% of those that read them)</li>
</ul>
<p> And this new holiday tradition is another major finding.&nbsp; It shows just how much influence reviews online are having on offline shopping behavior.&nbsp; This especially hits home for me because when Brant and I started this company in May of 2005 only around 10 retailers in the U.S. (including online-only, like Amazon.com) had reviews.&nbsp; Now <a href="http://www.bazaarvoice.com/blog/2006/06/09/shoporg-sherpa-etailing-studies-agree-customer-reviews-1-merchandising-tactic/" target="_blank">MarketingSherpa reported</a> that 43% of retailers do (as of Feb-07).&nbsp; That is having a broad impact on consumer expectations &#8211; reviews are quickly become a must-have for retailers and a norm for online shopping.</p>
<p>Most of these are intuitive findings and could be easily dismissed as &quot;obvious&quot;.&nbsp; But data informs strategy, as I learned so many times while working with clients as the founder of <a href="http://www.coremetrics.com/" target="_blank">Coremetrics</a>.</p>
<p>So, what do you do with this new data?&nbsp; Here are a few ideas:</p>
<ul>
<li>Promote reviews for the same products featured in your Thanksgiving circular on your home page the week of Thanksgiving &#8211; this will make it easy for the 70 to 77% that are seeking reviews (and the 82% that are influenced when they read them) to realize that you have them</p>
</li>
<li>Send an email about reviews on Thanksgiving morning with a subject line like, &quot;Read Thousands of Customers&#39; Reviews Before You Go Shopping on Friday&quot;.&nbsp; In that email, feature the same products or categories of products that you have in your Thanksgiving circular
</li>
<li>Create distinct shopping paths linked for your home page such as &quot;Our Best Friday Deals on Customer Top-Rated Holiday Gifts&quot; and so on for all of your major categories featured in your in-store (and online) sale
</li>
<li>Push reviews again on Cyber Monday &#8211; both in email and on your home page &#8211; but with a distinct focus on online shopping
</li>
<li>Put top-rated circulars in your stores for greeters and category managers (like HD TV) to hand out to help in-store shoppers
</li>
<li>Feature reviews in your print circulars so that readers know that your site has reviews before they go online to research them</li>
</ul>
<p> Want more?&nbsp; Watch the holiday webinar that our Community Management team recorded.&nbsp; And please don&#39;t forget to tell us your ideas as well!</p>
<p><img src="http://a786.g.akamai.net/f/786/35975/5d/i.mallnetworks.com/images/global/cybermonday/Greenly-sm.jpg" border="0" alt="Ray M. Greenly" title="Ray M. Greenly" width="85" height="85" align="left" />And, finally, please support the Ray M. Greenly Scholarship Fund this holiday season by shopping at <a href="http://www.cybermonday.com/" target="_blank">Shop.org&#39;s Cyber Monday portal</a>.&nbsp; All proceeds go to honor a great man that I had the pleasure of working with.&nbsp; He helped grow Shop.org into the great organization that it is today.&nbsp; And you will be helping to fund the future visionaries of the eCommerce industry.</p>
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