Survey: Retailers' Views on User-Generated Content

The proliferation of consumer dialogue is still on the rise. Retailers who think about leveraging the interactive channel may come to find that it's more than researching, shopping and self service. The social web is empowering consumers and creating new consumer behaviors of creating, sharing and influencing. As a result, consumers are increasingly turning to each other for product or service information before making a purchasing decision.

Retailers are beginning to understand how user-generated content (UGC) can be a critical component to their brand experience. The opportunity to provide a destination for the exchange of useful information which aids other consumers in their purchase decision is most readily demonstrated through ratings and reviews, but retailers are also branching out into other forms of USG such as testimonials, blogs, photos and video updates.

From our research, we understand that many retailers have been or will be embracing consumer opinions and encouraging open dialogues online through ratings and reviews. Return on investment has been demonstrated and these UGS tactics are less likely to be considered risky. Retailers are enjoying increased conversion, higher average order value, increased site traffic, lower return rates, and new opportunities for merchandising and marketing. Additionally, retailers are leveraging customer reviews and extending them into the offline realm through display in-store through kiosks and product signage or inclusion in print catalogs.