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In: web resources
15 Dec 2009
Sam Decker is chief marketing officer of Bazaarvoice, the market and technology leader in hosted social commerce applications that drive sales. You can follow him on Twitter @SamDecker.
By now, most companies realize their customers are their most valuable advocates – and when their customers share their credible opinions via reviews, it increases sales of their products and services and deepens brand engagement. The majority of large brands now offer some type or ratings and review system on their sites, because consumers now expect to be able to read and contribute peer reviews before making purchase decisions – so much so that some 82% of consumers say they find reviews “extremely valuable or valuable,” according to a recent survey. If all you’re doing is offering rating or review functionality, you’re likely not getting the maximum benefit.
If you already have a ratings and reviews system in place – or if you haven’t yet taken the plunge – there are several steps you can take to improve the effectiveness of your consumer reviews programs.
Done correctly, ratings and reviews deliver a significant increase in sales; one third of retailers reported an 11-20% overall increase in conversions as a result of adding reviews to their sites, while consumers are willing to pay up to 99% more for a 5-star rated product than for a 4-star rated product.
But engaging in a conversation with your customers isn’t just a way to generate sales; having reviews on your site also boosts SEO traffic and page views, increases average order value, lowers returns, reduces customer service calls, and results in more satisfied customers overall. What’s more, companies can analyze ratings and review trends to improve overall marketing strategies, improve customer service, and fine-tune merchandising.

Ask people to register or log in to post a review. While some companies see this as a barrier to generating a critical mass of reviews, we’ve found that requiring registration does not have a significant impact on the number of reviews created (though it does tend to improve the overall quality of reviews), and the value of linking reviews to a customer profile is enormous. When you know who is writing reviews, what they are saying, what products they’ve reviewed, what products they’ve purchased, etc, you can use this information to segment messages to that person and to see overall trends that will lead to better marketing decisions. What’s more, when you require registration to write reviews, you can see who is writing the most reviews and reward frequent reviewers with badges, discounts, and other incentives.
You can tell a lot about your business by reading and analyzing reviews. In fact, review content can positively impact every function of a business if you collect data in the right way. Analyze the content of reviews, ratings and opinion trends, and the number of reviews for certain products, then compare this data to web analytics, CRM, and purchase data to get a complete picture of how your merchandising mix and overall marketing programs are performing. Make sure multiple teams – technology, product design, marketing, sales, management – have access to this data, so they can use it to improve their business results.
Don’t just leave ratings and reviews on your website, put them to use in all of your marketing materials. You can include top-rated products and snippets from positive reviews in search ads, e-mail campaigns, circulars and catalogues, and on in-store banners. Integrate with Facebook and Twitter, allowing reviewers to automatically share their reviews to these and other social networking platforms, virally spreading your brand’s review content across the web. One of our customers, Office Depot, included top-rated products in its paid search campaigns and saw a 156% increase in ROI on that campaign vs. its traditional paid search ads.

Research has shown that even one review on a website will instantly drive up conversion on that product. But, of course, the more reviews your site has, the bigger the impact. To encourage people to post ratings and reviews, offer sweepstakes and prizes to reviewers, give badges to top reviews or list their names on a leader board, and promote participation in the review program on all of your marketing materials. You can also implement Ask & Answer type services, where people ask each other for purchase advice, or invite people to discuss their personal stories with your brand, products and services. The more content your customers create about your brand, the more your sales will increase.
You want to encourage people to be open and honest in their reviews – a good mix of positive and negative reviews is credible and authentic – but you don’t want to leave rants and irrelevant reviews up on your site. Make sure you work with a reviews provider that offers full moderation (using humans to scan reviews, not just fallible natural language technologies), or task people in-house to moderate reviews.
If someone writes a flamingly negative review, perhaps due to a customer service mishap or a defective product, you don’t have to leave that review on your site – but make sure to reach out to that person offering customer support, as well as with a mitigating gesture like a discount.

While it’s the review content that really counts – some 80% of people value the narrative review content more than the star-rating in making purchase decisions – ratings are still crucial. We’ve found that products with star ratings receive on average a 120% higher click-through than those that don’t have ratings, which means ratings are the “eye candy” that pull people in to seek more information on a product.
You need to keep people engaged with your brand over the long term, so encourage participation in your reviews platform by promoting the program through social channels like Facebook and Twitter. Think in terms of building a “participation chain” that cultivates user involvement, where each action builds upon the one before through sharing. By lengthening and deepening customers’ participation on your brand site, participation chains improve brand opinion, increase sales, and make customers more likely to recommend a brand to their friends.
By seeing ratings and reviews for what they really are – an integral part of your entire business strategy, and not just a widget on your site – you’ll be well on your way to attaining maximum value from consumer-generated content.
- Mashable’s Social Media Guide for Small Businesses
- 4 Ways Social Media is Changing Business
- HOW TO: Use Twitter Hashtags for Business
- 5 Advanced Social Media Marketing Strategies for Small Businesses
- 6 Must-Follow Steps for Selling in Any Economy
- 5 Easy Social Media Wins for Your Small Business
Image courtesy of iStockphoto, Barghest
In: web resources
24 Nov 2009Which types of brands have the greatest opportunity to improve UX? A video-based look at online–offline experience gaps.
If you’re a business or UX professional trying to decide how to focus your efforts to have the most impact, it’s helpful to know which types of brands have the greatest opportunity to improve their online UX. To answer that question, it helps to first expand our view beyond the online world to understand which types of brands are expected to offer rich experiences in general (whether online through their websites, or offline in their stores).
Some industries or verticals are more likely than others to contain brands that:
The strongest examples that come to mind are:
Within each of these verticals, brands have spent decades creating rich offline experiences. They’ve done such a good job that we have to come to implicitly expect rich experiences when shopping these verticals. Think about shopping for a new car, for example. It’s a self-expressive, high-involvement purchase made in an engaging showroom with lots of personal assistance and a hands-on test drive. All of this adds to a rich offline experience.
If you’re wondering where you should focus your efforts to have the most impact, look for brands with online experiences that don’t yet match the richness of the offline experience they’ve spent decades honing. When a company has a significant gap between its offline and online experiences, customer expectations are not met, brand differentiation is diminished, and business is lost.
When your experience of a company’s website falls short of the offline experience you’ve come to expect, you lose your motivation to complete the purchase online. If there’s a retail outlet nearby, you may abandon the website with the plan of visiting the store to feel comfortable making the purchase. You wouldn’t be alone; MIT’s Technology Review (citing Jupiter Research) reports that for every $1 consumers spend online, they spend $6 dollars offline as a result of research they conducted on the Internet. But what about those times you don’t get around to visiting the store, or it’s simply too far away? Those become lost sales. Even if you do make the trip, it still feels like a preventable inconvenience, and like the brand has let you down. And what about those times you do put up with the website experience and make the purchase online? You may be left with an uneasy feeling, wondering if you made the right decision, and with a less favorable impression of the brand.
Drawing on my own observations, I estimated the size of the online–offline experience gaps in 13 key verticals.

The greatest gaps I identified are in retail, education, and healthcare. Within these verticals, companies have a huge opportunity to improve UX, especially relative to competitors in their verticals. Closing the online–offline gap improves customer satisfaction, enhances brand differentiation, and prevents lost sales.
It’s important to note that not all brands within “big gap” verticals are expected to offer a rich experience. brands that emphasize low price are a key exception. In these cases people expect to forgo the rich experience in exchange for low prices.
But as you’ll see in the next section, “big gap” brands are failing to offer online experiences that are differentiated from the experiences offered by low-price brands.
Retail
I recently went shopping for a jacket in both the offline and the online world, first at Patagonia and Walmart stores, and then at patagonia.com and walmart.com. Patagonia is one of my favorite brands; by focusing on Patagonia I don’t mean to pick on them, but instead to show that even the strongest brands have opportunities to improve their online UX.
The shopping experience at the Patagonia store was noticeably richer than Patagonia’s online experience. The store experience provided a livelier ambiance and greater opportunities to interact with the product and with helpful employees. I found the Patagonia employees to be enthusiastic about the brand and capable of answering tough questions like, “which of these jackets provides more warmth and more breathability?” Although patagonia.com provides a richer experience than most outdoor apparel websites I’ve visited, the online experience didn’t give me as much confidence to make a purchase as the offline experience did. Online, I struggled to choose between four different jackets and worried I’d make the wrong choice.
Patagonia and Walmart are two brands at opposite ends of the low-price/premium-quality spectrum. In the offline world, it’d be impossible to confuse the two—the videos make that abundantly clear. But as the screencasts show, my experiences shopping for jackets at patagonia.com and then walmart.com weren’t nearly as different from each other as one might expect. If I had wandered around the sites a little more, I would have encountered interesting things on Patagonia’s site such as the award-winning Tin Shed (a virtual shed full of interactive props and stories). But I was on the sites to shop for a jacket, not to wander around and check out peripheral Flash microsites.
During a separate patagonia.com shopping experience (this time shopping for a shirt), a chat box popped up and “Taylor” asked if she could help me. I had wanted personal assistance when I was shopping online for a jacket, but hadn’t gotten it. This personal assistance, though a bit intrusive, would have certainly helped shrink the offline–online gap, differentiated the experience from the walmart.com experience, and guided me toward the right purchase decision. But perhaps there’s even a better, less intrusive solution: adding a “Have a question? Chat live” button adjacent to product information. On occasion, I’ve seen a “Chat Live” button in the patagonia.com search area, but it’s not always there and it’s not in a place where you see it if you’re looking at information about a jacket.
Patagonia.com could also be improved by increasing the use of video to augment product photos. After documenting my jacket shopping experience I took a deeper look at the site and found that 17 percent of their men’s jacket listings included video depictions of the jacket. I hadn’t stumbled on any of these during my initial shopping experience. If more jackets had accompanying videos, I would have been more likely to see a video. Well-produced videos enhance the richness and differentiation of the shopping experience, help close the offline–online gap, and guide customers toward making the right purchase decision.
Education
The selection of a college or university is one of the biggest decisions a person can make in life. In the offline world, you can stroll the campus, audit a class, have lunch with current students, tour the facilities, check out the social scene, and so on. But in my investigations I found that the online experiences in the education vertical generally don’t match the offline experiences. Sure, you can watch a video or a virtual tour, but you’re just watching from behind the glass, not actively participating and interacting. In the education vertical, as in the retail vertical, the gap between offline and online experiences compromises brand differentiation.
Let’s say I want to get my MBA at a school that’s convenient to where I live and work. I know I’ll be spending a lot of time on campus, so I want to make sure it’s an inspiring place that’s conducive to learning and working with classmates. Based on their proximity to where I live and work, the schools I chose to investigate were the University of Colorado at Boulder (CU) and the Northglenn Center of Colorado Christian University (CCU). As you’ll note in the screencasts, the schools’ websites made it hard to get a feel for each campus and to get help making this high-involvement/high-risk decision. And what information I did find wasn’t presented in a rich way.
The online experience left me feeling that I’d have to make an in-person visit to experience each campus. So I visited both schools.
As it turned out, my offline experience with each campus made the decision an easy one. At one school—the much more expensive one—I felt immersed in the experience as an engaged participant, rather than merely as an observer. It was indeed a rich experience—much more so than online—and it differentiated the school from its low-price counterpart.
Healthcare
To check out the offline experience in the healthcare vertical, my wife and I shopped for the hospital where we’ll have our next baby. We toured the family birth center at Foothills Hospital in Boulder, and got to meet the doctor. We found the facility to be more like a resort than a hospital—there was a jetted tub in the birthing room, a DVD player and queen bed in the recovery room, and a beautiful lobby, cafe, and waiting room.
Had we checked out the hospital online instead, our experience would have been far different. We are making an emotionally significant, high-involvement decision, but the hospital’s website fails to welcome us with a rich experience. The entry point into the website is cold and off-putting, in contrast to the hospital’s warm and inviting lobby. After a bit of searching we found a simple “Welcome Tour” slide show, but it offered none of the richness of the offline tour.
Just as we saw within the retail and education verticals, the offline–online experience gap in healthcare means that brands are missing opportunities for differentiation. An actual visit to Foothills Hospital sets it apart from other hospitals, but a visit to their website does not. In fact, I found a richer online experience with a lower-priced hospital serving an area that’s pretty much the opposite of happy-go-lucky Boulder: South Central L.A., including Compton and Watts.
The online experience doesn’t need to exactly mirror the offline experience; they play complementary roles rather than act as alternatives to one another. But when it comes to satisfying customers, differentiating your brand, and winning business, the richness of the experiences should be on par with each other. It’s about creating the same richness online as customers have come to expect from those brands through years of offline experiences.
A good example of a rich online experience that complements and is nearly on par with its offline counterpart is the Volvo Virtual Test Drive of City Safety. The online test drive allows the “driver” to experience the brand’s automatic braking technology in a way that would be terrifying offline.
Juan Sanchez, a UX Magazine contributing editor, explained the importance of complementary experiences this way: “I think a lot of companies fall short by siloing their online and offline experiences, or by making them feel too much alike rather than having them work as companions. There are things that online or mobile experiences can do that an offline experience can’t, and vice versa. Industries should take into account the ‘experience ecosystem.’ They need to consider all the interaction touch points to make the online, offline, mobile, and other experiences seamless. If I do something online and then go into a physical store, there ought to be some overlap in the experiences to make the transition state a smooth and inviting one.”
As you reflect on brands that are behind or ahead in closing the offline-online gap, please share your thoughts with us through comments. You can also record your comparisons as we’ve done in this article, and include a link to them in your response. Whoever provides the best laggard example (big gap) and leader example (no gap) will receive a gift certificate to either Patagonia or Walmart.
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