Showing posts with label ratings. Show all posts
Showing posts with label ratings. Show all posts

9 May 2013

Keywords Search Is the Most Important Sales Initiative

Getting customers by having the right keywords is the most important merchandising initiative according to the 2013 Merchant Survey Results from The E-tailing Group. The survey had 148 respondents among senior executives with responsibility for e-commerce in the US.

Ratings and e-mails
Two other very popular initiatives are newsletters and Social Commerce. E-mail Marketing has been around forever and is very effective. A newsletter is a must on any e-commerce website. Social Commerce ie given the customers the possibility to rate, review and share these became popular about a decade ago. And it works. People trust other people.

50 Features
The executives were given 50 features which were ranked on a 5-point scale: 5 being very valuable and 1 indicating not at all valuable in driving revenue and results. This is how they rated the 50 initiatives

Merchandicing initiative    

Percentage in
Top 3   
Keywords search 98  
Product rating and review             95
E-mail Marketing 95  
Free shipping             94
Seasonal promotions 93  
Cross sell             93
What's new 92  
Up sell             91
Top rated 91  
Alternate views             91
Top sellers 90  
Source: e-tail detail (April 2013)

This is what your competitors think are the most important merchandicing initiatives. If some of these are absent from your merchandicing mix, you might want to investigate if you should implement they and increase your revenue.

See the press release from E-tailing Group.

11 Dec 2011

British Consumers Prefer the Web over the Store

Why go to the store when you can shop online? This could be the motto of the British consumer. According to a survey by KPMG most British consumers prefer to shop online rather than going to the high street store. Three in four (74 per cent) of British consumers say they are more likely to buy flights and vacations online and 77 per cent prefer to buy CDs, DVDs, books and video games online.
     Britain     Global    
Prefer to buy flights and vacations online 74%   70%
Prefer to buy CDs, DVDs and books and video games online             77% 65% 
Source: KPMG (December 2011)

However, when it comes to luxury items most people say they prefer to go to the store and four in ten consumers still seem to avoid grocery shopping online. This is especially evident in America where more than three in four say they would book a flight online, but only 21 per cent say they are more likely to buy groceries online.

When shopping in a store almost half (45 per cent) of the British use their mobile phone or device to find the nearest store, a third (32 per cent) use their phone or mobile device to research products and services, 30 per cent use their phone or device for online coupons and one in five (19 per cent) scan barcodes for product information. Globally 41% research products and services and almost a quarter pay with their mobile device.

Mobil device usage    Britain    
Locate store45%  
Research products            32%
Online coupons            30%
Scan barcodes for product information            19%
Source: KPMG (December 2011)

Ratings and reviews
When buying products or services the majority of customers in the UK and globally consult feedback and ratings pages on the internet or get information on social network sites such as Facebook and Twitter.

See news release by KPMG.

5 Apr 2010

Social Commerce Adds Credibility

Remember back in the old days, before industrialisation in the late 18th century? Probably not, but if a person needed a new pair of shoes he went to the shoemaker – or perhaps back then a clog maker. He met him face-to-face; the producer met the customer. The customer was able to ask questions and get help from the product manufacturer himself.

Industrialisation changed that. Products began to be mass-produced. The producers were out of sight. People still had to go to a shop to find a pair of shoes, but they had no social interaction with the producer. Instead, consumers had to trust the sales person – they had no other choice.

We’re now in the 21st century. An increasing number of consumers are shopping online, buying products without ever meeting a sales person. There is no social interaction, which means no one to ask for help.

Will shoppers trust a website?

Many e-commerce websites use words like “splendid,” “extraordinary,” “beautiful,” “bargain,” and all kinds of appealing marketing words to describe their products and services. But do shoppers trust these descriptions? Probably not. Numerous studies have shown as much: people don’t trust ads, people trust other people. But there are no people on a website.

The solution for an e-commerce site seeking to achieve a higher degree of credibility is social commerce. Social commerce is customer interaction that drives real business results. In TELMORE’s case, social commerce puts user-generated content in the purchase path, bringing value to our customers – and credibility to TELMORE.

Social interaction online

Let me illustrate with an example. A person is browsing the web for a new mobile phone. An Internet search brings him to TELMORE, where he finds the HTC Hero, which costs 1799 DKK ($326US/242 €). But who is TELMORE, and can he trust us? User ratings show that this is a popular, well-received phone. And perhaps more importantly, the reviews show that customers – real people like the shopper in our example – have bought from our website before and had a good experience.

The shopper’s natural initial hesitation is subdued, and he clicks on the phone to see more. On the next page he finds all ratings and reviews made by other vistors.

On this specific phone there are 46 reviews made by other customers – not by TELMORE. These ratings and reviews give TELMORE credibility, because they show that we are not afraid to give the power to our customers. We let them tell the truth about the phone and our brand, and as mentioned above, people trust other people. The words of our customers give the shopper the information he needs to confidently purchase the phone.

At TELMORE we have literally thousands upon thousands of reviews. Although we don’t meet our customers face-to-face as people did years ago, we still communicate with them. We have a blog, a popular Facebook fanpage, a Twitter account, and a customer support staff to answer calls. In addition, we have ratings and reviews, which give us a valuable advantage. Not only are our customers communicating with us online, but they are able to communicate with other customers and shoppers. Instead of talking to the clog maker, our visitors are able to talk to each other.

This is how the visitors interact on our site, and it’s just one example of social commerce. I personally surf the internet for product information, blogs, and naturally ratings and reviews. The doctor does take his own medicine.

How is your business using social commerce? Do ratings and reviews influence you?

(This blog post is posted simultaneously at Bazaarvoice.)