Bazaarvoice, Inc.
BV, the network connecting brands and retailers to the authentic
voices of consumers wherever they shop, today released The Conversation Index
Volume 8. Based on an analysis of sample data from the Bazaarvoice network,
including over 57 million reviews and more than 35 billion product pageviews,
the latest issue of Bazaarvoice's semi-annual research series exposes how
companies that harness the power of networks are poised to drive significant
increases in content volume, search traffic, sales conversion, and consumer
insights.
Key Facts & Highlights:
Syndication increases content volume, yielding several benefits that manifest
at different "zones."
* Companies in the Bazaarvoice network achieved as much as a 324% increase
in review volume due to syndication, translating in up to a 26% increase
in product coverage.
* Page visitors who interact with reviews show an average 58% increase in
conversion rate compared to those who do not interact with reviews.
However, sales conversion is just the first of three "Zones of ROI"
(return on investment) resulting from the network effects of
consumer-generated content:
* Zone 1 (1+ reviews): Sales conversion continues to build as review
volume builds over time. On average, 1 review yields a 10% lift, 50
reviews produce a 37% lift and 200 reviews generates a 44% lift, with
incremental revenue opportunity even beyond 500 or 1,000 reviews per
product.
* Zone 2 (8+ reviews): Reviews increase the total product-specific
content on the page; content that is rewarded by search engines with
higher search results. Capturing more reviews on a regular basis
creates a stream of fresh, diverse content that search engines
continue to crawl and index, which typically results in a 15-25%
increase in search traffic for clients in the Bazaarvoice network.
* Zone 3 (100+ reviews): Higher volumes of user-generated content
allows thematic and sentiment analysis that provides better product
insights. Of note, 3 and 4-star reviews are more than twice as likely
to contain product suggestions compared to reviews of any other
rating, but both positive and negative reviews contain suggestions—a
key factor in receiving helpfulness votes than can sway shoppers to
make the purchase decision.
Network dynamics promote brand trust, expose the nuances of market categories,
and provide deeper understanding of regional trends.
* Connectivity structures in networks, and the vast volume of data they
provide, are crucial to safeguarding consumer-generated content against
fraudulent behavior. The greater the size of the network, the greater the
ability to discern sophisticated attempts of deception.
* Being part of a robust network provides businesses with insights not only
about their own products and customers, but also into important
characteristics that define their industry or product category as a whole.
* Global networks offer unique insights into regional trends. For example,
analysis of the Bazaarvoice network shows that:
* Australian apparel stores do not see the same back-to-school peak
seen in many other parts of the world, but they do experience the
same end of year holiday peak. However, compared to their mass
merchant counterparts, who see a peak in reviews in December,
Australian apparel retailers see a peak in January that suggests most
apparel purchases occur during the after-holiday sales period.
* Product pageviews on a mobile device grew by 8% in the past year,
globally. The Asia-Pacific region, led by Singapore, Australia, and
Japan, tops the rest of the world in mobile usage for shopping.
Europe, led by the United Kingdom, sits second and is trailed by
North America.
Supporting Quote:
Lisa Pearson, chief marketing officer at Bazaarvoice:
"Collectively, we are so accustomed to consumer-generated content that we
instinctively recognize online reviews are an important part of how consumers
validate purchase decisions and businesses deliver the products people really
want. The Conversation Index details a less intuitive reality—that the value
of review content is greatly enhanced when it is distributed across a network
of members. Today's consumer journey is a highly connected social experience,
and our most recent research makes clear that the quality, authenticity, and
ultimate utility of reviews is greatly enhanced when it is shared across
brands and retailers."
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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