User-generated content boosts sales according to study
A global study by the online shopping network Bazaarvoice shows that exposure to consumer-generated content, such as product reviews and social media content, increases conversions by 106 percent / Mobile users outnumber desktop users for the first time
Consumer-generated content (CGC) such as product reviews and social content continues to gain in importance for retailers: the integration of such content in online stores leads to an average increase in conversions of 106% and a 19% increase in sales. This is shown by the latest Shopper Experience Index from Bazaarvoice. It is based on data from more than 2,600 retailer and brand websites from the Bazaarvoice network, an additional survey of 400 Bazaarvoice customers and a global survey of more than 2,000 consumers. Based on this broad database, the Shopper Experience Index reveals which strategies and technologies will shape online retail in 2018.
Other important results:
CGC strengthens the omnichannel: Just under half of Bazaarvoice customers expect CGC to boost not only online but also offline in-store sales. Compared to the 2016 survey, the number of those who share this expectation has grown by a third. Buyer behavior points in the same direction: 45% of consumers read reviews before buying products in-store - that is 15% more than in the previous year.
The majority of shoppers today are on the move: more than 50 percent of page views are now made via mobile devices. Shoppers therefore have clear requirements for retailers: 68% state that a user-friendly mobile experience is important or even very important.
Visual content is gaining influence: visual CGC increases revenue per visitor (RPV) by 180 percent. This category includes images and videos from social media that are integrated into product pages. 88 percent of buyers also state that visual CGC strengthens trust in a brand.
Consumers have questions - and want answers: As part of question-and-answer formats, buyers can ask questions about products, which are then answered by an employee of the manufacturer, for example. The integration of such formats increases conversions by 110 percent.
Customer reviews provide important feedback: CGC is not only an important sales argument, but also helps retailers and brands to improve their offering. 64% of the Bazaarvoice customers surveyed systematically evaluate customer reviews and use the insights gained to further develop their products.
"Retail is experiencing a revolution that brings with it enormous challenges. Technical answers need to be found to most of these challenges," explains Benjamin Dunkel, Head of Solution Consulting & Retail Acquisition, EMEA, at Bazaarvoice. "It is therefore crucial for retailers and brands not to get lost in technical gimmicks, but to look specifically for innovative technologies that deliver real added value and create a concrete competitive advantage. The Shopper Experience Index shows that CGC solutions clearly fall into this category. We can measure their value very specifically in terms of growing sales figures, but also in terms of factors such as increasing user trust in a brand."
The Shopper Experience Index is available here.
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About the study
The Shopper Experience Index is based on analysis of data from the Bazaarvoice network of retailers, brands, financial service providers and travel websites, with more than 943 million active shoppers per month. In total, the network has 5.4 billion page views per month and 61 million pieces of consumer-generated content submitted in 2017. The data set includes more than 2,600 customer pages and content in 37 languages. Unless otherwise noted, the data presented in this report shows the best-in-class (75th percentile) performance benchmarks among Bazaarvoice clients. The timeframe for the benchmarks was calendar year 2017 and, where relevant, a comparison has been made to the 2016 benchmarks.
In addition, Bazaarvoice conducted an online survey among its customers in the USA, Canada, the UK, France and Australia from December 14, 2017 to January 31, 2018. More than 400 brands and retailers were asked how they want to prioritize future e-commerce investments and what developments they expect in the coming year. To also shed light on the consumer perspective, 2000 consumers from the United States, the United Kingdom, France and Germany were asked about their shopping behavior in January 2018. All respondents were of legal age and made at least one online purchase per year according to self-reporting.
