user-generated content Archives | Bazaarvoice Fri, 17 May 2024 10:26:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 Shoppable content: Definition, platforms, and examples https://www.bazaarvoice.com/blog/shoppable-content-whats-next-for-social-commerce/ https://www.bazaarvoice.com/blog/shoppable-content-whats-next-for-social-commerce/#respond Fri, 08 Mar 2024 16:39:03 +0000 https://www.bazaarvoice.com/?p=23638 Batman and Robin, Bert and Ernie, Ilana and Abbi, Oprah and Gayle, me and great blog posts. What do these duos have in common? They’re iconic because of the way they complement and support each other, while winning over their audience. In digital marketing, the dynamic duo currently taking the world by storm is content and commerce — a.k.a. shoppable content.

Shoppable content was a new concept a few years ago, but in internet years that might as well be a decade. According to a survey of 250 business execs, 73% of businesses currently sell products and services on social media platforms, which are inherently content-driven. So, there’s a good chance your brand is already practicing this marketing tactic (or should be 👀).

As with everything else in the rapidly evolving digital marketplace, you need to continuously innovate if you want to compete. Leaders in the shoppable content space utilize the latest platforms, technologies, and formats available to them.

And in a smarter way than your competition. Whether you’re just getting started with shoppable content or you’ve been doing it from the start, there’s plenty to learn about at the intersection of social content and commerce.

Chapters:

  1. What is shoppable content?
  2. Best platforms for shoppable content
  3. New shoppable content features on established platforms
  4. How to add shoppable content to your e-commerce site
  5. Customize and curate your shoppable content
  6. Test and measure your shoppable content for success


What is shoppable content?

Shoppable content is a digital image, video, article, catalog, or social media post that consumers can purchase from directly, or click through to purchase on the product page.

If you’re behind the shoppable content curve, first of all: it’s never too late to catch up. And even if your brand’s already producing shoppable content, you should still learn how the technology is evolving.

Let’s start by explaining the concept.

Shoppable content is the foundation of social commerce — the selling of products and services on social media platforms and everywhere social reaches. Increasingly, brands are extending their e-commerce business past their websites to their social media channels. Accenture reports that social commerce sales will more than double by 2025, growing, three times as fast as traditional e-commerce.

They predict that millennials and Gen Z will contribute the majority of that growth. Especially the latter, given that 97% of Gen Zers use social media as their top source of shopping inspiration.

Social media is literally built for content, discovery, and exploration. So it’s a perfect fit for consumers to find products that appeal to them, represented by images, videos, testimonials, and descriptions.

But social media isn’t the only space for shoppable content. That’s the beauty of this conversion magnet. With the right tools (shameless plug), you can place that content on your website, partner sites, and even email. 74% of shoppers even expect to see social content on your website nowdays.

And in this stage of the game, there’s more types of content you can enable for shopping than when it first broke onto the scene. Now, shoppable content has expanded beyond static images in social media feeds and blog posts linked to product pages. We already know that works and produces significant results. Just look at Oak Furnitureland, who featured shoppable content across their website and marketing campaigns and saw a 248% increase in conversion rate.

So instead here’s a look at the latest advancements that brands and retailers can explore and use to innovate.

Best platforms for shoppable content

Some major social media platforms have begun to enable social commerce, even though they’ve been around for a while. If your brand already has a presence on these platforms, you’re well-positioned to start testing shoppable content on them. If you’re not already on these channels, now’s your chance to arrive prepared.

TikTok

Shoppable video content is all the rage. TikTok is one of the fastest-growing social platforms, and it reached 1 billion users in almost half the time that it took Facebook, Instagram, and YouTube. As it continues to roll out more shopping features, this is a channel that e-commerce brands will want to pay attention to.

Millions of active users around the world burn through hours of their day scrolling TikTok. Videos of people dancing, cooking, goofing off, doing voiceovers, putting on makeup, and basically just living their lives.

This makes it the perfect environment for customers to discover brands and products they’re drawn to in a casual, organic way. There’s even a hashtag dedicated to this very activity: #TikTokMadeMeBuyIt, which has literally billions of views.

TikTok Shopping, a suite of in-app shopping solutions for retail and e-commerce brands, is in its early stages. Similar to Pinterest and Instagram, brands with a TikTok for Business account can link their Shopify product catalog, which will appear in a Shopping tab on their TikTok profile. 

Additional partnerships with other e-commerce providers like Square, Wix, Ecwid, and OpenCart are in progress.

Many early TikTok Shopping adopters reflect the most popular content categories, such as beauty and skincare. For example, after Glow Beauty experienced a 600% spike in sales from a viral TikTok post and received a ton of first-time customer traffic from TikTok, they were eager to join the TikTok Shopping beta program.

Twitter/X

Twitter, or X, has joined the social commerce trend and is currently testing and piloting several different shopping features. They include:

  • A Shop Module where users can purchase from business profiles
  • Shop button linked with product-based tweets that adds items to an in-app cart
  • Live Shopping and a Twitter Shopping Manager for merchants

Twitter’s commerce tools are only available to a limited number of brands, as of early 2022. But keep an eye on them as the next big platform to offer shoppable content.

Source: Twitter

Be prepared for when Twitter expands access to shopping features to more brands by optimizing your Twitter marketing strategy now. Take the advice of successful brands on Twitter by coming up with a brand voice that works for the platform and refining your audience targeting.

Snapchat

Snapchat is another social platform to launch in-app shopping in the past year. With Snapchat’s Public Profiles for Businesses, brands can enable a Shop section of their profile where they can upload products for sale.

With Snapchat’s Verishop collaboration, users can search for items according to their mood — a fun and inventive way for shoppers to explore outfits, makeup, and more. The category themes include mid-century modern, high glam, and free-spirited. This approach is Snapchat’s way of translating the in-person shopping experience for the digital audience.

The key to leveraging Snapchat for shoppable content is to embrace all the features that differentiate the app from its towering competitors. This means creating Snapchat-friendly content using interactive Lenses, artistic Filters, and creative Stories that show tutorials and provide an inside look into your brand. Then, you can complement that content by adding all the products that inspired it in your Snapchat Shop.

Leverage new social commerce features on established platforms

As social commerce continues to grow, so do the opportunities for more shoppable content on the first platforms to offer it. Your audience is already on these platforms to discover products and shop. 70% of the 8.5 million-member Influenster community say they search for products on legacy social platforms like Instagram and Facebook.

Make sure your brand meets them where they are with the shoppable content they’re looking for.

Shoppable Instagram Reels

Instagram was already a social commerce giant. Recently, Instagram added shopping functionality to Reels too, making it an ideal shoppable video content platform. This move came soon after TikTok’s Shopify partnership announcement as a way to compete with their short-form video rival.

Brands and creators that have Instagram Shopping set up can add product tags to their Reels. Then, anyone viewing a Reel with tagged products can tap to learn more. By enabling Instagram Checkout, they can even add-to-cart or buy from within the app.

Reels are a valuable feature for brands that want to level up their social commerce game, and their overall Instagram presence. In addition to displaying Reels within your feed/profile, Instagram may also feature Reels in the Reels tab of the Explore page. And creator partners can also tag your products in their Reels. This last perk presents brands with another way to make the most out of their influencer partnerships.

Brands can use Reels to demo products and show their fun and creative side. Use the music in Reels to your advantage: bust out your best dancing, acting, and performance skills; tell a story and use props and anything else your imagination can concoct.

Facebook Shops

In 2020, Facebook launched Facebook Shops, a way for businesses to have an online storefront on Facebook and Instagram by uploading their product catalog. In 2021, Facebook expanded Shops’ promotion to Facebook Marketing and WhatsApp. More recently, Meta (Facebook’s parent company) announced they would further extend Shops content to other corners of their platform, including Facebook Groups and News Feeds.

Within Groups, Facebook will recommend relevant products based on the topics and discussions within those communities. On WhatsApp, businesses on Facebook can showcase their entire Shops catalog, and users can interact directly with merchants to ask questions and get more information about products.

Pinterest Shopping

Pinterest has supported and encouraged shoppable content for a while now, making Pins shoppable and allowing brands to upload their product catalogs to sell on Pinterest. Those products can link to their corresponding pages on e-commerce sites or, for U.S.-based businesses, are available to purchase directly in iOS and Android Pinterest apps.

Their newest social commerce feature is Shopping Lists, where all the Product Pins saved by users are stored in one place. Pinners who have Shopping Lists will be notified any time there’s an update or price drop on their saved items. According to Pinterest data, Pinners are 7x more likely to buy products they’ve saved.

Make sure you’re primed for shoppable content on Pinterest. Apply to be a verified merchant to increase your brand trust and credibility, post a variety of media types, and create content that appeals to the latest trending interests in beauty, food, fashion, home decor, travel, and other categories.

Livestream shopping

If there’s one way to go and make your video content shoppable it’s livestream shopping. Livestreams are the new infomercials. Except younger, cooler, and better connected. Livestream shopping first exploded in Asia, and the trend is traveling quickly to other parts of the world. Since other major markets like the U.S. are still figuring it out, this is a great time to get in on it early.

Facebook, Instagram, and TikTok currently dominate the livestreaming sector of social media. YouTube, which seems like a natural fit, is also getting on board with livestream shopping.

One brand to experience the power of live shopping on Instagram is Clinique. For a livestream event, the makeup brand offered Instagram-exclusive makeup kits, including a very limited, in-demand product. This repurposed product launch accounted for 85% of orders placed through Instagram and Facebook during, and right after, the livestream. This was a 7x faster product launch than what’s usual for Clinique.

Social media livestreams offer brands the opportunity to leverage partnerships with influencers who have large followings. For example, after seeing more success than anticipated with their first TikTok shopping livestream, Walmart partnered with TikTok creator Gabby Morrison, who has millions of followers, to host another livestream.

Livestream beyond social

Social platforms aren’t the only way to host livestreams. The Canadian footwear brand Aldo debuted livestream shopping on their website that achieved great success, including 17,000 pageviews, a 12-minute average time on site, and a 308% engagement rate. Aldo recruited two exciting co-hosts — a celebrity stylist and an L.A. entertainer — for the live shopping event. Attendees could shop the 2021 spring collection right within the livestream.

Adweek reports that more retailers will be following Aldo’s example and hosting livestreams on their own websites, with the help of new tech and startups “that have cropped up to provide the infrastructure for these efforts.”

To do livestreaming right, first you need a likable, knowledgeable, and relatable host. They need to be able to speak authoritatively about products and quickly and thoroughly answer questions submitted by viewers during the livestream. Cross-promoting livestreams on other channels is also key, as are exclusive incentives for livestream attendees, like discounts and bonus offers.

Distinguish your shoppable content with augmented reality

Using a digital camera, AR technology can “yes-and” reality by adding images, sounds, and animation to what appears in real time. This is one of the most innovative and cutting-edge ways brands can set their shoppable content apart.

AR marketing is particularly effective for beauty and apparel brands, and many have seen success in offering virtual try-ons. L’Oreal and Meta have combined forces with AR tech providers to bring virtual try-ons to Instagram.

Snapchat is going all-in on AR. The app is leveraging their trademark filters — dubbed Lenses — that can give you animal ears or turn you into an anime character to carve their niche in shoppable content. Elevating their social commerce capabilities with AR features is how they’ll continue to compete with TikTok, Instagram, and Facebook, which have much bigger audiences.

Brands can also invest in proprietary AR, like Home Depot’s Project Color app to test paint colors. Or there’s Target’s See It In Your Space tool to visualize home furniture and decor.

How to add shoppable content to your e-commerce site

Shoppable content can go way beyond the add-to-cart and buy now buttons on your e-commerce website. Step it up with shoppable content on your blog, product pages, and anywhere else that makes sense.

Longform blog content is essential for improving SEO performance, but you can further optimize that content for conversions by adding shoppable images, multimedia, and customer reviews. This will provide a more realistic representation of your products and give shoppers the ability to add-to-cart or buy now with one click.

Or using social commerce tools like Bazaarvoice Galleries, you can upgrade your home page, product pages, or separate gallery pages with beautiful shoppable image and video displays of your products sourced from influencers, shoppers on social media, and your own content.

By bringing user-generated content (UGC) from social media to shoppable website galleries, apparel brand Quiz increased time on site by 276%, average order value by 23%, and conversion rates by 154%.

Source: Quiz

Read the full case study here to see how they did it.

Customize and curate your shoppable content

It’s not enough just to tag your content with products on your social channels and call it a day. Give that content a fighting chance by planning it strategically.

Carefully select which products you want to showcase in shoppable posts and catalogs. Focus on lower-priced items, or at least offer a range of prices, as shoppers are more likely to make smaller in-app purchases and take more time to research higher-priced items.

You can group your products together in categories on Facebook and Instagram Shops. Curate your product collections based on the types of products that are driving sales and social engagement, as well as what aligns with your product marketing strategy. If certain products aren’t selling that well in-store or on your e-commerce site, try selling them on social platforms

You can also organize collections based on what’s in season, what’s trending, new products, and sales you’re promoting.

A proven way to increase engagement, reach, and conversions is to leverage UGC. Whether it’s content on your social media or website, UGC will go the extra mile because it’s created by your customers, many of whom have become brand advocates. They’re sharing their experiences with your brand because it makes them happy or proud.

Repurpose the best images and videos created by your customers, turning them into shoppable content. Repost it (with permission) on your social media accounts and website.

Test and measure your shoppable content for success

There’s many types of shoppable content and many platforms on which to distribute it. But that doesn’t mean you have to use every single one. Create different forms and try different channels until you find which delivers you the most value.

Measure the performance of your shoppable content based on your goals. What’s driving the most conversions, attracting the most new customers, and bringing higher average order values? There’s an easy way to find out.


You can check out the rest of our Long Read content here for more social commerce marketing strategies, tips, and insights.

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What is UGC? The complete guide to user-generated content https://www.bazaarvoice.com/blog/the-complete-guide-to-ugc/ https://www.bazaarvoice.com/blog/the-complete-guide-to-ugc/#respond Fri, 01 Mar 2024 16:16:07 +0000 https://www.bazaarvoice.com/?p=4954 What powers your online purchasing decisions? Is it a convincing product description or brand loyalty? Or is it recommendations from other shoppers? Most consumers say it’s the latter. According to our Shopper Experience Index, an annual study into changing shopper behavior, 55% of shoppers say they’re unlikely to buy a product without user-generated content (UGC), like reviews, Q&As, and customer photos. 

By integrating user-generated content into your marketing strategy you’ll build brand authenticity, drive sales, and seamlessly integrate your brand into the ever-growing creator economy. All absolute necessities to succeed in today’s turbulent market.

Chapters:

  1. What is UGC (user-generated content)?
  2. The benefits of user-generated content
  3. How to increase engagement with user-generated content
  4. UGC best practices guide
  5. Curate your brand identity with user-generated content


What is UGC (user-generated content)?

User-generated content, or UGC, is a form of content that’s created by real people to promote your brand. This includes written ratings and reviews, photos, videos, and even audio that your brand’s customers, followers, ambassadors, or even employees create and share across social and other digital platforms.

Recently, user-generated content has evolved to include professional-quality images, engaging videos, and thoughtfully written content that seamlessly support your brand identity. The days of grainy selfies and lacklustre videos are long gone, but UGC has retained its essential component of authenticity.

UGC doesn’t feel like an ad, and just like a word-of-mouth recommendation, it’s often more influential than one.

UGC is far more powerful than traditional brand marketing. Essentially user-generated content is the modern-day equivalent of a product recommendation, and the numbers back it up. 84% of consumers are more likely to trust a brand’s marketing campaign if it features user-generated content, and 77% are more likely to buy a product they found through UGC. 

Who provides UGC?

User-generated content is usually found through your customers, brand loyalists, and employees. An easy way to turn customers into UGC creators is to make it easy for them to leave reviews and add their own product photos. Brand loyalists are repeat customers who love your product so much that they’re willing to advocate for you without incentives.

Love them or hate them, the infamous Crocs knows how to rally its brand loyalists, with its hashtag #croctok gaining traction on TikTok and spreading its message to over 300 million viewers.

user-generated content
Source: Crocs TikTok

Finally, employee-created content, like video content discussing the company’s values, acts as a source of UGC that demonstrates diversity, support, and authenticity.

The benefits of user-generated content

Not only is user-generated content more influential than traditional advertising, but it’s also free, authentic, and engaging. There’s several benefits to UGC that have a big payoff for brands.

Builds authenticity and trust

User-generated content showcases how actual people use products in real-world settings. This creates authenticity for brands and allows them to promote products without being overly salesy.

Authenticity means a lot to consumers. 84% of millennials say user-generated content influences their purchasing decisions. And nearly half of Gen Z cites social media as their chief source of inspiration — even above family and friends.

Plus, people trust peer recommendations over branded advertising. A whopping 85% of consumers say they turn to visual UGC, rather than branded content, when making purchasing decisions.

Boosts search engine optimization ratings

Search engines place a premium on fresh and relevant content. UGC often contains keywords and phrases that can enhance the visibility of your brand in search results, indicating that the content is higher quality and more relevant to the reader, which leads to more organic traffic visiting your site.

And as we know, more traffic means more MQLs.

Increases engagement

User-generated content is all about connecting with consumers, building an online community, and creating a conversation between customers and a brand. So it’s no surprise that your content receives 28% higher engagement when UGC is integrated alongside your typical posts.

This is evident in all types of marketing content, including digital ads. When direct-to-consumer bedding and bath brand Parachute incorporated UGC into its retargeting ads, the ads generated a 35% higher click-through rate and a 60% lower cost per click.

What’s behind this higher engagement? It comes down to the fact that people want to get in touch with their favorite brands through social media channels. 60% of millennials alone say brand loyalty influences their purchasing decisions, according to joint research by Future Workplace and Elite Daily.

Plus, the most followed brands on social media are those that share their followers’ content. And engagement breeds further engagement, which inspires the creation of more UGC.

Drives sales

Using data from our Bazaarvoice Network of over 12,500 brands and retailers, we found there’s a 144% lift in conversion rate when shoppers engage with UGC and a 162% lift in revenue per visitor. Further research shows that visual UGC is more likely to convert compared with brand-created content.

78% of shoppers gain more confidence in a purchase when they see UGC, and 35% indicate they’re depending more on UGC during the cost of living crisis, according to our SEI. UGC provides social proof that assures consumers they’re making the right purchase, which translates to more sales.

However, some brands have experienced much greater growth in conversions, thanks to UGC. Take apparel brand Tuckernuck, for example. When Tuckernuck implemented a gallery of user-generated content on its website, as well as displayed UGC and influencer photos on its product pages, conversions skyrocketed by 190%.

“Having social content on our PDPs really helps with conversion,” says Kayla Robinson, a Tuckernuck customer experience and marketing associate. “When a customer sees other customers and influencers wearing the product, it inspires her or him to purchase it as well.”

User-generated content can be particularly beneficial to certain industries. The table above compares the click rate of posts both with and without UGC among various industries.

Provides audience insights

Consistently engaging with customers and analyzing the content they post about your brand allows you to better understand your audience. This enables you to not only improve how you interact with customers but also make adjustments to products and services based on customer feedback.

For example, branded hashtags often offer a ton of insight into what consumers want. If you own a cosmetics company, try searching for product names on social media to see what your target audience is saying. Do they want a more diverse shade range or sustainable ingredients? If a lot of people are voicing similar concerns, it’s time to take action and adjust your product offering. 

Ratings and reviews also contain a wealth of insights. If you’re constantly seeing customer reviews containing similar feedback, you know how to improve your products going forward. European retailer Vertbaudet noticed multiple customers had left reviews saying a maternity line dress was too small.

So in response to this feedback, the brand reassessed the dress and fixed the sizing of the cut which led to the average customer rating increase significantly.

Synchronizes with social commerce

Advertising on social media isn’t a novel concept, but social commerce is quickly becoming the new generation of shopping. 69% of shoppers say social media has inspired them to purchase products, and 52% have already shopped through social media. Consumers name convenience and product photos as the top reasons for embracing social commerce. 

User-generated content seamlessly aligns with social commerce because UGC takes the place of a branded ad and becomes an authentic, shopper-approved recommendation. Social media users see the UGC on a TikTok or Instagram post, click it, read the reviews, and purchase the product because it’s convenient and doesn’t require them to go to a different website to checkout. 

How to increase engagement with user-generated content

Let’s take a look at some of the most inspiring UGC campaigns in the world to emulate for your own UGC strategy.

Host contests or giveaways

Holding contests or giveaways is a classic way to have your customers get directly involved with your marketing campaigns and generate user-generated content

Offering a compelling prize is a crucial element to encourage more consumers to join in with your campaign. However, a good reward isn’t necessarily an expensive gift or a large amount of money. Starbucks, for example, came up with the #WhiteCupContest, encouraging customers to doodle their cups and upload a photo to social media with the #WhiteCupContest hashtag. The best part? The winning white cup drawings were featured as Starbucks’ limited edition reusable plastic cup.

The contest generated great buzz on social media and within three weeks there were over 4000 doodled cups uploaded to Twitter and Instagram.

Incentivize your products/services

By giving customers good incentives to feature your products or services, you can quickly generate a huge number of organic content and tap into their follower communities at the same time. 

Hilton Grand Vacations encourages customers to upload their holiday pictures on social media with the hashtag #myHGV for a chance to be featured on their Instagram Feed.

These beautiful images act as a source of authentic inspiration for potential customers to book their next vacation at the hotel.

Develop authentic and inclusive brand messaging

Building an emotional connection between your products and customers is one of the best ways to improve customer engagement and form long-lasting relationships with loyal shoppers.

Women’s clothing brand Aerie launched the #AerieREAL campaign to promote body positivity and inspire women to be comfortable in their skin. The brand encouraged users to post unedited photos of themselves in Aerie’s swimsuits and shared customers’ photos with authentic captions. As part of the company’s initiative to promote real women’s bodies, the campaign was a move to empower women who are fed up with the idealised body type promoted by fashion brands.

Aerie leveraged UGC to create an inclusive community of brand advocates on social media. By spreading the message of body positivity through its customers, there was also a huge boost in terms of brand image.

Partner with influencers

Influencer marketing is a great way to generate buzz and awareness around your products. Collaborating with the right influencers allows brands to tap into an existing audience and drive purchasing decisions.

Before the release of the Samsung Galaxy A model, Samsung collaborated with Blackpink to launch the hashtag challenge #danceAwesome. The dance challenge includes a short dance on the campaign’s catchy music, “Awesome screen. Awesome camera. Long-lasting battery life,” which perfectly highlights the smartphone’s features.

The brand then partnered with influencers like TikTok influencer @hollyh — who has about 16 million followers — to drive awareness of the challenge.

@hollyh working with @samsung on my audition for blackpink 😂 #danceAwesome #galaxyA #ad ♬ Awesome Phone Song(BLACKPINK Ver.) – BLACKPINK

These user-generated content videos went viral across social media and resulted in a whopping 4.7 million user videos with a combined 16 billion views.

UGC best practices

Adding UGC to your marketing strategy is an easy decision, considering the value it delivers, but there’s a few rules you should keep in mind. Follow these best practices to ensure your UGC works for you and your customers.

Develop a UGC strategy

With so many different types of UGC available, and with the countless ways your brand can utilize it, it’s easy to become overwhelmed. However, developing a user-generated content marketing strategy will help you search, curate, and publish the most effective UGC for your specific brand.

Provide clear guidelines

Tell your target audience exactly what kind of content you’re looking for. Only 16% of brands provide clear guidelines about the kind of content they want fans to create and share, but 53% of consumers want specific instructions on what to do.

Let’s say you’re running a giveaway on Facebook for a new product. Make sure the instructions on how to enter are super clear, and the value prop is front and center. Consumers appreciate clear directions as well as general guidance.

Include calls to action on site, on social, in emails, and on receipts, product packaging, and in-store displays. If you’re really in need of UGC, cast a wide net. You can also use a social commerce tool that’s created to source and sort existing user-generated content.

Ask for permission (and give credit)

Just because a customer tags your brand in a post or uses your hashtag doesn’t necessarily mean you can reuse it. So before reposting a user’s creation, reach out to them — whether it’s through email, comment, or direct message — say something complimentary about the content, and request permission to use it.

Once you receive permission, keep a record of it. Take a screenshot of the conversation or save the email in case any issues or questions come up in the future.

Always credit the original source of the content, and tag them if possible. This is respectful of the creator, and it encourages them — and other users — to continue creating content and sharing it with your brand.

Moderate it

User-generated content is considered quality if it’s created by real, non-paid users and conforms to your brand and community guidelines, government regulations, and audience expectations. That’s the only UGC you want. Any low-quality UGC (blurry images, typos, etc) or prohibited UGC (nudity, hate speech, etc) needs to be filtered out, reported, and binned. 

Content moderation can make or break your brand. Wanting a high volume of UGC is understandable, but quality is better than quantity. You don’t want to become known for showcasing low-quality UGC because, “Lawsuits and marketing to rebuild a bad public image are expensive” warns Abi Schuman, Senior Director of Content Management Services at Bazaavoice.

Share diverse content

Diversity and inclusivity are essential in marketing. Not only does it help your brand reach more customers, but it also makes your brand more accessible.

Users want representation, plain and simple. To quote Ad Age: “Given the fact that social networks are accessible by people of all backgrounds, shapes, sizes, and families who experience different seasons, communities, and landscapes, the diverse visual content found in UGC feels more like native social media content than advertising.” Couldn’t have said it better ourselves.

Make sure your audience finds this diverse content by syndicating it to everywhere they are.

Track content

Keep an eye on all the UGC around your brand — even the content you don’t use. UGC is like a continuous feedback loop you can use to stay on top of what people are saying about your brand. Bazaarvoice’s Insights and Reports offer a user-friendly dashboard to track and analyze your brand’s different types of UGC content, from reviews to social media posts. 

Evaluate content performance

The UGC cycle doesn’t end with distribution, it ends with an evaluation. Consistently compiling product reviews on your product pages that no one sees is a waste of time and money. That’s why evaluating the performance of your UGC campaign and monitoring the data is essential. 

Start with our UGC audit webinar here to learn the six core factors that should be evaluated, and get a handy scorecard to see how your content measures up. 

Curate your brand identity with user-generated content

Your customers are already talking about your brand on social media.

They’re posting selfies and uploading stories that feature your products. They’re comparing items and making recommendations. So take advantage of this and curate your brand’s content from the multitude of user-generated content out there. And with 69% of people making purchases because they saw a product on social media, it’s also the very kind of content that will inspire your customers to convert.

After all, this is the authentic and relatable content that your followers want, the essential meaning of UGC.

When it comes to answering the question “what is UGC?” few are more qualified than Bazaarvoice. As the #1 user-generated content platform (not our words, the words of G2) we’re well positioned to provide you with a comprehensive UGC education.

user-generated content (UGC)
Bazaarvoice are G2’s Leader in UGC. Source: G2 Grid® Report Score

Looking to get started with UGC? Contact us below to learn how Bazaarvoice, the leading UGC platform, can help you transform your brand and marketing strategy with user-generated content and drive a better ROI for your business.

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Understanding usage rights: A guide for online content compliance https://www.bazaarvoice.com/blog/usage-rights-compliance/ Wed, 28 Feb 2024 11:07:15 +0000 https://www.bazaarvoice.com/?p=50215 Suppose you’re a new skincare brand that’s just begun to carve out your space in the competitive industry. One day, an Instagram notification lets you know that a customer tagged you in a raving review of your moisturizer. The marketing team is excited to repurpose the video review on your website, social channels, and future campaigns. Until someone brings up usage rights and promptly puts a stop to the excitement.

If only things were that easy…

The fact is, understanding usage rights is a must for every brand that wants to collaborate with influencers and other creators. Nearly 80% of people tag brands in their social media posts at least sometimes, creating lots of opportunities to leverage user-generated content (UGC) and influencer content. 

In this guide, you’ll learn how to repurpose creator content without landing in hot legal waters — or getting (gasp!) “canceled” by a creator.

Chapters:

  1. What are usage rights?
  2. Why do usage rights matter
  3. Types of licensing agreements for usage rights
  4. Best practices for securing usage rights
  5. Streamline creator partnerships with Bazaarvoice 

What are usage rights?

Usage rights determine how someone — a business or individual — is allowed to use a piece of content they didn’t create or own the rights to. 

When you partner with an influencer or UGC creator, you need a usage rights agreement (often called a licensing agreement) that will define where and how you’ll use the content. The agreement also defines how long you’re allowed to use the content. Some agreements grant usage rights “in perpetuity” (meaning forever), while others set a limitation.

For example, an influencer could grant usage rights to their video review of your product in perpetuity on all digital platforms and also allow you to repurpose the video material for other types of content.

Why do usage rights matter

Agreeing on usage rights is important to set expectations for your influencer collaborations. It puts everyone on the same page regarding your partnership and lowers the risk of legal issues as a result of copyright infringement.

If someone sues you for copyright infringement, you could be on the hook for financial damages. What’s more, you’d have to shelve any marketing campaigns that use the content, adding to the cost. 

In addition to lawsuits, your brand could suffer reputational damage — and reputation is everything. Many content creators have loyal followings who might no longer buy your products if the creator goes public with their bad experience. People are drawn to controversy. Coming back from a scandal can take you years and cost plenty of dollars.

Be aware that you also need a licensing agreement for any other copyrighted material a creator uses in their content, like music. Failing to do so could lead to expensive lawsuits.

Just recently, Sony Music Entertainment sued beauty brand OFRA for not getting permission to use copyrighted music when collaborating with influencers. In Sony’s view, the popular music added to the impact of the influencer videos, so OFRA was supposed to compensate them for their use. A similar lawsuit took place between UMG Recordings and Vital Pharmaceuticals.

You might wonder why brands are liable for copyright violations committed by influencers they partner with. After all, you didn’t do anything wrong. Well, the reason is that it’s the brand’s responsibility to verify that the sponsored content doesn’t infringe on copyrighted materials.

So, your usage rights agreements should make it clear that creators aren’t allowed to use content they don’t own.

Types of licensing agreements for usage rights

When you partner with a creator or influencer, or source UGC from social, you’ll establish usage rights using a license agreement.

Creative Commons

A Creative Commons license allows you to use a piece of content as long as you give credit to the copyright owner. There’s seven kinds of Creative Commons licenses, some more restrictive than others:

  • CC BY: Allows commercial reuse, distribution, adaptation, and remixing across formats and mediums with attribution to the original creator
  • CC BY-SA: Same conditions as the CC BY license, but you must also license the modified content you created under the same conditions
  • CC BY-NC: Same conditions as CC BY, except it doesn’t allow for commercial use
  • CC BY-NC-SA: You must give credit to the original creator and use the same license for the modified content. Commercial use isn’t allowed
  • CC BY-ND: You’re not allowed to adapt the content, but you can share and copy it across formats and mediums with attribution. Commercial use is permitted
  • CC BY-NC-ND: The content can be shared only in its original format, with attribution, and for non-commercial purposes

Remember that once a creator applies a Creative Commons license to their work, they can’t revoke it.

Royalty-free

Under a royalty-free licensing agreement, the creator gives you permission to use their content for a one-time payment. You won’t need to pay royalties every time you use the image or video, and the license is granted for an unlimited time period.

This is a common license on stock photo websites, where you can purchase a piece of content and then reuse it as many times as you want. Typically, you don’t have to credit the creator, and you’re allowed to change the content to suit your needs.

Keep in mind that a royalty-free license doesn’t grant you exclusive rights to the content. Other brands can purchase the same image or video and use it in their campaigns.

Rights-managed

In terms of reuse, a rights-managed license is more limited than a royalty-free one. It permits you to use the content in a single project, but it doesn’t cover additional usage in other campaigns. 

On the plus side, a rights-managed license can give you exclusive rights to the content so you can be sure your competitors won’t use it (and you rake in brand authenticity points).

Best practices for securing usage rights

Follow these best practices to get your creator partnerships off on the right foot and avoid litigation. Happy legal team = happy life. 

1. Do your research

Not all types of content have the same usage rights, which is why you should first research where the content came from. 

Note: This applies only if you want to use existing content, not when you’re collaborating with an influencer who has yet to create content for your brand. In this case, jump down to step two, “Get the creator’s permission.”

Let’s say you found an image that would work perfectly on your website’s product page. But there’s no attribution, so you have no idea where the image came from. To find out, try doing a reverse Google Image search, which will pull up all the websites featuring the same image.

If the image came from a stock photo library like Shutterstock, then it’ll be easy to determine usage rights. On Shutterstock, for example, there are “Standard” and “Enhanced” licenses that depend on your subscription type. Each license specifies how you’re allowed to use the content.

What about videos on Instagram or TikTok that you want to reuse? The first step is to double-check if the account owner actually created the video and didn’t just repost it from somewhere else. Then, contact the creator to get their written permission.

2. Get the creator’s permission

If you’re partnering with an influencer who will produce UGC for your brand, you’ll also need a contract to establish usage rights.

Written permission can be in the form of a formal licensing agreement that describes where and how you’ll use the content. You might also specify compensation and how long you intend to use it.

If you just want to share a creator’s content to your profile, then a simple message asking their permission could suffice (the kids call it sliding into their DMs). However, make sure to clear this with your legal team first, especially if you’re not sure if the creator has used someone else’s copyrighted material in their content, like music.

Remember to archive these communications in case any legal issues arise. The more receipts you have, the better.

3. Be ready to negotiate

Some creators are happy to share their content for free. Others want to be compensated for their time and effort, so you might need to negotiate their rates.

Compensation depends on many factors. If someone grants you an exclusive, perpetual license to their content, then they might ask for a much higher fee. Consider limiting the duration of the license to six months or a year to get a lower rate.

The scope of usage also influences compensation. If you only plan to repurpose a creator’s video on your website, it could give you some room to negotiate their fee.

Be upfront with any compensation limitations. For example, some brands prefer to pay first-time collaborators in merchandise. Mentioning this at the very end of your negotiation could frustrate the creator and put them off from working with you.

4. Use digital asset management software

As your influencer marketing partnerships grow, you’ll need an easy way to manage your digital assets and ensure you aren’t violating their usage rights.  

With digital asset management software, you can track usage rights for all of your assets in one place. It will prevent you (and anyone else on your team) from using content with an expired license.

Streamline creator partnerships with Bazaarvoice 

Strategic partnerships with the right creators will put your brand in front of the right audiences. But finding the right creator, securing usage rights, and ensuring they produce on-brand content is a lot to juggle at once. Bazaarvoice’s Creator Partnerships does the heavy lifting for you with our community of trusted creators.

You just need to set content goals and define your audience and messaging. Then, a Bazaarvoice Strategist will take over to find the right creator and negotiate the terms. Any content they create can be repurposed on your other channels so you can make the most out of the partnership and bask in the benefits of influencer marketing.

Get started ]]>
What is video commerce? Benefits, best practices, and examples https://www.bazaarvoice.com/blog/video-place-in-ecommerce/ https://www.bazaarvoice.com/blog/video-place-in-ecommerce/#respond Fri, 02 Feb 2024 13:40:06 +0000 https://www.bazaarvoice.com/?p=11779 First, video killed the radio star, now video is coming for the… photo star? In the current e-commerce world, it’s more important than ever for brands and retailers’ marketing strategies to include video e-commerce. Think shoppable videos on Instagram, videos on product pages, and a presence on viral video apps like TikTok

Since first taking off a few years ago, the use of video in e-commerce is no longer just an option — it’s a necessity. 89% of consumers want to see more videos from brands in 2024, and over 60% of shoppers are more likely to buy a product if its product page has customer videos, according to research by Bazaarvoice

Chapters:

  1. What is video commerce?
  2. The value of video commerce for brands and retailers
  3. How to use video in e-commerce
  4. Video commerce: Best practices for brands
  5. Drive more sales with video commerce


What is video commerce?

Video commerce is the use of video content to promote your product and services to create better shopping experiences for consumers that drives purchases.

If you’re scrolling through, say, your favorite e-commerce store, which type of content is more likely to snag your attention? Walls of text, static images, or engaging videos that show the products in action? Likely the latter. That’s the power of video commerce. It’s a dynamic way of advertising and selling products that’s transforming the e-commerce landscape by helping consumers feel more confident in their purchases.

Video commerce might’ve started as just a trend (you can blame TikTok for that), but it quickly evolved into much more than that. It’s a strategy that blends entertainment with instant purchasing options and makes the shopping experience more engaging, informative, and fun.

The value of video commerce for brands and retailers

E-commerce brands are in a constant battle to find the next shiny strategy that will capture consumer attention and, ultimately, increase profits. Video commerce is precisely that, as it provides a creative outlet for brands to not only showcase their products but also weave compelling narratives that resonate with consumers.

Enhanced customer engagement

You can’t just put your products in front of an audience and hope for the best. Marketing is everywhere. If standing out and getting audiences to engage with your brand is the goal, you need to invest in immersive and interactive experiences that captivate and retain their attention. 

This is where videos shine. They have the unique ability to tell stories, evoke emotions, and create a sense of closeness with a brand. And stories are what connects us. They’re the difference between someone buying a product versus an experience, something purely material versus a narrative they can relate to on a personal level. 

Thanks to YouTube, TikTok, and Instagram Reels, the shareability of videos has gone through the roof, which can mean very good things for your brand reach. When users share video content on social media platforms, it not only extends a brand’s visibility but also adds a layer of credibility through peer recommendations. Overall, this organic spread of content contributes to a broader and more engaged audience.

Building trust with audiences

Trust is at the heart of any successful brand-customer relationship, and video commerce offers an authentic means to help you build it. Through videos, you can present your products in a transparent and genuine way, allowing customers to see the real value and application of what they’re buying. 

This authenticity is amplified tenfold when brands incorporate user-generated content (UGC), such as customer testimonials or product reviews, into their video content strategy. Getting Beyoncé to promote your brand is great, but it’s seeing real people use and endorse your products that promotes trust and credibility (and it’s also a lot cheaper.) 

Featuring employees or behind-the-scenes footage in videos also helps humanize your brand, making it more relatable and trustworthy to the audience. Beyond building confidence in the product, this approach also creates a sense of loyalty and connection between your brand and your customer base. Faceless corporations are out, the human element is very much in.

Improved product understanding and visualization

It doesn’t matter how glossy your products look. If a consumer can’t glean their value in a real-life setting, they’ll likely give up on the purchase. Video content addresses this issue by providing detailed demonstrations and showcasing products in action. Marketers have caught on to the value of video in this scenario, with 96% agreeing that videos have helped increase user understanding of their products or services.

Images are still important, but videos can effectively highlight the features, functionalities, and real-life applications of a product, giving your customers a comprehensive understanding of what they’re buying.  This type of dynamic visual content can truly bring products to life, offering a virtual “try-before-you-buy” experience that is particularly valuable in an online shopping environment.

How to use video in e-commerce

Video helps you better promote products, build brand trust, and reach new customers through relatable, viral posts on social media. And there’s no shortage of options — from snappy short clips to impactful and lengthier ads, as well as GIFs and livestreams. Customers also crave unboxing videos, tutorials, testimonials, interviews, and more. 

Here are the most effective ways to use video in your e-commerce strategy. 

Optimize your product pages with video content 

Because more and more shoppers are making purchasing decisions online instead of in-store, brands need to help consumers feel confident before they buy. Video does just that, because it shows: 

One way you can instill confidence is by enhancing your product pages with videos. You can produce unboxing videos that allow your customers to experience your product before they buy it, or you can go down the ‘how-to’ route with videos that help customers understand how to use your products. 

Customers also love user-generated videos, like testimonials or previous shoppers showcasing how they use a product. In fact, Bazaarvoice research shows that both men and women look at user-generated videos to see the product in action. 

Address frequently asked questions with video responses 

Give your brand a voice and show off your authenticity by answering frequently asked questions (FAQs) in a video format. Video gives you the chance to really bring questions to life and provides nuanced and contextual answers that don’t translate as effectively into text. You can also create accompanying graphics and visuals to better explain more technical answers, because who doesn’t love a nice pie chart? 

If you’re looking for a prime example of this, check out eyeglass company Warby Parker’s YouTube channel. They have an entire playlist dedicated to FAQs that answer commonly asked questions. 

Some videos are animated, while some feature employees explaining products, but all of them exude Warby Parker’s personality. 

Customers can also ask questions in the comments and receive a response. 

Share shoppable video content on Instagram 

Social media is the pinnacle of video and e-commerce, and Instagram is leading the way. Instagram’s video capabilities have evolved so much since the app first introduced the feature in 2013 that you could argue it’s now a video-sharing app (blame TikTok…again.) 

Instagram has made it even easier to shop on their platform, by allowing brands to link to products in videos. All customers have to do is click on the link to the product they want to buy, and they can either save it for later or go to the product page to make a purchase. 

Apparel brands like Meshki have used the feature to create video content that shows people wearing their clothes, with links that go directly to the products worn. For example, they produce videos that feature regular people donning their newest or most popular items. Customers can see products in action before deciding whether or not to buy, and if it’s an immediate yes, the link to the product page is right there in the video. It’s social commerce at its finest.

Share engaging short-form clips on TikTok 

With over a billion users worldwide, TikTok is the hottest new social media app rife with future customers for your brand to engage with. The app encourages creativity with a wide range of filters, video effects, and the ability to add music to your clips. Easily expand your audience by joining video TikTok trends and challenges, and watch your videos go viral. 

In October 2020, TikTok partnered with Shopify to introduce shoppable video ads on the app. Now business accounts can create in-feed ads included within the TikTok algorithm, making it the pinnacle of video in e-commerce. 

But shoppable videos aren’t the only way you can engage with your audience on TikTok. From behind-the-scenes videos to product demos and brand collaborations, the app is a powerhouse for all things video content and a top-tier distribution channel for all your rich UGC.

Hop on the livestreaming trend 

Originally popularized in China, livestream video in e-commerce began to trend around the world during the pandemic, when consumers craved human connection. And now, livestream shopping is changing the industry. 

Walmart created the first ever “shoppable” livestream, called the “Holiday Shop-A-Long Spectacular,” where a live digital audience got to watch ten TikTok creators showcase their favorite Walmart fashion items. 

Verishop saw the immense potential of live commerce and launched a new app called Shop Party, to meet this demand. On the app, users can hang out, explore products and shoppable content together, and purchase products. You can get in on the livestream action, too, by hosting a Shop Party for group shopping and educational lessons. 

Supercharge your product launches with video

When there’s a new kid on the block, you want it to make a splash. Teasing and announcing new products with video content is like a mini-blockbuster moment for your brand. You likely won’t become the next #Barbenheimer, but you have the chance to highlight the features and benefits of your new product with a flair that grabs attention and holds it. 

@prettywell.co

New product launch 💖💥

♬ original sound – bestspedup

You can create a range of content, from teasers that pique interest and build anticipation to in-depth demonstrations that dive into the product’s features and benefits. These videos can be shared across different platforms — from your website and social media channels to email newsletters — for maximum visibility and engagement.

Incorporate video in email marketing campaigns

Who doesn’t love a brand email with great big walls of text? Right? Right? Wrong. Inboxes are often flooded with text-heavy emails, so this is yet another area where video can be a much-appreciated breath of fresh air. A well-placed video can summarize your message succinctly, so it’s easier for your audience to understand and engage with your content. 

Videos in emails can play a big part in boosting key metrics like click-through rates and engagement. People are naturally drawn to visual content, and a compelling video can encourage them to spend more time with your email and, by extension, with your brand. 

video commerce
Shopify includes a video tutorial in emails to their new users. Source

Whether it’s a product demonstration, a behind-the-scenes look, or a heartfelt message from your CEO, videos can convey emotion and information in a way that text alone cannot. You can use it to add excitement to new product announcements, offer valuable how-tos, share customer testimonials, or even give a sneak peek into upcoming events. The possibilities are endless, and the result is a more engaged and responsive audience.

Implement video into customer service and support

What’s the difference between reading through a complex troubleshooting guide and watching a simple, step-by-step video that walks you through the process? For starters, you wouldn’t be bored to tears and tempted to give up altogether. But the latter also makes the solution more accessible and adds a personal touch that can be reassuring to customers. 

Slack’s YouTube channel has several playlists dedicated to helping new users unlock the full potential of the product.

Plus, video support can be incredibly versatile. Live video chats, for example, offer real-time assistance, making customers feel heard and valued. Pre-recorded instructional videos, on the other hand, provide a resource that customers can access at their convenience, reducing the need for repeated support for common issues. 

Whatever the format, implementing video in customer service demonstrates your brand’s commitment to innovation and customer satisfaction. It shows that you’re willing to go the extra mile to ensure a positive customer experience.

Video commerce: Best practices for brands

Are you tempted to immediately start recording your surroundings? Understandable, we made a good case. But before you channel your inner auteur, take a minute to consider the following best practices and ensure your video commerce strategy yields the best possible results.

Focus on high-quality video production

It’s the 21st century, and no one wants to put up with grainy videos on their feeds — especially if they’re being sold something. Unless it’s a mermaid or UFO sighting, your video content should always reflect the quality of your brand and match or surpass the standards of your competitors.

The most important elements are clear footage, good lighting, and solid editing. Sound quality also matters — clear audio without background noise is essential, especially in videos that include speaking parts or demonstrations. Investing in good-quality microphones and sound editing can really enhance the overall quality of your video. 

You can’t always get top-quality when the videos are coming from outside parties such as influencers and other content creators. But working with a UGC provider like Bazaarvoice goes a long way here. We help you partner with the right creators and ensure that the content meets your brand’s standards before making its way to your marketing channels.

Keep content authentic and relatable with UGC

We already touched on it, but it bears repeating. UGC, which includes videos created by your customers, resonates deeply with audiences because it showcases real-life experiences with your products or services. 

UGC acts as social proof. When users see other people enjoying your products, it reinforces the idea that they’re making a good choice. This peer validation is incredibly powerful at a time when consumers are bombarded with marketing messages from all sides. It cuts through the noise and provides a clear, honest perspective — a far cry from a polished, professional advertisement.

Incorporating UGC into your video commerce strategy also fosters a sense of community around your brand. It shows that you value your customers’ voices and experiences, further enhancing the connection between your brand and your audience. This community-building aspect can transform one-time buyers into brand advocates, extending your reach organically (read: free.)

Optimize videos for search engines

If you want your video content to reach the masses, you can’t ignore search engines. Just like with typical search engine optimization (SEO), video SEO involves a set of practices designed to make your content more attractive to Google & co. 

The first step is to use relevant and keyword-rich titles and descriptions. This doesn’t mean stuffing keywords in haphazardly, but rather incorporating them in a way that accurately describes the content of your video. The title and description should give potential viewers a clear idea of what to expect, while also aligning with the terms they might use in their searches. 

Thumbnails also play an important role here. A compelling thumbnail can dramatically increase the click-through rate of your video. It should be visually appealing and relevant to the content, as it serves as the first impression for potential viewers. 

Transcripts and captions are not only beneficial for accessibility but also for SEO. They provide additional text that search engines can crawl, making your video more likely to show up in searches. 

Lastly, hosting your video on a platform that is recognized and trusted by search engines can impact its visibility. Platforms like YouTube, which is owned by Google, are often prioritized in search results, making them a good choice for hosting your video content.

Ensure mobile-friendly video formats

We are quickly approaching a time when people might as well have their smartphones glued to their foreheads. While the situation isn’t that dire (yet), audiences do prefer to watch videos on their small devices — according to Statista, 70% of the digital video content audience in the US was reported to watch videos on their smartphones. So if your videos aren’t optimized for mobile, you’re already at a disadvantage. 

Optimizing for mobile means considering aspects like video format, size, and loading times. Videos should be in a format that’s widely supported across various mobile devices and operating systems. Formats like MP4 are generally a safe bet, offering good compatibility and quality. 

Another key aspect is the size and resolution of the video. While high-definition videos are great for larger screens, they might not be necessary for mobile viewing and can lead to longer loading times. Optimizing video resolution and compression for mobile devices ensures that your content loads quickly and plays smoothly, even on slower data connections. 

With the rise of mobile usage, vertical videos have gained popularity, especially on platforms like Instagram and TikTok. Creating content that can be easily viewed without rotating the device can enhance the user experience significantly. 

And don’t forget to consider the design and placement of any text or graphics in your videos. On smaller screens, these elements need to be clearly visible and legible. Overcrowding the screen with too much text or too many graphics can make the content hard to follow on a mobile device and give your audience a migraine.

Drive more sales with video commerce

Regardless of what platform your brand is focusing on, using video in e-commerce is simply unavoidable. Lest we forget, it literally killed the radio star. Learn how to make shoppable video work for you and your brand to fit into the modern landscape of e-commerce. Learn more about how to collect and wield this visual content here.

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The modern e-commerce funnel: Strategies for conversion https://www.bazaarvoice.com/blog/the-modern-e-commerce-funnel-collapse-strategies-for-conversion/ Wed, 31 Jan 2024 14:39:39 +0000 https://www.bazaarvoice.com/?p=49452 The e-commerce funnel is changing. Purchasing can happen anywhere, at any time, in an instant.

Here’s a thought experiment: In the past five years, how much has the landscape of e-commerce changed? With mass remote working, the widespread adoption of TikTok, and the increase in mobile shopping, the answer is a lot. So it’s only natural that the e-commerce funnel, once a reliable roadmap for customer journeys, has undergone a considerable (and interesting) shift.  

Understanding and adapting to the new “state of the funnel” will allow you to create an interconnected, engaging journey that reflects the modern shopper’s behavior and rewards your bottom line.

Chapters:

  1. The e-commerce funnel as we knew it
  2. The collapse of the e-commerce funnel
  3. Breaking down silos with the correct content mix
  4. How to optimize the modern e-commerce funnel with UGC
  5. How Iconic London adapted to the collapse of the e-commerce funnel
  6. Embrace the new reality of e-commerce


The e-commerce funnel as we knew it

Picture a straight line that connects point A to point B. Now imagine that every person’s shopping journey follows that exact same shape — a neat, linear path from need to purchase. This is the essence of the traditional e-commerce funnel. It assumes that every shopper’s journey is predictable and follows a clear-cut path from consideration to purchase. 

This is a neat model, yes. But if you try to make sense of it in light of the current landscape, the cracks begin to show — because the traditional e-commerce funnel doesn’t account for the dynamism and unpredictability of modern shopping behaviors. It’s a boxed-in approach, where the focus is primarily on guiding the consumer through a set sequence of stages. 

This funnel operates under the belief that the consumer’s journey is a one-way street, leading straight to the checkout page. What the model fails to consider are the varied and often non-linear paths that consumers take in the digital age. It doesn’t leave room for the spontaneous, exploratory, and serendipitous nature of online shopping. It overlooks the fact that a consumer might jump stages, turn back a stage, or even convert immediately through in-feed check out, or one-click purchases, for example. 

It’s comforting to believe that consumers will follow exactly the path you lay out. And it usually makes the lives of e-commerce brands easier. But alas, social media and other platforms have transformed how consumers discover, research, and engage with brands

In a digital era where a consumer’s journey is anything but uniform, the traditional e-commerce funnel is increasingly out of touch with the realities of the online shopping experience. We might even go as far as to say that the funnel has collapsed.

The collapse of the e-commerce funnel

This collapse isn’t as devastating as it sounds. But rather, it’s a natural progression of things. The rise of social commerce, mobile shopping, and e-commerce platforms has revolutionized the buyer’s journey, evolving (or devolving) the e-commerce funnel in the process. 

The journey can start and end at any point, it’s characterized by speed, diversity, and a multitude of channels and touchpoints, making each person’s experience unique and dynamic. Someone might research a product in-store but buy it online, or use a retailer’s mobile app to compare prices while shopping in-store. A customer can move from discovery on social media to purchase without leaving the app or spending time in the consideration stage.

In this new era, search engines are the primary gateway to product pages, but other avenues like site searches, mobile apps, and social media searches are rapidly gaining traction. The traditional funnel, with its focus on a linear path that culminates in a purchase, doesn’t encapsulate the complexity and fluidity of these modern behaviors. 

Also, the term “funnel” overlooks the fact that, for many consumers, the purchase is not the end but the beginning of an ongoing relationship with a brand. This change is evident in the way consumers interact with brands beyond the point of sale. Edelman’s 2023 Trust Barometer revealed that 79% of consumers engage with brands in ways that go beyond using their products, and about 78% find attributes that attract them and foster loyalty to a brand after they purchase. 

In short, today’s buying behaviors are too dynamic for a linear mindset. For those who have been paying attention, the collapse of the e-commerce funnel isn’t a surprise — it’s an inevitability.

Social media, a new full-funnel experience

One of the main drivers of the traditional funnel collapse is social media. Channels like Instagram and TikTok have emerged as new search engines and storefronts, and almost single-handedly reshaped the e-commerce experience. 

According to our 2023 Shopper Experience Index, over half of shoppers (58%) often stumble upon new products or services through social media, surpassing traditional channels in discovery. This shift isn’t just about accidental discovery — 50% of consumers actively research products on social platforms, and 42% acknowledge the significant impact of social media on their purchasing decisions.


Social media’s influence extends beyond the initial stages of the funnel. It also plays a role in promoting brand loyalty, with 46% of shoppers regularly following their favorite brands on these platforms. This engagement translates into tangible transactions — nearly a quarter (23%) of consumers have made between one and five purchases directly through social media platforms  in the past year.

Unsurprisingly, the impact of social media on the e-commerce journey is very pronounced among younger demographics. 70% of people aged 18 to 24 are more likely to discover products through social media than any other means.

As it stands, social media isn’t just an extension of your marketing strategy, but an essential component of the modern e-commerce funnel. It’s a space where discovery, research, purchase, and loyalty come together to offer a seamless, uninterrupted, and integrated shopping experience. As consumer behaviors continue to evolve, the role of social media in the e-commerce funnel will only grow, making it an indispensable tool for you to connect with your audience in a meaningful and impactful way.

Breaking down silos with the correct content mix

Typically, teams that run top-of-the-funnel (awareness) and bottom-of-the-funnel (conversion) activities are different and tend to work in silos. But in the face of a collapsed funnel, brands can streamline costs and enhance the shopping experience with content that breaks down these barriers and integrates into each phase, from the awareness stage to consideration, conversion, and post-purchase loyalty.

When it comes to your content supply chain, a balanced mix of branded-, creator-, and user-generated content is essential to address full funnel needs. But 67% of brands and retailers plan to increase their spend on UGC in the coming year to meet rising consumer demands.

User-generated content (UGC) presents an economic means of driving high quality, high converting content for any phase of the buying journey. UGC is content produced by your customers (a.k.a. real people who use your products) and can take many forms, from written reviews to video testimonials, photos, and more.

There’s a real hunger for this type of content on the consumer side, as it makes customers more confident in their buying decisions — our Shopper Experience Index revealed that 55% of shoppers are unlikely to buy a product without UGC, and 62% are more likely to buy a product if they can view customer photos and videos.

Whether it’s an Instagram ad, an organic TikTok post, a homepage gallery, or a product page, UGC is the type of content that fits at every stage of the e-commerce funnel, and in every channel the modern consumer uses throughout their journey. 

How to optimize the modern e-commerce funnel with UGC

There’s a lot to love about UGC, but one of its biggest selling points is versatility. Customer reviews, photos, and videos can be seamlessly woven into different stages of the e-commerce funnel to create a more engaging, trustworthy, and cohesive shopping experience — regardless of what the journey looks like for each individual consumer.

In the discovery phase, UGC is the magnet that attracts potential customers through relatable and authentic content. During consideration, it provides social proof, reassuring customers about their potential choices. At the point of purchase, UGC can tip the scales in favor of conversion. And in the post-purchase phase, it encourages brand loyalty and advocacy, turning your customers into long-term brand ambassadors

Discovery: Building brand awareness

In the discovery phase, where the primary goal is to get eyes on your brand, UGC helps you spin a unique narrative that draws potential customers into your world. Thanks to its authentic nature, UGC gets through to audiences in a way that traditional content marketing can’t.

It provides a glimpse into the real-life experiences of existing customers, making your brand more approachable and trustworthy. These are the top ways you can leverage UGC at this point in the e-commerce game:

Social media showcases: Social media platforms are a fantastic source of high-quality visual UGC and one of the primary points of distribution for it (remember, consumers might very well begin and end their journey without even leaving a social media platform.) Pepper in discovery-focused UGC like customer photos, videos, and stories in your feeds that provide an overview of your products, highlight benefits, or introduce the ethos of your brand to newcomers. For example, a sports apparel brand might create a hashtag campaign encouraging customers to post their outfit photos and caption them with one healthy habit they try to adopt every day. That’s a ton of rich UGC the brand can then reshare to its own accounts.

e-commerce funnel
Aerie uses the hashtag #AerieREAL to generate UGC that promotes their body positivity ethos (Source)

Incorporate UGC in digital ads: 40% of shoppers say UGC makes them more likely to buy a product from an ad, so use that to your advantage. Incorporate UGC in digital advertising campaigns, whether it’s Google Shopping, TikTok, Facebook, or Instagram ads, to add a layer of authenticity and relatability to your marketing. 

Interactive UGC galleries: Create interactive UGC galleries and display them on your homepage and landing pages, where website visitors can see how others are using the products. If you’re a home decor brand, you can have a gallery where customers upload pictures of their home interiors featuring your products, offering inspiration and real-life use cases to brand-new visitors. 

Oak Furnitureland uses Bazaarvoice Galleries to help potential customers visualize the pieces in their homes, get inspired, and build trust in the brand.

Feature customer stories on your e-commerce site: Our 2022 Shopper Experience Index revealed that 74% of shoppers want to see consumer content on brands’ websites. Galleries are one way to do this, but you can go the extra mile and create a dedicated section on the website for customer stories or testimonials. This can be a powerful way to introduce new visitors to your brand through the lens of existing customers. For instance, a travel gear brand could feature stories from customers who have taken their products on adventures, complete with photos and quotes, on a special “Our Community” webpage. 

Include UGC in welcome emails: Incorporate UGC in your emails to introduce new subscribers to the brand community. An example scenario of this strategy could be a fitness brand including customer success stories and workout photos in their welcome email, showcasing the impact of their products and programs.

Consideration: Engaging potential customers

UGC can further engage people who just found out about your brand. While some customers might skip this phase, others take time to evaluate their options, compare products, and decide if what you offer meets their needs and addresses their pain points. 

Here’s how UGC can be used for funnel optimization in this context: 

Showcasing real-life product use: Use UGC to show how real customers are using and benefiting from your products. This approach addresses any concerns or questions potential customers might have. For instance, a skincare brand can share before-and-after photos and testimonials from customers who have seen real results, providing tangible proof of product effectiveness. 

@rhode @naomigenes✨ ♬ original sound – 🎄Speed Audios🎄

Hosting Q&A sessions with existing customers: Facilitate Q&A sessions or discussions between potential and existing customers. You can do this through social media platforms or on your product pages. 

Incorporating UGC in product demos: Blend UGC with professional product demonstrations. This combination gives potential new customers a well-rounded view of the product in action — like a fitness equipment brand creating video content that combines professional demonstrations with clips of real people using the equipment at home. 

Highlighting customer reviews and ratings: 88% of shoppers consult ratings and reviews before making a purchase. Make good use of every review you have at your disposal by displaying them prominently on your website, making you a real contender in the minds of potential customers who are weighing their options.

e-commerce funnel
Bed specialist Dreams uses Bazaarvoice to display rich customer reviews on their website.

Writing UGC-driven blog posts: Supercharge your SEO blog content with UGC. This includes customer success stories, tips, and how-to guides based on real user experiences. For example, an outdoor gear brand could publish a blog series featuring stories from customers about their adventures using the brand’s gear, providing both inspiration and practical insights. 

Including UGC in email marketing: Add UGC to your email marketing campaigns and newsletters. This strategy can help personalize the user experience, make the content more relatable, and keep your brand top of mind during the consideration stage (like a gourmet food brand sending emails featuring customer-created recipes using their products, along with reviews and photos from these home chefs.)

Conversion: Encouraging purchase decisions

At the conversion stage, the focus shifts to turning consideration into action. This is where user-generated content becomes your ally in making potential customers become paying customers.

UGC, with its authentic and relatable nature, can play a significant role in alleviating last-minute jitters and reinforcing the decision to buy. Here’s how you can use UGC to encourage purchase decisions: 

Product page optimization: Incorporate customer photos or videos directly on product pages to provide potential buyers with a real-life view of the product in use. If you’re an apparel brand, you might include a gallery of customer photos on each product page of your online store, showing how different people style their clothing. 

The Body Shop boosted average order value by 13% with Bazaarvoice’s Ratings & Reviews

Include UGC in abandoned cart emails: Use UGC in cart abandonment emails to remind customers of what they’re missing. Personal stories or images can reignite the interest that leads them to add items to their shopping cart (such as a home decor brand sending emails featuring photos of beautifully decorated rooms by customers using the items left in the cart, adding a personal touch to the reminder.)

Add customer testimonials to the checkout process: Display customer testimonials or reviews during the checkout process to reinforce the buyer’s decision and reduce cart abandonment rates.

Loyalty: Driving repeat business

You’re building trust with your customers — good job! But this is only the beginning of what can be a very beneficial symbiotic relationship. Now the goal is customer retention, turning a one-time buyer into a repeat customer, a brand advocate who not only comes back for more but also sings your praises to the world. 

User-generated content provides a platform for customers to share their experiences and influence others to follow suit:

Create a community around UGC: Build an online community where customers can share their experiences, tips, and ideas related to your products. If you’re a home decor brand, you can create an online forum or a social media group where customers share home styling photos and tips using your products. 

Sephora created the Beauty Insider community, where makeup and skincare lovers can share reviews, tips, and ask for recommendations from other customers.

Reward UGC contributions: Implement a rewards system for customers who create UGC and incentivize them to keep feeding your marketing channels. This could be in the form of discounts, a loyalty program, or early access to new products. 

Leverage UGC for product development: Use UGC as a source of customer feedback for product development. Engage with loyal customers to understand their needs and preferences for future products and ensure they never leave your side. 

How Iconic London adapted to the collapse of the e-commerce funnel

Iconic London, a digital-first beauty brand, is a masterclass in adapting to the new e-commerce landscape. Recognizing the shift in consumer shopping habits and the importance of a seamless digital experience, Iconic London partnered with Bazaarvoice to tap into user-generated content and bridge the gap between social media engagement and e-commerce growth. 

The brand’s strategy was simple: Integrate UGC across digital channels to foster relationships with customers and drive conversions. Iconic London launched Like2Buy on Instagram and implemented Bazaarvoice Galleries on their product pages and homepage, creating a continuous shopping experience that resonated with their social media-savvy audience. 

e-commerce funnel
Like2Buy and Galleries helped Iconic London increase conversions by 126%. (Source)

By sharing UGC on their e-commerce store, Iconic London strengthened the trust and connection with their customers. The product page galleries, featuring customer tags and content, not only celebrated their community but also provided an authentic representation of their products in use. 

Iconic London’s adoption of Like2Buy on Instagram linked their social content to product pages. This strategy helped the brand win on two fronts. First, it compensated for revenue decline due to changes in the digital landscape. Second, it reinforced the brand’s commitment to a social-first approach, catering to customers who prefer shopping on social. 

We know that our customers like shopping in a social environment. It’s the way the industry is going, but especially Iconic. So having Like2Buy allows us to maintain that social shopping experience a bit longer. It allows it to overflow into the website, onto the product page, and the homepage

Lizzie Newell, Head of Marketing, Social, and Campaigns at Iconic London

Over 12 months, Iconic London saw a 126% lift in conversion rates and an 11% increase in average order value. While the metrics alone were a victory, their approach also highlights the importance of authenticity, continuity, and customer engagement in driving e-commerce success today.  

Embrace the new reality of e-commerce

To thrive in this new era, you have to adapt and embrace strategies that resonate with current consumer behaviors. Mastering the changing e-commerce funnel means balancing your marketing context mix with a healthy balance of brand and user-generated content.

And more importantly, getting that content in front of shoppers everywhere they are. Not just your PDPs but on social channels, paid media, video content, email campaigns, and in-store.

Learn more about how consumers are driving this shifting funnel and how brands and retailers are adapting in our Shopper Experience Index — a report of 7,000 global consumers and 465 brands and retailers that highlights the concerns of shoppers in the face of market shifts.

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How to lower your customer acquisition cost https://www.bazaarvoice.com/blog/lower-your-customer-acquisition-cost/ https://www.bazaarvoice.com/blog/lower-your-customer-acquisition-cost/#respond Fri, 05 Jan 2024 19:25:13 +0000 https://www.bazaarvoice.com/?p=22002 Brand growth results from more customers buying your products. Unfortunately, customers don’t magically just buy your goods. Brands must pay a price to convert customers, also known as customer acquisition cost.

But customer acquisition cost isn’t just about direct conversion. It encompasses the total cost to ensure that each stop along the customer’s purchasing journey produces the highest conversion rate possible. 

Chapters:

  1. What is customer acquisition cost?
  2. How to calculate customer acquisition cost
  3. The key to lowering your customer acquisition costs
  4. Putting customer acquisition cost on the chopping block

What is customer acquisition cost? 

Customer acquisition cost is the total amount brands pay to obtain new customers and attract a larger audience.

While every brand has varying customer purchasing paths and uses different acquisition strategies, expenses generally include advertising, salaries for marketers, commissions, sales overhead costs, and more.

For example, art and entertainment e-commerce brands with less than four employees have an average customer acquisition cost of $21, while electronic e-commerce brands have an average of $377, according to Shopify. As a result, acquiring new customers is an inevitable and often painful expense for e-commerce brands.

Looking for more efficient marketing strategies is the one of best ways to get the biggest band for your buck. 

How to calculate customer acquisition cost

Calculating customer acquisition cost uses a standard formula. Divide the total cost of acquiring customers (cost of sales and marketing) over a chosen time period by the total number of customers acquired during that time

The formula for calculating customer acquisition cost is:

Customer acquisition cost = (total cost of sales and marketing) / (# of customers acquired)

Make sure to include every sales and marketing expense used (think salaries, ad spend, marketing tools) to acquire new customers and the exact number of new customers acquired. Let’s say your expenses totaled $44,000 and you acquired 1,000 new customers, your customer acquisition cost would be:

Customer acquisition cost = 44,000 / 1,000 = $44

The key to lowering your customer acquisition costs

To make every dollar count, you must identify solutions for lowering your customer acquisition costs. 

Want the key to doing so? User-generated content — content such as videos, photos, and reviews created by unpaid contributors rather than a brand. If implemented correctly, your brand will see a significant return on investment. In other words, by using UGC, you’ll let your brand enthusiasts do the heavy lifting for you. 

You trust the opinions of your friends and family members. So, if you’re like most consumers, your network influences your purchasing decisions more than an ad you see on social media. In fact, 85% of consumers say UGC more influences them than brand content itself. 

Brands that implement a UGC strategy see a 29% increase in conversion. Take Tuckernuck, for example. The US clothing giant saw conversions skyrocket 190% after implementing a gallery of UGC on its website and displaying influencer photos on its product pages. 

UGC is undeniably powerful. But, to make it worthwhile for your brand, you must efficiently find and source content to use for your acquisition efforts. 

Ways to source UGC

Sourcing UGC doesn’t have to cost you a single penny. So where do you source UGC? Here’s some initiatives you can use to start driving more purchasing decisions with UGC. 

Offer incentives 

Consumers love to share their opinion. But sometimes they need a little persuasion. You can easily incentivize customer reviews by offering your shoppers a small reward in exchange for an honest review. The same goes for visual UGC too.

Global luggage brand Samsonite incentivized UGC submissions with a giveaway of $2,500 worth of Samsonite goodies. Using the #takewhatsyours hashtag, they encouraged followers to submit their best OOO replies for a chance to win the prize.

The campaign generated 27,000 submissions, which helped the brand achieve a 254% increase in revenue.

But your contests don’t always need to offer a material prize tied to it! 60% of consumers prefer to share UGC simply to have their content shared by a large brand. 

Ask for it

Spoiler alert: You can literally just ask your customers for UGC. Try a simple customer satisfaction survey, which will not only provide you with valuable UGC but also aid you in improving products going forward.

Or the easiest way to ask for UGC, especially written reviews, is with a review request email. These automated emails enable you to easily solicit feedback from consumers and display it across your channels. Our own research shows that they can lead to a 4-9x increase in review content.

Using customer reviews is extremely useful for lowering your customer acquisition cost, as you don’t need to spend (as much) to win over customers. 88% of shoppers already use reviews to discover and evaluate products, you just need to make sure you have the quantity and quality that consumers want.

When you do ask for reviews, be clear and concise about what you want. 53% of customers want brands to provide clear and concise guidelines for the type of content they desire, yet only 16% of brands do so, according to our research.

Engage with your community 

Building solid relationships with your brand communities doesn’t just happen out of thin air. It takes some effort to engage with your audience. To do so, reply to comments with personalized notes or create some fun banter, so they gain a sense of authenticity and connection. 

Engaging with your audience is purely to build relationships. This way, your followers will be more likely to offer up UGC in the future.  

Identify other ways to gather UGC 

Hashtags and brand-associated tags are great ways to quickly identify and source UGC. However, they’re not only solutions for sourcing UGC. Luckily there’s plenty of other ways to do so, like:

  • Reading product reviews
  • Editing event photos 
  • Discovering YouTube mentions 
  • Looking at tagged locations if you have a brick-and-mortar 
  • Browsing Pinterest, Twitter, Tik Tok and other social sites 
  • Using Google Analytics 

How to distribute UGC

Distributing UGC on social media platforms may seem like the most obvious choice, but there’s countless cost-effective ways to implement your UGC. Plus, repurposing UGC will help you lower your customer acquisition cost. 

Take a moment to identify all of the channels you can use UGC on. Then, pepper a little UGC everywhere you can think of. Here’s a few examples to get you started. 

Carousels and galleries 

Highlighting customizable UGC photo carousels and galleries inspire shoppers to discover products and shop simultaneously. Brands using this type of imagery see a 141% conversion lift and 15% value increase on purchases when shoppers engage with this type of content on their website, according to our research.   

Your brand can quickly build customizable carousels and galleries from user-generated content.

On product pages 

Your product pages are the last thing your customers see before making their purchasing decision. Using UGC on your product pages enhances the buyer’s experience and assists them in making more product discoveries. 

Say your site has a question & answer feature. Pinpoint the most frequently asked questions. This way, you can create a Q&A section on each product page that answers consumers’ most plaguing questions, essentially reading your consumer’s minds and aiding them in the purchasing journey.

As the questions change, you can alter this section of the product page to ensure it’s updated to your customers’ liking and provides more relevant content.  

To take your Q&A to the next level, Bazaarvoice’s Insights & Reports product suite can aid you in identifying common themes without all of the manual labor required for these efforts. 

Ads 

Adding UGC to your Google ad campaigns keeps your brand relevant, relatable, and current. When we spend months and months developing ad campaigns, they could quickly expire and not ensure the happenings within the market. After all, trends change course fast, so UGC can help you keep a pulse on the industry landscape and not waste precious ad spend on outdated content.  

But, always make sure to ask permission before using any UGC in an ad campaign. 

Emails

Consumers crave visual content at every turn. Displaying UGC on email campaigns helps engage subscribers and showcase your products as authentic and unique. After all, shoppers would rather see real people using your products than a model that they can relate to. 

For example, fashion retailer Monsoon started displaying UGC in its email campaigns, which resulted in a 4% increase in revenue and a 14% increase in click-through rate.  

For folks just getting started curating UGC, it’s also wise to learn the best practices for creating and curating your UGC campaigns. This way, you can avoid the mistakes of brands who paved the way for you. 

Putting customer acquisition cost on the chopping block 

Your customers are already creating and sharing content on social media. They’re expressing their thoughts and opinions about your products within their communities, whether that’s friends, family, social media, or wherever.

So why not use this content to your advantage to not only create stronger relationships with your customers and audience but to lower your customer acquisition cost. After all, 75% of shoppers are already making purchasing decisions from products they’ve seen on social media. Your products should be some of them.

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Creating buzz: The hidden benefits of untapped UGC https://www.bazaarvoice.com/blog/creating-buzz-untapped-ugc/ Wed, 20 Dec 2023 17:29:11 +0000 https://www.bazaarvoice.com/?p=48834 Here’s the thing about creating buzz about your brand — it’s already happening. Consumers love talking about the fun things they buy: the bookcase that fits perfectly in their home office nook, a glamorous date night outfit, or a new facial serum that makes their skin glow. 

When consumers post about these purchases on social media, they’ll usually tag your brand, helping others shop for and purchase these same items. This user-generated content (UGC) fosters a peer-to-peer recommendation cycle that continues attracting new customers and benefits brands and retailers in many ways. 

Most shoppers check social media and read reviews before buying anything. 78% of consumers feel more confident purchasing when they view UGC, and during tough economic times like today, 35% depend on it even more, according to the Bazaarvoice Shopper Experience Index

Shoppers are already posting about you and creating buzz for your brand on social media, whether you realize it or not. Everyday shopper communities like the Influenster community add over 500k new pieces of UGC monthly. So it’s crucial to tap into these conversations, learn what they’re saying, and collect this untapped UGC.

With so much social UGC created and shared each day, it’s impossible for brands to use everything that comes through in their campaigns. It might seem like it just funnels into the void — but this untapped UGC still has a profound impact on a brand’s reputation, awareness, discovery, and sales.

How untapped UGC still works for you 

Brands can get a ton of mileage out of UGC, even if you don’t or can’t directly use every piece of content your customers generate. Not all UGC works for every campaign or purpose, but it’s still valuable in many ways. Here’s all the ways untapped UGC benefits your brand. 

Introduces new customers to your brand 

Everyday social media users see other people talking about and sharing photos of your products. This fuels conversations between users about your brand. 

For example, someone might comment, “I love your shirt! Where did you get it?” And a consumer will tag you or send a link to the item. Another shopper will click and add it to their shopping carts, browse the rest of your website, and complete their purchase. 

Consumers trust content produced by real people. 100% of consumers — yes, every shopper! — say they’ve purchased a product based on the recommendation of someone they saw online.  

Social media is also where almost 60% of consumers go to discover new products. They typically follow their favorite brands, interact with them, and increasingly purchase directly from social platforms (so, it’s always a good idea to make your content shoppable!). 

Educates through trusted voices

Shoppers are likely to discover your products from UGC on social media. The platforms also serve as educational tools. Consumers can learn how a product will meet their needs and see it being used in real-life situations. 

The ability to see how something looks and works from photos and videos of real consumers builds trust. In fact, 78% of shoppers trust everyday social users just as much — or more — than they did five years ago, according to a June 2023 Bazaarvoice study of consumer and influencer communities. 

To help educate shoppers about your products, highlight UGC that showcases how the item can be used. This might include makeup tutorials, outfit-of-the-day (#OOTD) posts, and recipes. 

Shoppers want to learn from UGC. Our Shopper Experience Index shows that 62% use UGC to ensure they’re getting good value for their money, 50% to understand the quality of materials, and 44% to see whether a product matches a description. 

Build your brand’s identity 

Consumers who align with your values or vibe will naturally gravitate towards your brand. Tap into the growing creator economy, which is now valued at $16.4 billion, to find everyday consumers who are the biggest fans of your brand — and the largest pool of untapped UGC.

These content creators will produce the most authentic UGC — 69% of marketers are working with smaller creators these days. 

You don’t need a big marketing budget to tap smaller creators to produce content that effectively markets your brand. Ideally, 1% of your most engaged shoppers could produce about 90% of your content in a cost-effective way. 

UGC produced by everyday social media users has higher engagement and builds trust and authenticity.

Tracks your engagement and informs your strategy 

To meet your marketing and UGC goals, it’s crucial to continuously manage, measure, and optimize your creator marketing strategies. Use the content that you see from social media users as a baseline for measuring who’s engaging with your brand — examine demographics, their opinions, and the content they’re sharing. 

This can help you decide how to best interact with consumers effectively and meaningfully. Tracking engagement will drive future strategies. Powerful Social Commerce solutions let you identify top creators and content that performs best.  

The social butterfly effect

UGC collection is never a one-time thing. You need to engage customers all the time and encourage them to post about you on social media. This social butterfly effect encourages more UGC. 

Product sampling is one way to get your products in shoppers’ hands and generate conversations about them on social media. Bazaarvoice can help you hyper-target your ideal customers by giving you access to the Influenster community.

These UGC creators produce photos, videos, and reviews about your products from their own experiences — and you can share this valuable UGC on your social media channels, product detail pages (PDPs), and retailers’ websites. Plus, consumers who sample products are more likely to purchase them in the future and recommend them to friends and family.

When Petco launched a sampling campaign, for example, the pet supplies retailer saw a 48% increase in revenue per visit for sampled products, a 28% conversion rate boost, and a 15% higher average order value

How you can tap into the vast web of social UGC

Don’t let untapped UGC go to waste. Consumers are already sharing photos and videos of their favorite items and commenting and sharing product-related posts from others. Tapping into this robust network helps you leverage the true value of UGC.

Create a branded hashtag

Make it easy for your shoppers to start and join conversations about you by setting up branded hashtags. This can work wonders for consumer discovery, especially for creating buzz around a new product launch

Hashtags let you collect content about your brand all in one place, making it a go-to spot for UGC. This helps you grow brand awareness and drive traffic to your social pages and website, ultimately enabling social commerce. 

Dreams, a U.K.-based bedding specialist, has a winning hashtag strategy — its #mydreamsbed campaign attracts photos of real customer homes, which the brand incorporates across its social channels.

When customers interact with UGC, Dreams has seen a 200% increase in conversion rates and a 62% increase in average order value.

Comment on users’ posts 

When you organically come across a photo of one of your products or someone mentioning your brand on social media, make sure to leave a comment — whether the post is negative or positive. Responding to this feedback shows that you care about consumer feedback. Shoppers will respect your brand and feel valued, making them more likely to consider  your brand for future shopping sprees or treat it as a go-to. 

Consumers enjoy producing content and will create UGC when you ask them to, but they expect you to engage with their content quickly. Our Shopper Experience Index shows that 54% of consumers expect a response if they write a negative review, and 58% want an answer to a question they post in your Q&A on the same day. 

Display social UGC on your website

Spotlight your real customers by showcasing social UGC in a gallery on your website and product pages. This approach creates a positive sentiment for your brand — essentially, it shows how much you value your customers. 

American Eagle encourages customers to share photos of themselves wearing its jeans using hashtag #AEJeans. The photos are then displayed in a gallery, and when you click on a picture, you can go right to the product page to buy the exact jeans. 

Just about everyone researches what they buy online before completing a purchase. Consumers read reviews and search social media to see what their peers have to say or how real people use the item. This in turn drives sales for brands.

For example, The Body Shop showcases authentic photos and videos from real customers. The UGC is featured on product pages to inspire shoppers as they browse.

After integrating Galleries, the brand saw a 13% increase in average order value and a 28% jump in product page conversion rates

Recognize the impact of untapped UGC 

UGC is the most valuable content you have — it’s cost-effective to generate and highly effective at creating buzz, building brand awareness, and increasing sales. But, using every piece of UGC you collect in specific campaigns is tough — there’s just so much of it! Still, untapped UGC serves multiple purposes, including: 

  • Introducing new shoppers to your brand
  • Educating consumers about your products
  • Building and boosting your brand identity 
  • Encouraging social conversations about you
  • Informing future campaigns 

There’s several ways to tap into untapped UGC, such as creating hashtags, participating in conversations, and featuring UGC everywhere your customers go.

Bazaarvoice’s end-to-end UGC technology can help you collect valuable content that fuels your media mix, effectively target your ideal customer profile globally, and get the most return from every piece of UGC. Learn more by exploring Bazaarvoice’s solutions.

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Why ratings and reviews are important for your business https://www.bazaarvoice.com/blog/why-ratings-and-reviews-are-important-for-your-business/ https://www.bazaarvoice.com/blog/why-ratings-and-reviews-are-important-for-your-business/#respond Mon, 18 Dec 2023 11:03:38 +0000 https://www.bazaarvoice.com/?p=4495 We all know ratings and reviews are important. While they’ve only been around for about two decades, it’s hard to imagine shopping without them, especially if it’s our first experience with a brand. According to consumer research we conducted on 30,000+ global shoppers, the majority (88%) use reviews to discover and evaluate products.

ratings and reviews
Based on 30,000 global shoppers. Source: What’s in a review?

From food and beverage and apparel to health and beauty and hardware to everything in between, ratings and reviews play a crucial role in the customer journey

But just how crucial, exactly? And how can businesses extract the most value from them? Let’s find out.

Chapters:

  1. The business benefits of ratings and reviews
  2. How to make customer ratings and reviews work harder for you
  3. Don’t underestimate how important ratings and reviews are for your business


The business benefits of ratings and reviews

At Bazaarvoice, ratings and reviews are the center of our business. With a network of over 12,500 brand and retailer sites to support, we undertake a lot of research to understand the value of reviews for businesses and their customers. 

Here are some of our takeaways that prove the power of ratings and reviews, based on some of our latest research.

Ratings and reviews impact everything from sales to SEO

Shoppers are leaving more reviews now than ever. Across our network in 2021, the number of reviews submitted increased nearly 11% year-over-year. Our 2023 Shopper Experience Index found that when shoppers engaged with reviews, there was a 144% lift in conversion rate.

Not only are shoppers converting more readily on pages with reviews, but they’re also spending more money. The lift in revenue per visitor among shoppers engaging with reviews was 162% in 2023, and the average order value was 13% higher. 

Ratings and reviews creates a great avenue for us to get current content on our site and bring attention to our product. That helps us to rank higher in search results and get found better

UX analyst, CPG

Increasing your sales and profits isn’t the only thing that reviews can improve in your business. Brands and retailers we’ve talked to say that reviews have an impact far beyond the product page. According to those we surveyed for our Shopper Experience Index, over half (52%) said they help increase brand loyalty, 53% cited a positive impact on in-store sales, and 63% said that they improve search engine optimization (SEO).

Global brand Petco, for example, launched a sampling campaign to collect more reviews and improve SEO metrics. The campaign led to a 405% increase in review volume, which meant a:

  • 67% increase in number of pages ranked organically
  • 140% increase in impressions from organic search
  • 80% increase in clicks from organic search
  • 48% increase in revenue per visit for sampled products

Ratings and reviews help shoppers make confident purchases

According to our 2023 Shopper Experience Index, two-thirds of consumers (78%) claim that reviews impact their purchase decisions. Our 2022 report also revealed that ratings and reviews are the number one online feature shoppers rely on when making informed product decisions faster, more so than product page descriptions, chatbots, and the website’s search tool.

ratings and reviews
The top three most persuasive types of shopper content all pertain to ratings and reviews. Source: 2023 Shopper Experience Index

But consumers aren’t just using them online. According to research commissioned by Bazaarvoice from Deloitte and Touche LLP, a vast majority (82%) of shoppers research products online before going in-store, and over a third read a product’s reviews on their mobile phones while looking at the same product in-store.  

Our research found that shoppers often turn to ratings and reviews when they’re in the final stages of their decision making process to help them choose your product. 70% of shoppers often or always look at available reviews, and in the first 20 seconds of landing on a product page, high-quality reviews are the most likely type of user-generated content  to convince a consumer to buy a product (21%) — followed by average star ratings (19%) and the number of reviews a product has (13%).

We also found that half of shoppers have been influenced by reviews to buy a more expensive product than planned.

You may be surprised to learn that it isn’t just positive reviews that consumers find helpful. Over half (60%) say negative reviews are just as important in their decision to buy. The majority (62%) say it’s because they contain more pros and cons than positive reviews. Shoppers who usually don’t read reviews say they would like to see more reviews from people like them and more customer photos.

Having reviews displayed on your site is a great first step to winning over your customers, but don’t forget step two — responding to reviews. About a third of shoppers expect businesses to publicly respond to their reviews, regardless of whether their review is positive or negative. Almost half (48%) say brands responding to reviews improves their odds of buying the product. 

Reviews improve your brand’s authenticity

Brand trust is one of the most valuable assets a business can have in today’s retail landscape. According to our recent survey of 10,000 global shoppers, 97% of respondents say fake reviews make them lose trust in a brand. One way to build trust is by handing over the mic to their fellow peers to help advocate for your brand. Over three-quarters of shoppers trust reviews, even more than family and friend recommendations.

It’s not as simple as just displaying reviews, you have to ensure that they’re authentic. If shoppers suspect a product to have fake reviews:

  • 56% wouldn’t buy the product 
  • 25% wouldn’t buy from the website 
  • 81% avoid using the brand again 
  • 48% leave a negative review 
  • 16% post [negatively] about the brand on social media

The number one factor that makes consumers suspicious that a product has fake reviews is seeing multiple reviews with similar wording (56%). That is followed by review content not matching the product (53%), bad grammar/misspellings (36%), and an overwhelming amount of positive/five-star reviews (36%).

As consumers have become more skeptical of marketing and advertising practices as a whole, they’re constantly evaluating product reviews to look for red flags.

Reviews contain insights about products, processes, and purchasers

Ratings and reviews are an invaluable source of customer feedback. Consumer reviews can help surface issues with products, shed light on new use cases, and inform product innovations. Shoppers want to see businesses use their reviews, both positive (25%) and negative (38%), to make product improvements.

We have countless stories from our clients about ways they have improved their products and processes based on the feedback they’ve received from customer reviews. In fact, 72% of our clients use UGC to improve customer service, 66% use UGC to improve products, and 50% use UGC to improve marketing tactics and messaging.

How to make customer ratings and reviews work harder for you 

While impressive, these results won’t manifest out of thin air. The real magic happens when you set in motion a process to collect, distribute, and manage reviews, designed to squeeze the most value out of these pieces of UGC.

Set up a review collection strategy

In order to reap the benefits, you need to plant the seeds — in other words, you need an ongoing strategy that makes it easy for and encourages customers to share feedback about your products. 

You can request ratings and reviews from your customers through a myriad of channels. If you have a physical store, you can go the face-to-face route and have attendants ask shoppers for feedback after they complete a purchase. The attendant can jot down the answers or direct the customer toward a QR code for an even smoother experience. 

Online options are also aplenty. Review request emails are a common practice (Jeanswest saw a 186% lift in review volume using this strategy, for example), but social media channels, push notifications, and SMS texts are also viable approaches.

When requesting reviews through any of these channels, timing is key. Reach out soon after customers interact with your products, when the experience is fresh on their minds, and they can provide more detailed and genuine feedback. And how you ask is just as important as when you ask — use clear and concise messaging, and avoid overwhelming customers with too many requests or specific instructions. 

Provide incentives in exchange for ratings and reviews

Customers might need a little extra push to share their feedback about your products. This is where incentivized reviews come in: you give customers a reward, like a coupon or entry into a giveaway, and in exchange, they write an honest review about a product they bought from your company. 

Incentives can be small, like discount codes, or slightly more elaborate, like product sampling campaigns (offering samples of your product in exchange for reviews.) McPherson’s Consumer Products, for example, found that 20% of new reviews on its brands’ products come from sampling efforts. According to Sharon Bottaro, the company’s Head of Digital, these reviews, “are providing confidence for people to complete their path to purchase.”

To uphold your integrity and safeguard consumer trust, be transparent about your incentive program. Clearly state that the incentive is for leaving a review, regardless of whether it’s positive or negative, and never pay customers to leave reviews.

Encourage customers to add visual UGC 

It’s a visual-driven world out there, especially in the e-commerce industry. Images and videos from customers give shoppers a better sense of what the products look like in action, and, most importantly, in the real world, without the influence of heavy editing. It adds another layer of confidence to purchasing decisions, which explains why 29% of shoppers look for customer reviews with photos or videos.

Fresh, a cosmetics company known for its natural ingredients-based products, tapped into the power of visual UGC in customer reviews. The brand implemented Bazaarvoice’s Photo-First Reviews Display to put customer images and videos front and center of product pages. Overall, Fresh saw a $1.48 million impact from user-generated content.

Fresh makes visual reviews the star of its product pages. Source: Fresh case study

When requesting reviews from customers, whether through an email or a sampling campaign, make sure you ask for visuals — people might even prefer filming a short video over writing a lengthy review! Don’t make it a non-negotiable (a written review with no visuals is better than no review), but let customers know images and videos are appreciated options.

Reply to both positive and negative reviews

Customers expect brands to engage with them when they take the time to leave a review, especially if it’s negative. As Anna Kim, Senior Advocate Programs Manager at Webroot, explains, “It’s our responsibility (…) to be responsive to shoppers’ questions and reviews. Someone who is vetting us against another brand sees that we interact with our customers, and that’s a big competitive advantage.”

Webroot practices what it preaches — the cybersecurity software company replied to 70% of its 38,000 customer reviews on retail sites.

When responding to positive reviews, gratitude is the name of the game. Thank the customer for sharing their opinion, and express happiness that they enjoyed the product. Reference specific points mentioned in the review to make your response more personal and show that you value their input.

Negative reviews are a different beast, but they don’t have to be a scary one. As we explained before, having some negative reviews contributes to authenticity, and they can be a good way to unveil problems you weren’t aware of. What you shouldn’t do is ignore them; instead, act quickly, acknowledge the customer’s experience, and offer a solution to the issue raised in the review. If the problem is too complex, invite them to continue the conversation through a private channel like email or phone.  

Amplify ratings and reviews with syndication

If your brand works with retail partners to sell its products, syndicating reviews to their websites is a must. There’s no guarantee consumers will find and buy your products on your own website — syndication gets consumer eyes on your product reviews whether they’re browsing Walmart or Target.

This strategy also benefits your retail partners since they get quality, conversion-optimized content on their product pages without having to invest in technology to do so.

Bazaarvoice has a network of 1,750 global retailers, and regularly helps brands syndicate their hard-won customer reviews to as many partners as possible. For Andi-Co, 100% of reviews on retailers’ sites come from Bazaarvoice syndication efforts, leading to 690x more UGC on retailer sites.   

Make ratings and reviews a part of your marketing strategy

Displaying reviews on your website is a no-brainer, but why stop there? Incorporating reviews into your offline and digital marketing can significantly enhance its effectiveness — according to our 2022 Shopper Index, almost half (40%) of consumers say UGC makes them more likely to buy a product from an ad. Beyond product pages, here’s where you might consider displaying this rich UGC:

  • Social media channels like Instagram, Facebook, and TikTok. Social commerce continues to grow as social becomes the new search — over half (58%) of shoppers say they often discover a product or service through social media, and 42% say social media impacts their purchasing decisions. Adding reviews to your posts both amplifies positive content and gets the conversion machine that is user-generated content in front of an audience that’s primed to discover and buy new products
Social media is the new search engine. Source: 2023 Shopper Experience Index 
  • In-store displays. If you have a brick-and-mortar presence, display reviews and ratings near relevant products to bridge the gap between online and offline experiences and nudge shoppers toward making a purchase
  • Emails. Use positive reviews in your email marketing campaigns. For example, when promoting a product, include a customer testimonial that speaks to its benefits. Tailor your emails based on the products customers have purchased and include reviews from similar products to encourage repeat purchases, cross-sells, and up-sells

Don’t underestimate how important ratings and reviews are for your business

While some might think it’s difficult to quantify the importance of ratings and reviews, the above statistics prove their power.

There’s a variety of ways that they are useful, both for businesses and their customers. And not only are ratings and reviews absolutely necessary to today’s consumers during the purchasing process, companies are missing out on sales, profits, and priceless information without them, as our own research below shows.

Source: Bazaarvoice ratings and reviews research

Learn more about how important ratings and reviews are here. Or get in touch directly below to see how you can get started with Bazaarvoice Ratings & Reviews.

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AI consumer research: 5 trends to know  https://www.bazaarvoice.com/blog/ai-consumer-research-5-trends-to-know/ Thu, 26 Oct 2023 07:48:08 +0000 https://www.bazaarvoice.com/?p=47075 A consumer research survey looking into what consumers feel about AI and their thoughts on using AI to create content.


Artificial intelligence (AI) was once something you only saw in sci-fi movies. But, it’s now an everyday tool that people use to create content, process data, and distribute information quickly — and, it’s likely here to stay. 

As a refresher, generative AI is an advanced technology that uses machines to learn and create new content for a specific task, without needing to actually be trained on that task. It’s what’s powering popular apps like ChatGPT, Bing Chat, Google Bard, and Bazaarvoice solutions. 

While AI is getting lots of attention these days, brands have actually been using it for some time via voice assistants providing customer service or personalized product recommendations on their websites. AI can help improve customer satisfaction, bring creative ideas to life, boost product discovery, and streamline content creation and marketing strategy development. 

But there’s some downsides of AI, too. For one, consumers aren’t always quite sure what to think about the technology or the content it produces. But, they’re definitely interested in it. 

AI research report key findings

To find out exactly what consumers think about AI today and whether they trust AI to assist them in creating user-generated content (UGC), we surveyed more than 9,000 people across the globe. Here’s what they said. 

1. Consumers are interested in AI and want to keep using it

It’s safe to say that AI has piqued everyone’s interest. 36% have used generative AI tools, and of those, 55% would use them again. 14% haven’t used generative AI but plan to in the future. 

Just 14% have used image generators, but of those consumers, 56% think the tools are great and would use them again. 

Even though more people have used generative AI compared to image generators, among those who’ve tried either technology, the number of people who like the tools and would use them again is almost identical. That’s significant! 

2. Consumers think AI can help them write better reviews 

Most shoppers rely on UGC, including reviews, photos, and videos, to research products and make decisions about what to buy. But, some shoppers fret over actually leaving reviews themselves. 

When writing a review, 68% of people at least sometimes feel unsure about what information to share that would be helpful to other customers. 73% have avoided leaving a review on at least one occasion because they didn’t know what to say. 

Our research revealed that many consumers believe AI can help them overcome these challenges. 67% think it would be at least sometimes helpful if an e-commerce site provided AI-powered coaching to help them leave high-quality product reviews

About half of consumers (49%) would like to write a review on a website where generative AI guides them on what to write, as they think it will help them write a better review. 

3. Many worry AI could boost fake reviews 

Consumers have long been concerned about fake reviews. We’ve found that fake reviews can make shoppers lose trust in brands and stop purchasing from them. 

Fake reviews can be easy to spot. They stand out when a product has multiple reviews with the same wording, the review content doesn’t match the product, the reviews contain grammatical errors or misspellings, and there’s an overwhelming number of positive ratings and reviews. 

Many consumers fear that fake reviews will become more common as AI is used more. 45% of people worry that AI technology could lead to more fake reviews and falsified claims about products. 

Almost half of consumers (45%) would trust websites more if they put measures into place to protect against content fully generated by AI — meaning reviews written entirely by AI, not a person who used AI to help them write a review. 

4. Consumers trust AI-generated content (at least sometimes) 

According to the research, consumers are interested in using AI and see its benefits, but they still want humans to be involved at least sometimes. 

53% trust generative AI to some extent, but many want human input and oversight. Only 16% of people trust websites that allow completely AI-generated content (53% don’t trust these sites at all). 

Trust levels go up when content is created by real people with the help of AI. In our survey, 74% of people would at least maybe trust a review if the writer had help from an AI-powered coaching guide. 

Nearly a quarter (23%) would be more likely to purchase from an e-commerce site that uses AI-powered review coaching to help shoppers create higher-quality reviews — 52% said having such a coaching guide wouldn’t make a difference in their purchasing decision. 

5. Consumers are still wary of some AI-generated content 

Even though AI is becoming more widespread and consumers trust it in many instances, they’re still sometimes cautious. 

When it comes to being served an ad created using generative AI instead of a human, only 18% feel positive about it, 58% feel neutral, and 24% feel negative. 

When asking a question about a product on a brand or retailer’s website, 45% would trust an AI-generated answer that they received immediately. Of those, 32% trust the AI response but would prefer an answer written by a human. 

For visuals, 22% of consumers would trust product photos or videos on a brand or retailer’s website that were generated with AI, and 21% would trust AI-generated photos or videos posted on their social media. 

Research shows consumers like AI: give it to them

As our research shows, interest in AI continues to grow — especially among people who’ve tried out different AI tools. Our research also reveals the value that consumers see in using AI to write higher-quality reviews and having a little help to write this feedback would make them leave more reviews.

So, AI can help brands increase review volume, recency, and quality, all factors that help shoppers make more informed purchasing decisions. It’s what shoppers want, so you need to provide them the tools to do so.

Bazaarvoice is developing several innovative generative AI features. For example, our new review coaching feature offers proactive and unbiased coaching on how to leave helpful reviews. And our AI-powered image captioning feature helps you create effective content for Instagram.

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How to reduce returns in e-commerce https://www.bazaarvoice.com/blog/how-to-reduce-e-commerce-returns-with-user-generated-content/ Wed, 18 Oct 2023 12:36:37 +0000 https://www.bazaarvoice.com/?p=24835 With more customers shopping online than ever before, e-commerce returns have been increasing. A recent survey from the National Retail Federation estimates that e-commerce returns account for over $400 billion in lost sales for U.S. retailers. 

Higher e-commerce return rates are a problem for your business because returns reduce e-commerce conversion rates and decrease your profit margins. Every time a customer returns an item, you either need to resell it or mark it as a loss. Not to mention the cost of paying to have the item returned.

Plus, you run the risk of having an unhappy customer that may not choose to shop with you again. The customer already spent a lot of time opening several tabs from different stores trying to find the one product that would fit their needs, and they chose yours. Even if you offer free, easy returns, customers still have to initiate the e-commerce returns process, which can be a hassle. 

The workaround? Reducing your e-commerce return rate, which can be easier said than done. Otherwise the average return rates in e-commerce, which sit at about 20-30%, would be a lot lower than they actually are. But that’s where user-generated content (UGC), like reviews and social media posts, comes in.

Chapters:

  1. What is e-commerce return rate?
  2. 7 ways to reduce e-commerce returns
  3. Make e-commerce returns a thing of the past with UGC

What is e-commerce return rate?

Your e-commerce return rate is the number of total products ordered from your e-commerce site that are returned back to you, either for a refund or store credit. It’s calculated as a percentage of number of e-commerce sales within a specific timeframe.

To calculate your e-commerce return rate, divide number of products returned by the number of products sold, and times the answer by 100.

Say you wanted to figure out your return rate for March 2023. During the month you sold 8,500 units, of which 900 were returned. It would be 900 divided by 8,500, then multiplied by 100 — giving you an average e-commerce return rate of 10.5%.

While it’s estimated that for every $1 billion in sales, the average retailer incurs $165 million in e-commerce returns, average return rates vary by industry.

e-commerce returns
Data source: Statistica

Unsurprisingly, apparel is the highest. According to research, “item doesn’t fit fit” is one of the main reasons for e-commerce returns. The same research states the other top reasons are:

  1. Item doesn’t match description
  2. Don’t like the item(s)
  3. Ordered multiple items/sizes

The trick here is to tap into the voice of your customer and let them do the selling for you through authentic UGC. Seeing products being used in the real world on real people ensures they better match product descriptions and customers have a better idea of whether they like an item or not. Making a more confident e-commerce purchase means less chance of a product being returned.

7 ways to reduce e-commerce returns

The bad news is that returns will always happen within e-commerce, and you can’t get rid of them entirely. But don’t despair, there’s good news too. There’s several ways to reduce your e-commerce return rate. Here’s the top seven.

1. Collect ratings and reviews 

Bazaarvoice research found that 88% of shoppers use reviews to discover and evaluate products. People rely on user-generated content like reviews to evaluate if a product/service is a good fit for them. Learning about their peers’ experiences with the product builds trust and inspires more confident purchasing decisions. And more confident purchases lead to fewer returns. 

So how do you get more reviews for your products to inspire those future shoppers?

According to a BrightLocal survey, 35% of consumers have left a review at least half of the times they were prompted to do so by a business. The moral of the story? It doesn’t hurt to ask. 

We have found that consumers trust the opinions of other consumers more than advertising claims

For example, in a bid to reduce return rates, clothing giant GANT implemented a UGC program to collect more customer reviews that contained product size and fit information. “We have found that consumers trust the opinions of other consumers more than advertising claims,” revealed GANT’s Head of E-Commerce. As a result, the brand was able to achieve a 5% reduction in return rates.

2. Show how your products look in real life with visual UGC 

Visual UGC sourced from social media can increase conversions by 150% and average order value by 15%. Visual UGC can be particularly impactful for apparel, home, and beauty brands because these are also the categories that have the highest e-commerce return rates. Using UGC here gets shoppers closer to seeing what these product look like in real life situations.

For example, Maybelline includes its fantastic brand imagery on its Lash Sensational Sky High mascara product detail page, but it also has galleries of visual UGC from real customers so shoppers can see how the product looks on a regular person (not a model). 

e-commerce returns
Maybelline

The galleries on Maybelline’s product pages are also shoppable, with tagged products in each image so customers can complete the look with other Maybelline products if they choose to.

3. Provide comprehensive size guides  

Narvar found that about 48% of customers buy multiple sizes of the same apparel item to figure out what fits at home, and then they return the rest of the order. If you’re an apparel brand looking to help your customers cut down on this, look at the sizing information on your product pages. What are you telling the customer about how the product fits?

Every person’s body is different, so offering information about how the product fits on users with similar body types is critical. 

For example, when a shopper clicks on “Size & Fit” on one of clothing brand American Eagle’s product pages, they’ll see a scale that shows how an item fits based on what other reviewers have said. 

American Eagle

Then, if the user scrolls down to the reviews, they’ll see more information about how all reviewers found the item’s fit. They’ll also be able to filter product reviews by size, height, and weight, so they can discover what reviewers most similar to their body type have said about the clothes. 

American Eagle

Another option is to harness the augmented reality marketing trend. AR is coming in to save the day and reduce global e-commerce returns. Well-known brands like ASOS and Sephora use AR tools to show how clothing looks on different body types, or how a certain shade of lipstick would look on you. All without ever having to leave the house.

4. Put the “detail” in “product detail page”

When’s the last time you reviewed your product detail pages (PDPs)? Take a look at them with your team and ask yourself, “If I knew nothing about the product, what does this page tell me?”

To reduce returns, you have to give customers a rich PDP with as much information about what they’re buying as possible. Selling clothes? Don’t just tell them what fabric the T-shirt is made of. Tell them what it feels like and what they can wear it with. 

You should also incorporate UGC into the “detail” portion of your PDPs. Reviews don’t have to live at the bottom of the page. Beauty brand Lush leverages awesome testimonials from customers and displays them higher up on product pages. 

e-commerce returns
Lush

Find reviews that tell other shoppers exactly how the product will make them feel. This is especially beneficial for beauty, apparel, or home brands because shoppers can’t see and feel the products in person.

5. Answer customer questions

So you’ve provided great sizing guides, added more detail to product pages, and have collected UGC in the form of reviews and images from customers. But what if shoppers still have questions about your product? You don’t want them leaving your site to get the answer, which is why many retailers are adding question and answer modules to their online stores.

Our own research found that brands and retailers who respond to questions onsite see a 98% average conversion lift. 

It’s pretty simple — if a shopper is unsure about a product, they likely won’t buy it. But they’ll ask the seller a question about it. Ignoring the question means the shopper either won’t purchase it, or if they do it may not be right for them. Thus, will be returned. If you do answer the question, the uncertainty is cleared up and it’s more likely to be a successful purchase, reducing your e-commerce returns rate.

Plus, you can also use questions and answers to improve product pages. If you notice the same questions coming up repeatedly, consider incorporating information that answers that question into the product description to give customers the answers they need even faster. 

6. Respond to customer reviews 

Collecting reviews isn’t enough. Your company must take an active role in review management in order to provide as much information about products to potential customers as possible before they make a purchase. This means responding to reviews, both positive and negative. Our own research tells us that 87% of customers expect brands to respond to negative reviews, and 72% expect responses to positive reviews.

For negative reviews, offer support and a solution to make it right with the customer. This will prove to the customer (and browsing shoppers) that you listen to feedback and can be trusted as a brand. Just don’t ignore them. 35% of customers say they wouldn’t keep purchasing from a brand that ignored their complaints.

For positive reviews, thank the customer first and then find a detail from their review that you can comment on to show that you read the review and take what customers say to heart. 

7. Use insights to improve products

Is there a certain product on your site that just keeps getting returned? If you have a good review collection strategy, your brand can leverage customer insights found in this UGC to figure out what customers don’t like about the product so you can improve it and reduce future returns. 

Take the fashion brand Vertbaudet as an example. The brand noticed consistent customer feedback through product reviews that one of their maternity dresses was too small.

Vertbaudet responded by improving the measurements of the maternity dress and fixed the cut, leading to a reduction in returns to their e-commerce site and an increase in profit.

Make e-commerce returns a thing of the past with UGC

UGC is a powerful tool when it comes to reducing your return rates, both e-commerce and in-store. By providing information from other customers, you’ll help shoppers buy the right product for their needs the first time, which will improve customer satisfaction and your bottom line. 

Not only that, but brands that utilize UGC in e-commerce can see a 22% increase in average order value and a 150% increase in conversion rates. Learn the different ways you can use UGC for e-commerce, from reducing return rates to boosting conversion rates, in this comprehensive guide to UGC for e-commerce.

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