Research Archives | Bazaarvoice Mon, 13 May 2024 17:24:28 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 Changing consumer preferences: Insights and trends https://www.bazaarvoice.com/blog/changing-consumer-preferences-insights-and-trends/ Wed, 24 Apr 2024 16:53:07 +0000 https://www.bazaarvoice.com/?p=51512 It goes without saying that consumer preferences are literally always changing. What was true five years ago likely won’t be the case today, and almost certainly won’t be the case five years from now. Knowing that consumer behavior changes is one thing, knowing how and why it changes is another.

Understanding consumer preferences goes way deeper than just vaguely knowing what a customer wants. It means assessing the opinions consumers form about your products and services, based on criteria like quality, price, convenience, and individual preferences. These preferences inform likes, dislikes, and motivations that drive customers to make purchasing decisions, and dictate brands on what to produce and offer.

The key is to always keep ahead of what’s going on in the consumer realm. The best way to go about this is to simply go out and ask them. Do your research. Send surveys. Where are they shopping? What do they expect from brands like yours? What are they spending their money on? Doing all that can be very time consuming though. But don’t worry, we’ve done it for you. 🧐

Consumer preferences: 6 areas to to lean into

Using insights from four separate Bazaarvoice studies — a private label survey, our authenticity research, the shopper preference report, and our renowned Shopper Experience Index — we’ve identified the key consumer preferences you need to understand and focus on this coming year (and beyond!)

1. Rise of value seekers

The primary shift in consumer preferences lies with value-seeking consumers. 73% of consumers globally have confirmed changes in their shopping habits — a pretty massive shift, especially in terms of the customer base you’re trying to retain.

Shoppers across the board are adapting their purchasing behaviors. Essential items needed for survival (groceries, for example) see the least reduction in spending, somewhat obviously. But more surprisingly, there’s a noticeable trend in delaying purchases of practical products, like clothing.

You can win over these shoppers by providing the information they seek in your branded content, and especially in the user-generated content (UGC) you display/syndicate. 62% of shoppers seek value-for-money information within content, relying on feedback from their peers to build trust and inform purchase decisions. The top five factors shoppers look for in UGC are:

  1. Value for money
  2. Material quality
  3. Accuracy of product description
  4. Real-life appearance
  5. True-to-size fit

In short, today’s consumers are becoming extra savvy, scrutinizing products in a quest for genuine value. They want to know they’re getting the right product for their money and they’re turning to UGC to find out — so give it to them.

2. Shoppers are open to new brands

As shoppers become savvier and savvier, a unique opportunity is emerging for brands: shoppers are willing to make a switch. Historically, brands have focused heavily on brand loyalty to secure customer retention, but 7 out of 10 shoppers say they’re willing to switch to a new brand — even for the products they regularly purchase.

This provides a window of opportunity for one area in particular: private labels.

Once derided as cheap or tacky alternatives to the bigger labels, private label brands are now considered a genuinely good-value option. And shoppers are flocking to them — 97% of shoppers are open to trying them, according to our private label survey.

Whether your brand offers private labels, distributes them, or competes against them, these insights demand your attention. What were once seen as mere knockoffs are now symbols of decent quality and, at times, a higher consumer preference. You can learn 4 strategies for achieving private label success here.

3. Social shopping is a full-funnel experience

As mentioned above, 70% of shoppers are open to trying new brands. Now’s your chance to stand out where they hang out — and that’s on social. 63% of Earth’s population now use social media.

And it’s no longer just for doomscrolling or jumping on the latest TikTok trend, it’s become so much more than that, and then some. Social media represents a monumental shift in modern shopping interaction — at least according to the 8,000 consumers we spoke to.

Gen Z in particular are instrumental in this social media 2.0. For Gen Z, social media serves as a platform for discovery — 73% of them utilize social platforms to inform their purchasing decisions and 69% of Gen Z individuals also follow brands they either use or contemplate using. Social media is the new search engine.

Given this, it’s essential for you to adapt your social strategy accordingly. And not just for the discovery phase but all the way through the entire conversion funnel, however short or long that will take. 

And before you think to yourself, “It’s only Gen Z, I’d rather focus on bigger market segments,” a) Gen Z wields $350 billion in disposable income, and b) There’s a definite misconception that only Gen Z engages with social media in such extensive capacities. Our research says otherwise.

Every demographic, including those way into their 50s and 60s, use social platforms as part of their purchasing processes. Regardless of target demographics, you’ll need to tailor your approaches to align with changing consumer preferences.

In essence, while disparities exist amongst different generations, they’re far less pronounced than commonly assumed. 

4. Consumers are creators

One of the most interesting consumer preferences at the moment comes in the form of different types of shopper consumers see themselves as. We conducted a survey where shoppers from across the globe were asked to categorize themselves into one of two different shopper types.

Firstly, there’s the “lurkers.” These are individuals who consume content but rarely express their opinions publicly. Aka, they read reviews and look at visual UGC, but they don’t create or post anything themselves. Somewhat surprisingly, 47% of shoppers fall into this category.

The second choice given was “creators.” These are the people who actively create content, like leaving a product review. Over half (53%) of shoppers now identify themselves as creators in various capacities.

This trend highlights the growing importance of the creator economy, which is projected to reach a market size of $7 billion in the coming years. Essentially, this signifies that there’s a wealth of untapped creativity and willingness among shoppers to create UGC about your brand. You just need to go out and ask them:

  • 70% of consumers are open to brands sharing their social media post
  • 43% of shoppers like to receive emails asking for their opinion on a product they’ve purchased

5. Create authentic content

When it comes to content what really matters is authenticity. Everybody’s looking for authenticity, to the extent that “authentic” was crowned word of the year by Webster last year. So much so that we launched a study asking shoppers what they feel about authenticity.

69% of the respondents to Bazaarvoice’s authenticity survey said that they’re somewhat concerned about encountering things that aren’t authentic and possibly fake online, as Bazaarvoice CMO Zarina Stanford outlines in her presentation on changing consumer preferences below:

Shoppers evaluate whether the content they look at is trustworthy or not using either your online platform, trusted third-party platforms, or signs of authentication like a trust signal (more on that to follow). 

But while they’re (rightly) concerned about trust and authenticity, they don’t feel it’s their job to address it — 63% of consumers think brands are responsible for managing and solving the issues of inauthentic or fraud or fake content online.

Adding to that, when asked whether they feel more if there’s some kind of trust signal — like a logo or a badge — nearly three quarters (73%) of them said yes. An easy way to take charge of the responsibility consumers feel brands have over maintaining authenticity is with a trust signal. For example, at Bazaarvoice many of our clients use the Bazaarvoice Trust Mark.

If you’re a Bazaarvoice customer and haven’t got the Trust Mark on, contact your CS team and they will help you with that! 

Regardless of whether you’re looking at it from a consumer side, from a brand side, or the retailer side, always, always, always take authenticity seriously. Because it’s what your brand equity and safety is anchored on. And consumers won’t do business with you without it.

6. Brand consistency

Expanding on from above, consumers really want to see brand consistency from you. In today’s digital era, 75% of consumers expect a consistent experience from brands. Regardless of whether that’s offline, online, in email, or wherever, they expect it across every channel.

What truly shapes your brand’s reputation is what your shoppers say it is. Safeguarding your brand image and reputation means ensuring a uniform brand experience across all digital touchpoints. This requires embracing and amplifying the voice of the customer, attentively listening to their feedback, and adjusting strategies accordingly.

Whether you have a brick-and-mortar or an e-commerce store, or both, bring in your organic social content and other UGC and display it for shoppers to see across your PDPs, social feeds, in-store ads, and anywhere else your shoppers are.

Unlocking consumer preferences 

When it comes to the changing preferences of today’s consumers, this article is only really scratching the surface. Eager to learn where else you need to lean into to satisfy today’s shoppers? Then watch our on-demand masterclass with Bazaarvoice CMO Zarina Stanford and hear first-hand how your brand can adapt and thrive.

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How to create (or revitalize) your own private label brands https://www.bazaarvoice.com/blog/how-to-create-private-label-brands/ Tue, 12 Mar 2024 16:08:49 +0000 https://www.bazaarvoice.com/?p=32908 Once upon a time shoppers scoffed at “generic” or “off-brand” products. These more affordable, store-brand items had an inferior reputation that some perceived as low class or low quality. Well, now, the joke’s on them because these private label brands are increasingly sought after, especially as more shoppers seek better value for money. 

According to our recent survey of 1,000 U.S shoppers, asking their opinion(s) on private label brands, 43% of respondents say private label quality has significantly improved, offering comparable or even better quality than national brands in many categories. 

Some of the biggest names in retail like Target, Sephora, and Walmart all invest in the development and marketing of their private label products — and see massive success. 

The retailers that push the limits of their private label branding will be the ones that continue to elevate their status and change the generic stereotype. To do that, you’ll need to focus on branding, value, quality, and insights. Discover what your retail business stands to gain from offering store brands and how to develop a winning strategy.

Chapters:

  1. What are private label brands?
  2. The private label branding opportunity
  3. How to create a thriving private label brand in 6 steps
  4. Private label brand strategy examples
  5. Improve your private label branding with customer insights


What are private label brands?

Private label brands, also known as store brands, are products owned by retailers and sold along with other brands in their product catalog. The retailer is often the sole developer of the brand and its products, or it may come from a third-party wholesale partner.

Some of the most successful private label brands include 365 by Whole Foods Market, Amazon Basics, and a ton of Target brands

The private label branding opportunity

The newfound interest in private label brands directly correlates with a struggling economy, an influx of higher-quality store-owned products and options, and an increase in private label-based rewards programs.

Consider these stats from our private label research:

  • 40% of respondents say their perception of private labels is positive, they offer good value and they trust the store branding — another 42% haven’t noticed any significant differences in quality between private labels and national brands
  • 36% of respondents plan to purchase more private label products next year compared to previous years
  • Over half of respondents (56%) have switched their preferred brand for a private label product based on a loyalty program or reward

That’s to say, when it comes to the private label branding opportunity, it’s no longer a “nice to have.” The overall increase in positive sentiment, value, and quality, have made them difference makers for any retailers bottom line.

In terms of specific industries, the most popular categories for private label products are:

Food & beverage78%
Household cleaning product68%
Health & beauty products54%
Apparel & accessories53%
Home improvement products41%
Consumer electronics29%

Besides a thriving private label branding market, there’s other business benefits for retailers who offer store brands. Some top advantages include:

  • Product ownership: In addition to literally owning private label products, retailers also have control over the product design, materials or ingredients, and other manufacturing details
  • Higher profit margins: Because retailers own their private label brands, they don’t have extra supply chain fees or higher cost of products from a national brand. This makes their product costs lower, allowing a bigger profit margin — not to mention the added benefit of keeping customers happy with lower prices
  • Branding: Just as it owns the product design, the retailer also has creative control over the private label branding, from the aesthetics to the voice and promotion

Leading retailers are leaning into the private label apparel category specifically and partnering with luxury designers, like Walmart’s collaboration with Brandon Maxwell.

How to create a thriving private label brand in 6 steps

Now that you know the potential of private labels, find out how you can breathe new life into your owned brands, or successfully launch new ones, with the following tactics.

1. Build a strong retail brand identity

To have a thriving private label brand, first, you need to have a strong overall retail brand. 

When you earn brand loyalty and the positive public perception that comes with it, consumers will naturally trust and gravitate to your owned brands. 67% of the respondents to our private label research strongly or somewhat agree that the quality and range of a retailer’s private label products positively affect their overall perception of the retailer’s brand and reputation.

So, how do you build brand trust and loyalty to attract customers to your private label products? Some essential methods include:

  • Appealing to your target audience’s values and interests
  • Providing great customer service
  • Offering deals and discounts

But, of course, these community-building efforts will only work if your products are unique, valuable, and serve customers’ needs. Our own research validates this approach, given that the top two reasons shoppers gave for selecting private label products are that they love them and they are well-priced. 

With the right practices in place, your customers will come for your retail experience and stay for your private label brands, creating a sustainable cycle that propels your business forward.

2. Devise a smart product strategy 

Once you have a solid foundation for your retail brand, you can begin to develop your own private label products. Your products need to meet the essential criteria to hook shoppers from the beginning and keep them coming back for more. To make your store brand the preferred alternative to the national name brands, make sure its value proposition is unique.

a) Develop your concept(s)

The formula for creating your store brand concepts is simple. Find the gaps in your inventory selection — what missing products could fulfill a customer need, price point, or variety? That white space will determine what and how many private label products to develop. This will guide your entire product strategy. The process could look something like the following steps:

  1. Start by sorting your target customers into different segments and define the needs of each one
  2. Research the price points and product features that make sense for each industry category
  3. Research your competitors’ products in each category
  4. With those insights, analyze your current product catalog to find what’s missing
  5. Determine what alternative products your retail business can produce at a lower cost but that are equal to or better quality than the name-brand options

If your business is new to private label branding, you might want to start small with one to a few options within your bigger product categories to test the performance. Once you’ve decided which products to pursue, define the guidelines for your supplier and company stakeholders to follow.

This will ensure that your costs are accurate to fit your price point and profit margin — and that the materials used, functionality, and quality all meet expectations. 

b) Pricing and variety

Since value is the top consumer driver of store brand sales — lower price compared to national brands is the main purchasing influence for 72% of shoppers, according to our private label research — the key is to offer a price that is lower than your competition, while maintaining your target profit margin.

Identify the leading competitors in your store-brand product categories to base your pricing and quality criteria. 

In addition to pricing, variety is a key component of your product strategy. What flavors, pack sizes, format sizes, and other differentiators can you offer in each category? Use an internal system to keep track of your pricing and variety architecture so you can gradually fill in gaps with your store brand offerings.

c) Packaging

Early private label branding strived to mimic the presentation of its national brand rivals. But now, the industry leaders are aiming to stand out rather than blend in. Packaging plays a huge role in purchase decisions, so this is an important area to focus on. The design should ideally be distinct and include the unique and attractive features of the product, whether that’s easy functionality, sustainable ingredients, or something else. 

private label brands
Source: Shoprite

For example, the packaging for retailer ShopRite’s store brand, Bowl & Basket, stands on its own with a prominent font, clean design, striking product photography, and a pleasant and soft color palette. It has a simple and clear product description that draws the consumer in. 

d) Innovation

The best way to generate interest in your private label brands and be a progressive outlier in the space is to consistently innovate. To pull this off, you need to leverage your store brand as the solution to your customer’s wants and needs.

If you look at leading private label brand retailers, many of their owned products are “value-added lifestyle items.” This is a niche to focus on that will lead to innovation, like Trader Joe’s iconic Everything But the Bagel seasoning.

Sourcing is another point of leverage for innovation. For example, locally sourced ingredients that benefit underserved communities can help your products stand out and satisfy consumer preferences.

3. Collect authentic reviews of private label products 

Product reviews are one of the most effective ways to win consumers’ trust. According to the 2022 Bazaarvoice Summit, 94% of shoppers report needing at least 10 reviews to “consider the product credible.

The recency of reviews is also a top decision-making factor for most (85%) of shoppers. So, you need to actively source reviews to grow your volume and keep them up to date. Luckily, there’s a variety of different ways you can generate authentic reviews. Just ask your customers!

Ratings and reviews don’t just have a huge impact on e-commerce but on in-store sales, too, based on the 40% of shoppers who claim to read online reviews before buying offline. Helpful, descriptive, and substantial reviews are essential, but those featuring media can go even further. Customers’ photos and videos of product purchases make 62% of shoppers more likely to buy.

Reviews also have great search engine optimization (SEO) value because they contain a lot of the same descriptive keywords that shoppers are searching for. So, not only will reviews increase conversions when shoppers land on your e-commerce site, but they can also be the vehicle that gets them there. 

Reviews communicate the value that customers find in your products and the features that are important to them. They give your customers a platform to express their own opinions about your brand, which resonates with other shoppers.

4. Grow awareness and interest with targeted product sampling

Whether you’re launching a new private label brand or product or rebranding an old one, product sampling can help it take flight. We’re not just talking about a taste of kombucha in a paper cup or a cheese cube on a toothpick, but a custom product sampling package delivered to your target audience.

Renowned brand Petco recently rolled out a sampling campaign specifically to bolster review volume for its private label brands and increase SEO impact.

To date, the campaign has led to a 48% increase in revenue per visit (driven by a 28% increase in conversion rate and 15% increase in average order value) for sampled products and an 80% increase in clicks from organic search. Not to mention, that data that sampling provides.

We’ve really seen a positive impact on visits, conversions, and improving the discoverability of new products. From a results standpoint, it’s been a positive experience to see that we can get 10-15 reviews for new products quickly

Hannah Kredich, Category Specialist at Petco

First-party customer data also provides tons of useful information you can use to plan a product sampling campaign. Let’s say you notice customers buying a lot of the same national-brand products in one category, you could send them a sample of your store-brand alternative or a complementary product from your store brand. 

And if you’re starting from scratch with a brand-new product launch, sampling is a great upfront investment. In a survey of over 6,000 Influenster members who have been recipients of a product sampling campaign, 63% purchased the product they sampled. Many also reported buying additional products from the brand and recommending the product to family and friends.

Lastly, another huge benefit of product sampling is the user-generated content (UGC) it can produce in the form of product reviews, images, and videos. This is especially important for new product releases so you can be equipped with the customer reviews necessary to give other shoppers confidence right from the launch. 

5. Optimize your product pages for conversions

One common concern for retailers is the lack of rich content, including product reviews, across all of their product pages on their e-commerce websites. This can be particularly challenging for retailers with an extensive product catalog. This is why it’s crucial to encourage customers to write reviews so you can enhance your product pages with UGC. 

You can set up those reviews to post directly on the product pages they correspond to, which will make a huge difference in sales — nearly 40% of shoppers won’t make a purchase if UGC is absent from the product page. And that includes visual UGC too. As part of our recent Shopper Experience Index, we asked 7,000 shoppers:

Additionally, almost half of shoppers specifically look for customer photos on product pages when considering purchases. Encourage customers to upload their own photos and videos of their purchases to your product pages with a hashtag campaign.

To optimize your private label product pages to their full extent, include: 

  • Star ratings 
  • Review categories based on product features, positive reviews, and negative reviews
  • Detailed product descriptions that highlight your product’s best attributes
  • Professional product photos
  • Customer-submitted product photos and videos 

6. Attract more customers on social media

Whether it’s Gen Z on TikTok, millennials on Instagram, or older demographics on Facebook, social media is a critical marketing tool for your private label growth

Social media content supports a more modern, cutting-edge, approachable, and innovative perception of your store-brand products. Consumers come to social media to discover brands and be entertained, and there’s a ton of features and content types you can leverage to appeal to them. That includes short-form video like TikTok and Instagram Reels, quick and temporary content like Instagram Stories and Snapchat, and even livestream shopping on a number of different channels. 

Influencers have proven extremely successful for brand marketing, and social media is the perfect platform for an influencer partnership. Collaborating with influencers to promote your store brand is another way to drive demand through a public figure whom consumers trust. 

You can also use social media as a tool to generate more visual UGC that you can feed to your product pages. Encourage your followers to share their purchases on social media and tag your brand profile. This will supply you with more content and introduce your products to a wider audience.

Not only can you market your private label products on social media, but you can also sell them, too. With social commerce features such as Like2Buy and social media shops, you can upload your products and sell them directly on your social media channels. 

Private label brand strategy examples

As private label brands have evolved over the years, there’s plenty of retailer examples to draw inspiration from. Take notes from some of these trailblazers who are shaking up the store-brand category. 

Target’s Future Collective

Target might just be the pinnacle of store-brand potential, neck and neck with Amazon. Target has multiple private label brands, but as the retailer says, their Future Collective brand is the “first of its kind.” This fashion-forward apparel brand is “co-designed with a rotating roster of style and cultural influencers with diverse points of view in fashion.”

Source: Target

This innovative approach enables Target to leverage different guest designers and influencers to bring in different perspectives on fashion, while offering a continuous stream of fresh variety for customers. The brand is dedicated to inclusivity, offering something for everyone.

Thrive Market

Thrive Market is a successful e-commerce retailer that specializes in health-conscious products, including name brands and its own store brand. 

Not only is Thrive an excellent private label brands example, but also a great example of how to develop products that meet the needs of target customers. For example, one of its best-selling private label products is its coconut milk. What makes its particular coconut milk unique is that it leaves out a commonly used ingredient, guar gum, which isn’t Paleo diet friendly.

This solved a problem for its Paleo customers, who make up a big chunk of its clientele. 

Foxtrot

Foxtrot, a fast-growing specialty convenience store chain, is another example of a retailer going above and beyond with its owned products. Foxtrot’s goal for its store brands is to beat the well-known national brands in all categories, not just price. 

Just as Target partners with influencers for Future Collective, Foxtrot partners with industry leaders for its food and beverage products. As an example of this, the company has a hot chocolate mix developed by an acclaimed pastry chef and a bourbon made in collaboration with a beloved local Chicago cocktail bar. According to the Washington Post, Foxtrot’s profit margins for its private label products are 10 – 15% higher than those of its external brands.

Improve your private label branding with customer insights

One of the most important steps you can take as a retailer to grow your private label brands and business as a whole is to listen to your customers. Pay attention to the insights revealed in your product reviews, customer satisfaction surveys, customer support conversations, social media interactions, and anywhere else you can find them. 

What do your customers like and not like about your products? What are they saying they need that you don’t currently offer? This invaluable information can help you make store-brand product modifications and improvements that will provide more value for your customers. 

Once you’ve established your private label branding, it’s time to take it to the next level. Learn how to position your private label for continued market success with our new on-demand masterclass: How to leverage new customer insights for private label success.

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Research report: Do trust signals inspire shopper confidence?  https://www.bazaarvoice.com/blog/trust-signals-research-report/ Wed, 10 Jan 2024 10:39:04 +0000 https://www.bazaarvoice.com/?p=49000 A consumer research survey looking into whether customers would appreciate a trust signal helping them to validate the authenticity of online reviews.


Today, perusing through ratings and reviews and other user-generated content (UGC) has become a foundational part of the routine of online shopping. It’s how you truly experience a product without being able to see it in person — by hearing about the intricacies of a real product experience from one of your fellow shoppers. 

But even though we shop online so frequently (100% of shoppers we surveyed said they shop online at least once a month!) and therefore are utilizing UGC just as frequently, due to nefarious actors, we’re unfortunately having to spend a portion of that time validating the authenticity of that UGC.

Three quarters (75%) of our survey respondents are at least somewhat concerned about encountering fake reviews when shopping online. Only 9% said they’re either not very concerned or not concerned at all. 

So, how can we solve this problem? Not just to make e-commerce more efficient but also to make UGC more trustworthy and transparent. A trust signal (also referred to as a trustmark) might be the answer.

What are trust signals?

A trust signal is a logo or badge displayed on websites that tells customers the site has passed certain digital security tests or qualifications that confirm content authenticity. Their main purpose is to make shoppers feel more secure and confident in their purchasing decisions.

Trust signals research report key findings 

To find out exactly what consumers think about fraudulent UGC, what would give them more confidence in the consumer content they’re consuming, and what brands plan to do about it, we surveyed over 8,000 shoppers and 400 brands across the globe. Here’s what they said. 

1. Consumers are concerned about all types of fake UGC

Fake reviews aren’t the only type of fraudulent UGC that shoppers are worried about. Consumers are at least somewhat concerned about encountering fake shopper images (69%), fake social media content (69%), fake shopper videos (68%), and fake shopper questions and answers (66%).

Because they’re so worried about this fake content, they’re taking steps themselves to verify the legitimacy of an online store or product before making a purchase. Using trusted online shopping platforms (63%), researching the brand or company online (58%), checking for secure website indicators (e.g., padlock symbol, “https”) (51%), reading customer reviews (47%), and recommendations from a friend/family member (46%) are the most common ways consumers typically do so.

2. Consumers think brands should be taking care of fake reviews

Even though they’re doing it now, consumers don’t want to be doing all of this detective work themselves. The majority of shoppers we surveyed (63%) think the brand’s website they’re visiting should be solving issues of fraudulent content online, followed by governmental bodies (49%) and a third-party expert (36%).

And even while doing all of their own sleuthing to verify the online stores they are using, almost three quarters (73%) said that websites today are doing at least somewhat of a good job of blocking fraudulent content. Over a quarter (27%) think they’re doing a relatively poor job. 

However, they’d prefer if content on brand websites would be verified by a trusted third-party over than by the brand itself. Over two thirds (66%) said they’d have confidence in a “trust signal” [i.e. — lock, checkmark, symbol] that shows each piece of content has been verified by an independent third party – only 8% said they wouldn’t trust it. 

3. Brands think they’re on top of fraudulent issues

The vast majority (94%) of brands and retailers said that they rate the importance of maintaining online content authenticity in e-commerce business either high or very high. The majority are also either moderately (41%) or very (35%) confident in their current strategies and tools for detecting and preventing fraudulent or counterfeit content within their online channels. But only 10% said they were extremely confident. 

Despite their confidence, the majority (69%) of brands and retailers don’t currently use any fraud detection software today for transactional fraud (fraud that occurs where money is being exchanged). Only 31% do.

Two thirds (67%) are actively exploring or planning to implement any new technologies or strategies to enhance online content authenticity and fraud prevention. The majority (81%) said that they would consider utilizing a third-party vendor specializing in content authenticity verification to enhance their fraud prevention efforts, but 57% said with the caveat that the solution aligns with their needs. 

4. Consumers want a trust mark signal to help verify online content

When asked if they’d trust an industry-leading, third-party authentication provider to verify the trustworthiness of the content for all of the sites they visit, 70% of consumers said they would. 

On the other hand, when asked if they’d trust a website to verify its own content without an industry-leading third-party authentication of the UGC on its site, less than half (47%) said they would trust it. And when asked our survey respondents if they’d have confidence in a “trust signal’ [i.e. — lock, checkmark, symbol] that shows each piece of content has been verified by an independent third party, 

  • 73% said they’d trust it for ratings and reviews
  • 66% said they’d trust it for social media content
  • 60% said they’d trust it for influencer content

5. Brands are interested in incorporating trust signals 

Brands are open to getting help in verifying their website’s content for shoppers. A whopping 79% said they have no concerns or reservations about outsourcing content authenticity verification to a third-party vendor.

When asked if they’d consider adding a “trust signal’ [i.e. — lock, checkmark, symbol] that shows each piece of content has been verified, 78% said they would be for ratings and reviews, 79% said they would be for customer answers, 73% said they would be for customer images, and 71% said for every customer video.

A trust signal eases consumers’ stress around fake UGC: give it to them

As our research shows, consumers want to continue using UGC. But they also want to make sure that it’s authentic. They want brands to ensure the validity of the UGC they consume, and a trust signal would be of use to them.

The Bazaarvoice Authentic Reviews Trust Mark is a symbol of a company’s dedication to authentic consumer feedback regarding its products and services. The Trust Mark is also a signal to consumers that the review content they see is safeguarded — by a neutral third party — with sophisticated fraud detection technology and industry-leading best practices. Learn more here. 

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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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Research report: DIY and home improvement industry trends https://www.bazaarvoice.com/blog/get-the-details-on-diy-and-home-improvement-consumer-trends/ https://www.bazaarvoice.com/blog/get-the-details-on-diy-and-home-improvement-consumer-trends/#respond Fri, 01 Dec 2023 11:41:00 +0000 https://www.bazaarvoice.com/?p=11379 A research report looking into the DIY and home improvement industry trends brands need to lean into today and over the next five years


The DIY and home-improvement market keeps getting bigger. Between 2019 and 2021, spending on DIY projects grew 44% to $66 billion, according to the Joint Center for Housing Studies at Harvard University

Almost 60% of homeowners remodeled or redecorated their homes in 2022, and 48% made home repairs, according to the 2023 U.S. Houzz and Home Study: Renovation Trends. More than half of homeowners planned projects in 2023. 

All these home projects mean consumers are shopping for home building materials, home decor, tools, supplies, and more. Most consumers shop for what they need for their projects both online and in stores. They seek inspiration and information on social media and via user-generated content (UGC) posted by other DIY-ers — most shoppers always or sometimes read reviews before buying anything.

However, one thing to note about customer behavior and industry trends these days is that inflation is causing many to be slightly more budget-conscious with their DIY and home improvement projects. Our research shows that 55% of DIY consumers plan to re-purpose products that they already have to improve home decor.

Still, in the next year, 66% plan to make decorative changes in their homes, while 58% plan to make wear-and-tear repairs, our research shows. About 20% will take on structural, functional, or major renovations. 

Using our own research as well as third party insights, here’s a look at how DIY and home-improvement industry trends have evolved over the past few years, what’s on trend now, and what shopping habits you can expect in the near future. 

Now: UGC entices consumers to shop for DIY products 

Millennial DIYers often leverage social media platforms, like TikTok, YouTube, Instagram, and Pinterest, for home project ideas and inspiration. Influencers, including everyday consumers, reveal their latest projects and discuss the newest home trends. Retailers and brands need to make it easy for shoppers to connect the dots to purchase on social media. 

Many consumers aren’t planners when it comes to DIY. 35% of DIYers do home projects when inspiration strikes, our research shows. But, they need help choosing the right items. That’s where UGC comes into play. 

UGC is the most trusted form of content, according to 63% of DIY consumers. We’ve found that when DIY shoppers interact with UGC, you can see a 167% conversion lift and 250% RPV boost. Consumers are also more likely to buy items with written reviews and customer photos and videos. 

Most shoppers expect UGC to be easy to find, whether they’re shopping online or in stores for home decor and DIY supplies. It helps them make informed decisions, so it’s important to feature UGC everywhere people shop. 

About 2 in 3 consumers prefer shopping for DIY and home improvement products in-store (that number rises to 76% for consumers over 55). The main reasons they prefer visiting stores in person are to get advice from in-store sales reps and to get what they need more quickly.

Vancouver-based furniture and decor company Urban Barn strives to offer shoppers consistent, unique experiences both online and in stores. The brand has found that even when shoppers visit stores, they research products on its website first. The company has been beefing up its UGC collection efforts by encouraging customers to post images on social media tagged #RightAtHome. 

Urban Barn has seen a 59% conversion rate boost, a 29% increase in order value, and a whopping 270% lift in time on site since implementing its UGC strategy.

Next: DIY shoppers want multi-channel experiences 

In the next few years, consumers will continue to seek convenience when shopping for home improvement items. DIY retailers should rise to the challenge and rethink their formats and services. Topps Tiles is a good example. The brand has opened smaller boutique-style storefronts to offer unique experiences. 

Shoppers will embrace online shopping for home improvement purchases more often. Our research shows that consumers are motivated by the fact that more items are in stock online (41%), they can quickly get advice from customer reviews (36%), and they just enjoy shopping online more (34%). 

The DIY brands that are winning offer a consistent, seamless shopper experience across digital, in-store, outdoor, and social media. For instance, Made.com, a British home goods e-commerce brand, has opened a few showrooms to provide this omnichannel experience

Over three-quarters of shoppers research DIY and home improvement products online or on social media before buying them. And, more than 40% of 18- to 34-year-olds frequently purchase directly from social media. This highlights the importance of relevant, high-quality UGC in guiding online and in-store purchases. 

Consumers tend to search for UGC on web browsers (45%), retail websites (40%), brand websites (39%), and social media (27%). 

Over half of DIY consumers would be more likely to purchase DIY and home improvement products if more educational resources, like videos and reviews, were available. YouTube is the preferred platform for learning about DIY and home projects, followed by advice from friends and family.

With social media such an important source of inspiration, 31% of consumers also shop there for products for their DIY and home projects. This emphasizes the vital role social media marketing and UGC play in moving consumers through the purchase funnel. 

Bedding and bath brand Parachute features UGC in its marketing mix to show how real customers are styling and using its products in their daily lives. This strategy has helped the brand increase click-through rates by 35% and lower cost-per-click rates by 60%.

By continuously collecting UGC, Parachute keeps a fresh slate of inspiring content flowing in all the time. 

Future: DIYers want personalization and support to shop with confidence 

DIY and home improvement retailers are considered places for consumers interested in tackling these projects to come together, find inspiration, and learn something new. This viewpoint is especially crucial for millennials and new homeowners, who feel that they lack the skills and confidence to complete these projects and need extra support. 

For instance, 60% of millennials can’t put up shelves, and 39% say they can’t decorate. Educational marketing materials and in-store workshops will help engage and build trust among unconfident shoppers. 

Home Depot has long recognized the value of engaging shoppers in this way. The retailer hosts virtual and in-store DIY workshops for all skill levels to help customers learn new skills and become handier at home. 

45% of consumers expect a personalized experience from brands and retailers when shopping for DIY and home improvement products. So, investing in this area can help you maintain a competitive edge. 

Consumers are also interested in tech-focused support. 45% of DIY shoppers have used some type of digital tool to plan their projects, while 25% have used “customized products on brand websites,” and 17% have used augmented reality or virtual reality to visualize furniture in their own space. 

UGC is crucial for attracting DIY consumers now and in the future

There’s one standout and consistent trend when it comes to the home improvement industry, DIY and home improvement shoppers massively rely on what other consumers have to say before purchasing furniture, supplies, home decor, and other things to spruce up their homes.

Ensuring you have a process to collect and distribute UGC will continue to attract customers and build relationships with them for years to come. Learn more about Bazaarvoice’s solutions here

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5 commerce trends to INSPIRE your brand https://www.bazaarvoice.com/blog/commerce-trends-to-inspire-your-brand/ Tue, 21 Nov 2023 14:47:33 +0000 https://www.bazaarvoice.com/?p=48280 When it comes to commerce trends there’s only one constant: change. If you looked back at five commerce trends articles from the past five years, the content of each would be almost entirely different. Sure there’d be some consistencies and overlaps, but generally commerce trends come and go almost overnight.

For example, spending habits have completely changed in the last 12 months, with 77% of consumers now saying they’re reducing spend on any non-essential items (more on that later).

That’s why e-commerce and brand managers need to keep their ears to the ground and stay abreast of any changes.

And that’s exactly why Bazaarvoice recently hosted INSPIRE — a global, in-person roadshow looking into the latest commerce trends, using lessons from industry pioneers and insights into innovative approaches to using authentic shopper content.

Based on our latest consumer research and insights from global marketing leaders, here’s the biggest commerce trends we learned to guide your brand through 2024 and beyond.

1. Voice of the customer is your best sales tool

It’s no longer a secret that today’s shoppers want to hear about your products from their fellow shoppers, not from your brand. Ratings and reviews, social posts, Q&As, and other forms of user-generated content are all the physical form of the voice of your customer — and it’s what shoppers want to see.

  • 55% of shoppers say they’re unlikely to buy a product that doesn’t feature any type of customer opinion-sharing content (like UGC)
  • 78% of shoppers feel more confident in their purchase when they view shopper content
  • 74% of consumers trust shopper content more than branded content on product pages

That’s because this content is perceived as more authentic and trustworthy. Putting this modern form of word-of-mouth marketing in front of consumers across every touchpoint in the buying journey (online and offline) is what’s going to inspire purchases.

commerce trends
Brand spend vs. shopper want

But three quarters of brands say they still spend the majority of their budget on branded content. The takeaway? Balance your marketing channel mix with a more even mix of shopper- and branded-content and watch your sales soar. 

Lifestyle brand Villeroy & Boch realized this and turned to the voice of the customer for their product pages. “User-generated content is one of the most trustworthy types of content a brand could show to their customers,” said Sabine Kaufmann, Head of e-commerce Operations Dining & Lifestyle.

It worked, too. The brand has since seen a 275% increase in conversion rate and a 29% increase in average order value.

An exciting new commerce trend is one that is growing rapidly — social media is the new search engine. Shoppers, especially tech-savvy Gen Z, are increasingly turning to social media platforms for product discovery. Rather than typing “low rise jeans” into Google, they’re typing it into apps like Instagram and TikTok to see how products look on real customers in real life situations (there’s that voice of the customer again!)

According to our Shopper Experience Index, 58% of shoppers say they’ve discovered a product or service through social media (as opposed to 49% through search engines), but it’s not just for product discovery, either. Social shopping is now a full funnel experience.

commerce trends
Full funnel social

The takeaway for your brand? You need to work on a social media SEO strategy to ensure you find your shoppers where they are.

3. The rise of value-seeking shoppers

Globally, 73% of consumers claim to have changed their spending habits. And before you get excited, they’re not spending more. Unsurprisingly given the cost of living crisis, there’s been a huge reduction in spending on practical and delayable items. 

Even those consumers who are still spending, 62% of them say they seek out value-for-money information from shopper content. And that’s where the good news comes in: almost three quarters of shoppers are willing to try a different brand from one they normally buy. 

Brand loyalty is being questioned as shoppers seek out more value which is a golden chance for you to win over a wave of new shoppers.

4. AI and machine learning is here to stay

It’s arguable that AI isn’t a commerce trend because there’s probably no bigger buzzword in the world currently than generative AI. It’s everywhere, and feels a bit like the wild west with AI seemingly popping up on every piece of marketing legislature. 

But if you cut through some of the noise, those brands doing AI right are the ones who are future-proofing their business. According to our research, almost three quarters of shoppers have avoided leaving a review on at least one occasion because they didn’t know what to say. But imagine if you had the tools to assist them in their content creation? How much UGC could you collect, and at scale?

67% of shoppers think it would be helpful if e-commerce sites provided AI-powered coaching to help them leave a review. Your shoppers are willing, they just need the AI tools to give them the kick they need.

Generative AI does more than assist shoppers with content creation. Tools like Instagram photo captions powered by Generative AI can write Instagram captions for you, giving you back 80% more time to focus on more important things, like building out your social strategy.

5. The creator economy continues to grow

There’s a big debate between influencers vs. creators (spoiler alert: they’re the same thing) but however you refer to them, one thing rings true. The market of creators is valued at $250 billion, which is hardly a sum to scoff at. And that number is predicted to rise to $480 billion by 2027.

Almost every large brand we heard from at INSPIRE — Adidas, Michael Kors, Bazaarvoice — spoke to the value of creator marketing, because of the trusted voice it brings to brands.

These influencers are reliable, authentic content creators with followings ranging from nano (<10,000) up to mega (over one million), with varying engagement rates and prices. But it goes even further. Now 53% of shoppers identify themselves as UGC creators. The main challenge for brands though is finding that creator who perfectly encapsulates their ideal audience.

A pain point that Bazaarvoice identified with our recent acquisition of the affable.ai platform, the leading AI-driven influencer marketing solution. Bazaarvoice affable.ai enables you to easily identify the perfect creator for your brand, then connect, manage, and measure your collaboration.

Many of the takeaways and statistics from INSPIRE were based on volume 17 of our Shopper Experience Index — a report of 7,000 consumer respondents in seven different markets, and 465 global brands and retailers, looking into consumer behavior and expectations.

For further insights and commerce trends to guide your brand strategy, you can find the full report here

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Voice of the customer: Reshaping the shopping experience https://www.bazaarvoice.com/blog/voice-of-the-customer-reshape-the-shopping-experience/ Thu, 02 Nov 2023 19:58:37 +0000 https://www.bazaarvoice.com/?p=47715 The modern shopping experience is changing. In the latest volume of the Bazaarvoice Shopper Experience Index, a survey of 7,000 global consumers and 465 brand retailers looking at consumer behavior and mindset, we discovered that now more than ever before, the voice of the customer matters. Shoppers want to hear more from fellow shoppers, not from your brand — throughout the entire purchase process.

But what’s interesting is that while most brands recognize this, most are still catching up in fine-tuning their content strategies and channel investments to meet this new demand.

If you’re one of the brands looking to transform your shopping experience but aren’t sure of the best way to go about it, our new research has the answers to help you get started.

All stats are from our Shopper Experience Index report, unless stated otherwise.

Chapters:

  1. What is voice of the customer?
  2. 8 ways the voice of the customer transforms the shopping experience
  3. How to successfully navigate using the voice of the customer
  4. Get started with the voice of the customer


In today’s economy, where every purchase is given a second thought, delivering an exceptional shopping experience is essential — 98% of shoppers value experience over price. Even shoppers minimally affected by inflation and rising prices are looking to cut costs wherever they can. They’re questioning non-essential purchases, shopping around for bargains, and turning to more private-label brands.

voice of the customer

But here’s the thing. Shoppers don’t want to hear about how great your products are from you — they want to hear it from your customers. Case in point: our research revealed that 74% of consumers trust shopper content more than brand-provided content on a product page.

So what can you do to meet their needs? 

Develop a voice of the customer strategy that helps you gather conversion-driving shopper content. Your voice of the customer content can also reveal insights that can be used to improve products, services, and the shopping experience. 

What is voice of the customer?

Voice of the customer (VoC) is the process of collecting and analyzing shopper feedback and then using this information to understand how consumers perceive a product, service, or brand. The feedback captures consumers’ opinions, preferences, and expectations through surveys, reviews, social media, and other channels.

Keeping a customer first mindset and learning from the outside in is a powerful tool for brands and retailers that want to increase customer satisfaction and loyalty. And given that 78% of consumers feel more confident in a purchase when they view content from other shoppers, it’s what consumers want to see.

User-generated content (UGC) is the voice of the customer in physical form. This shopper-created content, in the form of customer reviews, Q&As, and social imagery and videos, is a reflection of a customer’s authentic voice. It can be used on your website, product pages, and social media channels, and every part of your digital shelf to transform the shopping experience — and drive growth.

VOC value for brands and retailers

It’s no surprise that 67% of brands and retailers intend to increase UGC spend in the next year. Currently, brands and retailers are using UGC to:

  • Improve the shopper experience (80%)
  • Increase product discovery (79%)
  • Increase conversions (78%)
  • Improve marketing messaging (76%)
  • Improve product pages (74%)
  • Boost SEO (68%)
  • Reduce returns (67%)

But how does your organization view the voice of the customer? And does it include user-generated content today? If not, it’s time for a review.

8 ways the voice of the customer transforms the shopping experience

From more sales to more satisfied customers, here’s eight ways voice of the customer marketing can help you boost engagement throughout the buying cycle. 

1. Drive more sales  

For many brands and retailers, the most appealing aspect of tapping into the voice of the customer is that it helps them increase sales.

  • Over half of shoppers say they’re unlikely to buy a product that doesn’t feature any type of customer opinion-sharing content
  • More than 75% of consumers say reviews and Q&As affect their purchase decisions 
  • 69% agree photos of products taken by other shoppers have an impact on their purchases 

When it comes to UGC, consumers want to see a variety of content. A 5-star rating is nice, but shoppers need more context to feel confident in their purchase.

In the first 20 seconds of landing on a product page, consumers say high-quality reviews will have the biggest impact on their shopping experience, followed by average star ratings. The number of reviews will also determine whether they add the product to their cart (we’ll have more on how much user-generated content you need in a minute). Shoppers also want to see reviews that are relevant to their experiences and use cases.

Consumers are willing to do their research. For high-cost items, 89% of shoppers will spend 5 minutes or more reading user-generated content like reviews, images, and social content before making a purchase. Even for low-cost items, more than half of shoppers are willing to spend at least 5 minutes reading other shoppers’ reviews and feedback. 

Voice of the customer doesn’t just affect your online sales, either. When we look at our network data and omnichannel research, we see consumers relying on opinion-sharing content even when they’re shopping in-store. 

For example, the average ROBO (research online, buy offline) multiplier for brands in the Bazaarvoice Network is 3.91x — meaning that for every $1 of revenue influenced online, VoC content influences $3.91 in-store.

Each industry has different ROBOs. For example, health and beauty products see an average of $5.26 of additional in-store sales for every $1 of sales influenced by voice of the customer content online.

With 70% of consumers open to trying a new brand or product during the present economic downturn, now’s the time to stand out on search.

Voice of the customer content, like reviews and other user-generated photos and videos, provide a consistent stream of fresh content, a major factor in Google’s ranking criteria.

When someone else searches for the same terms found in product reviews, those product pages will appear higher in search results. The clickthrough rate of long-tail keywords is also 3% to 6% higher than broad searches, and they’re also less competitive to rank for than shorter keywords.

But search is changing. One of the biggest revelations from our study is that social media is the new search engine. While traditional search engines (Google, Bing) are still the primary place shoppers start their online journey, social media (Instagram, TikTok) is also playing an increasingly important role, with 58% of shoppers saying they discovered a product or service through social media (as opposed to 49% through search engines).

Over half (58%) of shoppers say they often discover a product or service through social media, and 49% agree they’re more likely to find products and services on social than any other channel. 

Social media influences the full shopper journey especially for younger age groups. For example, while 50% of all shoppers have bought products via social media in the past year, this percentage increases to 73% among 18-34-year-olds and 64% among 35-44-year-olds.

voice of the customer

To effectively meet shopper expectations, it’s crucial to engage with customers on their preferred platforms. Meet them at their watering holes. Nowadays, that’s predominantly on social media.

3. Acquire new customers

Another takeaway from the report is that current economic conditions and changes in buyer behavior present a unique opportunity for retailers and brands. 

To save money during the financial downturn, shoppers are open to trying new brands and products. More than 2 in 3 shoppers (70%) say they’re willing to consider switching to a new brand, even for products they normally buy.

voice of the customer

The changes in where people shop are also providing additional opportunities to meet consumers where they are in their buying journey and give them the extra info they need to move forward. 

4. Reduce content creation costs

Let’s be real. Content creation takes time and not all of your products will have the same content resources allocated to them. And whether you have a team of full-time writers or are paying an outside agency, branded content creation can be time consuming and expensive. It’s a much more cost-effective to have a content supply chain of branded and non-branded content than producing all your content in-house.

To add to these challenges, many brands separate branded top-of-funnel content and bottom-of-funnel content and the teams that manage them. The beauty of UGC is that it can serve multiple purposes at multiple stages of the buying process. With UGC, you have a largely untapped resource of full-funnel content to curate and ignite to add to your current branded content.  

It’s also more likely to inspire trust than anything your team or an outside agency develops. On a product page, 74% of consumers trust shopper content more than the brand-provided content.

5. Build brand consistency across channels

We found that 75% of consumers expect to get the same experience from a brand regardless of the channel. This sounds a given, but in the digital age, your brand’s reputation is largely shaped by what customers are saying about you online. To protect your brand image and reputation, and deliver a consistent brand experience wherever shoppers are, you’ll need to embrace and share the voice of the customer (more on that to follow), listen to their feedback, and adapt strategies accordingly.

Voice of the customer content works across the funnel and enhances all of your customer acquisition channels. It can inspire a top-of-funnel blog post on your website or it can serve as a standalone social media post. And it can make for a more powerful product page experience. By telling the same story at multiple customer touch points, voice of the customer helps create a more consistent shopping experience. 

6. Collate customer feedback and trust

Showing that you’re interested in your customers’ opinions and feedback helps cultivate a sense of brand loyalty. By showcasing and taking action on user-generated content, you’re showing customers you care about what they think and are eager to learn from their experiences.

  • 16% of shoppers consider themselves to be proactive creators who actively seek out opportunities to share their opinions
  • 36% identify as reactive contributors. They’re happy to share their opinions — when asked

So how do you tap into the power of proactive creators and boost the contributions of reactive shoppers? 

  • 43% of shoppers say they prefer to receive an email asking for their opinion on a product they have purchased
  • About 20% say they prefer to receive prompts via text messages, the retailer’s app, or an in-person interaction
  • 35% say they would prefer to receive a sample to review
  • 70% of consumers are open to a brand asking to share their social media post or video — as long as they’ve given the brand permission to do so

The bottom line is this: consumers want to see shopper content about your brand. And consumers want to leave feedback about your brand. You can easily foster a customer loyalty loop by enabling both.

7. Build trust — especially during a downturn

During a downturn, shoppers are turning to user-generated content to make sure they’re getting the best value for their money. They want to make sure they are getting the right product for their needs.

This trend is more extreme in the US, where 43% of shoppers are turning to other customers’ opinion-sharing content to make sure they’re making the right decision. Younger shoppers, including 50% of 18- to 20-year-olds and 51% of 25- to 34-year-olds, rely on user-genrated content to discover, consider, and purchase new products and brands.

8. Set expectations

A customer wrote a negative review. Time to freak out, right? Not necessarily. Negative reviews can actually be a boost to your voice of the customer program. 

In a separate survey we recently published, over half (60%) of respondents said that negative reviews are as important as positive reviews in their decision to buy a product. They give consumers a true sense of a product or service.

  • 75% of shoppers say it’s important to read a balance of positive and negative reviews when purchasing to set expectations correctly

Negative reviews also provide an opportunity to engage with consumers. By responding to, and acting on, negative feedback, you’ll foster more trust and loyalty with customers. 62% of consumers expect a response from the company when they leave a negative review, so give them one.

How to successfully navigate the voice of the customer

Knowing the benefits of tapping into the voice of the customer and how it can transform your shopping experience is one thing, but knowing the tactics pitfalls to watch out for is another. There’s a few best practices to follow that ensure you provide the most authentic voice possible and keep up with content demands.

Keep up with consumers’ need for shopper content

When it comes to user-generated content, consumers want to read a lot of reviews and ratings before they feel comfortable completing their purchase:

  • 63% of shoppers need a product to have more than 10 reviews 
  • 28% of shoppers need a product to have more than 50 reviews

And it’s not just reviews. The vast majority of consumers also want to see user-generated images in addition to branded photos:

  • 76% say they need to see shopper photos to make a confident purchase
  • 64% of shoppers expect to see shopper photos on product pages
  • 69% of shoppers want to see user-generated videos to feel more confident about their purchase 

But a slew of good visual UGC and reviews from 2019 won’t cut it. Around half of shoppers say recent reviews are more reliable than older ones. The majority of shoppers (55%) are confident in reviews when they’re less than 3 months old.

Some tactics for easily collecting fresh UGC include product sampling, where you send product samples in exchange for honest feedback, or review request emails, which automatically request a review post-purchase. You can also tap existing communities of everyday content creators like the Influenster App.

If you can, consider translating your existing reviews. The majority of shoppers (62%) say they trust translated reviews. That trust is higher in places like Canada (67%), France (67%), and Spain (75%).

Brand safety and authenticity are paramount

As voice of the customer content like reviews and user-generated videos become more popular, so do the efforts of bad actors who are trying to scam the system. 

Fake reviews can come from a variety of places, be it disruptive or trolling activity, commercial messages, generative AI submissions (we’ll talk more about those in the next section), illegitimate or degrading content by a competitor, and self-promotion by employees.

Protecting your brand from fake reviews is essential — you want to showcase the authentic voice of your customers, not fake or fraudulent voices. According to a recent Bazaarvoice survey, typically the behaviors that cause the most suspicion among consumers are:

  • Multiple reviews with similar opinions on the same product (55%)
  • Review content not matching the product (49%) 
  • Bad grammar/spelling mistakes (36%) 
  • An overwhelming number of 5-star/positive reviews (35%)

Fake reviews aren’t just making it harder for shoppers to trust voice of the customer content. They also put your brand at risk of legal recourse. For example, in the US, the Federal Trade Commission (FTC) recently announced two important regulations to battle fake reviews:

Regardless of how you collect your voice of the customer content, remember that you should never ask for or incentivize positive reviews.

If consumers are offered a free product, promotional material (such as discounts or coupons), or a chance to win something of value in exchange for providing an unbiased review, then we recommend adding descriptors such as “this reviewer received a free product in exchange for their honest feedback” to any reviews collected via a promotion. 

The future of the voice of the customer

Like we mentioned, emerging tech like generative AI — the advanced technology that powers applications like ChatGPT, Bing Chat, and Google Bard — can be used to create fake reviews. That’s the bad news.

But it can also make providing high quality user-generated content far easier for shoppers to provide and brands/retailers to personalize and learn from, which is better news. The goal is to ensure AI supports the the customer voice, not replace it. And in a separate research peak we recently undertook around AI and UGC, we learned:

  • About half of consumers (49%) would like to write a review on a website where generative AI guides them on what categories to cover
  • Almost half (45%) say they would trust websites more if they put measures in place to protect against voice of the customer content fully generated by AI

Get started with the voice of the customer

Voice of the customer is a commerce goldmine. Especially so during an economic downturn. 

With shoppers becoming more cautious about their spending habits — and being more open to new products and services — tapping into the voice of the customer in the form of user-generated content can help savvy brands and retailers stand out in a crowded marketplace.

It provides a treasure trove of insights that, when used effectively, can significantly enhance the shopping experience, drive conversions and revenue, instil trust and loyalty, and provide essential guidance to consumers in a rapidly evolving retail landscape. 

Brands and retailers that embrace the voice of the customer and use it to adapt to the ever-changing shopping experience have the unique opportunity to thrive. Eager to get started? Learn more about how the voice of the customer is affecting the consumer journey in this year’s full Shopper Experience Index report.

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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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The Bazaarvoice social commerce news bulletin https://www.bazaarvoice.com/blog/social-commerce-news-bulletin/ https://www.bazaarvoice.com/blog/social-commerce-news-bulletin/#respond Mon, 23 Oct 2023 15:36:48 +0000 https://www.bazaarvoice.com/?p=23142 The Bazaarvoice social commerce news bulletin is a monthly roundup of the best and most exciting social media news and technology we’ve seen what’s trending in the social commerce sphere, what new themes we’re seeing from brands and retailers, new social commerce technology, what the cool kids are doing, etc.

There’ll be plenty of linked articles, impressive stats, fun new things to digest, and you may even spot your own brand in there. 👀

(Psst — if you’re new to social commerce, you can catch up here)

We’ll be updating this every month so make sure you don’t miss out, because social moves quick. Feel free to jump to your desired month, otherwise let’s dive right in.

January. February. March. April. May. June. July. August.


September social commerce news

social commerce news

Teamwork making dreams work 

As they say:

Influencers influencing

They’re the cause of my large credit card bill:

  • What was your childhood dream job? Veterinarian? Teacher? Well, Gen Z’s main career aspiration is to be an influencer
  • But, influencing works, and there’s a large community that isn’t being marketed to — 28% of TikTok users are Gen Xers. Only 5% of brands target that cohort with influencer marketing. Uhm, brands get on this
  • LinkedIn added a feature for users to search for posts by LinkedIn creators

These apps are fillin the social media gaps

And now time to hear from our friends from across the pond!

London Fashion Week takeover:

social commerce news

And APAC is calling 

A word from down under:


August social commerce news

August — a month that feels like the “Sunday scaries” of summertime — has come to a close, and we’re past Labor Day now, which means Fall is on the horizon. For those Swifties out there who are still confused, no more blasting “August” — we’re now in “All Too Well” territory.

Now, let’s Fall into some social commerce news. 

social commerce news

These ads are rad

These brands’ advertising teams must not have taken a summer vacation: 

Back to school

I loved the shopping, but I could’ve done without the “school” part:

Feeling slap app-y

I can’t stop with the puns:

No Sleeping Beauty

The beauty industry never sleeps:

And now time to hear from our friends from across the pond

EMEA weighs in:


July social commerce news

Barbenheimer — which now has an entire Wikipedia page dedicated to the Internet meme –—took July by storm. The marketing strategies worked. The movies have grossed over $1 billion globally so far, and I’m over here watching everything unfold on social commerce.

social commerce news

X marks the spot

Elon Musk has been makin my job easy as a social commerce news reporter:

social commerce news

TikTok til you drop

Is anyone giving Kesha credit for coining the name of this app!?

  • A new format is launching on TikTok! An entire post can just be text, and the posts look incredibly similar to Instagram stories
  • Amazon promoted Prime Day on TikTok with an interactive “Duel for Deals” game show. Alix Earle joined in on the fun, which is a smart move by Amazon considering Gen Z girls would buy a toilet plunger if she promoted it
  • Music usage has been a major debate on the app, but don’t you fret — TikTok has recently gained licensing to Warner Music’s entire music library
  • Benefit, the makeup brand, launched their new mascara solely on TikTok for 2 days. They also went live on TikTok Shop for 48 hours
social commerce news

AI + Gen Z = match made in heaven?

Let’s just say these two are like Aperol and prosecco – summer’s hottest duo:

social commerce news

Let’s get sporty!

Or just sit on the couch and watch others run around:

social commerce news

Wimbledon shakes up the fashion world 

social commerce news

Microsoft Teams will be adding the new Maybelline Beauty app, which allows Teams users to choose between 12 different AI-powered beauty filters for video calls!

June social commerce news

School’s out and the sun is shining. We observed many important dates (Happy Pride and Happy Juneteenth to name a few!) and we survived the longest day of the year.

We may or may not see the cage match between Zuckerberg and Musk, but their apps, Twitter and the new Threads, will surely be brawling it out for months to come. And if you’re a brand looking to get started on Threads, this article can help.

social commerce news

Put on your thinking app on

I just can’t keep up with the updates:

A recession? Brands don’t think so

If people keep buying, brands will just keep innovating and creating:

EMEA weighs in

Just some brands having a little bit of fun: 

Lastly, check out Agency Cliquish, a full-service management agency founded exclusively to support and champion Black digital creators. Over Juneteenth weekend, Taylar Barrington-Booker, the founder, officially unveiled her agency’s client roster and social channels.

Happy July! Now start Threading!

May social commerce news

Money & momentum 

Platforms are growing and people are pretending a recession isn’t going to make them regret their $2,000 credit card bill:

That hot celebrity gossip

Us Weekly but the cool, younger, techy version:

Getting out of your comfort zone

Brands and apps are trying something new this month:

Bye bye!

April social commerce news

What do fannypacks, influencers, and 100° weather have in common?

Coachella! Here’s the brand activations I’d stand in line for:  

Confessions of a Shopaholic 

Attempting to give up shopping for a month, but I’ll be appreciating these brands from afar:

App-arently some people have opinions 

What’s life without some complaining and praising and then complaining again? 

That’s the end of the social commerce news for April. See you next month!

March social commerce news

Spring has sprung and that means hibernation season is over. March was madness, April is fooling, and you’re finally getting used to the time change. With that, there’s plenty of news from the social commerce world, so let’s get started. 

social commerce news

But AI love you

AI is turning heads with what it can do, but it’s probably better to lean into it than fight it. Brands and retailers are certainly betting on the social media shift and it’s been dubbed the latest big tech trend:

social commerce news

Digital > virtual > AR

Buzzwords galore. But brands are putting their technical hats on and giving the people what they want: 

Investing in our youths. 💸

We must focus on the youth for a better tomorrow. But also mainly for the fact that we know over half of Gen Alpha watch shoppable content:

Just some interesting things

The headline says it all:

  • Unilever found that influencers have the greatest impact on consumer sustainability choices. And Heinz is highlighting soil degradation with Fortnite Island in ongoing environmental protection and sustainability efforts. Great because the Earth could really use a win
  • 75% of marketers expect to spend more on TikTok even as the ban looms
  • And new social media platform alert! Is this another hit from ByteDance? Lemon8 is rising up the app store charts and is deeming itself a cross between Instagram and Pinterest

Happy things 

That’s all the social commerce news for March. Come back soon!

February social commerce news

February was short but mighty in terms of time, events, and social commerce news. Awards season, Rihanna’s pregnant again, and there was a big football game in there at some point. Which, speaking of, go social commerce!

It was all about the shoppable ads

This month was all about how social media marketing performs against traditional ads:

  • Michelob Ultra and Instacart support Super Bowl push with shoppable TV ads, while Priceline hid travel deals in digital ads during the game 
  • Wendy’s is taking it off the field to be the first to test Roku and Doordash’s deal around shoppable TV ads — soon I’ll only have to blink and I’ll have purchased something right to my doorstep

Virtually possible 🤖

Apparel and beauty have always been innovators so it’s no surprise that these two industries are full steam ahead on technical advancements: 

TIKTOK CLEAR UP

While it feels like we were just here (three years ago), the big social commerce news this month is the continued negotiations and political efforts aimed at granting the President and administration power to ban TikTok. It’s not currently happening. Only those using government-issued devices have seen a ban imposed, starting February 27th. Either way, brands are keeping on keeping on: 

social commerce news

We know everyone has been ChatGPT-ing also, but that’s barely news by this point — we prefer to stick to the more exciting social commerce news. 🙃


January social commerce news

Austin is without power, storms are everywhere, and Phil saw his shadow, meaning six more weeks of winter. But with the Lunar New Year ushering in the Year of the Rabbit, there’s hope for 2023 just yet.

Beauty is in the AI of the beholder

Beauty brands win innovation time and time again: 

Pulse on the platform

Keep reading for fun new things to know about tech platforms:

Brand new(s)

Our favorite social commerce news is recapping the cool things brands are up to: 

social commerce news

Seeing double

Both Chipotle and Martha have been busy this month: 

Game day ready

Everyone’s excited for Rihanna’s big concert next weekend:

social commerce news

For more than just news, learn how to make social commerce profitable below.

Back to top.

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BFCM: 15 Black Friday marketing strategies https://www.bazaarvoice.com/blog/black-friday-and-cyber-monday-strategy-guide/ https://www.bazaarvoice.com/blog/black-friday-and-cyber-monday-strategy-guide/#respond Wed, 13 Sep 2023 08:23:19 +0000 https://www.bazaarvoice.com/?p=19202 BFCM is right around the corner, as it always seems to be. But is your brand BFCM ready? Using new Bazaarvoice consumer research and the latest insights, this checklist will ensure your Black Friday marketing strategy is up to scratch so you can win over new shoppers, as well as keeping your existing base.

Chapters:

  1. What is BFCM?
  2. Black Friday marketing statistics
  3. Best Black Friday Marketing strategies
  4. Make this Black Friday marketing campaign your merriest one yet


Fall is finally here. People are starting to sip on pumpkin spice lattes, watch football, and pull out their sweaters and boots. But BFCM are literally just around the corner, and soon consumers will start their holiday shopping — if they haven’t already. But first…

What is BFCM?

BFCM means Black Friday and Cyber Monday, just in case you had to Google the acronym like I did. There’s no doubt that BFCM weekend is huge for shoppers, retailers, and brands alike. Shoppers can snag giant TVs, the hottest toys, and just about anything else on their holiday wish lists at reduced prices.

Last year, nearly 196.7 million consumers shopped in-store and online during the Thanksgiving holiday weekend, and Winter holiday retail sales grew 5.3% over 2021, reaching $936.6 billion.

No doubt, consumers have started making their holiday shopping lists and planning to buy gifts, holiday decor, and the trimmings for big feasts. But, many may tighten their belts a bit this year. According to Numerator, more than half of consumers expect inflation and a possible economic slowdown to affect their holiday shopping. Two-thirds of shoppers say they plan to buy items on sale, and about half will buy fewer things or use coupons. 

Now’s the time to get your Black Friday marketing strategies in motion — it gives shoppers plenty of time to plan and purchase. 

Black Friday marketing statistics

To help you get your Black Friday marketing campaigns right, we surveyed over 1,000 U.S. consumers to learn more about their plans and expectations for this holiday season.

For example, did you know holiday shopping starts as early as July? 11% of shoppers are already starting their holiday shopping in July, and by October that’s up to 35% so you need to make sure your Black Friday campaigns start in Summer to meet this demand.

Knowing when shoppers shop is important, but so is the where. In terms of product discovery, our research revealed the preferred channels shoppers want to hear from brands to discover Black Friday deals are ads (64%) and email (46%). But social media is increasingly becoming a place of product discovery with 46% of shoppers using it — rising to 59% for millennials!

On BFCM weekend specifically, social media has even more impact. 45% of shoppers are more likely to discover a product via social media than any other channel over Black Friday and 49% of shoppers follow favorite brands on social media to discover Black Friday offers.

But social media isn’t just for discovery. A quarter of shoppers (25%) prefer to shop via social media over BFCM. The reason social media is becoming a top shopping channel, aside from convenience, is because it’s where shoppers find user-generated content (UGC), aka photos and reviews from real people.

UGC is the content that impacts sales most and it’s not just limited to social media:

  • 73% of shoppers agree that reviews impact their purchasing decisions in-store over BFCM
  • 74% of shoppers agree that reviews impact their purchasing decisions online over BFCM
  • 59% of shoppers agree that reviews impact their purchasing decisions on social media over BFCM

Now let’s take a detailed look at what the rest of our research revealed and the strategies you can use to guide your Black Friday marketing campaign(s). 

Black Friday marketing strategies

Using our research and other industry insights, these are the top 15 strategies to follow to prepare for a successful BFCM weekend.

1. Start your Black Friday marketing early 

Consumers are already making their holiday shopping lists — and checking them twice. Many have actually started checking items off that list. 

Our research found that 11% of consumers start holiday shopping in July. By August, 13% have started and 19% are already shopping in September. 

black friday marketing

But October is when things really get going, with over a third of shoppers already hitting the shops (or e-commerce stores). So, that’s the time to optimize your product pages for your top-selling products, but you need to keep the momentum going right up until Christmas Day.

Early shopping helps shoppers spread out their budgets (more on that later), avoid last-minute shopping stress and crowds, compare prices, look for deals, and not miss out on the most-coveted items. 

Holiday shopping peaks in November, especially between Black Friday and Cyber Monday, which is when 59% of consumers start their shopping. Millennials are more likely than other generations to start holiday shopping in November. 

You should follow suit. The earlier you tease sales, the more likely you can get consumers to sign up for your newsletter, text alerts, or loyalty programs. This will help expand your base of loyal followers, who are eagerly awaiting the sale to kick off. 

Creating countdowns, hosting flash sales, and offering time-sensitive discounts and perks will inspire a sense of urgency and encourage quick purchases. For example, offer an extra 20% off during certain hours on Black Friday, early morning specials, or a one-time discount code sent by text as a Cyber Monday marketing event. 

Create a sense of FOMO (fear of missing out) by including a note on product pages showing how many shoppers just purchased the item or are looking at it. Also, tap into visual UGC to show products in use and share consumers’ social media posts about their Black Friday and Cyber Monday shopping experiences, including what they bought. 

2. Consumers look to social media to discover deals 

We all know social media influences shopping habits all year, but that’s especially true for the holidays. It’s where consumers discover new brands and products and find inspiration for gifts — for themselves and others. Our survey found that social media is one of consumers’ favorite channels for discovering Bfcm deals. 

We found that social media is becoming just as important as paid channels and owned channels, like email. It’s a good time to get shared media working for you leading up to the holidays. 

Nearly 70% of consumers have been inspired to make a purchase thanks to the rise of social commerce. Shoppers enjoy buying on social media because they like how products look in a brand’s posts and brands tagging products makes it easy to click and buy.

Shoppers want the ability to buy on social platforms. Consumers, especially younger demographics, are drawn to visual user-generated content on social media. Our research shows that 53% of consumers say visual UGC on social media makes them feel more confident making a purchase. 40% say UGC makes them more likely to buy a product from an ad. 

Shoppers also want fresh, new UGC posted all the time. That’s one of the many reasons you should be constantly collecting it. 

3. Increase review volume ahead of the holidays with sampling

When shoppers are looking for the perfect holiday gift, they have so many options. 

If you want to stand out, you’ll need to pack your product pages with authentic UGC, like reviews and shopper photos. It’ll inspire consumers and help them make quicker, more informed decisions. 

For Black Friday and Cyber Monday shopping, 86% of millennials feel more confident buying things when they use UGC, such as reviews, photos, and social posts, our new survey found. 71% of millennials trust shopper content more on product pages, than brand-provided content, like product descriptions and professional photos. 

Creating a review-collection strategy will help you lure these shoppers. Reviews are viewed as the most trustworthy content for helping people decide what to buy. Even just a handful of reviews can drive up conversion rates and build trust.

Increasing review volume for new products, or existing ones with few reviews, and popular holiday products—like toys, electronics, and clothing—will boost sales of these items. 

Product sampling is one of the best ways to drum up consumer reviews to use in your Black Friday marketing campaign. A sampling campaign — where product samples are provided in exchange for a review — is an effective way to increase reviews for new and well-loved products. Who doesn’t love getting freebies? And, customers will be thrilled to tell you what they think. 

When Petco rolled out a sampling program with the help of Bazaarvoice, the retailer saw a 48% increase in revenue per visit for the sampled products and a 28% conversion rate increase. They also increased review volume by a whopping 405% — and, organic search rankings and traffic surged dramatically. 

4. Display visual UGC to drive holiday purchases

Photos and videos from real consumers showing off or trying out your products resonate most with consumers. It helps them quickly decide whether an item will meet their needs — or be the perfect gift. How cozy is that sweater for your sister who’s always cold? Or, is that toy that your kid asked for so noisy that you need to buy earplugs, too? 

Almost 75% of shoppers would rather see visual UGC from real customers than professional images, according to Bazaarvoice research. More than 60% of consumers are more likely to purchase something if they can see photos and videos from others who’ve bought the same thing. 

Shoppers view visual UGC as evidence of a product’s quality and that the product description is accurate. It’s especially influential for consumers shopping for higher-value products and top holiday gifts, like jewelry and electronics, as well as beauty and apparel.

Visual UGC helps prevent shopping cart abandonment. It keeps shoppers on your website longer and makes them feel confident shopping. Our research shows that when shoppers interact with visual UGC, conversation rates grow by up to 150%. 

So, as you’re collecting reviews, encourage consumers to submit photos and videos of how they’re using your products. Another option: cull visual content that customers post on social media. 

Travel brand Samsonite wanted to showcase its suitcases and other travel merchandise in an authentic way and heighten product discovery, so it leveraged Bazaarvoice Galleries. The tool helped the brand tap into the busy summer travel season to grow its trove of visual UGC from influencers and real customers on social media, ahead of the holidays. 

Using Bazaarvoice Galleries to showcase these visuals, Samsonite discovered that customers spent 5x more time on product pages and experienced a 245% jump in conversion rates

5. Respond to customer questions and feedback 

Holiday shopping usually happens under a time crunch. Consumers need quick answers to their questions so they make purchases and have their gifts ready to give on the big holiday. 

A key part of your Black Friday marketing strategy should be responding to any customer questions or feedback (positive and negative) if you aren’t already. Your responsiveness will keep your relationship with existing consumers going strong and convert new shoppers into loyal customers. 

Consumers appreciate authentic interactions with brands. They feel most connected to you when they believe you understand their needs and are striving to meet them — 57% are willing to spend more with a brand when they feel such a connection.

For example, clothing brand MeUndies responds to customer questions on their product pages as well as reviews.

This helped consumers easily learn about MeUndies products and get in touch with customer service, which increased conversions and reduced customer service calls

6. Feature UGC across all channels 

UGC, including ratings and reviews, shouldn’t just be featured on product pages. It should be incorporated throughout your Black Friday marketing mix — display it across ad campaigns, social media, online search platforms, and in-store marketing, and basically everywhere your shoppers are. 

Instead of relying on professional photos, lifestyle brand Oliver Bonas empowers shoppers with shoppable visual and social UGC — which they feature on their homepage, product pages, social media, and in their marketing. This strategy has resulted in a 176% increase in time on site, a 188% jump in conversions, and a 26% boost in average order value.

Distributing and displaying UGC on each and every channel will help you stand out with holiday shoppers. Your shoppers are seeking it out! 

Most shoppers view UGC as more authentic and influential than traditional advertising, and UGC offers a higher conversion rate than other marketing content, as Oliver Bonas demonstrated. One reason is that it’s closely linked to social proof, the concept of making decisions based on the decisions of others. UGC is also more likely to turn one-time purchasers into loyal shoppers.

7. Use paid search and display ads for more exposure 

Brands typically invest more in marketing for Black Friday and Cyber Monday than other times of the year, and for good reason. But, shoppers can get overwhelmed with constant messages from retailers and brands.

That’s why fresh reviews and visual UGC are so important. It’ll boost your search ranking and guide customers to your products.  

To amplify your products and brand, invest in paid search and display advertising (that features UGC) ahead of the big shopping days. This tactic lets you market directly to consumers who have been searching for your products and deals, making it more likely that they’ll actually purchase. 

With customers typically spending more on Black Friday and Cyber Monday, the increased advertising spend will likely pay off.  

To get ideas for your Black Friday marketing campaigns, examine shopping data from past holiday seasons and the current year so far for intel on how consumers are discovering products and what they’re buying. This will guide where and when to run ads to boost traffic. 

Launch your holiday shopping campaigns early. Remember, that consumers are already browsing for holiday merchandise in July, and by October, they’re already buying. 

8. Personalize experiences with email marketing

Directly messaging consumers with holiday-themed sales and promotions lets you connect with them one-on-one, which is a big deal. This tactic can bring an ROI of over 100%. Personalized messaging aids both customer retention and acquisition because you can reach shoppers at different points in their shopping journey. 

To make your Black Friday marketing campaigns successful, use email marketing to tease holiday sales and encourage consumers to sign up for your newsletter to get a sneak peek or special pre-sale deals, like free shipping, 20% off, or a free gift. Then, send them relevant content based on their shopping preferences, purchase history, and other factors. 

Send follow-up emails counting down to BFCM weekend and a message on the day of. Featuring UGC in your email campaigns to heighten authenticity and build a connection with shoppers. 

Once someone purchases something, send a  review request email asking them to leave a review for what they bought. These emails can increase review content by up to 9x and increase review volume by 50%, according to our research. 

9. Have an omnichannel Black Friday strategy

On BFCM, some shoppers line up outside their favorite stores before dawn. Others wake up in the wee hours to log onto their favorite e-commerce sites. This hybrid approach to holiday shopping is still a go-to for many. 

Increasingly, though, social media shopping is becoming the preferred mode for shopping and discovering products and deals. Our survey found that 25% prefer to shop on social media on Black Friday and Cyber Monday. 

black friday marketing

We also found that 45% are more likely to discover products through social media. Almost half (49%) follow their favorite brands on social media to discover Black Friday deals. Still, 81% plan to shop in stores on Black Friday and Cyber Monday this year, and 72% will shop online, our survey showed.

These data show just how much shoppers want an omnichannel experience. So, look for ways to blend innovative in-store offerings with online and social shopping. 

To lure people into your brick-and-mortar store, offer exceptional customer experiences to keep them there longer, possibly buying more. Think about ways to engage consumers with holiday-themed pop-ups or limited-edition activities or merchandise.  

In-store shoppers may enjoy touching and feeling products before they buy. But, UGC is just as important for enticing them to head to the checkout line. We’ve found that 85% of consumers look at product reviews on their phones while shopping in stores. 

Of course, we’ve already discussed the valuable role that UGC plays in encouraging online shoppers to complete their purchases. 

Be sure to make your social media content shoppable. 70% of shoppers discover products on Facebook and Instagram, and 54% are more likely to buy something from a social platform if they can click the post and get product info there and then according to separate Bazaarvoice research

10. E-commerce sites have to keep up with shopper demand

Holiday shopping can be hectic. Online shoppers flocking to brand and retailer websites expect to find what they’re looking for and check out with ease. With the massive increase in traffic on BFCM weekend, you must keep up with the demand and provide top-notch experiences.

Slow websites and complicated checkout processes turn off shoppers, and they may not return. 

Over 50% of shoppers say slow retail sites frustrate them, and 90% have left a slow-loading website, according to Retail Systems Research. When a website is too sluggish, 57% of consumers start shopping with another similar retailer, and 41% turn to Amazon. Another 21% never return to the retailer with a slow site. 

Your website should also be optimized so shoppers can find it via search engines, too. Most shoppers begin their shopping journey on Google and other search engines. At that point, consumers haven’t yet settled on a brand or retailer website to shop from, so it’s an opportunity to get in front of shoppers and encourage them to visit your e-commerce site. 

11. Optimize your site for mobile 

People spend nearly five hours a day on their phones. That’s 35 hours a week!  

A lot of that time includes browsing e-commerce sites and scrolling through social media. So, mobile shopping is a highly valuable opportunity for retailers and brands. 

During Cyber Week 2022, 51% of sales were on mobile, 5% more than the year before, according to Adobe. Christmas Day broke a mobile shopping record, making up 61% of online sales. 

Along with actually browsing and buying on their phones, shoppers check their phones while shopping in-store to compare prices and read reviews. With mobile being such an important shopping tool, it’s more important than ever to streamline your mobile shopping experiences. 

Slow-to-load mobile sites are frustrating for consumers and costly for brands. When page load times increase from one second to 10 seconds, bounce rates among mobile visitors increase by 123%.

Over a third of shoppers will purchase from a retailer’s mobile site once they start shopping on their phones because the process is easy.

12. Start a customer loyalty program

BFCM is a great time to invest in lead generation. Everyone’s in the holiday spirit, feeling generous, and excited about giving and getting gifts. Set up a pop-up on your website encouraging consumers to sign up for your emails in exchange for a special holiday discount. Maybe even free shipping or a gift. 

Growing your email list will enable you to segment customers based on shopping habits and favorite products so you can engage with them on a deeper level all year long.  

The holiday shopping season (or the lead-up to it) is a great time to increase loyalty program sign-ups, too. Incentivize signing up by offering early access to new products, free upgraded shipping, and special discounts. 

People love earning rewards — 80% of shoppers have spent more money with a brand to unlock a reward. Loyalty programs create lifelong customers and generate referrals, as shoppers will tell their friends and family to try out your products and join your loyalty program. 

black friday marketing
The customer loyalty program cycle. Image source

Retaining loyal shoppers costs much less than acquiring new ones, after all. Another plus: Loyalty programs give you access to a wealth of customer data, helping you get to know customers and offer experiences that are relevant and personalized. You can also use the programs to collect customer reviews and UGC and use the feedback to improve products and customer experiences. 

13. Stand up for your cause(s)

It’s the season of giving. While shoppers are engaging with you on BFCM weekend, let them know about your mission, the causes and charities that you support, and your plans for Giving Tuesday. Consumers are increasingly expecting brands to support causes they care about and express their same values so make sure to live your brand promise.

72% of consumers want brands to contribute to society in a positive way, and 64% want brands to use their power to help people, according to Sprout Social. Shoppers connect on a deeper level with the brands they trust. 

About half of Gen Z and millennial consumers are willing to spend more and support retailers and brands that give back to the community and donate to charity, according to an Edelman survey.

To show shoppers that causes are important to your mission, create campaigns to donate a certain percentage of sales to a charity, offer buy-one-give-one promotions, and provide discounts to essential workers. These mission-driven marketing tactics will help you stand out while building a loyal following. 

14. Leverage the busy shopping season to collect UGC

Shoppers may really ramp up their holiday shopping on BFCM weekend, but there’s plenty of procrastinators out there shopping right up until Christmas Day.

Take advantage of the increased sales during these few weeks to increase the number of reviews and UGC on your product pages. Reviews don’t just validate purchases, they drive product discovery, too. Shoppers want to see UGC. It provides them with relevant, authentic information from their peers, and it’s just fun content to engage with!

One tried-and-tested method is a customer satisfaction survey. Not only will it bring in reviews to showcase across your social channels and website, but it will also provide insights into how you can improve for next year’s Black Friday campaign. After all, leveraging customer feedback is the best way to improve products and customer experiences.

This will also ensure you have fresh review content coming in, which is beneficial no matter the season. Nearly all shoppers look at how recently a review was written to inform their purchasing decisions, our research shows.

To keep reviews fresh and relevant, switch on Bazaarvoice ReviewSource and activate the Influenster community. Shoppers are already writing about your products — you just need to harness it. We see over a million new reviews each month, in fact. They’re just sitting there, waiting for you to utilize them. 

15. Get festive in your marketing! 

It’s the merriest season, after all! Show how you’re getting into the holiday spirit by getting festive in your Black Friday marketing campaigns. It’ll grab shoppers’ attention and entice them to shop with you during the entire holiday season.

Boost the festive mood that shoppers are already in — or help the grinches out there get in the holiday spirit. Many people shop over Thanksgiving weekend to get into the holiday spirit or because it’s a family tradition. Shoppers enjoy a festive ambiance and holiday-themed activities, like visiting Santa. 

Look for ways to tap into holiday nostalgia and shoppers’ festive feelings both online and in-store. Decorate with tinsel and twinkle lights in-store and offer holiday- and brand-themed Instagrammable backdrops. Curate gift guides, set up holiday-themed playlists, or create opportunities for shoppers to donate to charity when they check out.

Make this year’s Black Friday marketing campaign your merriest one yet

The holiday shopping season is the busiest time of the year. It can be daunting, we know. But, we can help you make it a success. 

Start your Black Friday marketing strategy early — product pages should be in tip-top shape by October. Embrace social media — collect and display UGC there to heighten product discovery and make posts shoppable for easy purchasing. Inspire confidence by incorporating UGC everywhere you can — on product pages, social media, ads, and in-store. 

Want to know more ways to have the happiest of holidays for your brand? Check out our dedicated holiday headquarters page on ways to supercharge your holiday campaigns.

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