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

Chapters:

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

What is video commerce?

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

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

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

The value of video commerce for brands and retailers

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

Enhanced customer engagement

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

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

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

Building trust with audiences

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

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

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

Improved product understanding and visualization

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

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

How to use video in e-commerce

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

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

Optimize your product pages with video content 

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

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

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

Address frequently asked questions with video responses 

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

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

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

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

Share shoppable video content on Instagram 

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

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

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

Share engaging short-form clips on TikTok 

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

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

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

Hop on the livestreaming trend 

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

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

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

Supercharge your product launches with video

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

@prettywell.co

New product launch

♬ original sound – bestspedup

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

Incorporate video in email marketing campaigns

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

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

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

Implement video into customer service and support

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

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

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

Video commerce: Best practices for brands

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

Focus on high-quality video production

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

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

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

Keep content authentic and relatable with UGC

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

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

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

Optimize videos for search engines

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

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

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

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

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

Ensure mobile-friendly video formats

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

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

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

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

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

Drive more sales with video commerce

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

FEATURED MASTERCLASS

How to boost conversion with visual and social content

Watch here

In such a competitive landscape, driving shoppers to your e-commerce site is no small feat. So retailers and brands need to step up their game if they want to improve their e-commerce conversion rates. 

The average conversion rate for e-commerce sites across all sectors ranges from about 2% to 4%, even though these websites usually get millions of visitors a day. Improving e-commerce conversion rates is crucial in terms of profitability, of course, but also for building a loyal shopper base. 

Here’s a closer look at what e-commerce conversion rates are, how to calculate your conversion rates, and 10 strategies for boosting them. 

Chapters:

1. What is e-commerce conversion rate?
2. How to calculate e-commerce conversion rate
3. How to increase your e-commerce conversion rates
4. Improve e-commerce conversion rates with Bazaarvoice

What is e-commerce conversion rate? 

E-commerce conversion rate refers to the percentage of users who take an action when visiting a website. In other words, it’s the ratio of transactions compared to website sessions. 

Making a purchase is one of the most desirable types of conversions for e-commerce sites. Conversion rates include other types of actions, too. 

Completing a lead-generation form, contacting customer service, subscribing to an email newsletter, downloading an asset, or engaging in another way are all types of conversion. Essentially, conversation rates tell you a lot about how shoppers behave once they visit your website. 

How to calculate e-commerce conversion rate

To calculate your e-commerce conversion rate, divide the number of visitors who make a purchase (or took another desired action) by the total number of visitors to the site. Then, multiply that number by 100. So the formula for calculating e-commerce conversion rates is as follows: 

(Total visitors who purchase / total website visitors) x 100 = e-commerce conversion rate 

For example, say a website has 500,000 unique visitors a month and 10,000 of those visitors make a purchase.

(10,000 / 500,000) x 100 = 2% conversion rate

E-commerce conversion rates vary by industry, and many brands keep this information top secret. According to an Unbounce report, e-commerce conversion rates averaged 5.2% in 2021, across all online shopping sectors.

Lower-cost items, like food and apparel, tend to have higher conversion rates, while more expensive products and services, such as travel, have lower rates. 

How to increase your e-commerce conversion rates 

Now to the good part. Now that you’ve calculated your e-commerce rate, you may realize it needs a little boost. Improving e-commerce conversion rates relies on creating high-quality shopping experiences that provide consumers with all the information they need to make an informed decision and easily complete a purchase. 

Here’s 10 strategies proven to improve your e-commerce conversion rates.  

1. Make your e-commerce site easy to navigate

A poor shopping experience, with a slow-loading product page or overly complicated checkout process, turns shoppers off. 52% of consumers admit to getting frustrated when e-commerce sites are too slow, according to a Retail Systems Research survey. More than 90% of these shoppers leave the website altogether and start shopping at a competitor’s website or Amazon. And, many never return. 

If your e-commerce site isn’t loading within about 3 seconds, work on speeding things up. A one-second delay in a website’s response can cause conversion rates to drop by 7%. Also, make web pages easy to navigate so consumers can find what they’re looking for quickly and with ease.  

Then, make it simple for a shopper to actually buy what they want. Reduce the number of fields a consumer needs to complete to check out and accept a variety of payment types. 87% of shoppers say they’ll abandon a shopping cart if a checkout process is too complicated, according to Meta for Business. 

2. Remove anything that could distract online shoppers

Making it easy to purchase from your e-commerce site also involves removing any distracting information, like extra links, pop-up boxes, or confusing navigation features. You only have a few seconds to grab consumers’ attention, so cluttered pages drive down conversion rates. 

Websites should be designed to guide consumers by including calls-to-action, such as “add to cart” or “checkout now.” Include lots of filters to help shoppers find exactly what they’re looking for. Too many options can be overwhelming. 

3. Conduct A/B testing to uncover weak spots

The only way to truly know how a consumer perceives your e-commerce site and what it’s like to use it is to test it out. Conducting an A/B test lets you compare different versions or elements of your website to see which performs best. 

Test out product headlines, colors, descriptions, page layouts, navigation, and calls-to-action to see what resonates most with your audience. A/B testing will identify what visitors are most likely to click on and which products they’re most likely to buy.

This process will help you uncover strong points and weak spots that are affecting your conversion rates. So, you’ll know what changes to make to your website to improve conversions. 

4. Optimize your site for mobile

People spend several hours a day on their smartphones, browsing their social media feeds and shopping online. About 80% of smartphone users say they’ve purchased something on their devices in the past six months. That number is only going to rise with the rapid rise of social commerce. Mobile commerce continues to rise and is expected to account for about 40% of all e-commerce sales, according to eMarketer. 

Optimizing your e-commerce site for mobile is more crucial than ever to reach these shoppers and make it easy for them to browse, add items to their carts, and complete the checkout. Not having a mobile-friendly website could also affect your search engine rankings, making it tough for consumers to find you in the first place. 

To increase mobile conversions, you should try to increase the page’s font size, compress images, and improve page speed. Failing to provide a top-notch shopping experience will not only decrease conversions but also drive consumers over to your competitors.

5. Increase user-generated content to help consumers purchase with confidence  

User-generated content (UGC) builds trust with consumers and inspires them to shop with confidence. Most shoppers consult with reviews before making a purchase, and 40% say they won’t buy something if the product page doesn’t feature UGC. That’s because shoppers want to hear about your products from their fellow shoppers, not from you. Winning over today’s shoppers means tapping into the voice of the customer through UGC.

UGC offers authenticity that shoppers appreciate. They can learn from real consumers about how a product performs in real-world situations, good and bad. Featuring this content on product pages drives sales. Shoppers that engage with UGC are more likely to convert. 

We’ve seen that the retailers and brands that use Ratings & Reviews tools can increase conversion rates by 3.6% and boost engagement by nearly 12%. The more reviews the better, too — for every 10 new reviews, sales increase by up to 5%. 

For example, Appliances Online, Australia’s largest online appliance retailer, has increased its review volume, gathering over 300,000 reviews. This has helped the brand improve e-commerce conversion rates 3x when shoppers engage with UGC. As Sven Lindell, CMO at Appliances Online, puts it, “Without a doubt, there’s a strong correlation between customers interacting with reviews and conversion rate.”

6. Feature visual UGC to boost authenticity 

Along their product discovery journey, shoppers seek out photos and videos from other consumers. Many view these images as more authentic and trustworthy since they show products in use by real people versus professionally shot photos. 

47% of shoppers look for visual UGC on product pages, and more than 30% check search engines and other websites that sell your products for the UGC, according to Bazaarvoice research. Asking shoppers to include photos and videos with their reviews or to tag your brand on social media are some ways to collect visual UGC. Displaying this content on your e-commerce site and your social media accounts not only creates an emotional connection but also drives sales. 

For example, premium cycling products brand Le Col experienced a 5x jump in conversions and a 12% average order value increase when shoppers engaged with its shoppable galleries.

7. Respond to consumer feedback 

Shoppers feel valued when they see you listening and responding to their needs. Answering their questions and responding to their reviews, both negative and positive, builds confidence and loyalty. Brands and retailers that respond to feedback can see improve e-commerce conversion rates by 98%. 

When consumers see a brand’s response to reviews, 47% say it increases the chances that they’ll purchase. Even negative reviews don’t deter shoppers from coming back, as long as a brand has responded. Many shoppers actually find negative reviews to be more informative, and reading them lends an air of authenticity to the shopping experience. Negative reviews help drive conversion rates more so than having no reviews at all. 

Bazaarvoice customer Webroot, an internet security software, has responded to 70% of its low-rated reviews. This has improved the shopping experiences for its customers but also humanized the brand for future customers. It has also helped the brand position itself as consumer-centric. 

8. Provide discounts and offers 

Who doesn’t love free shipping or 10% off a purchase? Offering these types of promotions attracts shoppers to your brand and entices them to purchase. Nearly 75% of consumers rank offers as a top factor in deciding where to shop and what to buy, according to RetailMeNot. 

Discounts and offers also improve the shopping experience. High shipping costs are one of the top reasons consumers abandon their online shopping carts. Shoppers also tend to spend more when they receive free shipping or a coupon. 

Creating personalized offers that make sense for your brand can drive up conversion rates and turn new shoppers into loyalists. To encourage purchases, send an offer when someone joins your email list or create tailored messages for your regular shoppers. 

9. Send follow-up emails 

Whether it’s connecting with a shopper after they’ve made a purchase, just saying hello, or reminding them that they have a cart full of goodies, sending follow-up emails creates connections and can ultimately boost e-commerce conversion rates. 

Many shoppers load up their carts and then decide not to follow through with the purchase for whatever reason. Ignoring this means you’re missing out on these sales. Send an abandoned cart email to these consumers reminding them to complete their purchase and even offering a discount if they do so. 

Personalized email messages can drive conversions even higher. Do this by grouping customer segments based on different criteria, such as past purchases, location, or products that they’ve clicked on but not purchased. Shoppers will appreciate this high level of customer service and will be inspired to consider a purchase. 

Sending a review request email where you invite shoppers to review something they’ve recently purchased is a great way to encourage UGC, and can increase review volume by 8x. The more reviews you attract, the more confident consumers will feel shopping with you. A PIE also helps you solicit feedback about products or customer service so that you can deliver an even better experience next time. 

10. Focus on customer service 

Happy shoppers are more likely to buy things from their favorite brands, repeat those purchases, and recommend those retailers and brands to their friends and family. Focusing on offering top-quality customer service will boost e-commerce conversion rates. 

A poor customer service experience has led 52% of consumers to switch brands, according to Meta for Business. And, many shoppers would pay more to shop with brands that offer convenience and amazing customer experiences. 

Take time to ask for feedback via ratings and reviews and customer satisfaction surveys. Review the responses and look for patterns or ways that you can improve your offerings. Respond to customer needs, too, whether it’s a social media post, email, question, or review. This shows that you care what they have to say and that you value their business.

Improve e-commerce conversion rates with Bazaarvoice

As online shopping continues to be the go-to for most consumers, driving shoppers to your e-commerce sites and enticing them to purchase is crucial for retailers and brands. By encouraging feedback and ensuring quality customer service and a seamless shopping experience, you’ll build trust and stand out each time a shopper is looking to buy something new. 

If you want to learn more about boosting your e-commerce conversion rates, the Bazaarvoice platform is built specifically with increasing conversion rates in mind — everywhere your shoppers are. Learn more about it here.

LEARN MORE

The e-commerce manager’s guide to user-generated content

Read now

Over the past 60 years, we’ve seen advertising evolve to include new channels and capabilities ranging from direct mail to social media to hyper-targeted smart TV promotions. Today though, there’s a new way of connecting with your customers: conversational commerce.

Chapters:

1. What is conversational commerce?
2. Conversational commerce use cases
3. Conversational commerce examples
4. How to win at conversational commerce

What is conversational commerce?

Conversational commerce harnesses the power of messaging apps and voice-activated technology to sell products and services. While we may be used to interacting with chatbots for customer support, these new apps and services are using generative artificial intelligence to build trust throughout the buying cycle.

The phrase “conversational commerce” was popularized by Silicon Valley product designer Chris Messina in a 2015 Medium post. (Fun fact: Messina also invented the word “hashtag.”)

In his post, which came out a few months after the launch of the Amazon Echo smart speaker, Messina said the rise of voice assistants and messaging services would change the game for how brands interact with their customers. He predicted that more brands would use specialized apps to deliver, “convenience, personalization, and decision support while people are on the go.“

He was right. 

Today, e-commerce brands big and small are using interactive tools to help engage and influence customers. And customers are loving it.

In one Facebook survey, almost 70% of respondents said being able to message a brand makes them feel more confident about the company. In another survey, 75% say they’re likely to spend more with a brand if they can message rather than call them. 

The conversational commerce market was valued at almost $6 billion in 2019. By 2027, it’s predicted to grow to $30.45 billion.

Conversational commerce use cases

Part of the success of conversational commerce is its ability to meet customers where they are, rather than forcing them to visit a website or their inbox.

But it’s not just the convenience of conversational commerce that makes it such a successful strategy. Like the name implies, these tools turn the shopping and buying experience into a two-way conversation.

Instead of blasting your target market with ads, emails, and promotions, conversational commerce platforms encourage dialogue and interaction. Just like a helpful store assistant checking in on an in-store shopper, they allow brands to use technology to foster a friendlier experience, make online shopping more personal, and give shoppers the advice and insight they need to make the best purchase.

Here’s several examples of how your brand could use conversational commerce throughout the customer journey.

Awareness 

The average business person sends and receives a whopping 126 emails per day. When trying to drive more awareness about your campaigns and special promotions, conversational commerce tools can be an excellent alternative to email marketing. They allow for better engagement, as users can set the alerts to come in at a schedule that works for them.

Giving your customers more control can reap major benefits for your brand. In one study, the open rates for in-app messaging were close to 75% — that’s more than 45 times higher than the average email open rate. 

In addition to in-app messaging, you can also use chatbots and live chat to drive interaction on your site. For example, look at what we do at Bazaarvoice.com to increase awareness about the benefits of working with us. You may have seen it pop up in the bottom right of your screen.

If the user clicks “Sure!”, the bot asks a series of questions about their needs and then directs them to the appropriate landing page. This helps us better engage potential customers while increasing awareness about our programs and services. 

Research and consideration

When shopping online, it can be hard to sort through all of the options to find just the right product for your needs and preferences. And while advanced filtering tools can do a lot, conversational commerce platforms can make the research and consideration stage more interactive, fun, and human-like for shoppers.

For example, H&M positions its chatbot as a personal stylist. The bot uses a series of questions to get a sense of the shopper’s tastes and style. It then presents different options and lets the user pick the item they prefer. Based on the user’s feedback, the bot continues to help the shopper find what they need and then offers products for them to save, share, or buy. 

The tool also allows customers to preview the latest fashion trends, see outfits that have been created for other users, and browse items based on their tastes. 

Purchase

Dominoes was a conversational commerce early adopter, allowing customers to order a pizza simply by typing “” in a text. The dream.

Another is the coffee giant Starbucks, which uses conversational commerce to improve the purchasing experience. Customers can use the brand’s barista bot to order and pay for their tall caramel frappuccinos and grande vanilla lattes. Once their drink is ready, customers receive a notification and can skip the line to get their caffeine fix. 

The app is voice-activated, making it even easier for users to order their favorite coffees and snacks. The tool also allows customers to track their rewards points and redeem special offers.

If you don’t have time to build an app, consider adding a chatbot to your checkout page. In a recent HubSpot poll, 47% of respondents said they would consider buying products and services through a chatbot. The chatbot can also help consumers understand your shipping and returns policy. 

Post-purchase

In addition to answering questions during the sale, chatbots can also help automate your post-purchase customer engagement. 

The office supply store Staples is well known for its “easy button” promotions. In these ads, the store says finding and purchasing whatever you’re looking for is as easy as pushing a big red button.

Staples brought the easy button to life with its “Easy System” customer support messaging app. Built in partnership with IBM’s Watson, the bot can handle most customer support questions. It also makes repeat orders a breeze for procurement teams.

Conversational commerce tools can also help with your upselling and cross-selling strategies. Let a chatbot reach out to customers when the product they most recently purchased is likely running low and remind them to reorder.

In addition, you could use live chat to make recommendations based on past purchases or highlight complementary products.

Brand loyalty

We also love the idea of using conversational commerce tools to build brand loyalty.

For inspiration, check out Casper’s Insomnobot3000. The site uses a chatbot to “hang out” with customers who are having trouble falling or staying asleep. It loves talking about popular TV shows like Seinfeld and Stranger Things, as well as the merits of pizza and waffles.

Sure it might be a bit too Black Mirror. But Casper’s Insomnobot3000 is so engaging it was nominated for several awards and has been featured in multiple marketing publications. 

Conversational commerce examples

When it comes to engaging your customers, there’s multiple conversational commerce platforms and tools for you to choose from.

1. Chatbots

A chatbot uses software to mimic the natural cadence and context of a human conversation. These vary from tools that can answer common customer queries to advanced “digital assistants” that make the user feel like there’s a real-life agent on the other side of the screen.

They can be used on your website and in the messaging platforms your customers already use every day. Since they’re fairly quick and easy to implement, chatbots are a popular choice for brands just getting started with conversational commerce. 

2. Live chat

Many consumers are familiar with using live chat for their customer support inquiries. But these services can be valuable throughout the buying journey, allowing customers to quickly find the information they need to feel more confident about their purchases.

3. Messaging apps

Apps like Messenger and Telegram are becoming increasingly popular conversational commerce platforms. They allow consumers to engage with brands privately, at their convenience. Users also appreciate the ability to use common messaging icons like emojis, GIFs, and memes.

4. Voice assistants

Voice assistants like Siri and Alexa use artificial intelligence, machine learning, and natural language processing to allow users to run internet searches and conduct simple tasks with the sound of their voice.

The hands-free convenience empowers users to multitask. For example, when you’re baking you can ask Siri how many teaspoons are in a cup — without having to wash the flour off your hands.

Getting starting with conversational commerce

Like anything new, it can be difficult knowing where to begin. Here’s the best practices to follow for getting started with your conversational commerce strategy.

1. Identify your needs

Conversational commerce can do a lot, from helping you reduce shopping cart abandonment to improving the customer service experience. Before you start your journey, think about the goals you’d like to achieve and the areas of your business you want to support. 

After your brainstorming session, prioritize your goals and needs. Depending on your budget and bandwidth, you might have to start slowly. Knowing which priorities to focus on first can help ensure you move forward more confidently and strategically.

2. Do your research

The goal is to meet customers where they are. To achieve that, you need to do your research to find out which apps and services your customers are already using. 

According to Zendesk, which helped popularize customer support automation, 45% of consumers prefer to use embedded messaging to interact with brands. A little more than 30% said they prefer social media messaging apps like Facebook’s Messenger. 

3. Don’t focus just on selling

The most successful brands use conversational commerce tools to support their customers throughout the buying journey. You want a solution that can harness the power of data to continue the conversation on every touchpoint. If a customer reaches out on your website chatbot then tries to continue the conversation via Messenger, you don’t want them to have to repeat themselves or go through the frustration of listing all of the steps they’ve already taken to resolve the problem. 

4. Ask for demos

There’s so many conversational commerce platforms for you to choose from. To help you find the best solution for your needs and your customers’, sign up for demos, free trials, and webinars. You want to find a solution that will work with your current technology setup and capabilities. For example, if you’re short-staffed, 24/7 live chat may not be the best option. 

5. Decide what success looks like

The goals you set before starting your conversational commerce should shape the KPIs you use to measure its success. Look for a tool that offers real-time visibility into metrics like conversion rates and customer satisfaction scores. These can help you understand what’s working and what needs to be improved so you can pivot as necessary. 

6. Make sure your mobile experience is up to snuff

With many conversational commerce interactions taking place on smartphones, you want to make sure your mobile website is modern and adheres to best practices for user experience.

This is vital even if you’re not ready to dive into conversational commerce. Today, just shy of 73% of online sales take place on a mobile device.  

How to win at conversational commerce

The best way to get started with conversational commerce is to work with a platform who can do it for you. Our Questions & Answers portal allows you to quickly implement and manage a conversational commerce strategy that works for your brand, team, and customers.

With Questions & Answers, you can quickly and easily reply to customer questions on over 1,750 retail sites, increasing brand awareness and allowing you to respond to customers wherever they shop. Our clients have seen as much as a 98% increase in conversions thanks to Questions and Answers, as well as a 50% decrease in support center costs.

LEARN MORE

Masterclass: How to stand out and win customers at the digital shelf

Watch now

User-generated content marketing can have a significant impact on your ROI and overall bottom line, given that 79% of people say it highly impacts their purchasing decisions. But how do you measure it? After all, you often won’t know your ROI until long after you’ve spent your initial investment. 

How to measure your user-generated content marketing ROI

As the #1 in user-generated content, we’ve developed a new tool — a calculator that quickly shows you the impact UGC could have on your sales, both online and in-store.

We use 12 months of benchmarking data to show you your estimated increased revenue, conversion rate, SEO impact, and in-store sales you can expect.

Let’s look at how it works.

1. Select your type of business

Select whether you’re a retailer or a brand with/without an online store.

2. Enter your business metrics

Use the slide bars to add in your annual site visits, average order value, conversion rate, and your sales numbers. We’ll use this to workout your current on-site revenue.

3. Select the type of industry you’re in

Very straightforward. Simply select the sector you work in and hit “Calculate.”

4. Your user-generated content marketing ROI results

Here you’ll see the your full potential ROI of user-generated content marketing in full. We combine the SEO impact, sales increase, “research online buy offline” multiplier, and syndication to retail value to show you your total projected increase in annual revenue.

Knowing your possible ROI means knowing how and where to spend your dollars. And we know that now more than ever there’s less dollars for marketing teams to spend, and more scrutiny on where those marketing dollars are spend. Get it right with our calculator tool. Try it for yourself now.

FEATURED RESOURCE

Masterclass: Ad spend ROI is declining, here’s what to do instead

Watch here

Whether it’s due to poor user experience or a lack of trust in the product, shopping cart abandonment is an all-too-common complaint in the world of e-commerce.

The good news: Data on digital shopping cart abandonment is vast and can help you determine ways to reduce abandonment and increase your sales. Here’s how.

Chapters:

1. What is shopping cart abandonment and why is it a problem?
2. How to prevent shopping cart abandonment
3. Reduce shopping cart abandonment with social commerce

What is shopping cart abandonment and why is it a problem?

Shopping cart abandonment is when an online shopper adds one (or more) of your products to their online basket, but then quits the process before completing the purchase. The products that entered the basket but were never purchased are considered “abandoned” by the shopper.

If you were online shopping on Amazon and you click “add to basket” on a new blender you’ve been eyeing up, but then for whatever reason you close the window without buying it, that blender is abandoned. Obviously this is a problem for many reasons (more on this to come).

Biggest of all, that’s missed revenue. Losing out on the sale of one blender might not particularly worrisome, but that same scenario can happen hundreds of times a day. And that adds up — yearly losses from shopping cart abandonment are $4.6 trillion globally.

It’s estimated that of this, around $260 billion is recoverable. Even if you’re only able to recover a small percentage of this figure, that can still add significant sums to your total revenue. Here’s how to do it.

How to prevent shopping cart abandonment

Below you’ll find reasons why your customers may be abandoning ship on your shopping carts and what you should be doing to bring them back on board.

Problem: People don’t trust your product or brand

If you aren’t sharing information about your brand and your products transparently and authentically, you won’t be able to gain consumer trust. Accenture Strategy’s Global Consumer Pulse Research revealed that in the last few years, regardless of age, customers care a lot more about the ethics behind a company.

For example, they found that those aged 55-74 years old were attracted to companies that reduced the use of plastic. And Gen Z-ers especially care more about social mobility, immigration, and poverty. 

Use this consumer insight to find opportunities where your company values or your product offerings align with these beliefs.

Once you’ve figured out your message, focus on a target market so you can create a shopping experience that builds and increases trust in your customer/business relationship. Create brand messaging that resonates, product descriptions that address pain points, and a customer service team that is easily accessible.

Improve confidence in your brand by making information readily available

Before making an online purchase, 81% of customers conduct online research. If your customers are searching for product solutions, your online presence and the team behind it should be easy to find and understand.

This means your product pages should have ample convincing (and transparent) information. From the descriptions to the product images and specs, customers shouldn’t be left with any lingering questions. However, if they are, your customer service team should be ready to answer them.

One online retailer known for its excellent customer service and customer-centric attributes is Zappos. Zappos makes it very easy to find its contact information. Once you get in touch with someone, you speak with a real human who doesn’t follow a script. Zappos is also very active on social media, where it answers customer questions and engages with its audience in a conversational and relatable tone.

Lastly, Zappos displays product videos in which its products are reviewed and modeled by real people. Videos can dramatically help businesses increase their sales. Over 60% of consumers are more likely to purchase an item after having watched a video. Zappos’ videos give the customer a clearer idea of the product they’re considering purchasing, and clarity is key for conversions.

All these factors contribute to the higher levels of trust customers feel toward Zappos. Plus, the incredible net revenues of the company. In 2020 alone, Zappos global net sales reached $629 million. Woof. But that’s what you get with less shopping cart abandonment.

Embrace user-generated content to fuel faith in your brand

User-generated content (UGC) — customer reviews, images, questions, etc. — will help you harness the power of social proof, a key ingredient to increasing confidence in your brand. According to our research, 81% of shoppers say written reviews are an important part of the decision making process

Moreover, social media and influencer marketing also play a big role in consumer behavior. When it comes to getting advice, 81% of consumers trust their friends and family over businesses.

UGC should be incorporated into your marketing strategy in order to build trust with your customers. UGC can appear in the form of social media content, reviews, and testimonials.

For example, when the fashion brand GANT was experiencing a critical return rate, they turned to UGC. The brand worked to increase their product and customer reviews and allow future customers to ask questions. 

As a result, GANT’s return rate was reduced by 5%, which led to an increase in revenue. Customers trust the reviews and opinions of other customers, especially when they have the option to ask each other questions.

Test and analyze conversion stats to meet your customers’ needs

Your customer’s behavior gives you insight into where in the buying process your customer loses faith in your products or brand. By following and tracking customer data, you can spot patterns in what makes them convert and then implement a strategy to increase trust and maintain loyal customers.

A/B testing is a great way to determine what works best for your target consumer. According to Business Insider, 45% of U.S. e-commerce sales are done on mobile devices. If these mobile users have a negative experience, they’re 62% less likely to be a repeat customer. Other examples of A/B testing include multi-page testing, photo and text swapping, search bar size and location, and using a chatbot. 

you can also regularly run a customer sentiment analysis to learn your customers feelings towards your brand. By regularly testing and adjusting your store’s online presence and features, you ensure your customer will view you as a reliable place to purchase from.

Netflix and Amazon are excellent examples of companies that use A/B testing to ensure their audience never gets bored. Amazon uses creative and updated product descriptions to entice shoppers. They also include related items their customers may be interested in purchasing. And Netflix will frequently A/B test the images used for each title to determine which images generate more views.

Problem: Consumers’ online shopping experience is less convenient than in stores

People shop online for various reasons, the top one being convenience. If your customer’s online shopping experience is less convenient than shopping in a store, consider making changes to the user’s experience to ensure excellence.

Emphasize free, quick delivery and an easy return policy

If you’re an e-commerce store, free and quick delivery is key to reducing your shopping cart abandonment rate. According to research from Oberlo, the number one reason people choose to do their shopping online is free delivery. So unsurprisingly, the number one reason people choose to abandon their shopping carts is due to high extra fees.

Almost half of online shoppers abandon their carts due to high shipping rates, taxes, or other fees. Long delivery times and return policies can also affect customer decisions. And 33% of consumers turn to online shopping for a convenient return policy, according to the same research.

The right quick commerce strategy can ensure you meet these customer wants, improving the e-commerce experience along the way.

Promote online-only discount codes

The second most popular reason to shop online is the opportunity to use a coupon or discount code. 41% of online shoppers look for deals online. Incorporating special promotions into your marketing can capture the customers who are “just browsing.”

Ensure customers have a smooth checkout process

Nobody likes waiting in line for anything, let alone to check out. That’s why 30% of people who shop online do so because of the convenient checkout process. However, 18% of people abandon the checkout process when it’s too complicated.

To optimize your conversions, it’s important to offer common and popular payment methods and options. This includes the option to check out as a guest rather than being forced to create an account with your e-commerce store.

Problem: Customers aren’t being reminded of shopping cart abandonment

Treat shopping cart abandonment as you would a flaky friend. Everyone has that friend who needs consistent reminders (and sometimes incentives) to join the party. When it comes to shopping cart abandonment, customers are just like your flaky friend. Through frequent reminders and an automated omnichannel sequence, you’ll be able to reel your customers back in.

Send automated emails and push notifications

It may seem like you’re a nuisance to your customers, but reminders about abandoned carts with creative calls to action actually work. The average open rate for abandoned shopping cart follow-up emails is at 42%. This is much higher than the average email open rate of standard marketing emails, which stands at just 18%.

It’s pretty likely your customer is regularly inundated with marketing emails, so it’s important to get inventive with your abandoned cart emails. Whether you use humor, urgency, a discount incentive, or offer more information, try to pique your customer’s interest creatively.

Use text messaging

Another channel you can use to reel those customers back to their shopping carts is SMS marketing. This is another marketing tactic that may seem intrusive. However, according to Omnisend research, SMS campaigns are 48% more likely to result in conversions.

For example, the wig retailer Divatress decided to start using SMS in their marketing campaigns, which contributed to $123,000 in sales and a higher click-through rate (8%) to their website than email subscribers (3%).

Reduce shopping cart abandonment with social commerce

Can’t have shopping cart abandonment if there’s no shopping cart. Consumers are turning to social media more and more to do their shopping. According to Hootsuite, each month over 130 million Instagram users tap on a shopping post.

Instagram has made it incredibly easy to purchase a product straight from the accounts users trust the most. According to our research, 69% of consumers have been inspired by social media to make a purchase and 54% would be more likely to buy a product on social media if they could purchase directly.

To make social shopping even more convenient for your customers, your brand can set up your Instagram account so users can shop directly in-app. Shoppers want to find what they’re looking for in three clicks or less. Rather than using Instagram as a way to get leads to your site, why not reduce the number of clicks it takes for a purchase to occur?

That’s just one more opportunity to prevent another shopping cart from total abandonment. Read more about it here.

FEATURED RESOURCE

Where e-commerce is headed next

Learn more here

As economic times get increasingly tough, beef up your product detail page with user-generated content (UGC), like customer ratings and reviews and social imagery, and functionality that converts. Make it easy for shoppers to find the information they need to make an informed and confident purchase fast. Whether they discover your product through search or on Instagram, customers should have a wealth of written and visual content available to them. 

5 ways to boost product detail page conversion rate

From enabling review translation to turning your Instagram into a storefront, here’s five product page optimization tactics retailers can use to drive greater conversion on product detail pages. 

1. Display shoppable visual UGC on your site

What’s better than lots of visual content across your e-commerce site or your product detail pages? Lots of shoppable visual content. Placing galleries on your product detail pages can result in:

• 250% increase in time spent on site
• 150% increase in conversion rates
• 15% increase in average order value

So compile beautiful visual content on every inch of your website — homepage, product page, you name it. Build beautiful galleries chock-full of visual user-generated content that helps people discover new products. 

The best place to find impactful visual UGC is on social media. Shoppers will often tag your brand when they post one of your products. You can easily syndicate these powerful visuals (and other forms of UGC) from your brands to build gorgeous product detail pages. The visual content will help both you and your brands convert more sales. 

2. Turn Instagram into a storefront

According to the 2022 Shopper Experience index, 54% of shoppers would buy a product if they could click a post and get product info directly there. Win over these shoppers by shortening the path to your product detail page for consumers who discover your products on Instagram. For example, Like2Buy turns Instagram into a storefront, where shoppers can click the link in your bio and get redirected to a site where the content they just saw on your feed is highlighted and easy to buy. 

Like2Buy also extends beyond Instagram — you can make any visual content shoppable. For example, now when you post a photo on Facebook, you can easily include a Like2Buy link that directs consumers to buy the product. Product page optimization made simple.

3. Leverage customer sentiment

Leverage customer sentiment analysis with Review Highlights. Allow customers to easily filter through the most important sentiments in reviews and allow them to easily navigate reviews in a much quicker way by highlighting pros and cons of each product from the sources they trust most — other customers. 

Review Highlights uses sentiment analysis to show consumers specific pros and cons of a product based on reviews. It also highlights certain features of the product, based on what past shoppers have said they enjoy the most. It gives consumers a quick overview of the most important sentiments in a review, allowing them to navigate reviews quicker. 

Review Highlights works best with products that have a lot of UGC — at least 10 reviews or more. It’s a powerful tool to leverage, increasing conversion on product detail pages by 3.5%.

4. Enable review responses and Q&A

Don’t ghost potential customers. When they ask you a question, give them answers. Last year, over 4.4 million consumers submitted questions to brands. We know responding works — according to our research, there’s a 98% conversion lift and a 120% RPV lift when shoppers engage with Q&A. 

And responding to reviews — especially negative reviews — matters, too. A third of shoppers don’t just want to hear from brands, they expect it. In fact, 87% of shoppers agree that a brand has to do something in response to negative reviews, and 72% of shoppers say the same for positive reviews. Responding to all UGC builds brand trust and encourages shoppers to give your brand a chance, even after reading a negative review. 

5. Translate reviews

72% of shoppers are more likely to buy a product with information in their own language. Expand into new countries with confidence and without starting from scratch with UGC. The right translations provider enables you to translate reviews effortlessly to display UGC in multiple languages.

Review translations allows your consumers to easily translate reviews from one language to another on the fly, syndicating content across the globe. 

Optimize your product detail page

We’ve offered five best practices based on works best for our clients, but even implementing one of these will do wonders for your product detail page conversion rate. Once your shoppers have all the information they need about your products at their fingertips, buying your products will be a no brainer.

And by using all five of these product page optimization tips, you’ll see your conversions rate soar as you build trust with customers and make it easier than ever for them to feel confident in your products. Learn more about how to optimize your product pages. Or request a demo below to get started with Bazaarvoice.

FEATURED RESOURCE

Perfecting your product detail page: A 5-point audit

Watch here

Retail giants like Walmart, Amazon, and Kelloggs are already all-in on retail media networks. Here’s why you should be too.

Chapters:

1. What is a retail media network (RMN)?
2. The state of the retail media network industry
3. What are the benefits of retail media networks?
4. How to get the best retail media network ROI
5. Top retailer media network examples to consider
6. Stay nimble as the RMN market evolves

Advertising has always been something of a gamble. Before the internet, advertisers relied on television, physical signage, and print media ads for brand building and product selling. Then, ads on Google, Facebook, and others took the industry by storm. But even with all these channels, there was still a level of uncertainty that potential customers wouldn’t see the ads. Let alone buy what brands were selling. 

Then, data privacy regulations began to take effect and shook up the whole system. If digital ads seemed like a guessing game at all before, the end of third-party data tracking made reaching and converting prospects a total mystery. 

Enter: first-party data. First-party data is great, but it’s dependent on users opting in and actively contributing information in some cases. Then, you need a data management system, like a customer data platform, to store, segment, and analyze it all.

The reality is that brands need to collect and leverage first-party data to compete and succeed in the current online ecosystem. But there’s one way to ease and streamline the process while sending targeted ads at the same time: retail media networks (RMN).

With an RMN, brands can advertise on the platforms where their customers definitely are and access all the first-party data on those users. As a result, they can close the advertising and transaction loop.

Brands that partner with RMNs make confident advertising decisions, knowing that their ads will reach their intended audience, making it a much safer bet than ever before. And this is the time to do it because RMNs are having a major moment, and all signs point to continuous growth. Before you start advertising with an RMN, get familiar with how they work, how they can benefit your brand, and best practices for getting the most out of the partnership. 

What is a retail media network?

Retail media networks are any digital, customer-facing channels owned by retailers that their partner brands can advertise on. Essentially, brands can place ads on the digital shelves and aisles of the retailers that sell their products. Those ads can be on the retailer’s main e-commerce site, social media channels, apps, and any other online location where customer transactions take place. Basically everywhere the shopper is.

RMNs have proprietary data on their customers that advertisers can leverage to deliver personalized, targeted ads. This data also attributes consumer behavior to individual products, so brands can connect customer data with product impressions, engagement, and sales. 

Customers that browse and interact with retailer channels allow them to track their data in a way that is private and protected, which gives advertisers legitimate access to it. 

The following is a common example of an RMN ad in the form of a sponsored product recommendation featured on one of the leading RMNs, Walmart.

The state of the retail media network industry

Retail media is one of the rapidly growing areas of digital advertising. eMarketer predicts that RMN revenue in the U.S. will surpass $50 billion in 2023, accounting for 20% of total digital ad spend. That’s a 26% increase from the projected revenue in 2022. 

Walmart Connect advertising sales have increased nearly 240% on a two-year stack

The grocery delivery app Instacart is experiencing explosive retail media ad growth, expecting to reach close to $1 billion in 2022 revenue, compared to its $300 million in 2020.

Likewise Walmart Connect, Walmart’s retail media network, is connecting brands with customers. In a 2021 earnings review, Walmart reported that, “Walmart Connect advertising sales have increased nearly 240% on a two-year stack.”

Consumer packaged goods (CPG) brands are among one of the top industries that advertise with RMNs, with 85% planning to increase spending in the next year. Likewise, at least 85% of brands in the jewelry, luxury goods, consumer electronics, and beauty industries plan to increase spending in the next year. The top RMNs that CPG brands work with are:

1. Amazon
2. Walmart
3. eBay
4. Home Depot
5. Walgreens

Outside of the typical brand advertisers, non-endemic advertisers are a growing category. Non-endemic brands sell complementary products and services but not directly through the retailer. This partnership is very mutually beneficial because the non-endemic brands offer more value for the customer, and the retailer provides a bigger platform for them. As of 2021, 58% of non-endemic brands work with RMNs.

According to an Insider Intelligence survey, the top RMN ad formats purchased by U.S. consumer goods brands include:

1. Onsite search ads (67%)
2. Onsite display and banner ads (66%)
3. Connected TV video ads (65%)
4. Video ads (63%)

Brands use these various ad types primarily for promoting products, like with sponsored product ads. Or, they can be used for brand building, which video and off-platform ads on social media are particularly suited for.

While RMNs are a rapidly growing advertising niche, their future will be determined by the value they produce for brands and consumers. That will be measured in incremental growth opportunities for brands, shopper and user experience, and sustained data privacy.

What are the benefits of retail media networks for brands?

In the age of the “always-on” customer, the potential for increased revenue from retail media ads is huge. Customers come to online retailers for both discovery and purchasing, so brands can reach them wherever they’re at in the funnel.  

Access to the retailer’s first-party data is the top motivation for CPG brands in the U.S. to partner with RMNs. This data allows brands to target their ads to customers effectively and accurately track their performance. Personalization at scale is also a top benefit of data access — for example, serving ads promoting products based on product page visits and order history. 

Building stronger retail partnerships is another leading driver for CPG companies. For brands, the benefits of positive retail relationships include increased brand awareness and attracting new customers from a wider audience. These are two important functions of brand building, which is just as important as performance marketing for advertisers.

Closed-loop reporting provides sophisticated insights that link ad engagement with sales. With this capability, brands can accurately track all the actions taken within the RMN where they place ads, plus all the customer information behind those actions. This gives them a clear picture of exactly how well their ads are performing.

How brands can get the best ROI from retail media networks

Once you’ve made the decision to start advertising with one or multiple RMNs, develop a strategy to create, manage, and measure your campaigns for the best results. Consider these essential tactics for retail media advertising when making your plan of action.

Optimize your retail media ads with user-generated content 

Building out product listings and pages on your retail partner sites with user-generated content (UGC), like customer reviews and product photos, is critical for a successful retail partnership. The same is true for the ads placed with those retailers. 

UGC syndication is instrumental in extending the reviews from your native e-commerce site to your retail partners’ sites. Before you can syndicate reviews, photos, and videos of your products created by your customers, you first need to collect them. Among other tactics, you can request and encourage UGC with:

• Review request emails
• Customer satisfaction surveys
• A social media hashtag campaign
• Product sampling

After you’ve enhanced your retail product listings with UGC using syndication, you can incorporate the same content into your ads. Repurposing UGC in retail ads is extremely effective for demonstrating social proof and winning customers’ trust in your products. The latest Bazaarvoice Shopper Experience Index found that 40% of consumers would be most likely to purchase from an ad if it has UGC like shopper reviews and photos. 

Diversify ad formats to drive growth and innovation

Part of an effective strategy is to test different content types and approaches, then focus on what works best. That’s why utilizing the different ad formats available to you is important to discovering what drives results and resonates with consumers. Continuing this process over time is key because as retail media networks evolve, so will their advertising and consumer trends.

Forrester reports that onsite search is the most popular retail media ad type, exceeding onsite display ads, which were previously the most common. Forrester predicts that while offsite ads on other digital retail channels currently make up a small percentage of ad revenue, they’ll, “drive incremental growth going forward.” Those other channels include social media, mobile, and audio ads. The Walgreens Advertising Group (WAG) alone has 20 different digital platforms where brands can run ads.

Social commerce is a big category to pay attention to, since so much shopping takes place on social media. With social commerce ads, you can promote your products on the retailer’s various channels, like Instagram and TikTok, and tag the featured products so shoppers can purchase them directly from the content. In addition to image and video posts, live shopping is another opportunity to include your products in this interactive form of shoppable content.

Keep in mind that retail media ads aren’t exclusively for online. Brands can also leverage customer data to place in-store ads, including physical ads and in-store music ad spots. According to a McKinsey survey, brands dedicate 25% of their RMN ad budget to in-store marketing. 

Prioritize customer experience

The mark of a successful advertising strategy is striking a balance between getting the desired results and creating a positive effect on the customer. Your ads should be relevant, helpful, and inspire action. What you don’t want is to interrupt the shopping experience or deter customers with ads that seem pointless, excessive, or spammy. 

There are some essential best practices to follow when factoring in shopper and user experience. Personalization should be a top consideration. Fortunately, with the benefit of first-party data, there are plenty of ways you can customize your ads. For example, if a customer purchases a lot of baby products, a personalized ad could be for a discount on baby food, a similar product recommendation in search results, or an add-on product based on current shopping cart items. 

Data on customers and previous ad activity will also inform the frequency of your ad campaigns. With these insights, you can make sure you’re not overloading customers with too many or repeat ads.

Create a partnership that goes beyond the transaction

Since building strong retail partnerships is a top catalyst for brands becoming advertisers, they should focus on how to achieve that outcome. 

To start, brands should share their goals with their retail partners, whether that’s customer retention, reviving sales in a low-performing product category, or supporting successful new product launches. This transparency establishes trust and leads to ideas on how brands and retailers can find mutually beneficial opportunities.

Brands can strengthen their value for retailers by doing everything on their end to provide product quality and optimize their listing content. They can also make special arrangements with retailers, like offering particular products exclusively through that retailer. 

Analyze reporting to measure ad performance

Reporting is crucial for paid advertising campaigns, as they are for any marketing efforts. And with all the data that RMNs make available to advertisers, that reporting is both rich and granular. 

Track the metrics that are most important to your retail media advertising goals. Those may include:

• Impressions
• Engagement: clicks, add-to-cart items, saved products, product page views
• Revenue earned
• Best- and worst-selling products
• Popular ad formats
• Best performing channels: onsite or offsite 
• Number of new customers
• Demographics of most engaged customers
• Number of new product reviews
• Customer sentiment from product reviews

Reporting is pointless without putting the insights gained from it into action. Reporting helps you identify areas of improvement and success to either modify or double down on. For example, you can learn what ad types and channels to dedicate most of your budget to, new customer segments to create personalized campaigns for, what products drive sales, and what products need rejuvenation. 

Advertising is often a function of marketing departments, but the results have an impact on other teams as well, like product development and sales. It’s important to share the insights acquired from retail media reporting with other departments throughout your company that can lead to better overall performance.

Top retail media networks to consider

RMNs are booming, and new ones continue to emerge. The following are some major players to keep on your radar. Weigh your options based on what matters most for your brand, including cost, channel and format variety, customer service, and niche.  

Amazon Advertising

Amazon is the undisputed RMN leader, earning the most ad spend and driving the most ad revenue over any other. Key benefits of Amazon Advertising include the variety of products sold by the retailer spanning many different categories and the volume of monthly visitors clocking in at 2 billion. Amazon’s ad partners can leverage effective ad formats, including search results ads, home page brand sponsorship, and even brand microsites within the main platform. 

Walmart Connect

Walmart Connect follows Amazon as the second largest RMN based on ad revenue. The scale of its RMN is particularly attractive, which extends from its main onsite platform to major offsite channels like TikTok, Snap, and Roku. The options available to brand partners open up a huge and diverse audience to tap into. Walmart is going all-in with its RMN services, investing in technology and ways to connect its different channels, leaving a lot of room for brands to innovate. 

Leisurewear brand Harvic partnered with Walmart Connect with the goals of increasing sales and return on ad spend (ROAS). The significant results include increasing ROAS by 36%, a monthly conversion rate increase of 31%, 1,665% month-over-month total attributed revenue, and a 3,061% month-over-month increase in units sold. Walmart acted as a strategic partner, assessing Harvic’s current strategy and training the company on how to optimize it.

Home Depot’s Retail Media+  

RMNs like Amazon, Walmart, and Target are great for a variety of different products, but if you specialize in one specific industry, a niche RMN could be the best fit. One of the top niche RMNs for home improvement and decor brands is Home Depot’s Retail Media+. Home Depot’s unique RMN offerings encompass a variety of advertising channels, including its own mobile app and email marketing and proven results for its advertisers. 

Dollar General Media Network (DGMN)

Recently, the budget-friendly retailer introduced an upgraded RMN called DG Media Network. Dollar General promises detailed and comprehensive first-party data on its customers to make the best strategic ad decisions. The retailer also has a dedicated team to help advertisers develop their strategy to get the best results, with partners like Google, Quotient, and The Trade Desk. In addition to its digital channels, it offers in-store advertising at over 20,000 locations.

Ulta Beauty’s UB Media

Another new niche RMN to emerge within the last year is Ulta Beauty’s UB Media. Ulta Beauty is the largest beauty retailer in the U.S. and has the advantage of having over 37 million members. That’s a lot of customer data for its beauty brand advertisers to leverage. Their featured ad solutions include onsite sponsored products, social media ads, offsite video ads, and offsite display ads.

Albertson’s Media Collective (AMC)

The major grocery retailer recently announced the launch of its RMN, Albertson’s Media Collective. It has a huge client base, including over 30 million shoppers per week and over 27 million loyalty members. The retailer offers curated onsite and offsite ad opportunities for brands.

Stay nimble as the retail media network market evolves

The retail media network opportunities for brands are exciting, and they’re in a state of growth and evolution. So, your strategy will likely change as the industry does. Expect to try different RMNs and approaches until you find the right fit. 

To bolster your retail media ad endeavors, explore the Bazaarvoice solutions that can give you an advantage along the way, like retail syndication and review collection. Check out the tested and proven benefits of these tools, like how the furniture brand Nourison strengthened its retail relationships, increased conversions by 4x, and boosted revenue by 3x with retail syndication.

LEARN MORE

Masterclass: Where retail media networks are headed next and how to get there

Watch now

How do we know? Because Bazaarvoice (that’s us) just surveyed 4,000 members of our Influenster community. Specifically with the aim of discovering what consumers actually want to see from brands during Pride Month. Spoiler alert: It’s a lot more than simply changing your brand’s logo to a rainbow logo.

These consumer sentiments likely stem from this year’s Pride Month following a trail of anti-LGBTQ+ legislation across the country, including Florida’s “don’t say gay” law and bills targeting the transgender community. So it’s more important than ever for Pride campaigns to be genuine and not come across as trying to profit off of the movement. 

Brands resonate most when they, “consistently feature LGBTQ+ people in advertising, hire them within their company, support them from within, donate to LGBTQ+ organizations, and publicly show their support,” according to one of the survey respondents.

With 77% of consumers planning to celebrate Pride Month, as our survey revealed, brands have an opportunity to connect with them in authentic ways. Especially as 91% of respondents said they’re more likely to choose or try a brand that supports the LGBTQ+ community over one that doesn’t.

Here’s a look at what our survey revealed about what consumers want to see from brands during Pride Month. 

Pride Month celebrations should go beyond merchandise

People plan to show their support for Pride Month in a variety of ways this year:

• 59% will create a social media post or change their profile photo to support Pride
• 57% will attend a local community Pride event.
• 59% planning to purchase or wear Pride merchandise. 

Pride merchandise and logos may be a key part of celebrations, but brands are expected to take it a step further. As one survey respondent noted, “I don’t look for brands that slap rainbows on products and call it ‘support.’” 

56% of consumers view Pride merchandise as “authentic only if they’re consistent with their support.” 19% consider it “supportive of the LGBTQ+ community,” but 10% still think it’s just a way to make money. 

Several brands, including Fenty and Skittles, are responding by donating to LGBTQ+ organizations and supporting creators. Skittles partnered with LGBTQ+ artists to design its “splash of color” Pride packages, which features QR codes for consumers to scan to learn more about the artists’ work. The candy brand is also donating proceeds from sales to GLAAD.

Savage x Fenty debuted a Pride lingerie collection and will also donate to GLAAD as well as For the Gwols, an organization supporting Black transgender people.  

Shoppers expect brands to be authentic LGBTQ+ allies 

At Bazaarvoice, our brand promise is to champion authentic voices of the marketplace. We know full well the importance of authenticity, because we increasingly see consumers demanding more authenticity from the brands they support. It’s no different when it comes to Pride Month.

Almost all respondents from our survey considered themselves to be an ally of the LGBTQ+ community:

• 55% said they have a family or friend who’s LGBTQ+
• 24% are a member of the community themselves
• 20% are supportive despite having no direct relationship to the community

These consumers expect brands to be an ally, too. 

Being an ally means brands do things, “without always announcing it for their own reward or payback, but speaking up in a meaningful way,” one survey respondent wrote. “It’s not only supporting the LGBTQ+ community with merchandise and advertising but talking about the struggles and triumphs the community has faced, honoring the rich history,” another said. 

Brands can follow consumers’ lead when it comes to supporting the LGBTQ+ community in an authentic way. 90% of consumers say they show support by “being a role model of kindness,” 66% by purchasing from LGBTQ+-owned brands, and 57% by sharing resources to create safe spaces for the community. Others attend LGBTQ+ events and donate to LGBTQ+ organizations and causes. 

Many consumers believe brands have the power to drive social and cultural change and that they have enough clout to raise awareness about important issues, especially when they speak out on social media. Apple, Disney, Fenty, MAC, Morphe, Target, TomboyX, and Wildfang are the brands our survey respondents considered most respected among the LGBTQ+ community. 

LGBTQ+ support should be year-round, not just during Pride Month 

This is important, and a belief that extends wider than our survey. It’s true that Pride merchandise, social media campaigns, and marketing strategies are crucial for winning over customers. But consumers think LGBTQ+ allyship should extend beyond the month of June every year. And there’s no reason why it can’t, or shouldn’t.

GLAAD chief communications officer Rich Ferraro told CNBC last year, “There’s power in brands participating in Pride Month, and it’s important for their employees and their consumers to see support for the community during Pride Month. But it can’t just be during Pride Month.” 

Instead, brands need a year-round LGBTQ+ inclusion strategy, which Ferraro said should take priority over a “one-off Pride campaign.” Brands must work on showing support for the LGBTQ+ community all the time. This is a crucial move for reaching Gen Z consumers, who seek more diversity and inclusion from brands. And one in six Gen Zers identify as LGBTQ+. 

Our survey included mostly Gen Z and millennials, and of those who said they were part of the LGBTQ+ community, most were fully comfortable being themselves around friends, family, and co-workers. 

Rainbow-washing: When a business shows support for the LGBTQ+ community publicly, but privately engages in practices that harm the community.

88% of consumers say the best way for brands to show support for the LGBTQ+ community is by supporting their LGBTQ+ employees. 77% believe it’s by partnering with community leaders to highlight LGBTQ+ voices, while 72% suggest donating to causes and organizations that support the cause. 74% suggest brands avoid “rainbow-washing.” 

Consumers want more LGBTQ+-inclusive advertising 

A key part of showing your LGBTQ+ support all year is by making your marketing more inclusive. 81% of consumers want year-round inclusivity in advertising, including featuring LGBTQ+ individuals and families. 

Again, authenticity matters here. Nearly 60% of consumers surveyed said most representation of gender fluidity in the beauty and apparel industries is inaccurate. 

Working with influencers and tapping into user-generated content (UGC) are methods for increasing authenticity and showcasing more LGBTQ+ voices. Consumers view content from real people, whether it’s an everyday social media user, social media star, celebrity, or subject matter expert, as more trustworthy and genuine than traditional advertising. 

Feature UGC from your LGBTQ+ shoppers to show that you value their support. Consumers appreciate seeing your products in real-life situations and modeled by real people. Our data shows that brands often see a 144% lift in conversions when brands engage with UGC, like written reviews and customer images. 

Paying attention to what shoppers expect when it comes to supporting the LGBTQ+ community and celebrating Pride is helpful in creating strategies that will resonate most. 

The key takeaway is that consumers still enjoy Pride merchandise and Pride Month campaigns, but they want brands to be more authentic and show their support year-round.   

Check out our Research page for more consumer data, industry trends, and insights.

Another year, another Bazaarvoice Summit, another resounding success (got to be your own cheering section!) This year’s event was arguably our best yet. In the words of Zarina Stanford, Chief Marketing Officer here at Bazaarvoice:

“In the making of Bazaarvoice Summit 2022, the power of imagination, teamwork, and partnership reigns loud and clear. My deepest gratitude to all the speakers and behind-the-scene heroes inside and outside of Bazaarvoice in elevating the authentic marketplace conversations, which continue beyond Summit.”

The Bazaarvoice Summit is an annual, two-day, virtual event for retailers and brands of all sizes to learn how to create the experiences customers crave, from some of the brightest minds in retail, this year including Johnson & Johnson and JP Morgan Chase. Not to mention thought leaders and industry experts from our very own Bazaarvoice.

“Damn” I hear you thinking, “I wish I hadn’t missed that event.” Well you’re in luck, this year for the first time we live-blogged every single one of our presentations for your on-demand reading pleasure. Not only that, but we’ve compiled them below for extra connivence.

That way, you can jump straight to subjects that catch your eye. Or you can do the whole “right click and open in new tab” tactic, plough through all of them in one go, and get a comprehensive education.

Bazaarvoice Summit articles

Below is the list of all the wonderful live-blogged articles from Summit. Remember, if reading blogs isn’t your cup of tea, you can always jump to our handy video playlist instead.

1) Keith Nealon: Why authenticity is sacrosanct

Bazaarvoice CEO Keith Nealon kicks-off the Bazaarvoice Summit 2022!

2) How and why to become a connected thinker

We’ve lived in times ruled by lawyers, doctors, and bankers. We’ve moved onto a time ruled by coders, engineers, analysts, and mathematicians. The challenge that faces individuals today is how to be a connected thinker. People who can bring together mindfulness, with modern psychology, and trending technology, and use it for social impact will see limitless possibility where others do not.

3) Exploring the Bazaarvoice Shopper Experience Index 2022

This year’s Shopper Experience Index helps us to hone in on what shoppers truly care about. Staying on top of rapidly changing consumer behavior is a full-time job in itself. The only thing that’s consistent about change is that it’s constant (which explains why we’re able to release this report every year!) Amidst all of the rapid changes, where are shoppers looking for us to evolve and innovate? Join Zarina to find out.

4) Why Gen Alpha are the most authentic generation

As millennials age, how should marketers be thinking about Gen Z? How does Gen Z behave? How different are they from millenials? And what about Gen Alpha? Where is the future of consumer interaction headed? And what does it all mean to us as marketers, as brands, as colleagues, and as employers? So many questions. Read on to find the answers.

5) Putting consumers first with Johnson & Johnson

In a digital-first world, it’s our duty to meet consumers where they are, and provide a relatable, authentic, and engaging journey on their path to purchase. Hear how Johnson & Johnson is leveraging user-generated content (UGC) across the consumer journey while always ensuring that we remember that we’re, in fact, consumers too.

6) The Bazaarvoice product innovation showcase

Through this customer-driven demonstration, Marissa Jones, Senior Vice President of Product, Bazaarvoice, highlights how Bazaarvoice products help you leverage consumer content to drive everything from awareness on social media to checkout on your site.

7) Building a holistic influencer strategy for Redken that works

As a leader in the industry, Redken believes in focusing its strategy through a consumer-first lens. See how the global brand prioritizes the top needs of shoppers and building modern strategies that move the needle forward.

8) Building communities that people love with JP Morgan Chase

What does it take to build (and sustain) communities that people love? Well, you’ll have to read to find out.

9) Daring to lead with brand authenticity

When we dare to lead with authenticity, the world follows. What customers truly want is for us to be as human as them. When we become a role model of authenticity with others, and most importantly ourselves, we begin transforming for good. Standing out in a crowded market can be as simple as letting your actions become your voice.

This piece dives into the art and science of humanising your brand, leading with trust and transforming with authenticity.

10) Fear less, do more — with Michelle Poler

One of the main attractions of Bazaarvoice Summit is the array of keynote speakers. This year, we were priveleged to have Michelle Poler:

“The enemy of success is not failure, it’s comfort. Michelle shares her 100 Days Without Fear experience, and will show you how to push outside your comfort zone. You’ll leave energized, empowered and ready to tap into your full potential.”

11) Social commerce: Sell on social, sell with social

A common misconception about social commerce is that it’s as simple as selling on social media. However, a successful social commerce program must create the best of both worlds on social and e-commerce channels. In this session, learn how to innovate your content and channel strategies in the world of social commerce.

12) How retailers can capitalize on the private label brands rush

With rising inflation and supply chain disruptions, brand loyalty is on the decline as consumers chase products that are more readily available and affordable. Enter: Private label. These store brand products are not only more desirable in today’s market, they offer higher margins and greater profitability for retailers—a gold rush opportunity.

13) Protecting your brand: Earning and maintaining trust

It’s always been illegal to be misleading and deceptive in advertising. How do we apply these old laws to meet changing consumer expectations, new technologies and channels? Find out for yourself.

14) Getting more out of your ratings and reviews program

Ratings and reviews drive smarter shopping experiences and increase your business’s bottom line. To what extent, depends on the strategies you’ve implemented for maximizing engagement with your consumers and informing your business decisions. In this session, learn how to build a solid collection process.

And there you have it. The entire collection of the Bazaarvoice Summit 2022. We hope you enjoy it as much as we did! If desired, you can find every on-demand webinar session right here. See you next year!