A colleague forwarded me this enjoyable little video from GOOD magazine the other day. In addition to some visually entertaining infographics, the video, titled “Transparency: Modern Retail,” is brimming with compelling stats on the ever-growing importance of UGC in online retail.
A few highlights:
- “Among people who planned to post reviews of their online shopping experience, 88% said the review would be positive.” At Bazaarvoice we call this the “J-curve.” Across all of our clients (even internationally) customer reviews are overwhelmingly positive.
- “Online social network users are three times more likely to trust their peers’ opinions over advertising.” Capitalizing on this trust is key. With features like Facebook Connect, it’s now possible for shoppers to find out what their friends are saying about products. TurboTax’s “Friends Like You” feature not only allows shoppers to filter reviews by personal aspects like “bought a home” or “had a baby,” but also allows them to find reviews submitted by their connections on social networks like Facebook and Twitter.
- “The highest performing businesses use customer insights in 80% of sales and merchandising.” We’ve seen clients infuse UGC into all of their multichannel marketing and advertising efforts with great success, from email to in-store, mobile and even paid search.
- “The 2009 holiday season set a new record: 79% of online shoppers were satisfied customers.” UGC not only helps customers find the right products for them, it also helps to set realistic expectations. Together, these two benefits lead to more satisfied customers, fewer customer support contacts, and decreased product returns.