Fresh Chat

If you were ever unsure of the power of word of mouth (WOM) consider these following facts:

• Recommendations from family and friends trump all other consumer touchpoints when it comes to influencing purchases, according to new data from Publicis media network ZenithOptimedia. (AdAge, April, 2008)
• According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer recommendations are the most credible form of advertising among 78% of the study’s respondents. (Nielsen, “Word-of-Mouth the Most Powerful Selling Tool”)
• Most word of mouth is positive. Across all of Bazaarvoice US clients, 80% of product ratings are 4 or 5 stars out of 5. Across all of Bazaarvoice UK clients, 88% of product ratings are 4 or 5 stars out of 5. (“J Curve,” Bazaarvoice and Keller Fay)
• Online social network users were three times more likely to trust their peers’ opinions over advertising when making purchase decisions. (“Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape,” JupiterResearch, March 2007)
• The two leading reasons people contribute content to social shopping sites are the need to feel part of a community (31%) and recognition from peers (28%). (IBM Institute for Business Value, August 2007)
• Consumers trust friends above experts when it comes to product recommendations (65% trust friends, 27% trust experts, 8% trust celebrities). (Yankelovich)
• 86.9% of respondents said they would trust a friend’s recommendation over a review by a critic, while 83.8% said they would trust user reviews over a critic. (Marketing Sherpa, July 2007)
• When asked what sources of information they are “very likely” to consult before making a decision about their entertainment options, 62% named Web sites with user reviews as their top choice, even beating out a knowledgeable friend (59%). (Marketing Sherpa, July 2007)
• 91% of US adults regularly or occasionally seek advice about products or services. (BIGresearch)
• Adult Internet users surveyed chose recommendations from friends as the one type of promotion they consider most worthwhile. (DoubleClick)
• Review users noted that reviews generated by fellow consumers had a greater influence than those generated by professionals. (comScore/The Kelsey Group, October 2007)
• 64% of consumers reported wanting to see user ratings and reviews, based on a study of 5,000 online shoppers. (Forrester, 2008)
• 94% of UK online researchers use online customer reviews. (JupiterResearch/Bazaarvoice, January 2008)
• 71% of online shoppers read reviews, making it the most widely read consumer-generated content. (Forrester)
• Compared to a base group that didn’t read or contribute product reviews at all, people who read a review were 30% more likely to purchase a product and visitors who wrote a review were 80% more likely to convert, based on analysis across several Coremetrics clients. (Coremetrics, reported in BtoB, March 2007)
• In an online survey of 4,000 consumers, 70% said they had done internet research on “everyday grocery products,” and 63% said they had done so for health and beauty products. (Prospectiv, 2007)
• Among the 46% of respondents who had posted or planned to post reviews about their online shopping experience, 88% said those reviews either were, or would be positive. (Nielson, 2007)
• Almost two-thirds (62%) of consumers read consumer-written product reviews on the Internet. (Deloitte & Touche)
•   70% of online consumers said they use the Internet to research everyday grocery products. (Prospectiv, 2008)
• Of merchants who adopt customer reviews, 58% said improving customer experience was the most important reason for adding reviews to their sites, followed by building customer loyalty (47%), driving sales (42%), and maintaining a competitive advantage (37%). (eTailing Group, 2008)
• By 2020, 84% of marketers agree that building customer trust will become marketing’s primary objective, and 82% agree that collaboration with customers will prevail over marketing. (1to1 Media survey of the 1to1 Xchange panel, April, 2008)
• 11% of retailers reported a 20% or more overall increase in conversions as a result of adding reviews to their sites, 21% reported an 11% to 20% increase and 5% reported a 1% to 10% increase. (eTailing Group, 2008)
• Ratings and reviews is the second most important site feature behind search and online buyers who cite ratings and reviews most useful site feature has more than doubled from ’05 to ’06. “Retail Marketing: Driving Sales Through Consumer-Created Content” says retailers who adopt ratings and reviews as a differentiator and retention strategy will gain market share. (Jupiter)

• 42% of consumers said they prefer being able to find the answers they need online on their own if they had a question or wanted help while shopping online. (Harris Interactive, May 2007)
• The share of traffic to question-and-answer Web sites has more than doubled from 2007 to 2008 (HitWise, 2008)
• Yahoo Answers had 25.3 million visits in February 2008 (comScore Media Metrix, March 2008)
• 42% of 1,179 online consumers surveyed have left a site without purchasing multiple products because they couldn’t get a question answered about one of the products in their shopping cart; 41% decided not to make a planned purchase because they couldn’t readily find a piece of information about the product or service. (JupiterResearch, September 2007)  
• Shoppers who browsed the site’s new “Top Rated Products” page, which features products rated most highly by customers, had a 59% higher conversion rate than the site average and spent 16% more per order than other browsers of products. (Bass Pro Shops)
• Shoppers who browsed the site’s “Top Rated Products” page, which features products rated most highly by customers, had a 49% higher conversion rate than the site average and 63% more per order than other site shoppers. (PETCO)
• Giving shoppers the ability to sort products within a category by customer rating led to a sales increase of 41% per unique visitor. (PETCO)
• A large apparel retailer saw site-wide conversion rates increase by 90% (Q1 07 vs. Q1 06) just months after launching Bazaarvoice Ratings & Reviews. (Bazaarvoice customer case study)
• MarketingExperiments tested product conversion with and without product ratings by customers. Conversion nearly doubled, going from .44% to 1.04% after the same product displayed its five-star rating. (MarketingExperiments Journal)
• Conversion rates are higher on products with less than perfect reviews (less than 5 stars) than those without reviews at all, indicating that the customer feels that the product has been properly reviewed by other customers. (Burpee)

Hattip to Augustine’s blog for putting together such a stellar list.