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Online and in the Aisle: Word of Mouth Strategies for Retail Dalia Seidner, Director of APAC Marketing, Bazaarvoice

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dalia.seidner@bazaarvoice.com @daluch

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What exactly is word of mouth?

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Agenda

•  How the consumer has changed

•  Three word of mouth strategies for the constantly transformative retail environment:

1.  Attract the researching consumer

2.  Provide an engaging experience

3.  Build loyalty

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Consumers have changed

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Digital World Physical World

Today, we live in

simultaneous worlds…

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ROBO- The way they shop has changed Shopping can happen at any time, any place.

For every

$1 spent online,

$4.94 is influenced

offline³

³Forrester 2013 Cross-Industry Study

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The “Zero Moment of Truth”

Stimulus

First Moment of Truth (Shelf)

Second Moment of Truth

(Experience)

Source: https:/www.consumerbarometer.com/en/insights/?countryCode=AU

10.4 sources

of information before making a purchase

decision

Consumers look at an average of

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The new communication platform

Global connectivity has EXPLODED

20% of the world population

owns a smartphone2

30% of product pageviews in APAC market are

through mobile1 Sources: 1. Conversation Index 8 “based on statistical modeling of transactional data from numerous product categories” 2. https://www.consumerbarometer.com/en/insights/?countryCode=AU 3. https://www.consumerbarometer.com/en/insights/?countryCode=AU

23% of Australian smartphone

users used their smartphone during their last purchase3

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The messages they trust have changed “A brand is no longer what we tell consumers it is – it is what consumers tell each other it is.” - Scott D. Cook, Founder, Intuit; Board of Directors, eBay and P&G

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1 Nielsen, 2012.

What do consumers trust?

92%

76% 94%

Of consumers trust earned media above all other advertising¹

Asia-Pacific consumers trust consumer opinions posted online¹

Asia-Pacific consumers trust “recommendations from people I know”¹

Consumers have

more trust in

reviews than in traditional

brand advertising.2

³Forrester 2014 Consumer Study

3X

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Directing the path to purchase to lead to you

Experience #2: Deliver an engaging retail

Loyalty #3: Build

#1: Attract the researching consumer

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Use word of mouth content to help the researching consumer find you

Attract

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Product Page w/ Reviews

Product Details (~150 words)

Reviews (~800 words)

Header (~100 words)

Footer (~100 words)

Ads (nominal)

Reco

mm

enda

tions

(n

omin

al)

Product Details (~150 words)

Header (~100 words)

Footer (~100 words)

Reco

mm

enda

tions

(n

omin

al)

Ads (nominal)

Typical Product Page Attract

Source: BV Client Data

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Product Page w/ Reviews

Product Details (~150 words)

Reviews (~800 words)

Header (~100 words)

Footer (~100 words)

Ads (nominal)

Reco

mm

enda

tions

(n

omin

al)

Fresh content gets rewarded 

in search algorithms

Attract

Source: BV Client Data

Reviews impact search results in three ways:

Reviews give search engines more content

to crawl

Page becomes relevant for a

wider range of keyword search

terms

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Product Page w/ Reviews

Product Details (~150 words)

Reviews (~800 words)

Header (~100 words)

Footer (~100 words)

Ads (nominal)

Reco

mm

enda

tions

(n

omin

al)

Attract

Source: BV Client Data

15% lift to organic

search traffic to product pages

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Friskies increases organic search traffic

28% increase in traffic

to pages with reviews

147% increase in traffic

coming from phrases that contain the word “review”

Attract

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Deliver an engaging retail experience with word of mouth content

Experience

R: 0 G: 38 B: 47 R: 0 G: 171 B: 142 R: 246 G: 138 B: 51

R: 176 G: 188 B: 34

R: 95 G: 95 B: 95

R: 250 G: 191 B: 142

R: 226 G: 233 B: 135

R: 192 G: 192 B: 192 R: 150 G: 150 B: 150

•  Language •  Logic •  Critical thinking •  Numbers •  Reasoning

Validate •  Recognizing faces •  Expressing emotions •  Spontaneity •  Intuition •  Creativity

Inspire

Shoppers are both Rational and Emotional

Experience

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40-70% of online shoppers read reviews before buying

online

Convert 2x higher after reading

15-50% of shoppers who purchased in-store read reviews before buying

1 in 10 shoppers go elsewhere when they do not

find reviews

In the digital world, consumers research regardless of where they buy...

Experience

EXIT

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Differentiate your shopping experience •  Increase product awareness and perception •  Become a destination of information not just a transaction

Average Order Value – 4% Conversion – 15%

Revenue Per Visit – 19%

Experience

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Deliver word of mouth in-store •  Integrate word of mouth at the point of sale •  Display content that helps shoppers connect to products

Experience

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Build loyalty by listening and responding to what customers say

Loyalty

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John Lewis: Sentiment Analysis Turns Product Insight into Customer Advocacy

Loyalty

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Review insights improve product mix and merchandising

Adapt to consumer sentiment Loyalty

Discover customer

dissatisfaction through reviews

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Use sentiment analysis across your business

bring back

the pocket

Loyalty

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Dalia Seidner Director of APAC Marketing dalia.seidner@bazaarvoice.com @daluch

Experience #2: Deliver an engaging retail

Loyalty #3: Build #1: Attract

the researching consumer