Study Shows Customer Reviews are Foundational Element of Social Commerce
Strategy; Points to Evolving Importance of Facebook in Online Shopping
CHICAGO & SAN FRANCISCO–(Business Wire)–
The e-tailing group and PowerReviews today release the 2010 Social Shopping
Study`s final wave of findings. The study asked more than 1,000 consumers who
shop at least four times per year and spend $250 or more annually online how
social media impacts their buying decisions. The data clearly points to three
key social shopping trends that will shape the future of Ecommerce.
Trend #1: Consumers trust the basic social media tools — When asked which
community and social media tools have the greatest impact on buying behavior, 71
percent of respondents rated user-generated customer reviews as having the
highest “good to significant impact” on buying behavior, followed closely by Q&A
(57 percent) and community forums (47 percent). In addition, compared to 2007,
shoppers are reading more customer reviews to be confident judging a product,
with consumers reading 8 or more up 77 percent over 2007 and 16 or more up 140
percent.
Trend #2: Consumers seek a variety of voices — Further authenticating the
growing importance of social media in the online shopping process, the study
reveals that “friends” and like-minded consumers are more influential than
experts. When asked which online voices have the greatest influence on purchase
decisions, 55 percent cited Facebook “friends,” while another 55 percent noted
“people like you” (55 percent) as having the greatest impact. Experts (51
percent); brands (38 percent), retailers (35 percent) and influential bloggers
(26 percent) followed.
Trend #3: Facebook is the social platform with the greatest potential — While
the role of social media sites in the online shopping decision-making process is
still in its infancy, the study points to the growing importance of Facebook.
After basic social shopping tools – including reviews, Q&A and forums – Facebook
features show the most potential to impact buying behavior. 31 percent cite the
Facebook wall (friends talking about products) as having significant influence
over buying decisions, while another 25 percent note Facebook fan pages as most
powerful. What`s more, the viral force of Facebook is considerable, as nearly
half of respondents reported having upwards of 100 “friends,” while 42 percent
of respondents frequently read and/or update their Facebook pages.
“Consumers are clearly in control of their shopping experiences and these
findings provide valuable and practical lessons for retailers and brands to
engage and benefit from the social conversation,” said Pehr Luedtke, CEO of
PowerReviews. “Retailers and brands need to build the foundation for trust
through the most important social tools: reviews, Q&A, and forums. They need to
provide a collective voice by integrating a variety of perspectives, including
Facebook friends and `people like you.` And, as consumers` expectations continue
to rise, retailers and brands need to present the content in an easy-to-find and
easy-to-consume way.”
Last month PowerReviews and the e-tailing group revealed research around how
consumers are using social media to shop and interact with brands and retailers
online. The study found that people strongly prefer to do their own research
online versus speaking to a knowledgeable sales associate in-store. According to
respondents, online research is preferred for three reasons: its ability to save
time (79 percent report saving somewhat to much more time doing their own online
research), increase confidence (83 percent are somewhat to much more confident
about making a purchase decision when doing their own research) and provide
credible information (82 percent are somewhat or very satisfied with product
information available online).
“The findings of our social shopping study not only prove that people prefer to
do their researching online vs. in-store. The supporting data also shows us that
the retail industry and consumer expectations are at a fundamental and exciting
crossroads,” said Lauren Freedman, president of the e-tailing group. “The
ever-evolving importance of social is certain to grow exponentially from a
shopping perspective given that it`s still so early in the game.”
About the e-tailing group
The e-tailing group, inc. serves as the multi-channel merchant`s eye, bringing a
merchant`s sensibility to evolving the multi-channel shopping experience. A
Chicago-based consultancy, they provide practical strategic perspectives and
actionable merchandising solutions to merchants selling online as well as to
enabling technology firms. For more background about this research study or
additional information on the e-tailing group, inc. please contact Lauren
Freedman at LF@e-tailing.com or visit the e-tailing group website
www.e-tailing.com.
About PowerReviews
PowerReviews is the leading provider of customer reviews and social commerce
solutions to retailers and brands. The company’s innovative tag-based approach
to collecting, organizing, structuring and analyzing user-generated content
significantly boosts product sales and customer engagement. Recognized as the
customer reviews Solution Leader in the Internet Retailer Top 500 survey,
PowerReviews works with over 1000 retailers and brands on over 3000 websites,
including Staples, Drugstore.com, Gardener`s Supply, Diapers.com, Callaway and
Jockey. In addition to its Enterprise solution, PowerReviews offers an on-demand
solution for small- and medium-sized businesses called PowerReviews Express
(www.powerreviewsexpress.com). PowerReviews also operates the leading reviews
and recommendation site for consumers, Buzzillions.com (www.buzzillions.com).
PowerReviews blog is at www.blogs.powerreviews.com.
the e-tailing group
Lauren Freedman, 773-975-7280
President
lf@e-tailing.com
or
TidalWave PR for PowerReviews
Lisa Tarter, 415-203-2462
lisa@tidalwavepr.com
Copyright Business Wire 2010
