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The Conversation Index
Q3 2011 Insights
The Conversation Index - Germany
The Conversation Index
Q3 2011 Insights




                   #Q3index   www.bazaarvoice.de/conversation-index
The Conversation Index - Germany
Social data: The new currency
Consumers have always had opinions, recommendations, and input.

Today, social gives consumers a direct link to brands. And brands recognize the huge responsibility that comes with this
always-on, first-person input. As consumers convey exactly what they need and want, brands that take action will catapult
beyond loyalty to real advocacy.

Social provides a window into your real-world customers. The data comes fast and furious, and capturing, analyzing – and,
most important, acting on – these insights drives true, customer-centric change across companies, and even entire industries.

The Conversation Index takes 5.8 million data points – real input from consumers directly to our clients – and uncovers trends that
help you get and stay ahead of what consumers really want.

We look beyond the data to the people behind it. We shine a light on what they’re telling one another. And how it matters to your brand.

Read on. And stay tuned. We update this Index every quarter with insights directly from consumers, turning their conversations
into business-building actions for you.

Best,




Erin Nelson (@erinclaire)
Chief Marketing Officer, Bazaarvoice
Get your digital copy
Visit www.bazaarvoice.de/conversation-index
Table of Contents
Consumer input: Table stakes ............................................................................................. 2
Fully mobile: Browsing’s just the beginning .......................................................................... 5
Long-term financial customers less satisfied, more vocal .......................................................... 8
Older consumers are not keeping quiet ................................................................................ 10
Newer customers want “easy” Long-time customers want “courteous” ..................................... 13
The net-net: Financial services customers want to help ........................................................... 15
Shipping problems sink product ratings ............................................................................... 17
Consumer feedback follows a predictable, informative lifecycle ............................................... 18
Social data: Window into real-world consumers ..................................................................... 20
The methodology behind The Conversation Index ................................................................. 21
Contact us........................................................................................................................ 23
About Bazaarvoice ........................................................................................................... 25
Consumer input: Table stakes
It’s no surprise that consumers demand user-generated                 Take charge: What’s your business’ equivalent to Black Friday?
content – first-person opinions and insights from other               Start now to garner consumer input to prepare for your big
consumers like them. And use of user-generated content for            selling season. Then use these trusted insights to fuel decisions
holiday shopping continues to gain momentum.                          everywhere your consumers buy: online, via social, on mobile
                                                                      devices, and in stores.
On Black Friday 2011, consumers were served nearly 730 million
impressions of user-generated content on Bazaarvoice client           And understand that consumer conversations about your brand
sites, a 39% increase over 2010 numbers. And Cyber Monday             and products are happening, with or without you. Put these
served up nearly 789 million impressions of user-generated            conversations to work for you, to build trust with consumers
content, a 42% jump from Cyber Monday 2010.                           and get first-person insights that can build brand advocacy.

But if you’re not in retail, do these trends mean anything to you?
Absolutely. Even when making business-related purchases or
service decisions, consumers turn to trusted input from others
like themselves.




2         Blog: Data: the humble hero of Black Friday and Cyber Monday - www.bv-url.com/7g9h
Year-over-year growth of user generated-content (UGC) served to holiday shoppers




          Black Friday                                    Cyber Monday
                            = 1,000,000 UGC impressions


                                                                                   3
User-generated content submission trends by device, 2011


                                                                                                       54%
                                                                                                                       Apple
                                                                                           50%                         iPad™

                                                              43%
                                                                            40%
                                    37%         37%
                                                              36%
                                               34%                          34%
    Percentage of usage by device




                                    30%                                                                29%         Apple
                                                                                           27%
                                                                                                                   iPhone™
                                    24%         24%
                                                                            19%
                                                              17%                          17%
                                                                                                       12%
                                    9%                                                                             Android™
                                                                             7%
                                                                                            6%
                                                5%            4%                                        5%
                                                                                                                   Other
                                    April




                                                May




                                                              June




                                                                             July




                                                                                           August




                                                                                                       September
4
Fully mobile: Browsing’s
just the beginning
The percentage of mobile (including tablet) visitors on               Most telling? Transaction
Bazaarvoice client websites on Black Friday more than doubled
in 2011 – users made up 12% of total visitors this year,
up from 5% in 2010.
                                                                      revenue coming from mobile
As expected, the percent of mobile visits more than doubled           devices tripled this year.
as well – they accounted for 9% of client website visits this year,
versus 4% in 2010.

And casual and mobile users – specifically, iPad users – now
account for more and more content submissions, not just
views. In April through September, the iPad gained ground
as the preferred mobile device for submitting feedback.

For context, overall review submissions usually increase steadily
from June to August, then dip in August, as shown here. But
iPad users continue to submit reviews, even as mobile users
predictably write much fewer reviews. This bodes well for
brands that optimize their sites for the iPad – iPad users will
participate even when other mobile users won’t.


                                                                                              5
                                                                                              2
Most telling? Transaction revenue coming from mobile devices
                             tripled this year (around 2% in 2010 to around 6% in 2011),
                             evidence that shoppers are using mobile for more than just
                             browsing or bookmarking to buy later.

                             While it’s no surprise that the iPhone has been the most popular
                             smart phone for mobile shoppers, this year’s holiday season was
                             the first time we saw iPad usage (40% of mobile visits) beat that
                             of the iPhone (30%) and Android phones (25%). Trends indicate
                             the tablet device is taking over, and will continue to steal share
                             from smart phones in general.


Trends indicate the tablet   Today, consumers use their mobile devices throughout
                             the entire purchasing process – far beyond just browsing.
                             They continue to spend more time with – and have higher
device is taking over, and   expectations for – their mobile devices.


this will continue.          Keep up: If you haven’t already, it’s time to put just as many
                             resources into your mobile site as you have for your main
                             site. Optimize for the growing mobile shopper, including
                             sharing feedback, engaging directly with your brand, making
                             transactions, and even accessing customer service. And make
                             sure iPad optimization tops your list.

                             Then promote your mobile site to in-store shoppers, so they
                             access consumer conversations right in the aisles.

  6
Device usage in holiday shopping, 2011
                                                  40%




                              30%
        25%



5%



Other    Android devices           Apple iPhone                     Apple iPad


                                                                                 7
Long-term financial customers
less satisfied, more vocal
When asking for customer input online, financial services            These long-term customers get detailed: Contributors who
firms – including insurance, banks, credit card companies, and       have been customers for 10+ years write about 30% more
credit unions – also ask “How long have you been a customer          content than first-year customers. The longer submissions may
or member?”                                                          indicate that they consider the financial firm a partner, and want
                                                                     to help improve products and services.
Turns out, customers for 20+ years rate financial products less
favorably than new customers. Those who have been customers          Pay attention: While it stands to reason that longer-term clients
for less than a year rate products 8% more positively, on average,   have more interactions and therefore more opportunities for
than these long-tenured clients.                                     disappointment, long-term relationships are key – obviously it’s
                                                                     cheaper to keep a client than to find a new one. These long-term
But all is not lost: 77% of long-term customers say they would
                                                                     customers have a lot to say, so listen up – and take action.
recommend their financial firms to others – they’re the second
largest segment of promoters for these types of firms.               Don’t gloss over the details; this content tells you exactly what’s
                                                                     wrong, what’s right, and everything in between (so you don’t
Plus, these customers contribute more content than any other
                                                                     have to guess). When you engage with contributors, make
group – they create 32% of total product reviews.
                                                                     sure to put as much into your responses as they did into
                                                                     their content.




8
Average customer sentiment
                                                                                    and UGC volume by loyalty
                                                                                                                            32%
                                                                                                                                      30%

Brands should be mapping customer tenure to their social
                                                                   4.48
data to locate the point at which the flip from “very satisfied”                 4.44             4.44
                                                                                                                                      25%
to “satisfied” happens. This sentiment flip can be averted – and                                                  4.29

even reversed – by dialing up proactive loyalty marketing and                                                                4.16

exclusive offers to those customers on the cusp.                                                                 22%                  20%
                                                                                 21%             22%
And reach out to newer clients for their feedback – early and
often. Check in to get their take on things throughout the                                                                            15%
customer lifecycle to make the whole experience better.

When you make changes or introduce new products or
                                                                                                                                      10%
services based on customer input, spread the word. Let all your
customers know you’re listening and acting on their input.
                                                                                                                                      5%
                                                                   2%


                                                                                                                                      0%
                                                                   0-1 yr       1–3 yrs          4–9 yrs        10-20 yrs   20+ yrs
                                                                    Average customer sentiment             UGC volume




                                                                                                                                      9
Older consumers are
                        not keeping quiet
                        Our analysis of user-generated content for financial services firms
                        uncovers another interesting note: Contrary to popular belief,
                        older consumers participate online by writing reviews almost as
                        much as younger generations.

                        While most of review volume comes from younger clients – 25%
                        of it from ages 25 to 34 – almost as many reviews come from
                        their parents’ generation. 19% of reviews for financial services
                        products come from those ages 66 and older – proving that
                        older folks are still socially savvy.

                        A story for the ages: While Millennials’ spending power is
Older consumers are     growing, your older customers are providing incredible data.
                        Want more of it? Along with your digital calls to action, include
still socially savvy.   prominent requests for feedback in your traditional marketing
                        efforts – mailers, newspaper ads, and in branch offices.




 10
Percentage of user-generated content contributed by age


                                                           17%


25%                                                                         19%

24%                21%                                                            19%
                                      18%                17%



       25-34              35-44             45-54              55-65                66+
      year olds          year olds         year olds          year olds           year olds




                                                                                              11
convenient     simple

quick
                            easy
             great
                            friendly
happy
         helpful         courteous

experience              awesome
Newer customers want “easy”
Long-time customers want “courteous”
Consumers in similar stages of the customer lifecycle share       Focus on what’s important to customers: Looking for new
similar sentiments.                                               customers? Provide marketing that features how easy it is to get
                                                                  helpful advice. Want to keep your long-term customers? Make
We find that newer financial services customers (less than four
                                                                  transactions friendly and convenient.
years) tend to use “easy,” “helpful,” “awesome,” “happy,”
and “experience” in their reviews.                                Both segments seek that authentic human touch. Whatever
                                                                  segment you’re talking to, make sure you’re speaking their
More tenured customers (10+ years with a firm) often use
                                                                  language, using words that resonate with them specifically.
“courteous” and “convenient” in their reviews.
                                                                  Your customers are telling you exactly what to do to keep
Words that reverberate across all review content include          them happy – do it.
“great” (highest, in about 18% of content), “friendly,”
“quick,” and “simple.”




                                                                                                                                     13
These customers want companies to acknowledge
their issues, act on them to let them know their
feedback is heard and important.

14
The net-net: Financial
services customers
want to help
It’s notoriously difficult to switch vendors for anything
financial, whether it’s homeowner’s insurance or a banking
institution. Once a customer chooses, they often stay for
a long, long time.

These customers want companies to acknowledge their
issues and act on them to let them know their feedback is
heard and important.

The bottom line? Take care of these customers – don’t take
them for granted. Their opinions will tell you exactly how to
find more loyal, long-term customers like them.

Use their words in marketing, let their opinions fuel future
products. Financial woes of years past have eroded some
consumers’ trust of financial institutions – enabling them to
see and share first-person opinions helps build authenticity
and trust for your financial brand.



                              Blog: How banks can place people at the center of the online experience - www.bv-url.com/edk4   15
Average customer sentiment correlated to mentions of shipping issues


                                                                         2.5%                                           Percentage
                                                                                                                        of mentions
                                                                                                                        of shipping,
     4.5                                                                                                                by industry
                                                                                                  2.0%
                                                                                                                        Average
     4.0                                                                                                                rating
           1.6%         1.6% 1.6% 1.5%                                               1.6%
     3.5



     3.0

                                                             0.7%                                            0.8%
     2.5

                                                                                                                        Average
     2.0                                                                                                                shipping
                                                                                                                        issue rating


              All       Retail   Manufacturing Apparel &     Consumer       Home     Housewares    Mass      Sporting
           industries                          accessories   electronics improvement              merchant    goods



16
Shipping problems
sink product ratings
Almost half of customer reviews that mention problems with
shipping rate products very poorly – up to 80% lower than
average product sentiment.

So even if a customer loves a product, a shipping hiccup can
ruin the experience – and make product ratings plummet.

Get ship-shape: By the time shipping issues happen, you have
the customer’s money – making the whole process acutely more
uncomfortable. Work out the kinks in shipping, and product
sentiment may increase, too.

Even though the actual delivery is handled by a third party,
the performance here still reflects on your brand – positive
                                                               Even if a customer loves
or negative.
                                                               a product, a shipping hiccup
                                                               can ruin the experience.


                                                                                         17
Consumer feedback                                                        From 190 days on, consider this the Adulthood phase of the
                                                                         review lifecycle. Review submissions plateau naturally, so

follows a predictable,                                                   overall volume grows more slowly, and the average rating for
                                                                         the product is usually set at this point. If you’ve made product

informative lifecycle                                                    improvements based on early feedback, you’ll likely see the
                                                                         payoff in more positive sentiment here.

When consumer feedback starts rolling in on a new product,               Ride the cycle: Ask for consumer opinions early and often.
there’s a clear lifecycle trend for this consumer sentiment.             The earlier you get consumer feedback – including Q&A,
Understanding these cycles helps you make the most of user-              opinions, and first-person experiences – the better the data.
generated content.                                                       Jump-start these conversations by making it easy for consumers
                                                                         to contribute, to get feedback that helps improve products
The first 100 days of reviews can be characterized as the
                                                                         and marketing.
Childhood stage. There’s heavy growth in review volume, and
the input can consist of extreme high and low ratings. Don’t             Pull consumer feedback into product lifecycle planning. Early
overreact to this volatility; it’s actually healthy. The negative        consumer feedback helps iron out potential product problems,
feedback allows you to mitigate potential problems early on,             while later insights reflect how consumers feel about the
while the positive comments help hone your marketing and                 product once they have owned it a few months. The product
advertising messages.                                                    team should pull consumer sentiment reports at regular intervals
                                                                         to gauge satisfaction at every phase of the product cycle, and
The next 100 to 190 days generally see fairly steady growth in
                                                                         plan for future product iterations. And if you improve or change
review volume, and usually just a few bumps – up or down – in
                                                                         a product along the way, authentic, first-person feedback can
average product sentiment. We call this the Teenage stage,
                                                                         show what consumers think about the change – first hand.
where the average rating starts to become more stable.



18        Blog: Three reasons most companies aren’t getting full value from social data - www.bv-url.com/cw9m
Average customer sentiment over product lifecycle


      Childhood stage (Day 1–100)   Teenage stage (Day 101–189)   Adulthood stage (Day 190+)




4.5



                                                                                               Apparel &
                                                                                               accessories

                                                                                               Overall average
                                                                                               Health & beauty
                                                                                               Consumer
                                                                                               electronics



4.0




      Childhood stage (Day 1–100)   Teenage stage (Day 101–189)   Adulthood stage (Day 190+)




                                                                                                        19
Social data:
                                                                     Window into real-
                                                                     world consumers
                                                                     Like never before, social lets people connect directly with
                                                                     brands. Consumers are telling brands exactly how to win
                                                                     their loyalty for life.

                                                                     As more and more users add their own words, ideas and
                                                                     feelings to the social mix – via product reviews, Q&A, Twitter,
                                                                     Facebook, mobile, and whatever’s next – data abounds.

Like never before, social                                            Leading brands will turn this data into doing.


lets people connect                                                  They’ll use social data to uncover what’s most important to the
                                                                     people behind it. They’ll understand precisely how to earn
                                                                     brand loyalty, advocacy – and revenues.
directly with brands.                                                These insights are only as valuable as the actions they drive.
                                                                     How will your brand take action?




  20   Blog: Emotional connections with consumers: What must happen first? - www.bv-url.com/zlfe
The methodology behind
The Conversation Index
Bazaarvoice powers online consumer and brand conversations
on hundreds of our clients’ sites, including some of the world’s
largest brands. We have served more than 260 billion
impressions of user-generated content – including first-person
consumer opinions, feedback, experiences, and Q&A. From this
massive pool of social data, our in-house analyst team – which
specializes in turning data into insights – has extracted select
groundbreaking findings, featured in this report.


We based our findings on a sampling of 5.8 million pieces
of user-generated content indexed during Q3 2011 – July
through September, plus year-over-year analysis in some
cases. These data points came from consumers in 210
countries around the world.




                                                                   21
Want more?
This paper should provoke action, to encourage you to
dig deep into what your customers really want. And they
will tell you.

Bazaarvoice enables the world’s biggest brands to capture,
analyze, and most importantly, act upon social data – to drive
true, customer-centric change.

Bazaarvoice helps clients replace guesswork with precise,
always-on insight about their products, services, and customers.
The result? Our clients create products that customers crave,
provide service based on what customers want, deliver targeted
marketing messages that get real attention, and therefore enjoy
a distinct competitive advantage. All because brands listen and
act on what matters to the people who matter the most.

Bazaarvoice turns data into doing.




22
Contact us
This paper should raise just as many questions as it answers.
Contact us at bazaarvoice.de to see how we help
brands gain invaluable consumer and product insights
by enabling conversations.



                Germany:          +49.89.24218508

       United Kingdom:            +44 (0) 208.080.1100

           Unites States:         (866) 522-9227

                   France:        +33 1 56 60 54 45

             Netherlands          +31.20.301.2169

Australia / Asia-Pacific:         +61.2.9362.2200

                  Sweden:         +46.8.463.1083




                                                                23
24
About Bazaarvoice
Bazaarvoice’s Software as a Service (SaaS) solutions have powered more than 260 billion customer
conversations on brand web sites like Best Buy, Blue Shield of California, Costco, Dell, Macy’s, P&G,
Panasonic, QVC, and USAA. The company connects organizations to their influencers through a unique
network that reaches hundreds of millions of consumers around the globe, enabling authentic customer-
powered marketing. Through syndication, analytics, partnerships, and consulting, Bazaarvoice brings the
voice of the customer to the center of their clients’ business strategy, proving “social” can drive measured
revenue growth and cost savings for manufacturing, retail, travel, and financial services companies.
Headquartered in Austin, the company has offices in Amsterdam, London, Munich, Paris, Stockholm, and
Sydney. For more information and access to client success stories, visit www.bazaarvoice.com, read the
blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice.




                                                                                                               25   25
The Conversation Index   Q3 2011

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The Conversation Index - Germany

  • 3. The Conversation Index Q3 2011 Insights #Q3index www.bazaarvoice.de/conversation-index
  • 5. Social data: The new currency Consumers have always had opinions, recommendations, and input. Today, social gives consumers a direct link to brands. And brands recognize the huge responsibility that comes with this always-on, first-person input. As consumers convey exactly what they need and want, brands that take action will catapult beyond loyalty to real advocacy. Social provides a window into your real-world customers. The data comes fast and furious, and capturing, analyzing – and, most important, acting on – these insights drives true, customer-centric change across companies, and even entire industries. The Conversation Index takes 5.8 million data points – real input from consumers directly to our clients – and uncovers trends that help you get and stay ahead of what consumers really want. We look beyond the data to the people behind it. We shine a light on what they’re telling one another. And how it matters to your brand. Read on. And stay tuned. We update this Index every quarter with insights directly from consumers, turning their conversations into business-building actions for you. Best, Erin Nelson (@erinclaire) Chief Marketing Officer, Bazaarvoice
  • 6. Get your digital copy Visit www.bazaarvoice.de/conversation-index
  • 7. Table of Contents Consumer input: Table stakes ............................................................................................. 2 Fully mobile: Browsing’s just the beginning .......................................................................... 5 Long-term financial customers less satisfied, more vocal .......................................................... 8 Older consumers are not keeping quiet ................................................................................ 10 Newer customers want “easy” Long-time customers want “courteous” ..................................... 13 The net-net: Financial services customers want to help ........................................................... 15 Shipping problems sink product ratings ............................................................................... 17 Consumer feedback follows a predictable, informative lifecycle ............................................... 18 Social data: Window into real-world consumers ..................................................................... 20 The methodology behind The Conversation Index ................................................................. 21 Contact us........................................................................................................................ 23 About Bazaarvoice ........................................................................................................... 25
  • 8. Consumer input: Table stakes It’s no surprise that consumers demand user-generated Take charge: What’s your business’ equivalent to Black Friday? content – first-person opinions and insights from other Start now to garner consumer input to prepare for your big consumers like them. And use of user-generated content for selling season. Then use these trusted insights to fuel decisions holiday shopping continues to gain momentum. everywhere your consumers buy: online, via social, on mobile devices, and in stores. On Black Friday 2011, consumers were served nearly 730 million impressions of user-generated content on Bazaarvoice client And understand that consumer conversations about your brand sites, a 39% increase over 2010 numbers. And Cyber Monday and products are happening, with or without you. Put these served up nearly 789 million impressions of user-generated conversations to work for you, to build trust with consumers content, a 42% jump from Cyber Monday 2010. and get first-person insights that can build brand advocacy. But if you’re not in retail, do these trends mean anything to you? Absolutely. Even when making business-related purchases or service decisions, consumers turn to trusted input from others like themselves. 2 Blog: Data: the humble hero of Black Friday and Cyber Monday - www.bv-url.com/7g9h
  • 9. Year-over-year growth of user generated-content (UGC) served to holiday shoppers Black Friday Cyber Monday = 1,000,000 UGC impressions 3
  • 10. User-generated content submission trends by device, 2011 54% Apple 50% iPad™ 43% 40% 37% 37% 36% 34% 34% Percentage of usage by device 30% 29% Apple 27% iPhone™ 24% 24% 19% 17% 17% 12% 9% Android™ 7% 6% 5% 4% 5% Other April May June July August September 4
  • 11. Fully mobile: Browsing’s just the beginning The percentage of mobile (including tablet) visitors on Most telling? Transaction Bazaarvoice client websites on Black Friday more than doubled in 2011 – users made up 12% of total visitors this year, up from 5% in 2010. revenue coming from mobile As expected, the percent of mobile visits more than doubled devices tripled this year. as well – they accounted for 9% of client website visits this year, versus 4% in 2010. And casual and mobile users – specifically, iPad users – now account for more and more content submissions, not just views. In April through September, the iPad gained ground as the preferred mobile device for submitting feedback. For context, overall review submissions usually increase steadily from June to August, then dip in August, as shown here. But iPad users continue to submit reviews, even as mobile users predictably write much fewer reviews. This bodes well for brands that optimize their sites for the iPad – iPad users will participate even when other mobile users won’t. 5 2
  • 12. Most telling? Transaction revenue coming from mobile devices tripled this year (around 2% in 2010 to around 6% in 2011), evidence that shoppers are using mobile for more than just browsing or bookmarking to buy later. While it’s no surprise that the iPhone has been the most popular smart phone for mobile shoppers, this year’s holiday season was the first time we saw iPad usage (40% of mobile visits) beat that of the iPhone (30%) and Android phones (25%). Trends indicate the tablet device is taking over, and will continue to steal share from smart phones in general. Trends indicate the tablet Today, consumers use their mobile devices throughout the entire purchasing process – far beyond just browsing. They continue to spend more time with – and have higher device is taking over, and expectations for – their mobile devices. this will continue. Keep up: If you haven’t already, it’s time to put just as many resources into your mobile site as you have for your main site. Optimize for the growing mobile shopper, including sharing feedback, engaging directly with your brand, making transactions, and even accessing customer service. And make sure iPad optimization tops your list. Then promote your mobile site to in-store shoppers, so they access consumer conversations right in the aisles. 6
  • 13. Device usage in holiday shopping, 2011 40% 30% 25% 5% Other Android devices Apple iPhone Apple iPad 7
  • 14. Long-term financial customers less satisfied, more vocal When asking for customer input online, financial services These long-term customers get detailed: Contributors who firms – including insurance, banks, credit card companies, and have been customers for 10+ years write about 30% more credit unions – also ask “How long have you been a customer content than first-year customers. The longer submissions may or member?” indicate that they consider the financial firm a partner, and want to help improve products and services. Turns out, customers for 20+ years rate financial products less favorably than new customers. Those who have been customers Pay attention: While it stands to reason that longer-term clients for less than a year rate products 8% more positively, on average, have more interactions and therefore more opportunities for than these long-tenured clients. disappointment, long-term relationships are key – obviously it’s cheaper to keep a client than to find a new one. These long-term But all is not lost: 77% of long-term customers say they would customers have a lot to say, so listen up – and take action. recommend their financial firms to others – they’re the second largest segment of promoters for these types of firms. Don’t gloss over the details; this content tells you exactly what’s wrong, what’s right, and everything in between (so you don’t Plus, these customers contribute more content than any other have to guess). When you engage with contributors, make group – they create 32% of total product reviews. sure to put as much into your responses as they did into their content. 8
  • 15. Average customer sentiment and UGC volume by loyalty 32% 30% Brands should be mapping customer tenure to their social 4.48 data to locate the point at which the flip from “very satisfied” 4.44 4.44 25% to “satisfied” happens. This sentiment flip can be averted – and 4.29 even reversed – by dialing up proactive loyalty marketing and 4.16 exclusive offers to those customers on the cusp. 22% 20% 21% 22% And reach out to newer clients for their feedback – early and often. Check in to get their take on things throughout the 15% customer lifecycle to make the whole experience better. When you make changes or introduce new products or 10% services based on customer input, spread the word. Let all your customers know you’re listening and acting on their input. 5% 2% 0% 0-1 yr 1–3 yrs 4–9 yrs 10-20 yrs 20+ yrs Average customer sentiment UGC volume 9
  • 16. Older consumers are not keeping quiet Our analysis of user-generated content for financial services firms uncovers another interesting note: Contrary to popular belief, older consumers participate online by writing reviews almost as much as younger generations. While most of review volume comes from younger clients – 25% of it from ages 25 to 34 – almost as many reviews come from their parents’ generation. 19% of reviews for financial services products come from those ages 66 and older – proving that older folks are still socially savvy. A story for the ages: While Millennials’ spending power is Older consumers are growing, your older customers are providing incredible data. Want more of it? Along with your digital calls to action, include still socially savvy. prominent requests for feedback in your traditional marketing efforts – mailers, newspaper ads, and in branch offices. 10
  • 17. Percentage of user-generated content contributed by age 17% 25% 19% 24% 21% 19% 18% 17% 25-34 35-44 45-54 55-65 66+ year olds year olds year olds year olds year olds 11
  • 18. convenient simple quick easy great friendly happy helpful courteous experience awesome
  • 19. Newer customers want “easy” Long-time customers want “courteous” Consumers in similar stages of the customer lifecycle share Focus on what’s important to customers: Looking for new similar sentiments. customers? Provide marketing that features how easy it is to get helpful advice. Want to keep your long-term customers? Make We find that newer financial services customers (less than four transactions friendly and convenient. years) tend to use “easy,” “helpful,” “awesome,” “happy,” and “experience” in their reviews. Both segments seek that authentic human touch. Whatever segment you’re talking to, make sure you’re speaking their More tenured customers (10+ years with a firm) often use language, using words that resonate with them specifically. “courteous” and “convenient” in their reviews. Your customers are telling you exactly what to do to keep Words that reverberate across all review content include them happy – do it. “great” (highest, in about 18% of content), “friendly,” “quick,” and “simple.” 13
  • 20. These customers want companies to acknowledge their issues, act on them to let them know their feedback is heard and important. 14
  • 21. The net-net: Financial services customers want to help It’s notoriously difficult to switch vendors for anything financial, whether it’s homeowner’s insurance or a banking institution. Once a customer chooses, they often stay for a long, long time. These customers want companies to acknowledge their issues and act on them to let them know their feedback is heard and important. The bottom line? Take care of these customers – don’t take them for granted. Their opinions will tell you exactly how to find more loyal, long-term customers like them. Use their words in marketing, let their opinions fuel future products. Financial woes of years past have eroded some consumers’ trust of financial institutions – enabling them to see and share first-person opinions helps build authenticity and trust for your financial brand. Blog: How banks can place people at the center of the online experience - www.bv-url.com/edk4 15
  • 22. Average customer sentiment correlated to mentions of shipping issues 2.5% Percentage of mentions of shipping, 4.5 by industry 2.0% Average 4.0 rating 1.6% 1.6% 1.6% 1.5% 1.6% 3.5 3.0 0.7% 0.8% 2.5 Average 2.0 shipping issue rating All Retail Manufacturing Apparel & Consumer Home Housewares Mass Sporting industries accessories electronics improvement merchant goods 16
  • 23. Shipping problems sink product ratings Almost half of customer reviews that mention problems with shipping rate products very poorly – up to 80% lower than average product sentiment. So even if a customer loves a product, a shipping hiccup can ruin the experience – and make product ratings plummet. Get ship-shape: By the time shipping issues happen, you have the customer’s money – making the whole process acutely more uncomfortable. Work out the kinks in shipping, and product sentiment may increase, too. Even though the actual delivery is handled by a third party, the performance here still reflects on your brand – positive Even if a customer loves or negative. a product, a shipping hiccup can ruin the experience. 17
  • 24. Consumer feedback From 190 days on, consider this the Adulthood phase of the review lifecycle. Review submissions plateau naturally, so follows a predictable, overall volume grows more slowly, and the average rating for the product is usually set at this point. If you’ve made product informative lifecycle improvements based on early feedback, you’ll likely see the payoff in more positive sentiment here. When consumer feedback starts rolling in on a new product, Ride the cycle: Ask for consumer opinions early and often. there’s a clear lifecycle trend for this consumer sentiment. The earlier you get consumer feedback – including Q&A, Understanding these cycles helps you make the most of user- opinions, and first-person experiences – the better the data. generated content. Jump-start these conversations by making it easy for consumers to contribute, to get feedback that helps improve products The first 100 days of reviews can be characterized as the and marketing. Childhood stage. There’s heavy growth in review volume, and the input can consist of extreme high and low ratings. Don’t Pull consumer feedback into product lifecycle planning. Early overreact to this volatility; it’s actually healthy. The negative consumer feedback helps iron out potential product problems, feedback allows you to mitigate potential problems early on, while later insights reflect how consumers feel about the while the positive comments help hone your marketing and product once they have owned it a few months. The product advertising messages. team should pull consumer sentiment reports at regular intervals to gauge satisfaction at every phase of the product cycle, and The next 100 to 190 days generally see fairly steady growth in plan for future product iterations. And if you improve or change review volume, and usually just a few bumps – up or down – in a product along the way, authentic, first-person feedback can average product sentiment. We call this the Teenage stage, show what consumers think about the change – first hand. where the average rating starts to become more stable. 18 Blog: Three reasons most companies aren’t getting full value from social data - www.bv-url.com/cw9m
  • 25. Average customer sentiment over product lifecycle Childhood stage (Day 1–100) Teenage stage (Day 101–189) Adulthood stage (Day 190+) 4.5 Apparel & accessories Overall average Health & beauty Consumer electronics 4.0 Childhood stage (Day 1–100) Teenage stage (Day 101–189) Adulthood stage (Day 190+) 19
  • 26. Social data: Window into real- world consumers Like never before, social lets people connect directly with brands. Consumers are telling brands exactly how to win their loyalty for life. As more and more users add their own words, ideas and feelings to the social mix – via product reviews, Q&A, Twitter, Facebook, mobile, and whatever’s next – data abounds. Like never before, social Leading brands will turn this data into doing. lets people connect They’ll use social data to uncover what’s most important to the people behind it. They’ll understand precisely how to earn brand loyalty, advocacy – and revenues. directly with brands. These insights are only as valuable as the actions they drive. How will your brand take action? 20 Blog: Emotional connections with consumers: What must happen first? - www.bv-url.com/zlfe
  • 27. The methodology behind The Conversation Index Bazaarvoice powers online consumer and brand conversations on hundreds of our clients’ sites, including some of the world’s largest brands. We have served more than 260 billion impressions of user-generated content – including first-person consumer opinions, feedback, experiences, and Q&A. From this massive pool of social data, our in-house analyst team – which specializes in turning data into insights – has extracted select groundbreaking findings, featured in this report. We based our findings on a sampling of 5.8 million pieces of user-generated content indexed during Q3 2011 – July through September, plus year-over-year analysis in some cases. These data points came from consumers in 210 countries around the world. 21
  • 28. Want more? This paper should provoke action, to encourage you to dig deep into what your customers really want. And they will tell you. Bazaarvoice enables the world’s biggest brands to capture, analyze, and most importantly, act upon social data – to drive true, customer-centric change. Bazaarvoice helps clients replace guesswork with precise, always-on insight about their products, services, and customers. The result? Our clients create products that customers crave, provide service based on what customers want, deliver targeted marketing messages that get real attention, and therefore enjoy a distinct competitive advantage. All because brands listen and act on what matters to the people who matter the most. Bazaarvoice turns data into doing. 22
  • 29. Contact us This paper should raise just as many questions as it answers. Contact us at bazaarvoice.de to see how we help brands gain invaluable consumer and product insights by enabling conversations. Germany: +49.89.24218508 United Kingdom: +44 (0) 208.080.1100 Unites States: (866) 522-9227 France: +33 1 56 60 54 45 Netherlands +31.20.301.2169 Australia / Asia-Pacific: +61.2.9362.2200 Sweden: +46.8.463.1083 23
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  • 31. About Bazaarvoice Bazaarvoice’s Software as a Service (SaaS) solutions have powered more than 260 billion customer conversations on brand web sites like Best Buy, Blue Shield of California, Costco, Dell, Macy’s, P&G, Panasonic, QVC, and USAA. The company connects organizations to their influencers through a unique network that reaches hundreds of millions of consumers around the globe, enabling authentic customer- powered marketing. Through syndication, analytics, partnerships, and consulting, Bazaarvoice brings the voice of the customer to the center of their clients’ business strategy, proving “social” can drive measured revenue growth and cost savings for manufacturing, retail, travel, and financial services companies. Headquartered in Austin, the company has offices in Amsterdam, London, Munich, Paris, Stockholm, and Sydney. For more information and access to client success stories, visit www.bazaarvoice.com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice. 25 25