everyone is a critic - winning customers in a review driven world
TRANSCRIPT
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EVERYONE’S A CRITIC: Winning Customers in a
Review-Driven World
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Experian Marketing Services – Data SourcesConsumer Insights: 25mm Worldwide Online Sample
Simmons Research (US): 30,000 Consumers, 60,000 Elements
ConsumerView (US): 299 Million Consumers, 116 Million Households
Mosaic (US): 71 Consumer Segments, 19 Groups
CheetahMail: 10 Billion Emails Per Month
The Landscape:What We Know About Review Sites
How Consumer-Generated Opinions are Changing Business
Marketing in a Review-Driven World
The Future of Online Reviews
Background
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Why I Wrote the Book
Why did I write this book?
“Bill Tancer may be "the king of measuring online
research," as CLICK's cover proclaims.
This king would do well to hire a better editor.”
“An exercise in navel gazing”
“it's written like someone with ADD”
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5-9%
Revenue
Analysis of Yelp
reviews for 60,000
restaurants revealed
a 5-9% increase in
revenues for each
increase in star
rating.
Michael Luca, HBS
82%
Use82% of
consumers say
that they consult
online reviews
before making a
purchase
decision, up from
72% in 2012.
Experian
3-5%
Conversion
In an online retail
setting, having 10-
30 product
reviews on a
specific product
page can increase
conversions by
3-5%.
Reevoo
19%
Bookings
Analysis of 148,000
reviews on over
300 restaurants
revealed that a
half-star increase in
rating translates to
a 19% increase in
table bookings.
Michael Anderson
UC Berkeley
Reviews MatterReviews by the Numbers
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Youth and Ubiquity of Reviews
Online Review Visits by Age
0
50
100
150
200
250
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
18-24 25-34 35-44 45-54 55+
Age Bin, Percentage and Representation
Visits Share Consumer Reviews Representation
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Reviews & Search
Search, 65.6%Social Nets,
6.2%
Travel, 5.2%
Retail, 3.1%
Entertainment, 2.9%
Other, 17.0%
Upstream Traffic to Online Reviews
Source:
Experian Marketing Services
Week Ending 2/21/15
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When Bad Reviews are Good
“…when there are specific negative
comments, the reader tends to
believe the reviewer. If the
complaint doesn’t highlight a deal
breaker, it can translate into
increased sales.”
- Panagiotis Ipeirotis
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Brand Dilution and the Antidote
“I hate reviews, before
TripAdvisor I could charge a
premium for my rooms just
based on my brand, now
even five star hotel rooms
have been commoditized.”
- CEO, Five-Star Hotel Chain
Dilution of Brand?
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Transparency and Accountability
“I love the fact that I’m held
accountable for every little thing
I do, I know that my competition
is held accountable as well, and
my competition sucks.”
- Jay Sofer, Lockbusters
Accountability
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Don’t Explain
the Cupcake
Explain the
Cupcake
Explain the
Cupcake
Don’t Explain
the Cupcake
UtilitarianHedonic
Positive
Negative
According to Sarah G. Moore,
University of Alberta, in studying
how people share word-of-mouth
experiences, explaining why they
liked a positive hedonic
experience will make them like it
a little less, while explaining a
negative hedonic experience will
make them hate the experience a
little less. The opposite is true of
utilitarian experiences.
Explaining the CupcakeExplaining the Cupcake
Positive
Negative
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1. Passion Drives Positive Reviews
2. Build Power Through Transparency
3. Make Reviews Central to the Conversation
4. Leverage Reviews for Insight and Motivation
5. Give Them Something to Write About
Do this…. (The Five Rules)
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2015 2016 2017 20192018 2020
• Sharing economy will fuel bilateral review growth and change 1/9/90 rule
• Reviews will serve as a bridge between online and offline retail
• Authentication and fraudulent review detection will become more critical
• Perspective will be the next disruption in search
Online Review Predictions