Wednesday, June 11, 2008

Online Web Statistics for Average Order Results and importance of Social Mediated Marketing Approaches

This is the final blog entry of a four part series highlighting the importance of Web 2.0 and Social Mediated marketing approaches. We hope that this roster of recent statistics can help you and your organization develop stronger business cases in demonstrating the value of Web 2.0 and social mediated approaches to support your online marketing for employee, partner, or customer engagement conversations.

Average Order Value Results

•Consumers were willing to pay between 20 to 99% more for a 5-star rated product than for a 4-star rated product, depending on the product category. (comScore/Kelsey, October 2007).

•Reviews usage drives higher spending: 27% of users report an increase of 5-10%; almost 7% report an increase of 20%+.(Avenue A/Razorfish “Digital Consumer Behavior Study,” October 2007).

User-generated Content Beyond the Web

•64% of Social Researchers (those who refer to user-generated content when shopping) research products online more than half the time, no matter where they ultimately buy the product (store, Web, catalog, etc.).(eTailing Group, 2007).

•Online consumers are becoming precision shoppers. For every $1 in online sales, the Internet influenced $3.45 of store sales. (eMarketer, 2007).

•Nearly one out of every four Internet users (24%) reported using online reviews pri.or to paying for a service delivered offline. (comScore/The Kelsey Group, October 2007).

•More than three-quarters of review users in nearly every category reported that the review had a significant influence on their purchase, with hotels ranking the highest (87%). (comScore/The Kelsey Group, October 2007).

•97% of those surveyed who said they made a purchase based on an online review said they found the review to have been accurate. (comScore/The Kelsey Group, October 2007).

•Nine of 10 local shopping trips made by multi-channel consumers for products researched online resulted in purchases worth $125 more than the products researched online—up 25% from the prior year. (Dieringer Research Group, 2006).

•Consumers who shop online for digital cameras and TVs spend 10% more on in-store purchases than consumers who do not search online. (ChannelForce for Yahoo Search Marketing).

•90% of those surveyed say they have a better overall shopping experience when they research products online before shopping in-store. (Harris Interactive, October 2007).

•92.5% of adults said they regularly or occasionally research products online before buying them in a store. (BIGresearch).

Email Campaign Results

•Email study: PETCO realized a 5X increase in email click-through rates by including relevant ratings and reviews content in the campaign promotion. (PETCO).

•Top rated product email drive 46% higher revenue per email in A/B test.(Golfsmith Search Engine Optimization Results).

•In a study of a major electronics retailer site of 30,000 monthly natural language search visitors, converted 60% more often, spent 50% more, and viewed 82% more pages than search visitors to other pages.(Bazaarvoice case study with a major electronics retailer).

In summary, there are sufficient case study facts and reliable market research statistics demonstrating the value of user generated content, and shifting ways that customers, consumers, employees, partners and suppliers make purchasing decisions.

Social Mediated Web 2.0 forms of online marketing are likely one of the most powerful enablers to generating higher revenue and building market awareness of your products and services. If you are not participating in this conversation, you are invisible, and over time, this will erode market share and brand profile.

A new set of market dynamics are in play - and old models are under seige as prior traditional advertising channels and media and print channels are not as robust as they were prior. Companies need to carefully scrutinize their web based strategies and engage in a social mediated conversation, allowing the wisdom of the crowd to unfold in real time.

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