GDS International - Next - Generation - Customer - Experience - Summit - US - 1 - 2

  • Published on
    20-Jan-2015

  • View
    168

  • Download
    0

Embed Size (px)

DESCRIPTION

Bazaarvoice Conversation Index

Transcript

  • 1. TheConversationIndexQ2 2011 InsightsREPORT Q2 2011

2. Table of ContentsLetter from Bazaarvoice CMO3The Conversation Index 4Consumer language reflects economic uncertainty5All over the map: sentiment by region, country 6The Friday Facebook flood 7Women fuel word of mouth 8Controlling spending, leading conversations 9Summer warms traveler sentiment11Poor service destroys product sentiment12One in five spread the love13Pivot language reveals product opportunities 14As price and complexity increase, consumer questions get specific 15UGC served at 3 kilohertz, volume soars17Conclusion18Contact us 18Citations 19 3. REPORT: The Conversation IndexWeve reachedanother turning point.For as long as humans have been able to communicate, weve been evaluating, recommendingand sharing. After thousands of years of word of mouth, these conversations began to take placeonline, where it is now digitally archived.Naturally, smart businesses got hungry. Here was a chance to capture what their customers realpeople actually using their products and services were saying about them. But, as has happenedso many times before, technology eventually outpaced our capacity to truly understand its impact.To companies that were hungry for social data, suddenly it seemed there was simply too much of it.Navigating the flood of social content and arriving at meaningful insights about customers became achallenge and still is for many businesses.Social data isnt slowing down, but were now able to get ahead of it, to make sense of it.Weve arrived at a turning point at which social data can be captured, analyzed and mostimportantly, acted upon to drive true, customer-centric change across companies, and evenentire industries.But this report isnt about social data. Its about the people behind the data. Were excited toshare with you what weve learned about them from the hundreds of billions of conversationsour technologies have been a part of.The Conversation Index youre about to read is the first of many to come. Now, on to the insightsBest,Erin Nelson (@erinclaire)Chief Marketing Officer, Bazaarvoice 3 4. REPORT: The Conversation IndexTheConversationIndex Our analysis reveals the following key takeaways:The way consumers talk about products changesBrands that lead, capture, and analyze customerduring economic downturns.conversations develop a deeper understanding ofwhat they must do to meet and exceed expectations Distinctions between offsite, onsite, and siloed channels areand become truly customer-centric enterprises. In The crumbling, but some still exist. Onsite and offsite consumerConversation Index, youll find the latest and most behavior is largely similar in some areas, but Facebookactionable customer insights, drawn from millions ofbehavior is unique.customer conversations.Those who control spending in a product category lead theThe substance of these conversations is user-generatedonline conversation about that category.content (UGC), an insight-rich form of social data that Product quality and interactions with brand representativesenables analysis at every level of focus from globalare inseparable in the minds of many consumers poorconsumer trends, to product- and customer-specificcustomer service is the product sentiment killer.sentiment, and all degrees of granularityInnovative product improvement ideas, as well as flaws, canin between.be found just as readily in positive reviews as in negativeIn serving over 220 billion pieces of UGC (and counting), reviews by searching for pivot language.Bazaarvoice has collected massive amounts of socialConsumers seek facts and details, not opinions anddata for hundreds of top brands across industries. Fromsubjective comparisons, when the price and complexity ofthis pool of social data, our Social Analytics team hasproducts and services increase.extracted select findings to be featured in this report.The findings in this report are aggregated based on a 5million data point sample of UGC indexed in Q2-2011(AprilJune), from consumers in 210 countries aroundthe world.4 5. REPORT: The Conversation IndexConsumer language reflectseconomic uncertaintyOne in ten reviews in Q2 mentioned price. To A second pattern began January 2010, continuing untilunderstand how economic conditions affect priceOctober 2010, with price mentions falling as the Dowsensitivity in reviews, the Bazaarvoice Social Analytics average improved.team compared references to price in customer reviewsto two key economic indices around and during theDuring economic downturns, use UGC to promote valueGreat Recession, from July 2007 to August 2011.and ease the hesitation price-sensitivity brings. Brands should highlight reviews and answers that praise aWhen comparing price references to the Consumerproducts high quality for its price. Additionally, theyConfidence Index, an overall correlation of -.66 was should feature value-touting customer content in onlinedetermined, meaning reviewers mention price more often and offline advertising to reassure potential customerswhen the CCI is low. The CCI sank to its lowest point in that their money will be well spent.February 2009, the same month price mentions hita new high; 11.5% of all US reviews explicitlymentioned price.Mapping price references in reviews to the Dow JonesIndustrial Average reveals an even stronger negativecorrelation of -.68. The pattern is nearly the same.Beginning September 2008, conversation around priceskyrocketed as the Dow average continued its fall. Q1 2009: Highest number of reviews mentionDow Jones 120 14Kprice when Dow and CCI at lowest points.14% Price IndustrialreferencesIndex 13K12%10012KConsumer 10% 80 Condence11KIndex8% 60 10K 6%9K 40 4%8K 202%7K0 6K 0% Q2 2008 Q3 2008 Q4 2008 Q2 2009 Q3 2009 Q4 2009 Q3 2007 Q4 2007 Q1 2008 Q1 2009 Q2 2010 Q3 2010 Q4 2010 Q1 2010 Q2 2011 Q1 2011Price reference vs. Dow Jones Industrial and Consumer Confidence Index5 6. REPORT: The Conversation IndexAll over the map: 15 most Average 15 mostAveragepositive countriesratingnegative countries ratingsentiment byMoldova 4.54 Pakistan4.00region, country Georgia4.52 Spain 4.00Latvia4.45Nigeria3.99Overall, customers in the southwest Pacific region Chile4.41 Romania 3.99showed the highest overall sentiment this quarter,Russia4.38 United Arab Emirates3.98followed by the North Asia and Europe regions. Bulgaria 4.36 Argentina 3.98Interestingly, sentiment by country doesnt seem to Australia4.35 Indonesia 3.97correlate with two intuitive explanations moneyand happiness. United Kingdom 4.34Peru 3.96 New Zealand4.33 Algeria 3.95We found essentially no correlation between a countryspurchasing power and sentiment, and essentially no Puerto Rico4.32 Uruguay 3.94correlation between sentiment and scores on GallupsKenya 4.31India3.89Global Wellbeing Survey, either.Germany 4.31Morocco3.80Even geographic proximity isnt a reliable indicator of Azerbaijan4.31 Thailand3.79sentiment. Moldova has the highest average rating of any Macedonia4.30 Iran3.73country (4.54 out of 5 stars), while its neighbor Ukrainehas the lowest (3.31). While they share a border, the twoIreland4.30Ukraine3.31countries are further apart in product sentiment than anytwo countries in the world, according to our data.Blog: Do happier peopleleave higher product ratings?http://bv-url.com/a5r9 Europe Average rating: 4.26 North AsiaAverage rating: 4.32North AmericaAverage rating: 4.23 North Africa East Asia Average rating: 3.97 Average rating: 4.09 Mexico & Central America South & Southeast Asia Average rating: 4.21 Average rating: 3.95West & Central AsiaAverage rating: 4.11 South America Southwest Pacic Average rating: 4.14Average rating: 4.35Sub-Saharan AfricaAverage rating: 4.16 Daily review submissions via Facebook 6 7. REPORT: The Conversation Index The FridayFacebook reviewers are also more positive, with a 12%higher average sentiment for Facebook reviews overreviews not collected on the social network. With many Facebook flood of these reviews coming from existing Facebook fans,this can be attributed to the more positive disposition of Nearly a third (32%) of all reviews collected on FacebookFacebook fans toward the brands they like. In fact, 60% in Q2 were submitted on Fridays. The remaining reviews of Facebook fans say theyre more likely to recommend were collected fairly evenly throughout the week.the brand since becoming a fan.3 This Friday spike in Facebook reviews doesnt match overall usage patterns for Facebook pages, which see the most activity on Wednesdays.1 Nor does it mirror Facebook reviewers are onsite review submission data, where 21% of reviews gathered this quarter were submitted on a Tuesday, the also more positive, with most popular day of week for this activity. In fact, Fridays accounted for only 11% of onsite review submissions a 12% higher average only Saturdays (9%) saw lower activity rates.sentiment for Facebook However, a study of 50,000 posts from the top 14,000 pages on Facebook found that Friday posts had thereviews over reviews highest weekday interaction rates2, so its likely that when brands invite Facebook users to review theirnot collected on the products, the calls to action posted on Fridays are driving more review submissions than similar posts throughoutsocial network. the week.Friday MondayTuesday Thursday Wednesday SundaySaturday 8%11%11% 14% 12% 11%9%11% 19% 13%13% 21% 15% 32%Onsite reviewsFacebook reviews 21%Daily review submissions via Facebook 11%11% 7 8. REPORT: The Conversation Index Women fuel word of mouth Women dominate social networks, as the majority on both Facebook (58%) and Twitter (64%).4 This dominance is also seen in onsite social use, with women Women produced 60% producing 60% of all UGC in Q2. of all UGC in Q2. Women were also more positive than men. The average rating for female-written reviews was 4.43 stars out of 5, as compared to the male average of 4.32 stars. Overall, consumers age 35-44 contributed the most UGC across Bazaarvoice clients this quarter. Collectively, consumers between 25 and 54 years old were the biggest content drivers, contributing 70% of all UGC. The majority of social network users also fall in this age range.45.016%16%15%4.5 11% 11%9%9% Average 4.0rating from 6%women Average3% 3% rating 3.5 from men 25-34 35-44 45-54 55-65 66+ F M F M F M F MF M Reviews from women,Reviews from men, percent of total, by age percent of total, by ageAll reviews by gender and age8 9. REPORT: The Conversation IndexControlling spending,leading conversationsIn consumer packaged goods (CPG), the vertical with thehighest average sentiment (4.68, 11% above the cross-industry average), women contributed a huge majorityof UGC in Q2 (84%), and wrote 3% more content whendoing so.This is likely due to the fact that women typically controlCPG budgets for their households. In the US, womencontrol 85% of household spending and 93% of foodpurchases.5 It follows that the women researching,considering, and purchasing CPG are also talking aboutand recommending these products online. Blog: Social media for the sexes: three ways to capitalize on gender differences http://bv-url.com/82sk5.0 25% Average 4.520% 20% rating from menAverage 13% rating from 4.0 women 6% 5%4%4%3.5 3%2% 25-3435-44 45-5455-6566+ F MF M F MF MF M Reviews from women, Reviews from men, percent of total, by agepercent of total, by ageConsumer packaged goods reviews by gender and age9 10. REPORT: The Conversation IndexThe CPG conversation peaked among 45-54 year olds,with 35-44 and 55-65 trailing just behind. CPG sawhigher sentiment among older generations this quarter, CPG review readers showkeeping with historical patterns.The consumer electronics vertical showed the opposite 6% higher average ordergender makeup, with a large majority (77%) of word ofmouth generated by men, the plurality of which came value than visitors whofrom men age 45-54. dont read reviews.Again, we see that those who control the budgets tendto control the conversation: men spent 53% more thanwomen on consumer electronics in 2010.6 To influencethese spenders, solicit and display UGC whereverpurchase decisions are made. In addition to product andcategory pages online, use customer words and productratings in advertising, on packaging, in coupons, and viamobile to reach shoppers in stores.5.04.519%17%Average16%16% rating from 15% women4.010% Average rating from men3.51% 1%

Recommended

View more >