Article

Top 100: 10. UGC, product reviews

August 30, 2011

Jumping from No. 31 on the 2010 list of Top 100 Retail Movers & Shakers, consumers are increasingly turning to each other for product or service information before making a purchasing decision.

According to a recent study from comScore ARS, user-generated content (UGC) product reviews have proved as persuasive, and ultimately as effective, a sales tool as more costly display and television advertising.

Based on a sample of 25 video product reviews from ordinary users across a range of product types, the comScore ARS study found these otherwise rough presentations contained some of the primary drivers known to increase persuasiveness and memorability in advertising. Indeed, of the 25 videos put through the content analysis, none performed below industry averages for similar professionally-produced material.

Online marketers also are coming to appreciate just how effective UGC can be in strengthening search engine optimization strategies. User-generated product reviews have proven to be one of the most highly-effective tools of social media marketing, allowing marketers to tweak and modify their messages — and help businesses increase their profits in the process.

Retailers, too, are beginning to embrace UGC) by including consumer opinions in testimonials, blogs and video updates, resulting in increased conversion, higher average order value, increased site traffic, lower return rates and new opportunities for merchandising and marketing. Retailers are leveraging customer reviews in the offline realm of in-store displays, kiosks, product signage and inclusion in print catalogs. Furthermore, as a source of unbiased feedback from actual customers, UGC provides a window into what goes on inside customers' heads.