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White paper
    How a New Quality Strategy can Boost Your
    Business
    - Why You Should Moderate Your User Generated Content
   Online Competition is increasing. Companies are looking at new strategies in how to secure
   growth and sustain success.

   Find out how a Quality Strategy with Moderation of User Generated Content can boost your
   business. Achieve Higher Revenue, Lower Cost, Better Brand Reputation and More Satisfied
   Customers.


   Introduction                                                                                            Typical content that is
                                                                                                           Moderated
   Online businesses that have User Generated Content (UGC) in
   classified ads, user profiles, chats or community forums adopt
                                                                                                             On Classified Sites
   different policies on how to treat content on their sites.
                                                                                                             - Duplicate listings
   Some allow all content to be published and others use quality                                             - Illegal products
   rules to screen content and to take action, so called UGC                                                 - Abusive text
   Moderation.
                                                                                                             On Dating Sites
   UGC Moderation can be done Pre- or Post Publishing or in Real                                             - Nude pictures
   Time. Different needs determine the right choice. Some                                                    - Sexual text
   Moderation can be automated with technology, others not.                                                  - Spam & Fraud attempts

   Some argue that it is not worth the cost or effort; others claim                                          In Social Media & Forums
   Moderation to be a key contributor to their company strategy to                                           - Offensive pictures
   create growth and profitability. Others say only the reduced risk                                         - Rude & racial language
   of lawsuits makes it worthwhile.                                                                          - Bullying

   This White Paper will guide you through the key steps you need                                            On Gaming & Gambling Sites
   to take in order to define a Quality Strategy with UGC                                                    - Abusive language
   Moderation that can boost Your Business.
                                                                                                             - Bullying
                                                                                                             - Service complaints



      “People are trying to sell their kidneys on Classified Sites. This is a crisis, says
      Andries Hoitsma at Universitair Medisch Centrum”
                                                                                            - Algemeen Dagblad, The Netherlands



Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.
White paper

     The formula of online success
    = Traffic x Conversion Rate + Customer Retention – Acquisition Cost

   The world is changing. 24% of all US customers have posted a review or comment online
   about a product or service. And this is growing fast. How do you control your brand in this
   environment? And how do you act online in order to maximize each part of the Success
   Formula?


   Traffic                                                                         Customer Retention
   An online business today is dependent on a                                      If your customers like your service and think
   number of factors to drive Traffic to its site.                                 they get great value for their efforts (time,
   A key factor is Brand Recognition and                                           money, or both) they will come back. This is
   Reputation. This has become even more                                           what everyone wants, repeat business. But
   important in a world where everyone has                                         not only that. You want the customers to
   access to information and customer                                              really like your service to the degree that
   reviews, social media comments and site                                         they become loyal and spend the time to
   rankings are available at your customers’                                       give you great ratings on customer review
   fingertips. Great reviews drive traffic.                                        sites, blog about you and write great social
                                                                                   media posts about you on Facebook,
   The marketing effort to drive new traffic to a                                  Twitter and other networks.
   site is becoming increasingly difficult and
   costly.                                                                         This builds your Brand Recognition and
                                                                                   Reputation and ultimately new traffic.


   Conversion Rate
                                                                                   Customer Acquisition Cost
   A great service, a well-designed and
   intuitive site as well as the ability to build                                  The Acquisition Cost is a challenge and
   Trust with visitors, is key to converting them                                  everyone wants this to be as low as
   into customers. Do you run the risk of losing                                   possible without limiting business growth.
   customer Trust by having bad content?
                                                                                   Compared to new business, repeat
                                                                                   business is much less costly. The average
                                                                                   Acquisition Cost is hence heavily influenced
                                                                                   by the Retention Rate a company achieves.

                                                                                   Getting a positive buzz around your brand
                                                                                   to the extent it drives new traffic is a key
                                                                                   way to reduce the average Acquisition cost.



Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.
White paper

     ”As long you can find prostitution on our site we will never be able to attract the
     Tier 1 Brands for our Banner Ads.”
                                                                                  - Executive at Classified Site in North America


           The 3 Key Steps Towards a Quality User Experience

                     Business                                Quality                            Moderation
                     Strategy                                strategy                            strategy


   Step 1 – Review Your Business Strategy
   Review your business strategy and evaluate the formula of success. Examples:

              Is your business model working?
                  o Do you get the revenue streams you want?
                  o Are the revenue streams coming from the sources you want?
                  o Is all traffic profitable traffic?

              What is your Brand Reputation?
                o Are your customers giving you great reviews?
                o Do they come back for more?
                o Do you attract the Tier 1 Brands for Ads?

   Step 2 – Define a New Quality Strategy for your User Generated Content
   Based on your Business Strategy, define a new Quality Strategy that sets the framework on how
   UGC should be treated on your site to create the formula of online success.

              Exposure of content
                 o How should your site be structured to maximize exposure of great content and
                    minimize risk of bad content getting high visibility

              Set a Policy of Black-listing of Content
                 o Decide on what you want and do not want to have on your site
                 o Grade the severity and impact if “bad” content is published. Not all “bad” content is
                     equally ”bad”.

              Risk Mitigation – where can bad UGC create severe consequences?
                 o Law suits
                 o Expose users to Fraud
                 o Negative PR or viral effects

Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.
White paper
   Step 3 – Set a Moderation Strategy
   When your Quality Strategy and overall policy structure is defined you need to decide on the
   Moderation Strategy. There is no textbook answer on how a Moderation Strategy should look as all
   businesses are unique and have different needs. However, there are three key tactics to consider:

       1)    When should we use technology and when should we use operational processes to screen
             content?
       2)    Should we Moderate Pre- or Post Publishing? Or should we do it in real-time?
       3)    Should we do random sampling, or should we screen all content?

   Pre-Moderation of 100% of content creates the highest level of quality but could still be the wrong
   answer for some sites. Especially if it creates an unacceptable user experience through long
   delays. It can also mean an unacceptable cost increase that can´t create a favorable ROI.

   Maximizing Value Creation and ROI with a Tiered Moderation Strategy.
   Often the right answer is to apply different tactics to different parts of a site or service. This way it
   is possible to maximize the boost in business and still keep the costs under control so that a great
   ROI can be achieved.

   Examples on how a Tiered Moderation Strategy can                                         A classified site might see more
   be deployed:                                                                             fraud in Cars & Electronics and less
                                                                                            in Furniture and decides to use
                                                                                            different Moderation tactics.
      High
                                                                                            A dating site might do random
                                                   Pre moderation of                        sampling in the Basic service and
                                                          all content                       100% screening of content in the
                                                                                            Premium service to secure a quality
                                                                                            experience.
  Level of
 exposure                       Post moderation of
                                       all content                                          A dating site could also decide to
    to bad
  content                                                                                   allow immediate publishing of text
                                                                                            but to screen all pictures before
                                                                                            publishing to ensure that no
                 Post moderation                                                            offensive pictures are published on
                      of reported                                                           the site.
                     content and
                         samples
                                                                                            A social site or forum could use
       Low                                                                                  technology to filter abusive language
                                                                                            and Post-Moderation of reported
                 Low                  Risk elimination                     High
                                                                                            offensive posts or comments.


Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.
White paper

   UGC Moderation as the Tool to Boost Your Quality                                                                Moderate to
                                                                                                                   Secure Your Brand
   74% of Americans say that they are more likely to use a
                                                                                                                    Maximize a Positive User
   classifieds site if its customer service focuses on monitoring and
                                                                                                                    Experience
   removing       fraudulent     and     offensive content.  (Source:
   www.kijiji.com)                                                                                                  Secure Strong User
                                                                                                                    Reviews and Ratings
   You can build great features, a fantastic service and design the                                                 Secure a Positive online
   best site in the world –but if your visitors feel intimidated, fooled                                            Brand “Buzz”
   or disappointed, by the User Generated Content, your business
                                                                                                                    Avoid negative PR and
   will suffer.                                                                                                     Viral Campaigns

   Boosting the Brand Reputation – The Starting Point
   A site, or service, that uses Moderation to create a High Quality
   Experience is likely to see a positive effect on the Brand
   Reputation with increased traffic as a consequence.

   Users that enjoy a service without offensive or forbidden content
   tend to be more loyal and more likely to give the brand high
   ratings and reviews. Strong reviews, ratings and rankings will
   signal quality and trust which will motivate more people to visit
   the site.

   Negative PR outlining illegal activities, forbidden content etc also
   has a very strong negative effect on the Brand Reputation.
   Adopting a Quality Strategy can significantly reduce negative PR.


   A Quality Site attracts Larger Brands for Advertising
   It is unlikely that the Tier 1 Global Brands will advertise on sites
   with bad content that risk damaging their own brands.

   If banner ads are a part of your revenue mix you increase your
   chances of higher Ad revenues with a quality secured site.



    [...] Despite that, all the ads are checked and validated before they’re made live.
    “There are no duplicate ads, no Nigerian letters, no forbidden content,”
                                                                     - Olivier Aizac, Leboncoin.fr, #1 Classified Site in France



Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.
White paper

    Use Quality to Boost                                Conversion Rate – influenced by Quality.
    Your Online Success                                 A visitor that has been recommended to the site by people they
        More Traffic
                                                        trust will be more likely to try the service. If the site indicates
                                                        Quality visitors will have greater faith and willingness to try.
        Increased Conversion
        Rate                                            The Conversion Rate is hence clearly influenced by the Quality
        Improved Retention Rate                         of the site.
        Lower Customer
        Acquisition Costs                               Improve Your Customer Retention.
        Create new Premium                              9 out of 10 users on a Dating site leave within the first three
        Services and Upsell                             months. (Source: www.mashable.com). The services the dating
        Attract Larger Brands and                       sites provide are fairly similar and the cost of switching to another
        increase your banner ad                         service is low. Leading providers do not concentrate on fast
        revenue                                         growth anymore, but instead on the quality and customer loyalty.


                                                        Happy customers come back. Simple as that. Negative
                                                        experiences will make people hesitate to return.


                                                        High Quality as Unique Selling Point for Premium Services.
                                                        A business, like a Dating site, can use Moderation to create a
                                                        High Quality Premium Service to complement a Free service.
                                                        Users that upgrade are guaranteed a High Quality Service
                                                        without offensive pictures, sexual text or fake profiles asking for
                                                        money etc. Moderation can allow for new product offerings and
                                                        Premium Services.




In a competitive world a business needs to stand out. You need to deliver value to your
customers. Every day. Because it is easy for them to switch to your competitor. And they will.

Using Quality and focusing on the user experience is a way to build sustainable competitive
advantage.

Implement UGC Moderation as a key part of your Quality Strategy and take control of your Online
Success.




Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.
White paper

    About Besedo
    Besedo is an experienced knowledge and business process outsourcing company specialized in
    the Internet and media market.

    We operate mainly within the fields Moderation of User Generated Content and Trust and Safety.

    In 2010 we reviewed 62 Million articles online (ads, profiles etc.) to stop fraudulent and poor
    content online. Our customers range from #1 market leaders in multiple countries to new
    ventures with high growth ambitions.

    What is common for all our customers is the dedication to quality and the belief that quality is part
    of a winning formula.




                                                                                                              For more information
                                                                                      Please Call +46 8 522 371 00 or contact your
                                                                                               personal Besedo account manager.
                                                                                           Offices in Malaysia, Malta and Sweden.
                                                                                                                 www.besedo.com


Besedo targets companies that consider security and consumer trust to be critical to their business success.
Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has
conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks,
Media and Gaming.

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Why moderate User Generated Content?

  • 1. White paper How a New Quality Strategy can Boost Your Business - Why You Should Moderate Your User Generated Content Online Competition is increasing. Companies are looking at new strategies in how to secure growth and sustain success. Find out how a Quality Strategy with Moderation of User Generated Content can boost your business. Achieve Higher Revenue, Lower Cost, Better Brand Reputation and More Satisfied Customers. Introduction Typical content that is Moderated Online businesses that have User Generated Content (UGC) in classified ads, user profiles, chats or community forums adopt On Classified Sites different policies on how to treat content on their sites. - Duplicate listings Some allow all content to be published and others use quality - Illegal products rules to screen content and to take action, so called UGC - Abusive text Moderation. On Dating Sites UGC Moderation can be done Pre- or Post Publishing or in Real - Nude pictures Time. Different needs determine the right choice. Some - Sexual text Moderation can be automated with technology, others not. - Spam & Fraud attempts Some argue that it is not worth the cost or effort; others claim In Social Media & Forums Moderation to be a key contributor to their company strategy to - Offensive pictures create growth and profitability. Others say only the reduced risk - Rude & racial language of lawsuits makes it worthwhile. - Bullying This White Paper will guide you through the key steps you need On Gaming & Gambling Sites to take in order to define a Quality Strategy with UGC - Abusive language Moderation that can boost Your Business. - Bullying - Service complaints “People are trying to sell their kidneys on Classified Sites. This is a crisis, says Andries Hoitsma at Universitair Medisch Centrum” - Algemeen Dagblad, The Netherlands Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.
  • 2. White paper The formula of online success = Traffic x Conversion Rate + Customer Retention – Acquisition Cost The world is changing. 24% of all US customers have posted a review or comment online about a product or service. And this is growing fast. How do you control your brand in this environment? And how do you act online in order to maximize each part of the Success Formula? Traffic Customer Retention An online business today is dependent on a If your customers like your service and think number of factors to drive Traffic to its site. they get great value for their efforts (time, A key factor is Brand Recognition and money, or both) they will come back. This is Reputation. This has become even more what everyone wants, repeat business. But important in a world where everyone has not only that. You want the customers to access to information and customer really like your service to the degree that reviews, social media comments and site they become loyal and spend the time to rankings are available at your customers’ give you great ratings on customer review fingertips. Great reviews drive traffic. sites, blog about you and write great social media posts about you on Facebook, The marketing effort to drive new traffic to a Twitter and other networks. site is becoming increasingly difficult and costly. This builds your Brand Recognition and Reputation and ultimately new traffic. Conversion Rate Customer Acquisition Cost A great service, a well-designed and intuitive site as well as the ability to build The Acquisition Cost is a challenge and Trust with visitors, is key to converting them everyone wants this to be as low as into customers. Do you run the risk of losing possible without limiting business growth. customer Trust by having bad content? Compared to new business, repeat business is much less costly. The average Acquisition Cost is hence heavily influenced by the Retention Rate a company achieves. Getting a positive buzz around your brand to the extent it drives new traffic is a key way to reduce the average Acquisition cost. Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.
  • 3. White paper ”As long you can find prostitution on our site we will never be able to attract the Tier 1 Brands for our Banner Ads.” - Executive at Classified Site in North America The 3 Key Steps Towards a Quality User Experience Business Quality Moderation Strategy strategy strategy Step 1 – Review Your Business Strategy Review your business strategy and evaluate the formula of success. Examples: Is your business model working? o Do you get the revenue streams you want? o Are the revenue streams coming from the sources you want? o Is all traffic profitable traffic? What is your Brand Reputation? o Are your customers giving you great reviews? o Do they come back for more? o Do you attract the Tier 1 Brands for Ads? Step 2 – Define a New Quality Strategy for your User Generated Content Based on your Business Strategy, define a new Quality Strategy that sets the framework on how UGC should be treated on your site to create the formula of online success. Exposure of content o How should your site be structured to maximize exposure of great content and minimize risk of bad content getting high visibility Set a Policy of Black-listing of Content o Decide on what you want and do not want to have on your site o Grade the severity and impact if “bad” content is published. Not all “bad” content is equally ”bad”. Risk Mitigation – where can bad UGC create severe consequences? o Law suits o Expose users to Fraud o Negative PR or viral effects Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.
  • 4. White paper Step 3 – Set a Moderation Strategy When your Quality Strategy and overall policy structure is defined you need to decide on the Moderation Strategy. There is no textbook answer on how a Moderation Strategy should look as all businesses are unique and have different needs. However, there are three key tactics to consider: 1) When should we use technology and when should we use operational processes to screen content? 2) Should we Moderate Pre- or Post Publishing? Or should we do it in real-time? 3) Should we do random sampling, or should we screen all content? Pre-Moderation of 100% of content creates the highest level of quality but could still be the wrong answer for some sites. Especially if it creates an unacceptable user experience through long delays. It can also mean an unacceptable cost increase that can´t create a favorable ROI. Maximizing Value Creation and ROI with a Tiered Moderation Strategy. Often the right answer is to apply different tactics to different parts of a site or service. This way it is possible to maximize the boost in business and still keep the costs under control so that a great ROI can be achieved. Examples on how a Tiered Moderation Strategy can A classified site might see more be deployed: fraud in Cars & Electronics and less in Furniture and decides to use different Moderation tactics. High A dating site might do random Pre moderation of sampling in the Basic service and all content 100% screening of content in the Premium service to secure a quality experience. Level of exposure Post moderation of all content A dating site could also decide to to bad content allow immediate publishing of text but to screen all pictures before publishing to ensure that no Post moderation offensive pictures are published on of reported the site. content and samples A social site or forum could use Low technology to filter abusive language and Post-Moderation of reported Low Risk elimination High offensive posts or comments. Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.
  • 5. White paper UGC Moderation as the Tool to Boost Your Quality Moderate to Secure Your Brand 74% of Americans say that they are more likely to use a Maximize a Positive User classifieds site if its customer service focuses on monitoring and Experience removing fraudulent and offensive content. (Source: www.kijiji.com) Secure Strong User Reviews and Ratings You can build great features, a fantastic service and design the Secure a Positive online best site in the world –but if your visitors feel intimidated, fooled Brand “Buzz” or disappointed, by the User Generated Content, your business Avoid negative PR and will suffer. Viral Campaigns Boosting the Brand Reputation – The Starting Point A site, or service, that uses Moderation to create a High Quality Experience is likely to see a positive effect on the Brand Reputation with increased traffic as a consequence. Users that enjoy a service without offensive or forbidden content tend to be more loyal and more likely to give the brand high ratings and reviews. Strong reviews, ratings and rankings will signal quality and trust which will motivate more people to visit the site. Negative PR outlining illegal activities, forbidden content etc also has a very strong negative effect on the Brand Reputation. Adopting a Quality Strategy can significantly reduce negative PR. A Quality Site attracts Larger Brands for Advertising It is unlikely that the Tier 1 Global Brands will advertise on sites with bad content that risk damaging their own brands. If banner ads are a part of your revenue mix you increase your chances of higher Ad revenues with a quality secured site. [...] Despite that, all the ads are checked and validated before they’re made live. “There are no duplicate ads, no Nigerian letters, no forbidden content,” - Olivier Aizac, Leboncoin.fr, #1 Classified Site in France Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.
  • 6. White paper Use Quality to Boost Conversion Rate – influenced by Quality. Your Online Success A visitor that has been recommended to the site by people they More Traffic trust will be more likely to try the service. If the site indicates Quality visitors will have greater faith and willingness to try. Increased Conversion Rate The Conversion Rate is hence clearly influenced by the Quality Improved Retention Rate of the site. Lower Customer Acquisition Costs Improve Your Customer Retention. Create new Premium 9 out of 10 users on a Dating site leave within the first three Services and Upsell months. (Source: www.mashable.com). The services the dating Attract Larger Brands and sites provide are fairly similar and the cost of switching to another increase your banner ad service is low. Leading providers do not concentrate on fast revenue growth anymore, but instead on the quality and customer loyalty. Happy customers come back. Simple as that. Negative experiences will make people hesitate to return. High Quality as Unique Selling Point for Premium Services. A business, like a Dating site, can use Moderation to create a High Quality Premium Service to complement a Free service. Users that upgrade are guaranteed a High Quality Service without offensive pictures, sexual text or fake profiles asking for money etc. Moderation can allow for new product offerings and Premium Services. In a competitive world a business needs to stand out. You need to deliver value to your customers. Every day. Because it is easy for them to switch to your competitor. And they will. Using Quality and focusing on the user experience is a way to build sustainable competitive advantage. Implement UGC Moderation as a key part of your Quality Strategy and take control of your Online Success. Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.
  • 7. White paper About Besedo Besedo is an experienced knowledge and business process outsourcing company specialized in the Internet and media market. We operate mainly within the fields Moderation of User Generated Content and Trust and Safety. In 2010 we reviewed 62 Million articles online (ads, profiles etc.) to stop fraudulent and poor content online. Our customers range from #1 market leaders in multiple countries to new ventures with high growth ambitions. What is common for all our customers is the dedication to quality and the belief that quality is part of a winning formula. For more information Please Call +46 8 522 371 00 or contact your personal Besedo account manager. Offices in Malaysia, Malta and Sweden. www.besedo.com Besedo targets companies that consider security and consumer trust to be critical to their business success. Services provided cover three main areas – Content, Safety, Customer and Operated. Since 2002 Besedo has conducted and developed operations for clients operating in industries like Online Classifieds, Social Networks, Media and Gaming.