The internet and social media in particular has given consumers full control. All kind of information is available and we look for social proof in the buying process. Customers will do their homework, and the best thing companies can do is to become transparent and provide the information they are looking for.
Peter Mühlmann, CEO of Trustpilot will talk about social proof in the buying process and how companies can look more trustworthy in front of their customers by embracing transparency. The impact is huge – Not only within the customer service teams as this trend transforms companies and make the entire organization more customer-focused.
This presentation is part of "Social Media Week" #smw which took place around the world and in Copenhagen between the 18th and the 22nd February 2013.
4. Trust is the currency of the future
The consumer perspective
How to get social proof as a company
The business case
Dealing with the negative
Customer focus
#fail examples - you can’t cheat your way into trust
#smwtrust
6. 6
Think 2-5 years ahead. Now ask yourself these questions:
Which consumer purchase decisions will not be based on
other customers opinions?
In which industries will companies be unaffected by their
online reputation?
#smwtrust
8. 1. Lots of people like this
2. People like you like this
3. Your friends like this
4. You like this
#smwtrust
http://www.getelastic.com/the-5-dimensions-of-social-proof-on-ecommerce-sites/
15. 80% of consumers do research before buying
*Google / Ipsos Study 2012
#smwtrust
16.
17.
18. 1. Ask the crowd
2. Encourage conversations
3. Show off
4. Use the negative
Source: Demandforce
#smwtrust
http://www.marketingtechblog.com/social-website/
19. Everybody is writing reviews
47% of Britons have reviewed a product online *
Sharing positive experiences is reviewers main motivation**
74% state that they write reviews because they want to share a good
experience with other travellers
78% state that they write reviews because they feel good about sharing useful
information with other travelers
*Econsultancy, 2011
** Tripadvisor #smwtrust
21. Do’s
• Polite, simple, short message.
• Send invitation to review after package is received.
• Personalize & Include image of sender.
Dont’s
• Offer reward for good reviews.
• No other calls to action.
• No external links.
27. • There can be many “right” solutions.
• Use A/B testing.
• Don’t compete with your own call to action
buttons.
• External link to reviews on all pages, except
checkout.
• Show that reviews are from a third party.
28. Version A: without reviews Version B: with reviews
Test by mogens-moeller.dk/ #smwtrust
29. Version A: without reviews Version B: with reviews
Test by mogens-moeller.dk/ #smwtrust
30. Version A: without Facebook Version B: with Facebook
Test by mogens-moeller.dk/ #smwtrust
31. Version A: without Facebook Version B: with Facebook
Test by mogens-moeller.dk/ #smwtrust
35. • Most companies over-estimate the significance
of negative reviews.*
• Lack of negative reviews is perceived as
untrustworthy.*
• One negative review replied to properly is worth
10 good reviews.
* Forrester, 2010
36. • A review is read around 8.6 times in average.
• Reply in a polite & timely manner.
• Continue issue resolution in private.
• 2/3 of consumers are happy to edit their review
after issue resolution.
37. “we found out that our Italian partner was no good”
“we found out that our cancelation procedures needed to be
fixed”
#smwtrust
45. fToday, the rates of fake
reviews range from about 2% up
to about 6%.
Cornell University 2012
By 2014, 10% to 15% of social
media reviews will be fake and
paid for by companies.
Gartner 2012
#smwtrust
46. Fact 1: 97% who made a purchase based on an online review
found the review to be accurate (The Kelsey Group)
Fact 2: Anyone can write a review on an open platform. Fake
reviews happen.
#smwtrust
47. Fact 1: 10+ Full time employees at Trustpilot works with review
quality on a daily basis
Fact 2: Advance processes capture suspicious reviews on any
major review site.
Machine learning
Clustering Probability Models
Behaviour Patterns
Statistics
#smwtrust
48. Fact 1: On Trustpilot reviews only get removed if they are fake
or violating guidelines
Fact 2: Companies can pay to automatically collect reviews
from all customers
Fact 3: Companies must follow service guidelines when
collecting reviews
#smwtrust
49.
50. Your consumers will talk about you whether you want it or not
Reputation and credibility can’t be faked or bought – for long
Markets are conversations – Engage!
Any feedback, positive or negative, is good feedback
Channel external feedback into your company culture
You have a business case!
#smwtrust
What I (we) believe inExamples:AirBnB, Taskrabbit, Fiverr, elance, car sharing, bike rental systems in big citiesKickstarter.com projects are great examples of trust in businessOr the Phone box changed into free libraries >> http://www.bbc.co.uk/news/uk-england-derbyshire-16364652We share info with each other (facebook login) we trust companies Trust is about building relationships, dialogue, ask questions, give answers, gain feedback from one to another etc.DK the country with the highest level of trust: maybe it all starts from here?
Facebook likes & reviewsIt can be a shop displaying “sold out” under items - increases the sense of urgencyHow many people bought it “The concept of social proof says that people are more likely to do business with you if there are clear indicators that other people are also doing business with you (and that doing business with you is safe)”
The closer you get, the more important it is
Experts are still valued, but can easily be “bought” a
So the number of webshops is explodingThere is a bigger need for navigate tools in this worldUsers are the best experts when it comes to online shopping as tehre are many small niche players who go after the long tails, like gantsblancs.fr, only seelingwhitye gloves and doing a great job at itOnline influenced offline sales
Consumers are more shopping savvy than ever, From price comparison websitesTo scanning their social network for recommandationsFrom geotargeted search (foursquare, yelp)To mobile commerce – check online what’s available offline etcThe typical customer journey is complex and needs real engegement in order to gain loyalty
This is not marketingThis is you wanting feedback
Infographic: http://www.digitalbuzzblog.com/infographic-the-psychology-of-social-commerce/In our head, it works like this: “If all these people is doing it, this must be good“.
An Independent conversion expert made a split test about the effect of social proof in the buying process
Why such a big difference?Positive customer reviews usually have a big effect when a potential customer needs to evaluate whether or not he dares to buy in a relatively unknown shop.It makes you feel less lonely in a webshop – you can see others have been before you.
An Independent conversion expert made a split test about the effect of social proof in the buying process – her an example with Facebook “fans” at the bottom of the page
An Independent conversion expert made a split test about the effect of social proof in the buying process – her an example with Facebook “fans” at the bottom of the page
The wisdom of the crowd never liesDiscussion blossom on brands on social mediaTrustpilot reviews can is the social proof to their discussions.
“Single bad reviews”
Unless the review is extreme or threatening, just reply.
and can be used for engaging with other customers, for marketing purposesGives them something to talk about
Great ending – summary – world is going from closed to open…Open however also means, can be manipulated…That is the one weakness.
http://www.youtube.com/watch?v=phaAO-3Dfak
You can fool all the people some of the time and some of the people all of the time, but you cannot fool all the people all the time."
Quality over anonymity People complain about facebook…