get them talking: how growing participation chains will grow sales

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    Get Them Talking: How GrowingParticipation Chains Will Grow Sales

    November 17, 2009

    By Sam Decker (@samdecker)

    and Ze Frank (@zefrank)

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    As part of a consumer research study,

    residents of Dallas, Texas, received a phone

    call asking if they would let a Hunger Relief

    Committee representative come to their

    homes and sell them cookies, with the

    proceeds to be used to buy meals for the

    needy. Only 18 percent agreed. But, when the

    caller started by asking, How are you

    feeling this evening? and waited for a reply,

    32 percent nearly double the earlier number

    agreed to a visit from the cookie seller. Even

    more astounding was the fact

    that once someone followed up by paying

    a visit, nearly everyone (89 percent) made

    a cookie purchase.

    Daniel J. Howard, the researcher at Southern

    Methodist University who conducted the

    study, called this the foot-in-the-mouth

    effect, because, in this case, the salesperson

    didnt even need to get a foot in the door.

    Once people had expressed themselves in

    even the most banal way, saying goodor fine or the like, they were much more

    likely to take the next step of allowing the

    cookie seller to visit their homes. Once the

    salesperson was at their doorstep, they were

    almost certain to purchase.

    This powerful analog interaction can

    be replicated online in what we call a

    participation chain a way of cultivating

    user involvement so that each action builds

    upon the one before, building value along

    the way. After an initial act of participation,

    marketers can then lead the person to another

    act, and to another, and so on. The chain

    of user engagement not only increases that

    persons relationship with your brand, and

    potentially leads to a purchase, but may

    also leave behind a trail of content which

    can lead other site visitors to increase their

    own engagement. In 2007, Forresters Brian

    Haven concluded that engagement was

    marketings new key metric, but engagement

    is not a binary thing. It needs to be cultivated

    by leading users along a participation chain.

    The Participation Chain

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    90% of UK shoppers surveyed said they

    wish they could communicate directly with

    businesses using live chat, forums or call-

    me-back facilities via their websites; one in

    three require it from the UK businesses they

    currently use. (1&1, October 2007)

    There were nearly 116 million US user-

    generated content consumers in 2008, along

    with 82.5 million content creators. Both

    numbers are set to climb signicantly by 2013.

    (eMarketer, February 2009)

    See more stats at

    www.bazaarvoice.com/stats.

    Participation Creates Engagement Value

    Here are two generally accepted principles:

    1. In traditional recency, frequency, monetary

    (RFM) models, direct marketers know that

    the person most likely to respond to an

    offer is someone who has responded to

    a previous offer.

    2. Researchers know that someone who

    has participated in a survey, usability

    study, or focus group is likely to change

    the way they think or behave as a result

    of that experience.

    We can combine these two principles into a

    simple truth: time and money are two sides

    of the same coin. In general, the more time

    a customer spends with you assuming a

    positive experience the more likely they

    are to spend money with you (or take some

    related action). A Harvard Business Review

    article by Michael I. Norton refers to this as

    The Ikea Effect, noting that his research has

    found that labor undertaken in association

    with a brand such as self-assembly of Ikea

    furniture increases peoples affection for the

    result of that labor. When people construct

    products themselves, from bookshelves to

    Build-a-Bears, they come to overvalue their

    (often poorly made) creations, Norton writes.

    Online, those who labor to contribute content

    reviews, answers, stories, wishlists, etc.

    have, in effect, invested themselves in

    something. Their contributions could be for

    the sake of others. A study by Keller Fay and

    Bazaarvoice revealed 90% of people who

    write product reviews do so to help others,

    and 80% do so to help the brand. Regardless

    of whether the investment is for others or for

    the brand, when someone participates within

    a platform or web site, they increase their

    connection to that brand or platform.

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    John Lazarchic, PETCOs VP of e-commerce,

    says having reviews on his site has led to

    increased levels of engagement and loyalty.

    Customers who write reviews are more

    engaged with the site and come back to the

    site more often, according to Lazarchic.

    Our goals are twofold: one, to increase the

    content on the website, which adds value to the

    website; and two, to build loyalty. If they take

    the time to write, people tend to come back

    and see what others say. They now own part of

    the website.

    The links in online participation chains can

    take a variety of forms. Some opportunities for

    participation are effectively private, or shared

    among a small group of people. Examples

    include building wishlists, creating gift

    registries, sending a friend an e-mail, or lling

    out a survey. Other links are more public, such

    as posting a publicly-viewable photo, writing a

    product review, or answering a question posted

    by another visitor to the web site.PETCO has seen customer reviews and customer-

    generated Q&A lead directly to increased sales and

    fewer product returns. PETCO rewards top contributors

    with special badges.

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    Participation Creates Engagement Value

    Word of mouth has always been the most

    impactful form of marketing. Now more

    than ever, customers are less likely to pay

    attention to marketing-speak and more likely

    to pay attention to (and trust) content from

    other people.

    The pleasant side-effect of building

    participation chains is that a persons public

    contributions ratings, reviews, stories,

    answers, photos, videos, etc. can be used

    to market to, and draw in participation from,

    other visitors to the Web site. In a way, each

    piece of contributed content has a chance to

    help others, and they, in turn, want to return

    the favor. Each piece of content is a building

    block to creating a sense of community,

    and amplies the authentic value of user-

    generated content. As a result, others want to

    participate. Bazaarvoice has found that as the

    number of reviews increases on a web site,

    helping more visitors purchase across more

    products, the review volume continues to

    increase. The theory holds that more content

    engages more buyers, and those buyers

    return to write reviews themselves.

    As content grows, so does value to the

    business. Bazaarvoice has found that more

    reviews drive higher conversion, more search

    trafc, and lower returns. With question and

    answer content, more answers drive higher

    conversion, lower returns, and fewer customer

    service calls. For example, Canadian Tire

    implemented the Bazaarvoice Ask & Answer

    application on their site and found that

    products with one answer per question had

    28% fewer calls per product, and products

    with more than three answers had an 81%

    drop in calls per product.

    Person like me is still the most trusted

    source for information about a company

    and, therefore, products. (Edelman Trust

    Barometer, November 2007)

    83% of online shoppers would make

    purchases if sites offered increased interactive

    elements. (Allurent, January 2008)

    Recommendations from family and friends

    trump all other consumer touchpoints when it

    comes to inuencing purchases, according to

    ZenithOptimedia. (AdAge, April, 2008)

    See more stats at

    www.bazaarvoice.com/stats.

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    Canadian Tire got an unexpected

    benet when they added Ask &

    Answer to their site: customer

    service costs decreased (while overall

    satisfaction levels stayed steady).

    Products with one answered question

    got 28% fewer customer service calls,

    those with two answers saw a 67%

    decrease in customer service calls,

    and three answers drove an 81%

    decrease in such contacts.

    Customer Service Contacts

    Answers per Product

    3+

    2

    1

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    Participation chains are formed by linking

    simple forms of participation into longer

    chains to keep the user engaged over a longer

    period of time, with the goal of moving them

    towards a goal. That user, in the process,

    becomes more engaged with the site,

    brand or product, and creates content that

    benets others. What you link together as a

    participation chain is highly dependent on the

    context and purpose of your brand, the site,

    and the user.

    Following are some actions that you could

    ask a user, visitor or customer to take:

    Submit a photo, such as a photo of theproduct being used by a family member

    Take a poll or survey

    Write a review Answer or ask a question

    Share a story

    Leave a comment

    Like or vote up someone elsescontribution or content on the site

    Create a wishlist or other type of list

    How to Create a Participation Chain

    Users who contribute product reviews or post

    messages visit sites nine times as often as

    noncontributors do. Contributors also make

    purchases nearly twice as often. (McKinsey &

    Co./Jupiter Media Metrix study, January 2002)

    84% of marketers agree that building

    customer trust will become marketings

    primary objective. (1to1 Media survey of the

    1to1 Xchange panel, April 2008)

    See more stats at

    www.bazaarvoice.com/stats.

    Thanking customers for their reviews and asking

    them to answer open questions helps further

    engage with a brand.

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    The Reviewer Intent Survey by Keller Fay Group and Bazaarvoice (November 2007)

    found that helping other consumers, sharing experiences, and giving back to the

    community motivated consumers to write reviews.

    10%

    19%

    23%

    24%

    26%

    23%

    23%

    24%

    20%

    13%

    22%

    39%

    46%

    48%

    56%

    56%

    62%

    70%

    To help other consumers make good decisions

    To share your experiences with other people

    Because you rely on consumer reviews and posting

    reviews yourself is a way of giving back

    To reward a company that has done right by you

    To help companies make improvements in the

    products and services they offer

    To help retailers make better decisions about what products they sell

    Because giving feed back publicly is the best way to

    get companies to listen to what you have to say

    To correct the record when you see that somebody

    else has given an unfair review

    Because it's fun

    Percent who answered 5 out of 5 (Extremely Important) Percent who answered 4 out of 5 (Important)

    To determine what request should be front-

    and-center when youre seeking participation,

    put yourself in the users shoes. Consider

    what he or she is hoping to accomplish at that

    particular moment. Give them an opportunity

    to move closer to that goal. Additionally,

    give them a reason to contribute make an

    argument as to why that moves them closer

    to their goal. Bryan Eisenberg, author of

    Waiting for Your Cat to Bark, who consults on

    improving conversion rates on e-commerce

    sites, is an advocate for the creation of

    Personas proles of the different types

    of people who might be using your site.

    Developing these proles will help you see

    your site from the eyes of your Web site visitors

    and craft chains of actions that appeal to their

    desires and goals.

    There are a few reasons people are

    motivated to participate or take the time

    to contribute content. Focus the reason

    for contribution on:

    Them (their need for self expression) Canyou make them stand out, show off their

    creativity, gain ego capital?

    Sharing with friends Can you make themlook good in front of people they know?

    Helping strangers as mentioned earlier,90% of people write reviews to help others.

    Helping you (the brand) as mentionedearlier, 80% also write product reviews to

    help the brand.

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    One strategy to consider is to allow users to

    easily, without registration, contribute tiny

    micro-bits of content. The success of the

    Like thumbs-up button on Facebook, or

    the status update, may, in part, be due to the

    sheer ease of participating without making a

    big commitment of time or creativity. Once

    you have the user engaged with a micro-

    action, you can move on to soliciting a

    more robust action.

    A simple example of this would be in an online

    photo gallery. A user comes in with the goal

    of sharing some photos with a friend. She

    begins by uploading les from her computer,

    then is offered chances to crop the photos,

    scale them and tag them. Once her gallery is

    nalized, shes presented with the options of

    emailing them to a friend or posting them to

    Facebook. Once that is done, she is offered

    the chance to make a calendar, do it again,

    or enter one of her photos in a contest. As

    she enters the photo in the contest, she nds

    she can view, rate and comment on other

    peoples photos.

    Participation chains are made possible

    by merchandising next steps and making

    participation calls to action very visible,

    compelling and convenient. Alternatively, had

    you just allowed them to upload a photo and

    click done, you may never had gotten them

    to create more content and increase their

    engagement into that system.

    An example of a more robust action is when

    a customer leaves a review for a product or

    service. In this case, the action represents a

    commitment from the user that is far greater

    than a mouse click. Once the submit button

    is clicked, what are some possible ways to

    form an action chain? The dead-end option

    Engagement Engagement Engagement

    Cycle of Engagement

    Customer asks and

    answers questions.

    Customer writes a story

    about brand.

    Customer writes

    product review.

    Engagement Engagement

    Visitors come to site to

    read review.

    More visitors are

    attracted by the

    customers content.

    Visitor attracted by

    customers content

    becomes a new

    customer.

    New customer writes

    product review.

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    would be a thank you page and a back

    button. Alternatively, you could ask the user

    to write another review, ask them to rate other

    reviews on the same product, or ask them if

    they want to share the review they just wrote

    with colleagues. You could also present an

    opportunity for an action that is completely

    unrelated to reviews ask them to submit an

    entry to a contest or call for overall feedback

    on the brand.

    Bazaarvoice has learned that once people

    contribute in some way (for example,

    write a review) they are more likely to do

    something else (such as answer a question

    or write another review). For example, just by

    presenting unanswered community questions

    to a user after they had written a review,

    average answer volume increased by 139%

    across multiple clients.

    Originally a customer may have clicked a link

    in a post-purchase email to write a product

    review with an objective of helping others,

    because other site contributors helped her

    decide upon that purchase. After writing

    the review, she was invited to further help

    customers by sharing an answer. In doing

    home BROWSE SEARCH

    Pr oductq& ARATINGS &REVIEWS

    Search:

    Questionswithmost helpfulanswers:

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    Questions with most helpful answers:

    Can you answer these questions?

    Q Is the Bare Escentuals foundation Non-comedogenic?

    Q How do you avoid the cakey appearance?

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    Sephora encourages interaction by enabling shoppers to ask questions for other consumers to answer.

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    so, she may have discovered that writing

    this content contributes to a prole she has

    on the web site, which encourages her to

    possibly do the next link in the chain:

    Share a prole or content with others viaemail or Facebook

    Write another review

    Write another answer

    Share new content, suchas a story

    Browse the content or prolesof others, which may lead to

    a purchase

    In one example noted by Bazaarvoice, a

    large retailer sent emails to reviewers after

    their product reviews were either posted

    or rejected. This email simply thanked the

    reviewers, let them know that their content

    was published (or, if not, why). There were a

    few links back to the ecommerce site, but noproduct promotion. What resulted from these

    emails was unexpected and astonishing.

    Those emails produced a higher open rate

    and greater sales per email than almost

    any promotional email the retailer sent to

    customers. Why? The fact that people had

    contributed to the site caused them to be

    more invested in opening the email and

    going back to the site to see their content

    published. While they were there wrapped

    in a blanket of contributory goodwill they

    found something to buy!

    In order to build a participation chain,

    analyze the following within the context

    of some participation that can occur on

    your web site:

    Identify the most common goals that usermight have.

    Identify a next contribution that bestmaximizes the value for that user and their

    context.

    Identify the actions that you (as a platform)are most interested in having the user

    participate in.

    Identify the most simple and logical nextstep. If people are using your platform in

    a way you hadnt intended, embrace it and

    offer a clear path for them to accomplishtheir aims.

    Consider explicitly asking a user to exploreanother part of the site, or learn more

    about site functionality.

    Identify ways to push toward high-valuecontent submission. Take that like or

    one-click star rating and convert it into a

    more robust review or story.

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    For each of the actions above, evaluate how

    easy it is for the user to make that next step.

    Does it require knowledge about the site other

    than what is displayed? Is the call to action

    clear and visible? Is the call to action in a

    logical place in the design ow? Are you using

    language that is goal-oriented rather than

    feature-oriented? Can you word these goals

    in a social framework? (share a picture with

    your friends rather than upload a pic and

    then share with your friends).

    Players of the Xbox game Halo despite

    being presented with a vast rich landscape

    featuring a seemingly unlimited number of

    possible actions often nd themselves

    intuitively moving forward exactly as

    envisioned by the games designers. How

    did the makers of the game ensure that the

    story would move forward, while still giving

    players the impression that they have free

    will and a wide variety of options? They used

    subtle cues involving lighting and music that

    pull the player toward the path where the next

    event was supposed to happen. Although

    surrounded with a myriad of possibilities, the

    next action is always intuitive and present and

    leads players along a path.

    Just like Halo, consumer platforms represent

    a world with many possibilities, and the

    trick is to provide clear paths so that users

    can achieve specic goals. Once those

    goals are achieved, a new goal should be

    presented, leading the user forward. This can

    be successful even if the participation chains

    offer a next step that is tangential, or even

    orthogonal from the original goal. One of the

    Webs most fundamental properties is that it

    allows and encourages serendipity users

    may nd themselves happily doing something

    entirely different from the purpose that

    brought them to the site. Build your site with

    an understanding of this.

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    In the current explosion of social interactions,

    its time to rethink your marketing assets.

    Its always been about the customer, but

    now theres exponential impact from your

    customers engagement and inuence. Their

    participation is the key to unlocking value.

    As you begin the task of lengthening and

    deepening customers participation onyour site, ask yourself where customers are

    participating with your brand or platform and

    determine what your brand is already doing

    to keep the conversation going. Look for

    participation dead ends, such as thank you

    pages that lead nowhere. Consider possible

    ways to follow up, including links on the

    submission form, conrmation e-mails, follow-

    up e-mails, and specialized notications on

    return visits. Consider both short-term andlong-term engagement, realizing that a users

    visit to your site may be his rst, or may be his

    tenth. Make sure that the loyal customer has

    new and different opportunities, as people may

    tire if theyre offered the same opportunities

    again and again. Dont be afraid to change

    the conversation as you get to know one

    another better.

    Much has been said about engagement,

    and about markets as conversations. The

    participation chain concept addresses one of

    the key considerations involved in this type

    of marketing once you begin a dialogue

    with your potential customer, how do you

    keep it going and make the value exchange

    deeper and more meaningful? Begin by

    asking for participation, even if its only the

    online equivalent of How are you feeling

    this evening? because a seemingly-banal

    response like ne could be the rst link in astrong and lengthy participation chain.

    Of merchants who adopt customer reviews,

    58% said improving customer experience was

    the most important reason for adding reviews

    to their sites, followed by building customer

    loyalty (47%), driving sales (42%), and

    maintaining a competitive advantage (37%).

    (eTailing Group, June 2008)

    68% of online marketers believe media is

    in big trouble and will lose dollars to user-

    generated content.(iMedia Connection,

    February 2008)

    Compete on Customer Conversations

    See more stats at

    www.bazaarvoice.com/stats.

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    Bazaarvoice

    3900 N. Capital of Texas Hwy., Suite 300

    Austin, TX 78746

    Toll-Free: (866) 522-9227

    Phone: (512) 551-6000

    Fax: (512) 551-6001

    Site: www.bazaarvoice.com

    Blog: www.bazaarblog.com

    Twitter: @bazaarvoice

    Learn more about Bazaarvoice

    www.bazaarvoice.com/casestudies

    www.bazaarvoice.com/research

    www.bazaarvoice.com/stats

    Send us your participation success story

    The top ve stories will win a $50 gift card

    and be featured in a webinar with Ze Frank

    and Sam Decker on January 20th.

    Submit your story to [email protected]

    by January 12th.

    Sam Decker

    Chief Marketing Ofcer, Bazaarvoice

    Sam Decker is a recognized expert in

    eCommerce, word of mouth marketing,

    and direct marketing. He frequently speaks

    at marketing and eCommerce events and

    authors the award-winning marketing blog at

    www.deckermarketing.com.

    Prior to Bazaarvoice, Decker helped buildDell.com into the largest consumer

    eCommerce site, established their global

    best practices in merchandising, analytics,

    product management, and operations, and

    pioneered Dells customer-centricity and

    customer segmentation strategies. He has led

    marketing at B2C and B2B startups, helped

    develop loyalty marketing strategies for Apple

    and Adobe, and written two marketing books.

    He serves on the Board of the Word of MouthMarketing Association. Twitter: @samdecker.

    Ze Frank

    Designer, Speaker, and Popular Video Blogger

    Ze Frank (pronounced Zay) brings an

    entertaining and insightful look at how

    technology and creativity intersect, especially

    in web design, marketing and new forms of

    media. He rose to Internet fame in 2001 with

    his viral video How to Dance Properly, and

    has been making online comedy and web

    toys ever since. His most recent hit, TheShow with Ze Frank, drew press, praise, and

    thousands of viewers daily during its year-long

    run ending March 2007. The podcast earned

    him a Vloggie at the inaugural 2006 award

    show and a Web Award at SXSW 2007. His

    most brilliant move: calling on fans to write the

    show for him. Using collaborative tools, online

    viewers collectively put words in his mouth

    (and props in his lap); he faithfully performed

    this wiki-comedy each week for his FabulosoFriday show. Twitter: @zefrank.