get them talking: how growing participation chains will grow sales
TRANSCRIPT
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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
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Questions with most helpful answers:
Can you answer these questions?
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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.