Effect of Consumer generated reviews on web site metrics, for a few selected companies , as per a Social commerce report, 2007, from e-consultancy and bazaarvoice, reiterates my earlier post on 'Peer reviews and consumer behaviour'.Consumer generated reviews are becoming an important source of consumer product adoption process.
As per the report, surveying retailers in the U.S., the U.K. and Europe, the findings were as follows-
77% reported site traffic increases
56% reported improved conversion rates
42% reported higher average order values
At least 73% respondents felt that these reviews resulted in Improved customer retention and loyalty, while Improved site conversion rates and Better search engine optimisation stood out as the other benefits accrued with these reviews.
Social media is decidely fast emerging as a tool for organisations to gain competitive advantage over others.