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The ROBO economy:How reading reviews impacts offline salesThe ROBO economy: How reading reviews impacts offline sales1
Introducing the ROBO economyIn our increasingly connected world, consumer-generated content(CGC) provides more than just the digital proxy for the in-storeshopping experience — it is the primary influence over ourdiscovery, evaluation, purchase, and ongoing engagement. Moreso than ever, consumers place their faith in the opinions of peersbased on the content they are producing online—across brand andretailer websites, social media, and an ever-growing mix of newand emerging platforms.The degree to which CGC influences online sales is a welldocumented and widely understood concept. The ability toquantify the impact of online CGC to offline sales, however, haslargely remained elusive—or directional at best. Despite ourindustry’s penchant for analyzing consumer behavior at length,there have been very few published studies that quantify the“research online, buy offline” (ROBO) phenomenon. Until now.Because Bazaarvoice works with more than 4,900 of the world’sleading brands and retailers, we have access to an enormousamount of shopping trend data. With direct access to millions ofconsumers on a daily basis, we’ve leveraged our partnerships tomore precisely discover the influence that online CGC has on instore sales.The ROBO economy: How reading reviews impacts offline salesSince kicking off this research in 2015, we’ve already collectedover two million data points across hundreds of productcategories. This data is sourced from consumer purchase behaviorwithin global retail stores, so brands and retailers can be confidentthat the ROBO impact that we calculate is not a mere academicexercise, but comes directly from the retail channel where, formany of our clients, the majority of sales occur.In this guide, we examine how shopping has evolved, the role ofCGC in the offline buyer’s journey, and how online CGC isincreasingly translating to in-store sales.Read on to explore our findings and recommendations, and todiscover new opportunities to apply these insights to your ownmarketing programs. Then, give us a call to get your owncalculation of impacted in-store sales from online research (ROBOMultiplier). As always, I hope you enjoy this guide and thank youfor reading.Sara SpiveyCMO2
The ROBO economy: How reading reviews impacts offline sales3
Welcome to the modern state of CGCToday, people express their opinions about products and brands freely in the form ofreviews, social media posts, pictures, videos, and even within messaging apps.Consumer-generated content refers to all forms of digital content that people create abouta product or service they have experienced, used, purchased, or considered.Forms of content can include everything from a critical rating or a comprehensive review,to a picture, a video, or a brief comment. It can be a rich experiential story, or anuncontrollable emotional outburst. Far more often than not, the time and effort to createand share this content is driven by the will of people to help, inform, protect, entertain, orinspire confidence in other consumers.These are the people we know, love, and specialize in: the advocates and detractors. Theirvoices ultimately help brands and retailers to connect with their customers—whereverthey’re shopping.The ROBO economy: How reading reviews impacts offline sales4
Shopping continues to changeThe complex world of interconnected devices, experiences,and feedback-loops has changed retail forever. With newchannels to engage shoppers, the proliferation of mobile, andthe ability to access content on-demand, purchasing powerhas made a clear and definitive shift from the brand andretailer to the consumer. Price Waterhouse Cooper releasedresults of their global multi-channel consumer survey1reinforcing that consumers today want “their shopping needsmet in a way that minimizes uncertainty and inflexibility andmaximizes efficiency, convenience, and pleasure.”Increasingly, consumers consult CGC to make decisions priorto shopping in-store, with many doing their research directlyin the aisle. With their evolving preferences and habits,consumers are no longer using CGC just to research productsduring the consideration phase; they are now using it at anyThe ROBO economy: How reading reviews impacts offline salestime, in any space, due to its easy accessibility on mobiledevices. In fact, mobile has brought the experiences of millionsinto the shopping aisle, bank, dealership, and more. CGC’sinfluence now extends well beyond the product page online.Real-time access to CGC offers plenty of opportunity for bothshoppers and retailers alike.Although the physical store remains their primary touch point,consumers today want and expect a seamless experienceacross all channels. While the mobile-wielding shopper whoresearches, reviews, and compares prices online may haveonce been seen as a threat, retailers must seize theopportunity and provide helpful, targeted CGC content—wherever the shopper is.Is your business ready for this omnichannel shopper?5
36%of our product page viewsare being pulled up on amobile device(phone or tablet)2The ROBO economy: How reading reviews impacts offline sales6
The importance of offlineThe e-commerce industry may be growing, but offline commerce remains important.In fact, the majority of global purchases still happen in a physical store.OC O O92%94%90%99%The ROBO economy: How reading reviews impacts offline sales7
82%of shoppers say theyconsult their phonesabout a purchase they’reabout to make in-store.3The ROBO economy: How reading reviews impacts offline sales8
A reverse in the showrooming trendRetailers used to fear showrooming — the process of consumers using brick-and-mortar stores to touch and feel an item beforemaking that purchase online for less. While that still happens on some high ticket items like electronics, reverse showrooming (whenconsumers go online to research products, but then head to a bricks-and-mortar store to complete their purchase) has now passedup showrooming with more consumers saying they have used online sources to research an in-store purchase. 4ShowroomingThe ROBO economy: How reading reviews impacts offline salesReverse showrooming9
A reverse in the showrooming trend82%This trend is seemingly to the retailer’s advantage,unless you are Amazon. However, a Google study hasshown 82% of consumers have consulted theirphones in-aisle when deciding what to buy. 5Consumers generally turn to the retailer to findthis information, however if they don’t find theinformation they need to make a decision,32% don’t buy the item and another 10%deflect to other retail sites. 1That COULD expose a lower price,especially if that retailer is Amazon.Almost half of consumers would abandonan in-store purchase if they found thatproduct at a 2.5% discount online.When the price discount reaches 20%,87% of shoppers would leave a store. 6So, while a consumer may have walked intoyour store with the intention to buy, a lack ofinformation forced them to look for the sameproduct elsewhere and exposed a price gapthat cost you that sale.You created a showrooming monster.The ROBO economy: How reading reviews impacts offline sales10
Bazaarvoice study: CGC usage for online & in-store purchasesWe’ve partnered with 20 of the world’s leading retailers to research consumerbehavior across 100’s of brands and categories to understand how often shoppersseek CGC before buying online or in-store.2005MORE THAN2.2 MILLIONDATA POINTS TO DATE2016The ROBO economy: How reading reviews impacts offline sales11
54%of online buyersread online reviewsbefore purchaseThe ROBO economy: How reading reviews impacts offline sales39%of in-store buyersread online reviewsbefore purchase12
Products researched online before being purchased offlineAPPLIANCESAUTOMOTIVEELECTRONICSMEN’S APPARELBEAUTYFURNITURETOYS & GAMESTOOLS &HARDWARE58%26%KITCHEN41%40%19%BABY33%The ROBO economy: How reading reviews impacts offline sales54%44%FOOD19%49%32%OUTDOORLIVING37%13
ROBO: A growing influenceA Harris poll found that in 2014, 69% of people were engaging in reverseshowrooming behavior. According to a Google report in 2015, 82% of peopleconsulted their phones in-aisle before making a purchase. As the number ofconsumers who research online and ultimately buy offline (ROBO shoppers)continues to rise, the ROBO shopper — once viewed as problematic for retailers —is now viewed as a significant, new marketing opportunity. The in-store impact ofonline content has become so substantial, in fact, that it’s often the single largestdriver of value from CGC for multi-channel retailers — relative to other value driverssuch as online sales impact from search, sales gains from media efficacy, andproduct returns.64% of U.S. purchasesare researched online, and brands and retailersalike seek to engage this ROBO shopper witheasy access to trusted content. The ROBOphenomenon is particularly significant amongMillennial shoppers. The use of online contentprior to offline shopping has been growing in theranks of 25-34 year olds, with 54% citing thatCGC will influence an in-store purchase.The ROBO economy: How reading reviews impacts offline salesIn the following sections, we’llexplore ROBO influence and insightsfor several broad categories and offerrecommendations to help marketersachieve content volume and reach.With access to such a wide breadth ofshopping data, we can provide notonly category-level insights, but alsosub-category and even brand-levelinsights for ROBO impact.14
So what does that mean?ROBO Multipliers across select categoriesIN-STOREIN-STORE 5.21 5.07IN-STORE 4.29ONLINE 1ONLINE 1ONLINE 1FLAT-PANEL TVXBOX ONEDSLR CAMERAfor every 1 of online revenuethat is influenced by review content,reviews influence another 4.29 of in-store revenuefor every 1 of online revenuethat is influenced by review content,reviews influence another 5.07 of in-store revenuefor every 1 of online revenuethat is influenced by review content,reviews influence another 5.21 of in-store revenueThe ROBO economy: How reading reviews impacts offline sales15
Now that you understand what access to a ROBO Multiplier couldreveal for your bottom line, let’s explore how two differentconsumer journeys and their ROBO Multipliers can provide insights.OFFLINEONLINEROBOThe ROBO economy: How reading reviews impacts offline sales16
ROBO insight: A high ROBO MultiplierWith today’s changing consumer journey, CGC cannot be ignored.Let’s explore Pamela’s path to purchasing a car.Pamela starts by going toGoogle to search for cars byprice, model specs, andvehicle owner reviews.4.8READ OWNER REVIEWS4.94.7Aided by the photos and reviews of otherc a r owners, Pamela feels validated that shewon’t experience buyer’s remorse when shepurchases her dream car: a new two-doorsilver coupe with tan interior, but needs toexperience driving the car at her local dealer.Because the automotivemanufacturer’s site has somuch fresh and relevantreview content, it shows upfirst in the search results soshe decides to click through.After consulting the reviews, comments,and alternate recommendations fromother consumers, Pamela spends sometime at home on her computer,customizing the car of her dreamson the car manufacturer’s website.The ROBO economy: How reading reviews impacts offline salesArmed with research andopinions about the sales andservice experience at her localdealer, Pamela prefers to visitthe showroom to touch, feel,and ‘try on’ the car.After considering all factors, and feelingconfident about the car and the dealerfrom hearing other buyers’ experiences,she decides to purchase the car.When viewing theinventory at the showroom,Pamela uses hersmartphone to confirm avariety of product info.17
For the car manufacturer who sells very few automobilesonline, a ROBO multiplier that is large (large a ROBOmultiplier over 7) indicates that presenting the rightCGC during the right portion of the online journey iscritical to winning that consumer. The manufacturershould also consider the implications of a newer retailtrend, reverse showrooming (see page 9).The ROBO economy: How reading reviews impacts offline sales18
What this means for marketersWhether your goal is to drive more in-store sales or online conversions, youmust take measures now to increase the volume of CGC for your products.Sufficient CGC volume is paramount — particularly when it comes to highticket items, those with health and safety considerations, or whenintroducing a new product or brand. A higher volume of CGC also extendsthe reach of your content via SEO, as Google loves fresh consumer content.OFFLINEONLINE“56% of survey participants said the firstthing they do when researching a purchaseis to use a search engine”1ROBOThe ROBO economy: How reading reviews impacts offline sales19
What this means for marketersIn Pamela’s instance, there were several critical points in her journey that are common for categories with high ROBO scores.Fresh and relevant contentConsumer content at the local levelPrevent reverse showroomingPamela started her search by using Google.Because of the fresh and relevant content onthe automotive manufacturer’s site, Googleranked the car manufacturer very high inorganic search results. This directly impactedwho acquired her at the top of the funnel.When Pamela was investigating what otherswere saying about the product, the reviewsfocused specifically around the sales andservice experience at each location helped herdecide which location would be best to viewthe car. CGC is very important to help drivetraffic to the store environment.Pamela was using her phone at the dealershipto confirm product information and toreinforce her previous decisions about the carand the dealership. If this information was notpresent on the local site, she would have goneto another site to find it. Leaving the site opensup the opportunity to lose the sale if Pamelawas to find what she feels would be a bettercar, better dealership, or a better price for thesame car.The ROBO economy: How reading reviews impacts offline sales20
ROBO insight: A low ROBO MultiplierIt is imperative that you use every tool possible to replicate the in-store experience in the virtual environment — this is a criticaltime to drive trial and conquest your competitors.As an example, Financial Services is moving from a proactiveperson-to-person (agent or banker) sales model to a digitallyenabled, self-directedpath to purchase. Banks and insurers cannotrely on their sales teams the way they once did, because consumersare now empowered with countless online resources to determinewhich financial product is right for them. Compared to otherfinancial services purchases, credit cards have the lowest ROBOmultiplier — but interaction with CGC is still crucial.The ROBO economy: How reading reviews impacts offline salesLet’s examine Brendan’s credit card buying journey. Brendan has beena loyal customer of a major credit card provider for a few years andrecently saw a television ad about the rewards program from acompetitor of his current provider. Interested in the program, Brendanbegins researching the details, the blackout dates, and the bonusrewards, and begins to consider what he could do with the extrapoints. While Brendan finds this information helpful, it isn’t enough forhim to defect. He needs to understand more about the company andthe way they handle their customers. Brendan begins researching whatother customers are saying about the company. He looks at customerservice complaints and security issues, and researches the company’sreputation with handling fraudulent charges. All of these factors areimportant to Brendan and are at the top of his mind when consideringwhether to leave his current credit card provider.21
ROBO insight: A low ROBO MultiplierROBO insight/trendEven though there are minimal scenarios for credit cards where the user will beresearching a product online while in a store environment, having CGC bothonline and in-store is important and yields opportunities where consumers maydefect from their incumbent providers. Without the information he receivedfrom reading CGC, Brendan would have been significantly less likely toconsider switching credit card providers. Hearing from other users about theway the company handles customer service and fraud issues was critical toBrendan’s decision to defect. Moreover, by already having this content inBrendan’s research location, we reduced friction by allowing him to gain theconfidence necessary to convert without seeking information on another site.The ROBO economy: How reading reviews impacts offline salesPlace your contentwhere your buyers aredoing their research22
What this means for marketersSearchGreat dealsavailable now!SEE ALL OFFERSHome Make Model Year ReviewCar Model ReviewTop Expert-Rated 2015 Models4.4LOVE!4.9Compare4.84.84.6SEE ALL OFFERSProvide CGC information whereyour customers are researchingFor brands, this means having CGC on yoursite is important, but syndicating to your retailpartners is just as important. For retailers, thismeans that you have to make it glaringlyobvious where to find this information on yoursite and specifically on your Product DetailPages (PDPs).4.9Drive category-level trafficFor customers who are performing productsearches at the category level, having CGC inthe appropriate places on your website willallow for higher rankings in organic search,therefore driving increased levels of traffic.This is paramount for low ROBO productsbecause there is no opportunity to use shelfplacement as a tool.The ROBO economy: How reading reviews impacts offline salesUse rich content to generateconfidence in your customersWith low ROBO products, it doesn’t mean thecustomers aren’t interested in learning aboutthe details of the product. Not only do theycare about reviews, but they are alsointerested in learning about the look and feelof the product. The more you’re able toreplicate the in-store environment in a virtualshopping experience, the higher thelikelihood of conversion. Photos and videosare a great way to contribute to this.23
Embrace the ROBO opportunityUnderstanding where your brand and products fit in the minds of shoppers canoffer critical cues to help optimize your marketing mix. Whatever the price orconsideration level of your product is, all purchase decisions require some levelof evaluation and investment—of time and money—and with that investmentcomes risk. CGC helps mitigate that risk and instills the confidence in shoppersthat they are making the right decisions.Moreover, knowing your ROBO multiplier empowers you to demonstrate theoverall impact of your digital strategy. The ROBO multiplier is another tool tovalidate your assumptions and confirm the added value of online marketingactivities. Specifically, ROBO allows you to claim in-store sales and contributionand gives you the ability to quantify incremental sales as a result of consumergenerated content.The ROBO economy: How reading reviews impacts offline salesROBO24
Consider the following ROBO opportunities:123Guide consumers fromconsideration to purchase:Create a seamless experience:Use photos and videos fordiscovery:Increase CGC volume to offer moreperspective and give shoppers theconfidence to convert.Whether your goal is to drive more in-storesales or online conversions, sufficient CGCvolume is paramount — particularly when itcomes to high-ticket items, those with healthand safety considerations, or whenintroducing a new product or brand.Integrate CGC in-store to help guideshoppers, introduce newproducts/brands, and encouragealternate brand decisions.Companies are embracing how CGC makesshopping easier for consumers. Instead ofhiding or avoiding what shoppers are sayingabout their products, retailers are embracingputting CGC front and center to pivot from aconversation based on company branding toone informed by consumer experience,increasing the confidence and trust not only inthe product but also in the consumer’sshopping experience.The ROBO economy: How reading reviews impacts offline salesProminently feature consumer-generatedreviews, photos, and videos throughoutyour online experience.Consumers often go to a brand ormanufacturer’s website to research a product,but then they need to find a retail outlet thatsells the product. Now, armed with theseproduct specifications, consumers leverageCGC to help them determine the best retailersfor seamless services such as fast and on-timedelivery or in-store pick-up.25
What’s your ROBO Multiplier?From traditional word-of-mouth, to photos and videos shared in real-time on social media, CGC is ever present in ourworld today. It influences millions of shoppers everyday, and whether it’s the content that drives discovery or the CGC thatinfluences a purchase decision in-aisle, consumers have come to rely on the recommendations of people like themselvesin just about every decision they make.Leading brands and retailers address this by proactively fostering a CGCecosystem that continuously fuels consumers’ confidence. By askingexisting customers and past purchasers to provide feedback on productand services, and distributing this feedback with consumers consideringpurchase, they are able to create an ever-expanding feedback loop thatultimately spurs trust, business, and loyalty.Ready to know how your sales are influenced byCGC? Knowing your ROBO Multiplier gives you achance to get ahead of your competition – to movefaster and build for the omnichannel consumer.In this guide, we examined the role of CGC in the offline buyer’s journeyand how online CGC is increasingly translating to in-store sales. Whetheryour business is primarily online or brick and mortar, it’s no secret that theworld is changing. The incorporation of CGC offers exciting newopportunities to attract shoppers, encourage an engaging and transparentconversation about your products, and ultimately, give them theconfidence to buy. Furthermore, finding your ROBO multiplier helps youdemonstrate the overall impact of your digital strategy. Having yourspecific ROBO multiplier allows you to quantify incremental sales as aresult of CGC, as well as claim your contribution to in-store sales.Click here to get your custom infographic and ROBOMultiplier today!The ROBO economy: How reading reviews impacts offline sales26
YourLogoHere[Your Company] ROBO MultiplierThe ROBO Multiplier is the amount of in-store revenue influencedby reviews for every 1 of online revenue influenced by themWe researched consumer behavior from 20 of the world’s leading retailers in North America, EMEA, and APAC, across 100’s ofbrands and categories to understand how often shoppers seek consumer-generated content (CGC) before buying online or in-store.% Research online/buy offline% Research offline/buy onlineOverall ROBO multiplierVisit www.bazaarvoice.com/ROBO to learn moreThe ROBO economy: How reading reviews impacts offline sales27
Sources1.“Total Retail 2015: Retailers and the Age of Disruption” Price Waterhouse Cooper. February umer-survey/assets/pdf/total-retail-2015.pdf2. Bazaarvoice first-party data3. ”5 Ways Consumers Connect to Stores With Mobile Shopping” Google Think. February s-consumers-connect-stores-mobile-shopping.html4. “Reverse Showrooming: A Look at the Other Side” Goulston & Storrs. September erse-showrooming-a-look-at-the-other-side/5. “How Micro-Moments Are Changing the Rules” Google Think. April icromoments-are-changing-rules.html6. “Showrooming: Most Say They’d Need At Least A 20% Price Gap To Abandon the Store” Marketing Charts. April ks-showrooming-price-differentials-apr2013/The ROBO economy: How reading reviews impacts offline sales28
About BazaarvoiceBazaarvoice is the world’s largest network of active shoppers, connecting more than one-half billionconsumers to thousands of retailers and brands that represent tens of millions of products and services.Online, in-store, and on mobile devices, Bazaarvoice’s technology platform engages consumers,increases sales, and protects loyalty through authentic ratings and reviews, Q&A, and brand-relevantphotos, videos, and social posts. Interactions across the Bazaarvoice network yield insights on past,present, and future shopping behavior, enabling marketers to identify competitive advantage.For more information, visit http://www.bazaarvoice.com, read the blogat http://www.bazaarvoice.com/blog, and follow on Twitter at http://www.twitter.com/bazaarvoice.The ROBO economy: How reading reviews impacts offline sales29
Bazaarvoice study: CGC usage for online & in-store purchases We've partnered with 20 of the world's leading retailers to research consumer behavior across 100's of brands and categories to understand how often shoppers seek CGC before buying online or in -store. 2016 2005 MORE THAN 2.2 MILLION DATA POINTS TO DATE
