A New Breed of Online Shopper – Social Shopping 101

Written by Pablo Palatnik on November 14, 2007

It’s about that time of year when you’re probably having your best sales to date since the holidays are around the corner and people are starting to shop as of now.

If you’re selling a product on your website, besides having quality pictures of the product itself and good content, what else could entice the user to make the purchase? PEER FEEDBACK. I’ve been meaning to blog about this for a while now until I just saw this research study by the e-tailing group which proves this very important aspect of shopping online.

Reviews from buyers are so important…buyers are sheep (for the most part) and that’s why trends become trends…people tend to follow other people if other people think its good or cool. Product reviews act as that for many online buyers.

“The study sought (1) to understand how online shoppers use reviews to make informed buying decisions, and (2) to explore consumers’ preferences and interests in “Social Navigation” - or the ability to narrow product selections based on reviews from like-minded people with similar interests.
Some 70% of all online shoppers said customer reviews and ratings on a retailer’s website were extremely or very important when they are selecting and purchasing products, followed by 62% citing a top-rated products list (as rated by customers):

Among the respondents, 65% were identified as Social Researchers - consumers who actively (always or most of the time) seek out and read customer reviews prior to making a purchase decision:

Social Researchers were found to engage in the use of reviews across all behavioral areas at a rate 20% higher than average online shoppers:

* 86% of Social Researchers find customer reviews extremely or very important, vs. 70% of all online shoppers.
* 76% of Social Researchers find “top rated product” lists to be extremely or very important, vs. 62% of all online shoppers.
* 64% of Social Researchers research products online more than half the time, no matter where they buy the product (store, web, catalog, etc.)

How online shoppers, particularly Social Researchers, perceive Social Navigation was also examined.

* Some 82% of Social Researchers (vs. 75% of all online shoppers) found reading reviews better than researching a product in-store with a knowledgeable sales associate.
* 76% of Social Researchers (vs. 69% of all online shoppers) are more likely to shop on a retailer’s website - vs. its competitor site - if it offers social navigation.
* 75% of Social Researches (vs. 64% of all online shoppers) found it extremely or very helpful to narrow product selection based on feedback from people like them (with similar interests).

If you are selling product on your website, I’d advise to start putting up some product reviews or ratings and test if it starts to convert better.