The ConnectedEconomyContinental drift

Table of ContentsContinental drift: Deep distinctions among European shoppers 2

Priorities and trust factors yielded divergent early steps 5

French consumers sought high review volume; Germans were more trusting when reviews were objective 6

Germans fully embraced mobile commerce; UK shoppers used mobile for research 9

French consumers felt a responsibility to contribute feedback, unlike Germans 10

Definitions 12

About Bazaarvoice 13

Sources 15

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Continental drift: Deep distinctions among European shoppers European shoppers are quickly climbing the digital maturity curve, but they’re on separate tracks. While both social and online shopping are increasingly popular across the continent, the related habits, beliefs, and motivations of European consumers are as distinct as their national cuisines.

We performed deep qualitative research with groups of consumers from France, Germany, and the UK. Our researchers combined shopper observation with in-depth interview sessions to reveal some of the hidden motivators and attitudes behind the online behaviors of these three cohorts.

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If [reviews] are honest, a simple critique of the machine… then I’m more persuaded by that than the glossy [marketing] message.”

UK respondent

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I tend to go to the store, check out [feedback], then buy online.” German respondent

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Priorities and trust factors yielded divergent early steps All three groups began product research on search engines by performing product category searches (searches not specific to a brand or retailer, such as searching “televisions” or “refrigerators”), but their paths split at the results pages.

The UK shoppers tended to click through to the official shopping site of a “High Street” (i.e., large, commonly known) retailer they recognized and trusted. “I tend to go with one store,” explained one respondent. “Checking others is a pain.”

The French shoppers, in contrast, chose to focus on the manufacturers they trusted, giving less weight to the retailer selling it. Recognized brands are “more reliable,” said one respondent, “I trust them more.” Buying based on brand was “very important,” according to the majority of French respondents. One French shopper explained that brands convey more confidence in post-purchase support — if there is a problem, the consumer knows they can reach brand representatives. External research found that 83% of French online consumers put “looking for a particular brand” in their top five reasons for visiting a particular retailer website.1

Meanwhile, German shoppers de-emphasized brand and retailer to focus instead on price, and headed to price comparison sites. One respondent remarked that brands aren’t as important if the product “looks good and the price is acceptable.” “Price first, brand secondary,” agreed another.

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French consumers sought high review volume; Germans were more trusting when reviews were objectiveFrench shoppers were much more likely to check multiple sites for consumer feedback, looking for a higher volume of reviews containing consistently positive average ratings. One French respondent detailed how, upon finding a product she likes, she checks reviews on the manufacturer’s product page, then the retailer’s product page, and finally an independent third-party site before she’s satisfied.

Feedback was especially important when French respondents hadn’t yet established loyalty to a brand in an unfamiliar category; they looked to reviews to uncover which brands other consumers trust. They also looked for both positive and negative comments, saying that seeing a few bad comments mixed in with the good helps assure them that the good ones are genuine.

German consumers, on the other hand, indicated their complete confidence in, and heavy reliance on, reviews. “I want to know how satisfied people are with those products,” said one respondent, adding, “I trust comments from anywhere.” “I try to buy from a place with at least some reviews,” said another. “Some sites don’t offer enough useful comments,” remarked a third. He and others agreed: When reviews included detailed, systematic analysis rather than just subjective opinion, there is no need to check other sites for feedback.

The UK consumers, meanwhile, indicated that reviews go hand in hand with price. They looked for an item with a relatively strong average rating for the price, along with a high number of reviews. This, they posited, mitigates the risk of buying low-quality items. On the flipside, some indicated that reviews are especially important when buying big-ticket items. “I’d check reviews for a TV, but not a USB stick,” commented one shopper.

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Germans fully embraced mobile commerce; UK shoppers used mobile for research German respondents were enthusiastic about using mobile in stores for price checking and research. “I have a barcode scanner. Then you can see prices right away at other stores,” said one respondent. “I found a cheaper deal online, then I bought it online.” And price isn’t the only thing they looked for via mobile. “I always look at the internet [via mobile] and check customer comments,” explained another respondent.

The German consumers shared numerous stories of researching products on their phones while in stores, and were perfectly comfortable with ordering the product straight from their phone when a lower price was available.

While UK consumers also used their phones in stores for research, they were more hesitant to buy. “I check everything on my phone,” remarked one respondent, adding that he doesn’t buy via mobile. “I wouldn’t put my bank details onto my phone,” said another. “I’ve lost my phone, so if my bank details were in there, that would be bad.” A third agreed. “I don’t think that’s secure.”

Instead, UK consumers were prone to make online purchases later, at home, or from the store they were in if they’d rather not wait. “I definitely do look at reviews” in stores, reported one shopper, relating how she’d recently pulled out her phone to check feedback on a discounted skin cream during a visit to Boots. Seeing the glowing reviews, she “bought every box on the shelf.”

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French consumers felt a responsibility to contribute feedback, unlike GermansThe French group told us that they feel a strong obligation to contribute feedback, and feel badly when they do not.

“I’m not a good consumer,” admitted one French respondent upon confessing that he doesn’t contribute reviews. Another feels a “moral obligation” to contribute feedback and help others make the right decision.

German respondents didn’t mirror this sense of responsibility, despite the fact that they were more reliant on reviews than their British and French counterparts. When asked if she writes her own feedback, one consumer replied, “No. Funny right, since I use them?” “I forget,” laughed another. “But I appreciate all these customers [who do leave feedback].”

The UK respondents who didn’t write reviews showed mixed feelings about whether or not they ought to. Some remarked that it “isn’t my job,” but others confessed to the same guilty feelings as their French peers. “I always look through customer reviews,” said one. “I feel a bit naughty that I use them and should contribute.”

I feel a moral responsibility to contribute comments when I use them.” French respondent

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Definitions Conversion Rate % Lift

What it is: The percentage of visits that end in a transaction, measured in percentage lift for visitors who have interacted with user-generated content over visitors who have not.

Why it’s important: Use this to determine the impact of user-generated content on closing the sale.

Average Order Value % Lift

What it is: Total revenue generated divided by total number of orders, measured in percentage lift for visitors who have interacted with user-generated content over visitors who have not.

Why it’s important: Use this to determine the impact of user-generated content on the dollar amount of the average transaction.

Revenue Per Visit % Lift

What it is: Total revenue divided by total visits, measured in percentage lift for visitors who have interacted with user-generated content over visitors who have not.

Why it’s important: Use this to determine the impact of user-generated content on the average revenue earned per visit.

Net Promoter Score (NPS)

What it is: Consumers’ likeliness to recommend your company.

Why it’s important: Use this to determine customer satisfaction — how your company is performing in the eyes of your customers.

Repeat Reviewers %

What it is: The percentage of total reviews written by those who have contributed two or more reviews over a specified period of time.Why it’s important: Use this to measure customer engagement and identify brand advocates.

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About BazaarvoiceBazaarvoice, a leading social software company, assists clients in bringing the voice of the customer to the center of business strategy. With over 2,000 clients globally, including over half of the Internet Retailer 500, over 20 percent of the Fortune 500 and over one-third of the Fortune 100, Bazaarvoice helps clients to leverage social data derived from online word of mouth content to increase sales, acquire new customers, improve marketing effectiveness, enhance consumer engagement across channels, increase success of new product launches, improve existing products and services, effectively scale customer support, decrease product returns and enable retailers to launch and manage on-site advertising solutions and site monetization strategies. This online word of mouth content can be syndicated across Bazaarvoice’s global network of client websites, shopper media sites and mobile devices, making the user-generated content that digital consumers trust accessible at multiple points of purchase. Headquartered in Austin, Texas, Bazaarvoice has offices in Amsterdam, London, Munich, New York, Paris, San Francisco, Stockholm, and Sydney. For more information, visit www.

bazaarvoice.com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice.

Column Five Media created the visualizations for The Connected Economy, based on data from the Conversation Benchmarking Tool (bv-url.com/

benchmarking)

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Sources“Continental Drift”

1. “In the New Economy, ‘Access is More Powerful Than Ownership,’” DLD, January 2012 http://dld.tumblr.com/post/16349836711/in-the-new-economy-access-is-more-powerful-than

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