online reputation in the e-commerce arena - vincenzo calenne, ciao, at internet world

Online Reputation in E-Commerce Arena

Vincenzo CalenneTeam Leader Sales Ecommerce Ciao UK

Today‘s Agenda

Ciao at a Glance

Importance of Online Reputation

Criticism as an Opportunity

Conclusion

Ciao at a Glance

Ciao At a Glance About ciao.co.uk

Source: ComScore, March 2011

Media Total Unique Visitors (000) % Reach Average Daily

Visitors (000)Total Pages

Viewed (MM)Total Visits

(000)Average Minutes

per VisitAverage Visits per

Visitor

Total Internet : Total Audience 41,309 100.0 32,756 113,210 2,899,410 26.3 70.2

Comparison Shopping 15,831 38.3 1,268 188 40,390 1.9 2.6

1 Shopzilla.com Sites 3,967 9.6 182 16 5,929 1.1 1.5

2 3,345 8.1 117 18 3,834 1.5 1.1

3 LOWPRICESHOPPER.CO.UK 2,303 5.6 102 10 3,258 1.1 1.4

4 SUPAPRICE.CO.UK 2,196 5.3 95 7 3,034 1.3 1.4

5 Shopping.com Sites 2,158 5.2 105 7 3,388 1.1 1.6

6 ValueClick Sites 1,578 3.8 85 9 2,715 1.9 1.7

7 Nextag.com Sites 1,353 3.3 50 5 1,631 1.5 1.2

8 Twenga 1,195 2.9 52 5 1,671 1.2 1.4

9 DEAL24.CO.UK 1,173 2.8 48 4 1,538 0.8 1.3

10 SMARTERDEAL.CO.UK 1,107 2.7 46 3 1,458 1.2 1.3

#2

#5

#1 #1

#1 #1

#3 #3

Ciao At a Glance About Europe

Source: ComScore, March 2011 based on unique visitors

Ciao At a Glance What is ciao.co.uk?

price comparison

…and many product offers

Ciao At a Glance What is ciao.co.uk?

users opinions on products

users opinions on merchants

Ciao At a Glance What is ciao.co.uk?

importance of online reputation

Merchant Selection

Purchase Experience

Share personal Experience

Product Selection

Buying Cycle consumer decision making process

Consumer Advice & opinions

Advice & opinions

Research

I don't know

Merchant advice

Personal experiences

Opinions of friends and family

Expert opinions

Other consumers experiences

Source: Penn, Schoen, Berland Associates, Inc., LinkShare Trend Watch Research: New Info Shoppers, Recession Buyers and the 2009 Online Shopping Outlook, 2009

Purchase Decisions: what really mattersonline and offline factors

46%

24%

16%

8%

3%

2%

Can we trust other users experience?consumer experiences matter

Source: “Trends 2009: European Online Retail”, Forrester Research

Sweden

Netherlands

France

Spain

UK

Italy

Germany

56%55%49%49%49%40%38%

“People are looking to own the research process, not to be told by either salespeople or advertisers what the product is about.”3 -Penn, Schoen & Berland Associates

79% of online UK retailers surveyed reported that the main benefit of consumer-generated

rating and reviews was that they improved site conversion rates.2

-eMarketer, 2009

68% of users have changed their

purchase decision based on other

consumer reviews.1

Power Shifting: advertiser to consumerconsumer reviews

Source: 1Ciao User Survey ciao.co.uk, April 2011 | 2eMarketer, 20093 Penn, Schoen & Berland Associates Market Research 2010 |

Moderate or delete comments

Respond privately to the criticism

Respond publically (in the same forum)

to the criticism

Ignore it Other Don’t know

How do you deal with criticism with your product / company

on the Internet?

37%

Source: Visitor survey at Internet World London, April 2009

Online Criticismhow do you deal with criticism?

38%

4%14%

3% 4%

consumer portals

business networks

editorialtests

blogs

social communities

manufacturer sites

forums

online shops

Sources of Informationconnect via social platforms

Sources of Informationconnect via social media

Source: Social Media Prism, Ethority.de

Online Criticismnegative review: typical situation

fear suspicion

frustration

distrustuncertainty

Online Criticism how do you react?

Action vs Passivenegative review: response

Action vs Passivefeedback request within email reply

Action vs Passiveother examples: UK

Action vs Passiveother examples: Spain

Action vs Passiveother examples: The Netherlands

Action vs Passiveother examples: Italy

Conclusion

Assign Resource

Identify relevant sites

Check regularly

Understand criticism as an opportunity

Develop dialogue

Conclusion

Vincenzo CalenneTeam Leader Sales Ecommerce Ciao UK

vincenzo.calenne@microsoft.com

Ciao Commerce DivisionMicrosoft Deutschland GmbH

Leopoldstrasse 23680807 Munich, Germany

Ciao on the Internet:http://ciao.co.uk

http://www.ciao-group.comhttp://twitter.com/ciao_uk

http://www.facebook.com/ciaouk

Thank you!