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How Review Platforms are Incentivizing Authentic Reviews

Posted on August 6, 2019January 24, 2020 by Mindstream Media Group

User-generated content (UGC) is a powerful component of any business’ digital marketing strategy. This can scare marketers, as businesses often have little control over UGC that comes in the form of ratings and reviews. Still, there’s no denying the impact of UGC; Ninety percent of consumers say user-generated content influences their purchases, and 53 percent say UGC is “extremely influential” or “very influential.” While no one can argue against the power of online reviews, review platforms and users alike will argue the ethical practices for garnering more reviews. As a result, industry-leading review platforms are taking steps to incentivize authentic reviews that customers can rely on.

Businesses must be aware of programs that incentivize real reviews because reviews can help build your brand’s authenticity, impact your online reputation, and ultimately, affect consumer purchase decisions. In this article, we’ll dissect three programs from industry-leading review sites that are designed to incentivize real reviews, as opposed to positive/negative reviews that were written as a result of bias or solicitation.

Google Local Guides

As Google expands the capabilities of Google My Business and Google Maps, the company has also given users the ability to provide much more than simply reviews and a star-rating. Google introduced the Local Guides program four years ago as a way to identify users who have “on-the-ground expertise and a commitment to sharing everyday experiences that informs real-time decisions across the globe.” The program has since grown to include 60 million Local Guides.

Local Guides contribute to Google Q&A, share photos, write reviews and update Google Maps information about places and businesses. Google will sometimes request specific content from Local Guides, such as pictures of food from local restaurants. Local Guides are rewarded for their contributions with points, status-levels, and in some cases, gifts.

Google continues to expand the program, recently incentivizing Local Guides to create public lists, such as, “My Favorite Places” and “Places I Want to Go.” Local Guides can now earn points simply for creating public lists of their favorite places.

Depending on how many contributions they share, Local Guides can rise up the ranks on levels from 1-10. The more points, the higher the rank. Local Guides who rank higher get special gifts from Google, including everything from 100GB of storage space to customized socks. Google also gives Local Guides early-access to new technologies, such as augmented reality walking directions within Google Maps. Google has turned the idea of reviews into a game for Local Guides – users are striving to achieve more points, or earn those additional badges. However, if a Local Guide’s review is reported as fake, Google will penalize that user by banning them from the program. So to be clear, Google is not using these incentives to encourage positive reviews; rather, they are incentivizing authentic reviews from verified Local Guides.

Yelp Elite

Members of Yelp Elite are the most active users of the review platform. They must write at least 40 quality reviews per year, have a detailed profile on Yelp, and continually interact with other members of the Yelp community. Once users achieve this level of activity, they can either nominate themselves for Elite status or be nominated by another Yelp user. After a user is nominated, their profile is reviewed by a Yelp employee, who can choose to add the coveted “Elite” badge to user’s profile.

Since Elite status is only given to users who have been vetted by a real Yelp employee, it’s not easy for users to con their way into Elite status. Elite status is also only good for one year, after which the user can re-apply for the program. Marketers can take advantage of the Yelp Elite program by personally inviting Elite members into the business location, or hosting an “Elite Event” open only to Elite Yelp users.

Business can find, identify and contact Elite members on Yelp. This can present problems, as Elite Yelpers who are invited to private parties by businesses might be more inclined to leave a positive review. Conversely, some businesses have actually punished Elite Yelpers who leave bad reviews, as was the case with this hotel that handed out fines for negative reviews.

Verified Purchases on Amazon

Customer reviews are serious business on Amazon. So much so that members of Congress recently wrote a letter to Jeff Bezos asking what he planned to do about fraudulent reviews.

The “Verified Purchase” is one way Amazon does attempt to verify authentic reviews. According to Amazon, this tag on a review means, “we’ve verified that the person writing the review purchased the product at Amazon and didn’t receive the product at a deep discount.” Amazon also updated their review algorithm to give weight to reviews with the Verified Purchase tag. A 5-star review with a Verified Purchase tag matters more to a product’s rating than a 5-star review from an unverified customer.

While Amazon has tried to use the “Verified Purchase” tag to identify authentic reviews, some outlets are reporting that this system is easily corrupted. In some cases, Amazon sellers can encourage customers to buy a product and leave a positive review, only to refund them for their purchase later on. To Amazon, it still appears as though the customer made a legitimate purchase and left a legitimate review. The Verified Purchase program isn’t foolproof, but it is a step in the right direction in Amazon’s efforts to ensure review authenticity.

All marketers want more reviews, but since each review platform has strict guidelines against incentivizing users for reviews, best practices must always be considered. And while platforms are offering incentives for authentic reviews, none of the programs mentioned in this article are foolproof, but each program is part of an ongoing effort by review platforms to help customers and businesses by eliminating fake reviews. Marketers can do their part by responding to all reviews and asking for more information on negative reviews in order to determine the cause behind the review in order to make proactive changes to their business. The challenges that come with online anonymity may prevent review platforms from ever eliminating all fake reviews, but each of these programs is a positive step towards review authenticity.

Need help staying on top of reviews? Contact Mindstream Media Group to find out how our local social marketing solutions can amplify your brand’s presence.

Ratings and Reviews: What Marketers Need to Know

Posted on July 22, 2019January 24, 2020 by Mindstream Media Group

As consumers in the digital era, we no longer have to battle the uncertainty that was previously associated with buying a new product. Thanks to product reviews and ratings, we now have insight into other people’s experiences – the good, the bad and the ugly – which in turn helps guide our buying decisions.

And we’re not just referring to physical product purchases, either – the interest in and value of service-related reviews cannot be understated.

The concept of consulting your BFF (the internet) for information before making a buying decision is nothing new, but the implications for marketers are becoming increasingly important as this word of mouth advertising continues to carry more weight in the eyes of consumers.

As a marketer, if your brand isn’t keenly aware of and actively managing online reviews, you’re behind the curve. This is particularly important since, according to the Local Search Association (now Localogy) and SOCi’s recent Localized Social Marketing Benchmark Report, ratings and reviews are key elements in creating a comprehensive LSM strategy and businesses doing this well are growing revenue 3x faster than their peers.

Now, more than ever before, it’s crucial that you know what consumers are saying about you, where they’re saying it and what you can and should be doing about it.

Top Review Sites

There are countless websites where consumers can visit to get relevant reviews, ratings and recommendations. We’ll cover a few of the top sites to get you started. It’s important to note, also, that while brands do continue to include testimonials and recommendations on their own websites, those reviews are seen as more screened and less authentic than ones on trusted review sites.

Amazon

For product purchases, Amazon is the go-to source for reviews, even if a person is not even planning to buy on the site. A study conducted by Salsify last year found that more than half (51 percent) of U.S. digital buyers trust Amazon for the most useful product information. According to eMarketer’s Andrew Lipsman, “More buyers and products means a higher volume of reviews, many of which are in-depth and provide the level of assurance shoppers want before they make a purchase. As more purchases beget more reviews, and more reviews beget more purchases, this creates a virtuous cycle for Amazon that helps explain why the company owns almost 50 percent of the U.S. ecommerce market today.”

In product reviews, 60 percent of internet users say that product performance information is the most helpful, followed by purchaser satisfaction and product quality. Surprisingly, value is ranked sixth, meaning buyers aren’t always looking for the best deal.

Google

While Amazon wins in product reviews, Google receives the most overall reviews and traffic viewing those reviews. Why? Well, everyone is already searching for local businesses, products and services on Google, so naturally their reviews fit into the research stage of the consumer’s buying journey. And compared to other review sites, Google has more user accounts and a seamless process for users to leave reviews. Google dominates the review market, with 64 percent of consumers saying they are likely to check reviews on Google before visiting a business (2018 Online Reviews Survey by ReviewTrackers).

Google reviews also show up in search results and can affect your search engine optimization (SEO), so they are critical in establishing your brand’s credibility.

Facebook

When a 2018 BrightLocal study asked, “What are the most important review sites for U.S. local businesses,” 71 percent of respondents listed Facebook. It’s no surprise the top social media network is a source of this type of information, considering the sheer size – 171 million monthly users, to be exact – and demographic / geographic makeup of its user base.

Yelp

Yelp’s self-proclaimed purpose is “to connect people with great local businesses.” So instead of selling products directly, ruling the search game or being a social media giant, their focus boils down to consumer reviews. With an average monthly unique visitor count of 69 million, Yelp most certainly demands attention – not just from consumers, but from advertisers as well.

How Can Marketers Best Address Ratings and Reviews?

While ratings and reviews are ultimately in the hands of consumers, there are steps that marketers can take to improve your web presence and online reputation.

Confirm Your Data and Claim Your Listings

First, it’s important that all your necessary business information like address, phone number, hours of operation, industry, etc. is accurate across the web. A solution like our Listings Management Program streamlines this process by optimizing all of your local data to build out local listings on Google and other sites, then syndicates that data across the web.

You’ll also want to optimize your listings on major review sites by adding photos, specials and other relevant content in order to improve your online presence and help generate more traffic.

Know About the Reviews

Next, you’ll want to make sure you’re seeing the reviews your business receives. The easiest way to do this is to invest in a reputation monitoring program that aggregates all of your reviews into one dashboard, or better yet, partner with an agency like Mindstream Media Group, that offers this service.

You’ll also need to monitor your social mentions that aren’t necessarily in the form of a review. Whether positive or negative, these mentions can help you address any issues, engage with consumers or shape your future marketing strategy.

Respond to Reviews

Over 53 percent of customers expect businesses to respond to their online review within seven days, according to the 2018 ReviewTrackers survey previously mentioned.

If they’ve taken the time to write a review, be it good or bad, most expect to be acknowledged. They want to be addressed and interact, and brands should seize the opportunity to create a meaningful connection with that customer.

Negative experiences tend to generate more reviews than positive ones. And while it may be difficult to address a negative review, there’s actually a huge benefit in doing so. Forty-five percent of consumers say they’re more likely to visit a business if it responds to negative reviews. But still, it seems that brands are falling short – over 63 percent of consumers report never hearing back from a business after leaving a review.

Solicit Reviews

Three-quarters of consumers are willing to leave a review if asked, but just because they are willing doesn’t mean they will. To address this opportunity, make sure to educate your customers on where to go to review your business. Post a flyer in your store, include a mention on your printed receipt or better yet, ask your customers personally after thanking them for doing business with you – but be careful, it’s generally against policy (and unethical) to incentivize people to leave a review.

The Takeaway

Reviews and ratings matter now more than ever. They’re trusted and highly impactful in the consumer decision-making process, so our No. 1 recommendation is simply to provide amazing customer service. Easier said than done, but brands and companies who care about their customers and provide great customer service tend to have better reviews. Providing a great experience and letting your customers know they’re appreciated really do make a significant impact on your bottom line.

Need help managing the online reputation for your multi-location business? Contact Mindstream Media Group to find out how our local social marketing solutions can amplify your brand’s presence.

Advertising and Amazon Prime Day 2019

Posted on July 14, 2019January 24, 2020 by Mindstream Media Group

Prime Day is here! This 48-hour sales event of summer is primed (see what I did there?) to eclipse past years’ sales and outshine Black Friday. As a consumer and marketer, I’m eager to explore both sides of the coin, and of course, add everything to my Amazon cart.

Let’s dive in.

Prime Day for Consumers

Some experts caution shoppers to jot down their needs (and wants) prior so you avoid impulse shopping, but know those coveted lightning sales and general sales may not be the best bang for your buck.

Consumers still value shopping around to find the best deals possible. While 68 percent of Adlucent survey respondents are planning to shop Prime Day, they’ll still comparison shop to find the best deal. Companies like Target, Walmart and eBay are eating up this opportunity to not only compete but take advantage of this shopping holiday. Walmart – the biggest Amazon competitor – claimed nearly 50 percent of online sales outside of Amazon, according to Marketing Land.

Prime Day for Advertisers

It’s easy to get caught up in the 48-hour window media planning frenzy by spending high dollars in paid search and social, but long-term ecommerce media planning is key. This is a marathon, not a sprint. Advertisers should examine their product listings to maximize Prime Day shoppers, but set themselves up for later back-to-school and holiday shopping. A Profitero study of more than 1,600 products on Prime Day 2018 found increases in sales were dependent on the sales discount.

Discounts of less than 20 percent delivered a two-time increase in sales, while not severely impacting profit margins – sales of 21-30 percent delivered sales gains of 493 percent, while 31-40 percent discounts generated a boost of 767 percent, according to eMarketer. Some of this revenue and product movement comes from Lightning Deals, which is limited-quantity, limited-time offers that can give products a broader reach/exposure. Lightning Deal prep is a perfect opportunity for companies to gear up presence – both organically and paid – to participate in these coveted deals since they’ve since closed entry in May.

Joe Kaziukenas, CEO and Founder of Marketplace Pulse says, “The lift in sales you’re going to have by doing a Lightning Deal is obviously going to be multiple times greater than if you just expected an organic lift off a Prime Day. If you want a big increase in sales, and thus a big increase in popularity on Amazon, then a Lightning Deal is probably the best way to do it. Ultimately, you kind of give up the market for it.”

The Prime Day Halo Effect

Profitero conducted an analysis of “more than 13,000 products that grew traffic at least 50 percent on Prime Day 2018 vs. two weeks preceding the event to examine how the products performed post-event. The results found a strong halo effect where 66 percent of products analyzed had elevated sales levels two weeks after. And of those products experiencing a halo effect, there was an average traffic increase of 37 percent during the two-week, post-event period as compared with the two-week, pre-event period. Conversion rates declined from 24 percent to 22 percent during those times, but given the significantly higher traffic levels, brands still came out way ahead in driving post-event sales.”

Prevailing Beyond Prime Days

Prime Day is just two days in a long season, so what’s the big deal for your media plan? The estimated $5 billion in sales over the next two days should pique your interest, but your presence in the Amazon powerhouse can show long-term growth for your brand. (Learn more in our previous Amazon ad blogs.) An estimated 57 percent of brands utilize paid advertising on Amazon, and of those, 69 percent saw revenue growth over time. When talking dollars and sense when looking at Prime Day advertising cost on sales versus an annual (total) Amazon cost on sales, you’ll end up with the better deal long term.

You’ll see an incredibly high advertising cost on Prime Day, but simultaneously kickstart a flywheel effect that drives reviews and future organic sales. And everyone wins when my Prime packages arrive, and our clients see leaps and jumps when adding Amazon to their cart.

Amazon Prime Day 2018: Top Takeaways for Brand Marketers

Posted on July 17, 2018January 30, 2020 by Mindstream Media Group

Monday marked the fourth annual Amazon Prime Day. This year, Prime Day will run for 36 hours making it the longest version of the holiday yet.

For almost half a decade, the mid-summer tradition has been disrupting the holiday-shopping calendar, with this year’s festivities kicking off July 16th at 3 p.m. on the East Coast.

Even with some initial hiccups this year (more on that soon), Prime Day is still a force to be reckoned with for online and brick-and-mortar retailers alike. Here are the top takeaways for brand marketers from Prime Day 2018.

A dog day afternoon

You might expect some websites to crash from an onslaught of traffic, not Amazon though… right? Well, sure enough, the rush of shoppers on Prime Day was enough to cause significant issues on Amazon’s website and mobile app.

According to reporting from The Verge:

The outage is restricted to the US, and it appears to still be affecting large parts of California and the New York as of 5:30 p.m. ET, with a smattering of smaller outages in the Pacific Northwest and other parts of the country.

Some users have reported being able to access product pages but not the Amazon.com homepage. Some are not experiencing issues at all, while others are seeing the company’s well-known “dogs of Amazon” page, which is the company’s placeholder art during full-blown outages that highlights well-known pets of Amazon employees.

According to downdetector.com, the problems began pretty much right as Prime Day began Monday afternoon.

Somewhat ironically, I was able to replicate this issue while shopping for dog beds around 7:30 p.m. ET, hours after Prime Day began.

Not everyone experienced this issue and apparently, there are ways around it. According to Amazon, despite the glitches, this year’s Prime Day still got off to a better start than 2017.

pic.twitter.com/W4pwEHCO4F

— Amazon.com (@amazon) July 16, 2018

Primed for growth

With an extra six hours of deals, Prime Day 2018 is expected to be the most lucrative edition for Amazon yet. According to projections from Internet Retailer:

Shoppers will spend $4.04 billion on Amazon during its fourth annual Prime Day this year. That’s a 67 percent jump from the Internet Retailer-estimated $2.41 billion in sales on Prime Day last year (held on July 11, 2017). In the U.S., shoppers are expected to spend $2.5 billion, Internet Retailer estimates. Comparatively, last year Amazon grew its overall Prime Day sales by 60 percent year over year during the 30-hour sale.

Amazon Prime Day: Better than Black Friday?

Amazon’s efforts to drive sales during a typically slow season for retail is gaining steam. While it’s still not at the same level as Black Friday, reporting from Business Insider shows Prime Day is starting to close the gap.

Cowen & Co. estimates that Prime Day generated about $1 billion for Amazon last year, while e-commerce sales totaled $5.03 billion on Black Friday, according to Adobe.

But the deals are better than what shoppers might find on Black Friday, according to BestBlackFriday.com. The website analyzed Amazon’s deals on Black Friday and Prime Day in 2016 and found that 77 percent of Prime Day prices were better than comparable deals offered on Black Friday.

According to numbers from the National Retail Federation, Prime Day isn’t just increasing in popularity, it’s also hurting Black Friday shopping numbers. In 2017, roughly 174 million customers shopped in-store and online over the Thanksgiving holiday weekend, down from 226 million in 2011.

Local retailers not ready for Primetime

The majority of retail shopping – roughly 90 percent – still happens at local stores. However, Prime Day made a serious, albeit temporary, dent in that rate in 2017.

According to research from Foursquare:

As compared to an average summer week (excluding July 4th week), we found that all major retail categories saw a dip in foot traffic around Prime Day, with some recovery seen the week following (July 17 to the 23rd).

Other retailers are fighting back

For years, retailers have been experimenting with ways to compete with the e-commerce juggernaut that is Prime Day. This year, retailers continued to ramp up those efforts.

According to reporting from Business Insider:

JCPenney, for example, held its biggest two-day sale this week ahead of Prime Day, and will hold another three-day promotion, called “Cyber-in-July,” starting Monday.

Macy’s, meanwhile, is holding a “Black Friday in July” promotion this week offering 25 percent off most of the site, and Lowe’s is offering 10 percent off sitewide on Monday and Tuesday for new and existing MyLowe’s Customers. Lowe’s is also giving out free Google Home Mini devices to shoppers who spend more than $150 on Lowes.com.

In addition to running their own promotions, many retailers will price-match Amazon’s Prime Day deals. These retailers include Home Depot, Staples, Best Buy and Bed Bath & Beyond.

For its part, Target put on a one-day sale offering online deals store-wide today. A wink to Amazon Prime’s free shipping perk for members, Target is also offering free same-day delivery memberships for six months for shoppers who spend $100 online.

Image source: Target

Apparently this effort to jump on Amazon’s bandwagon is working for retailers. According to data from Adobe Analytics data:

Online visitors to major retailers on Prime Day last year were 35 percent more likely to make a purchase.
Non-Amazon e-commerce outlets saw a 17 percent increase in online purchases.

Want to Fast-Forward your brand’s online sales? Contact Mindstream Media Group to learn about our e-commerce solutions.

Sleeping Advertisers Wake to Amazon’s Giant Opportunities

Posted on March 22, 2018January 24, 2020 by Mindstream Media Group

Bleary-eyed advertisers who’ve hit the snooze button on the Amazon Advertising Platform (AAP) are waking to find it’s time to get caffeinated and catch up on overlooked opportunities.

The company that brings life’s wants and needs directly to 183 million consumers’ doors monthly knows more about their buying habits than Google or Facebook. While Google understands what users are looking for and Facebook knows (probably more than we want it to) about interests and likes, it’s Amazon that knows who is buying what, when and for how much.

Using predictive data from past purchases and real-time shopping insight, AAP serves up arguably the most relevant advertising at the time of decision. This puts advertising across Amazon’s owned-and-operated sites and apps at the bottom of the funnel.

CPG brands, like P&G and Unilever, have been among the first in line to include AAP in their brand and performance marketing strategies. Mega agencies Omnicom Group, Publicis and WPP plan to crank up their ad spend on Amazon between 40 and 100 percent this year, according to the Wall Street Journal. This will come, in part, at the expense of budgets previously tagged for Google and Facebook. So serious about AAP opportunities are ad agencies that WPP opened a Seattle office last year specifically to focus on Amazon, and it bought an Amazon consultancy for good measure.

Amazon advertising isn’t just an e-commerce play either. Brands without tangible products, like Progressive Insurance and Wells Fargo, are placing with the AAP. Other service categories, like moving companies, healthcare and travel, can make big inroads here, if they focus their brand strategy correctly.

Advertising options are plentiful across the sites, which include IMDb and Amazon Prime Video, as well as third-party exchanges. By 2022, Forbes reports that Amazon Prime Video subscriptions will reach 56 million domestically, providing solid audience numbers. While future advertising opportunities for Alexa on Echo have been under wraps, advertisers are taking advantage of ads on skills, like radio or podcasts.

Currently, options across Amazon sites include sponsored product ads, headline search ads, product display ads, out-stream and in-stream videos and sponsored content. Amazon is reportedly working with third-party mobile ad companies for video opportunities outside its own network. Offline opportunities are out there, too.

Targeting on AAP

According to Digiday, AAP targeting includes:

Behavioral (lifestyle, in-market)
Contextual (product category)
Lookalike (pixel-based, anonymous customer match, Amazon first-party data)
Remarketing (pixel-based, anonymous customer match)
Demographic/geographic

Interested in knowing more about Amazon strategies? Contact us.