February 21, 2017 | Shares:

Does UGC Really Increase Conversion In Your Industry? [Data Video]

Ever wonder if all those customer reviews actually have an impact on your sales?

In this short video, learn what the latest data has to say about how user-generated content impacts conversion rate in your eCommerce industry.

Transcript:

Hi. I’m Talia and this is Data Labs by Yotpo.

Today, we crunched the numbers from 200,000 stores, and 163 million orders, to bring you the latest data on UGC.

Maybe you’re collecting reviews, maybe you’re curating photos off Instagram, maybe you’re featuring testimonials on your checkout pages. And you might be thinking — does this user-generated content actually have any effect on my bottom line?

The short answer is: YES IT HAS A MAJOR EFFECT.

And I’ll show you how… WITH DATA!

Everything you’re about to see is backed by cold, hard data. Today, we’re going to look at how UGC affects your conversion rates.

So you might be wondering why or how UGC would have an impact on increasing conversion. One reason is because it shows social proof and builds customer trust in your brand.

I’ll put it like this: if I told you Yotpo was great, you’d be like, “Okay, fine.”

But if I got 100 of our clients to tell you, you’d start listening.

Same goes for your business — shoppers on your site know that you’re gonna say your products are awesome, but what’s going to get them to convert is seeing that your past customers said it.

They want to know that real people are buying and using your products, and that’s why UGC like reviews and photos, and videos, and Q&A, help them build trust, and ultimately help you sell more.

So we looked at four main metrics that relate to conversion rate and UGC.

First, we’re looking at the percent of people on the store, who are looking at UGC. So this is people who are on the site, and they scroll down to see the reviews, or they click on customer photos or they’re reading the customer Q&A.

You can see across the board, it’s around 30% with Electronics, 41% of shoppers are interacting with UGC, looking at it, and clicking on it.

And then we look at conversion rate, that’s self-explanatory: the number of visitors on your store, who end up making a purchase.

Again, across the board, the numbers are pretty similar, overall, we’re seeing a conversion rate of around 3.28% across all industries.

The effect varies by industry, with Apparel and Accessories eCommerce brands seeing 2x the CVR with visitors who interact with UGC.

Now, we’re going to look at where UGC and conversion rate come together.

So over here, we’re looking at the conversion rate of people who did not interact with UGC, you see it’s pretty low, and it actually is lower than the overall average, so for apparel for example, of everyone who comes to your site, and doesn’t interact with UGC, only 2% of them are buying, when you look at sporting apparel and sporting goods, only 1.57% of the people who don’t see UGC, end up making a purchase.

And now, we’re looking at the percent of people who saw your UGC, ended up making a purchase, and you see the number jumps up significantly.

So in apparel, 6.37% of the people who are interacting with your UGC, end up making a purchase.

When you look at Food and Tobacco, 9.19% of people who see UGC end up making a purchase. So you see, a huge uplift between the people who are not looking at UGC, and the people who are looking at UGC, and when they end up, making a purchase.

So if we look at the overall uplift that we’re seeing with Apparel from not looking at UGC, to looking at UGC, you’re seeing a 207% increase in conversions.

And if we look down at electronics, it’s a less, but it’s still pretty impressive. Between people who are not looking at UGC and people who are looking at UGC, you’re seeing an 81% increase in conversions.

Overall, across all industries, people who look at UGC are converting 161% more than people who are not looking at UGC. So if you take one thing away from this video, keep in mind, UGC helps with conversions.

You should collect it on your site. You should show it everywhere you can, and it will help you somewhere.

Thanks for watching and be sure to check out our other videos for more data-backed goodness.

Talia Shani
Talia Shani, Head of Content @ Yotpo
In Talia's past life she was a cook, but now she prefers to focus on eating. Right now, she's probably thinking about what she'll eat next or taking a long walk around Tel Aviv.
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