• by Tameka Kee , November 12, 2007

A new breed of shopper is influencing the way companies use consumer-generated info both on- and offline, according to joint research from the e-tailing group and PowerReviews.

The report, commissioned by Millbrae, Calif.-based PowerReviews, was conducted by the e-tailing group, a Web-commerce consulting firm, which surveyed about 1,200 consumers, who were skewed equally male and female, shopped online at least four times per year, and spent $500 annually. The findings revealed that 65% of these shoppers are social researchers--or consumers who "always" read reviews before making a purchase in-store, online or via catalog, and invest a significant amount of time in the process.

According to Lauren Freedman, e-tailing group president, social researchers are passionate about their research. "They're very educated and do their homework in advance," Freedman says. Indeed, some 64% of these shoppers spent at least half their time conducting online research before making a purchase.

The bulk of this research came in the form of customer-generated product or service info, as 86% of social researchers found customer reviews "extremely or very important," and 76% said the same about "top rated" product lists. Meanwhile, some 78% spent more than 10 minutes in the review reading process. "Social researchers are making their decisions based on info from other consumers, not what the manufacturer or retailer spoonfeeds them," Freedman says.

Figuring out how to leverage this highly influential consumer-generated info can give both brands and their advertisers an advantage, and there are a number of companies competing in the space. BuzzLogic, for example, recently launched a service that lets brands serve ads directly to the blogs and sites where conversations about their products are going on, while companies like Macy's have tapped BazaarVoice for review syndication and hosting services.

But according to Jay Schaffer, vice president of marketing and business development at PowerReviews, the company's ability to help retailers use consumer review data both on- and offline is their unique value proposition.

PowerReviews takes a multichannel approach--aggregating nearly 700,000 reviews from retailers like Walgreens, Modell's and Toys 'R' Us on their Buzzillions.com product information site, and allowing the retailers to customize and port reviews to various marketing materials.

Sporting goods retailer REI uses review data for in-store kiosks, while Wine Enthusiast has chosen to include consumer review data from PowerReviews in their catalogs.

Staples, for example, has used PowerReviews' review summaries to create in-store shelf cards. "The summaries are quick and simple, with copy like '42 reviews, 4.5 rating, easy-to-assemble, and durable,'" Shaffer says. "And they list the product benefits in the consumer's voice."