GSI Commerce Delivers Customer Reviews with Measurable, Positive Impact
Implementation of PowerReviews Gives Consumers an Easily Shared, Influential Voice
KING OF PRUSSIA, Pa., April 1, 2008 – A year into their relationship, GSI Commerce Inc. (Nasdaq: GSIC) and PowerReviews have successfully implemented online customer reviews and ratings for more than 20 GSI partners — with proven success. GSI, a leading provider of e-commerce and multichannel solutions, teamed up with PowerReviews, an innovative provider of consumer review technology, to offer a flexible, easily implemented customer review capability to support GSI’s e-commerce partners. As part of the growing trend of electronic “reality marketing,” consumer reviews and product ratings have quickly evolved as key decision making tools for online consumers. For example, since launching PowerReviews, a significant GSI partner generated revenue 18 times greater on average for reviewed products with four-star ratings versus non-reviewed products.
“It’s a ‘no-brainer’ to provide consumer reviews as part of a successful Web store,” said Fiona Dias, executive vice president, partner strategy and marketing for GSI. “Giving consumers a voice regarding the products and shopping experience helps generate repeat business for online retailers and encourages shoppers to become ‘brand ambassadors.’ We’re very pleased with the smooth integration and results we’ve experienced with PowerReviews to date, and we’ll continue to work collaboratively to help our partners drive sales and increase brand loyalty by promoting customer reviews throughout their sites.”
PowerReviews’ tag-based system, unique to its product review technology, enables customers to provide feedback in specific categories, such as product pros, cons, best uses and star ratings. This information can be integrated into site-search functionality, enabling consumers to narrow searches based on customer-submitted product attributes that are important to them, such as “soft” or “easy to assemble.” This type of “social navigation” promotes greater customer satisfaction with the purchase and the overall online buying experience by empowering shoppers to easily find products that best meet their specific needs and interests based on insightful and relevant feedback from their peers.
According to a 2007 survey commissioned by Deloitte LLP, consumer product reviews are rapidly becoming the most referenced resource for purchase decision makers. Polling more than 3,330 consumers over the age of 16, the survey revealed that nearly two-thirds of consumers read written product reviews on the Internet. First-hand reviews also have impact beyond the world of Internet retail sales. The survey shows that 69 percent of consumers who read reviews share them with family and friends, thereby directly influencing the buying behaviors of others beyond the reader.
Partner Case Study
Following GSI’s implementation of PowerReviews for a leading retailer, a comprehensive case study revealed overall review volume on that partner’s Web store more than doubled, with three quarters of the reviews receiving top ratings (4 or 5-stars).
Additional results for this GSI partner are as impressive:
* Positive ratings: 90% of reviewed products have positive ratings of three or more stars.
* Higher revenue: Products with positive ratings had revenue of an average of 11 times higher for those with three- and five-star ratings and 18 times higher for those with four-star ratings, compared to non-reviewed products.
* Lower return rates: Products rated three or more stars also have a significantly lower return rate than products with lower ratings and those without ratings.
“Enabling, organizing and leveraging online consumer reviews is a top priority in the online retail world,” said Lauren Freedman, president, the e-tailing group. The e-tailing group’s 2007 survey of 1,200 online retail consumers brought to light the growing segment of Internet shoppers identified as “social researchers” who explore and rely heavily upon like-minded customer reviews prior to making purchase decisions. “The bottom line, both literally and figuratively, is that retailers sell more when they enable peer-based feedback. The GSI partner case study data supports the trend that subjective product reviews submitted by ‘real’ customers make a difference in creating a more satisfying online shopping experience that can lead to increased conversion, higher online sales and reduced return rates.”
About GSI Commerce
GSI Commerce® (www.gsicommerce.com) is a leading provider of services that enable e-commerce, multichannel retailing and interactive marketing for large, business-to-consumer (b2c) enterprises in the U.S. and internationally. We deliver customized e-commerce solutions through an e-commerce platform, which is comprised of technology, fulfillment and customer care. We offer each of the platform’s components on a modular basis, or as part of an integrated, end-to-end solution. We also offer a full suite of interactive marketing services through two divisions, gsi interactivesm and e-Dialog Inc.
About PowerReviews
PowerReviews (www.powerreviews.com) is an enterprise solutions company that provides customer reviews and social merchandising to multichannel retailers and their shoppers. Our technology platform for collecting, organizing, structuring and moderating relevance-based reviews helps online retailers significantly boost their sales. PowerReviews’ user-generated content and community drives the highest sales uplift in the industry, and in addition to working with more than 200 online retailers, including Staples, Toys”R”Us, REI, Ritz Camera, Walgreens, and The Sports Authority, we have also launched our own shopping portal, Buzzillions.com The company is based in San Francisco, CA, and is backed by Menlo Ventures and Draper Richards.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made in this release, other than statements of historical fact, are forward-looking statements. Actual results might differ materially from what is expressed or implied by these forward-looking statements. Additional information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements.
###
GSI Commerce, Inc.
Corporate Marketing
610.491.7474
Fax: 610.265.2866
.(JavaScript must be enabled to view this email address)
