May 28, 2015 by John Swords
[Updated October 11, 2015 to reflect changes Internet Retailer made to their 2015 Top 500 database since the date this was first published.]
According to the newest data from the leading trade publication, Internet Retailer, TurnTo Networks Inc. is the fastest-growing user-generated content (UGC) solution provider to the “IR500” – the top 500 online retailers in North America.
Of the top 3 solution providers in Internet Retailer’s “Customer Reviews and Forums” category – TurnTo, Bazaarvoice, and PowerReviews – only TurnTo showed significant growth from the 2014 tally to 2015. The number of top 500 retailers using TurnTo grew by 53% during the period, while the number using Bazaarvoice declined 3% and the number using PowerReviews declined 12%.
Measured by the annual web sales of the retailers served, the results were even more dramatic. TurnTo grew 198% during the period, while Bazaarvoice grew 2% and PowerReviews declined 1%. Additionally, the Internet Retailer 2015 research shows that 50% of the annual web sales of the PowerReviews customer base is represented by a single customer. Excepting this, the total annual web sales of TurnTo’s IR500 customers would be ahead of PowerReviews and second only to Bazaarvoice overall.
I had a quick chat with our CEO, George Eberstadt, to get his thoughts on the reasons for this growth.
Me: George, the first thing people are going to ask on seeing these numbers is what’s driving them. So, what’s driving them?
George: First let me say – and I don’t want to be too saccharine about this – it’s humbling and gratifying to get this kind of trust from these businesses. The alternatives have been around a while, so we recognize that the retailers adopting us are making a bold move rather than the safe choice.
And I think that’s the short answer to your question. The customer-generated content space hasn’t seen much bold innovation for a while, and retailers that are tired of the same-old haven’t had alternatives – especially at the enterprise level. We bring the fresh perspective, smart innovation, and fanatical commitment that a lot of retailers are looking for.
Me: Can you put your finger on any particular TurnTo innovations that the market has been responding to?
George: I think it’s a mix – some big, some subtle. For example, we were the first to introduce the “active outreach” mechanism for getting fast community answers to shopper questions. That was really the breakthrough that makes community answering work. Then, we expanded our vision of Q&A to include answering an ever broader range of shopper questions even faster, so we added instant answers and knowledge base features. Q&A is still a new frontier with lots more opportunities for major innovations, and we’re pursuing those.
Checkout Chatter is another example. It’s simple and highly effective. And it’s a TurnTo exclusive.
Ratings & Reviews, on the other had, is a more mature area, so our innovations have been less revolutionary, though they still have a big impact on ROI. For example, our ready-to-wear UI is exceptionally clean, elegant, and mobile-friendly while still providing easy customizability either through CSS or our comprehensive API. Our review-solicitation email answer flow automatically authenticates the user, leading to more reviews from verified buyers – especially on mobile devices. Our transaction history integration enables the system to ask for reviews on previously purchased items immediately after a user writes a review or answers a question, which increases total review volume by 20-30%.
Me: Are there any other reasons you think retailers are switching?
George: I think our customer success process and the great team behind it is another reason. By focusing on the business as well as the technical aspects of integrating our tools, we ensure customers get the most value from them. And we don’t just move on to the next customer as soon as the last one is set up; no one is fully optimized on the day they go live, and we are pretty relentless in follow-through over time. That’s a hard thing for retailers to get a sense of during an evaluation, but it comes into play in our high customer retention and referral rates, which is a big part of our growth.
Data from the IR500 survey by Internet Retailer are available at www.top500guide.com.