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Research indicates online retailers can use chatbots to manipulate ratings
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When consumers use chatbots to submit online reviews they tend to give higher ratings but provide less detailed feedback, according to new research from Rotterdam School of Management, Erasmus University (RSM).

Researchers Dr Dimitrios Tsekouras, Dominik Gutt (RSM) and Dr Irina Heimbach from WHU – Otto Beisheim School of Management, found that low-quality sellers could abuse chatbots to boost their ratings and disguise the low quality of their products.

This study highlights potential risks for online retail platforms like Amazon. Dr. Dimitrios Tsekouras, a lead researcher at RSM, said: “While online reviews are crucial for informed consumer decisions, reliance on chatbots may lead to misleading ratings that do not accurately reflect product quality The research indicates that chatbot interactions, especially those with humanlike characteristics, enhance user enjoyment but compromise the depth of reviews.”

It turns out that the way companies collect reviews, and in particular the humanlike characteristics of the chatbots that collect the reviews, have an effect on what consumers say. The findings call for policymakers to consider regulations regarding chatbot usage for review solicitation to ensure transparency and maintain the integrity of online marketplaces.

The researchers conducted a series of online experiments and a field experiment. In the online experiments, participants watched a short movie for which they later provided an online review, either through a chatbot with moderate or highly humanlike characteristics, or through a conventional review form. In the field experiment, they collected course evaluations for a university class either through a chatbot or through a conventional form.

Their research, The robo bias in conversational reviews: How the solicitation medium anthropomorphism affects product rating valence and review helpfulness has been published in the Journal of the Academy of MarketingScience.

Research points to 5.3% growth in ‘back to school’ online shopping
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Back To School, an increasingly important trading period for UK retailers, delivered a welcome boost to online retail revenues, according to the latest data from Wunderkind.

Original data from Wunderkind’s Marketing Pulse, which analysed over 55.4million customer journeys during the start-of-school shopping season during 2024 and 2023, showed that web revenues for Back To School 2024 rose +5.3% year-on-year, delivering a welcome uplift in retail sales.

With Mintel estimating that UK consumer spending on Back To School items surpassed £1335millionlast year, the start-of-term trading period is now an increasingly important part of the retail trading calendar.  Kantar’s latest figures show Back To School helped drive an increase in grocery spending at the end of last month, with sales of lunchbox snacks, including yoghurts, fruits and cereal bars rising +14% year-on-year in the last week of August.  Meanwhile, other retailers including M&S, which froze pricing on school uniforms for the fourth year in a row and offered additional second-hand lines to keep prices low, and Asda, which reported an 88% increase in sales at the start of its Back To School campaign, vied for start-of-term share of wallet.

Wunderkind’s data showed that Thursday 29 August was the biggest revenue-generating day of the 2024 Back To School season, when online sales rose +46% on the daily average for the period (26 Aug – 08 Sep), as parents surged to make pre-term purchases.  Monday 02 September, the first day of the school year for many, saw the highest converting day of Back To School, with web conversions up +10% on the daily average, as final start-of-term spending and last-minute purchases were made.

As well as the opportunity to grow sales, the event also provides retailers with a timely opportunity to engage existing shoppers and acquire new customers ahead of the all-important Golden Quarter, delivering future engagement opportunities to win share of wallet during Peak Trading, Wunderkind suggests.

Wulfric Light-Wilkinson, International GM of Wunderkind, emphasised the strategic importance of the Back To School period, commented:  “In addition to being a profitable sales window on its own, Back To School serves as a critical precursor to the Golden Quarter, positioning brands for a successful peak season.  Retailers that perform well during Back To School typically carry that momentum into strong Black Friday and Christmas campaigns, as they benefit from acquiring new customers and capturing valuable first-party data for use in Q4.”

Light-Wilkinson also highlighted the growing challenges in paid third-party channels, noting: “As platforms like social media, search, and display become more competitive and costly, brands must focus on optimising their owned channels.  By building first-party data, retailers can drive more cost-efficient conversions and deliver personalised, one-to-one experiences during pivotal trading periods.”

John Lewis ‘back to its roots’ with renewed Never Knowingly Undersold campaign
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John Lewis has announced the reintroduction of its Never Knowingly Undersold (NKU) price promise – and analysts have generally welcomed the move as the retail giant looks to consolidate its place in an increasingly competitive and price-sensitive UK landscape.

Zoe Mills, Lead Retail Analyst at GlobalData, says the resuscitation of its NKU price promise, coupled with an updated narrative on its proposition, highlights a return to its roots that will be crucial to competing in a highly price-sensitive retail market.

“John Lewis has been in an identity crisis since it culled its NKU price promise over two years ago,” Mills says. “In 2022, its shift in focus to “everyday value and quality” was not enough to contend with its closest competitors across home, electricals, apparel, and beauty. This updated initiative will reassure its existing customers on price and make some headway in enticing back lapsed shoppers that had turned to its competitors.

“Now that price has returned to its mantra, consumer sentiment surrounding value for money at John Lewis should improve, particularly as the cost-of-living crisis has scarred shoppers’ finances. With price matching against 25 retailers, including, notably, Amazon’s electricals proposition, GlobalData anticipates that this will put John Lewis on the front foot as we enter the golden quarter.

“Limiting the extent of the price promise to 25 retailers will make the promise more manageable, and while it may lessen its impact with shoppers, it does include some online specialists that were excluded from the previous promise, and the list is made up of the retailers that its shoppers are most likely to compare it with.

“Celebrating 100 years since NKU was first launched, John Lewis intends to adapt this service over time to react to the changing retail landscape so that it does not face the dilemma that caused it to ditch the promise in 2022. It expects the relaunch to accelerate sales but, with the inclusion of online retailers such as Amazon, it is going to have a negative impact on gross margins.”

Photo by Daniel Adesina on Unsplash

Benefits of free trials espoused in retail study
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New data shows 30-day free trials are the most effective method of paid customer conversions – almost four times (273%) more likely to convert a customer than 14-day free trials. Findings also show free trials are 28 times more effective than free products.

However, despite its effectiveness, and at no cost to the business, nearly 3 in 4 ecommerce sellers didn’t use the approach in 2023.

Whop conducted the ‘Optimal Free Trial Length for Digital Products’ study to understand how digital retailers can increase customer acquisition and conversion rate by analysing free trials of 3 days, 7 days, 14 days, and 30 days.

Of the four free trial periods, the 30-day free trials had the highest customer acquisition (32%) and conversion rate (56%). The second highest conversion rate was the 3-day free trial at 35%, however, this approach only had 2% total signups.

The findings also demonstrate that 30-day trials experience more successful signup rates, 16 times more than a 3-day trial and 1.5 times more than 7-day free trials.

While it is tempting to speed up conversion rates by using shorter free trials, the data shows 30-day free trials are the best for engaging and converting customers. This is because customers have more time to see how a product can create value for them. The longer customers use the product, the more they rely on it, and the more likely they will convert into paying customers.

Cameron Zoub, CGO and co-founder of Whop, said: “As it becomes increasingly challenging to get heard as a product or service in a crowded online space, one of the most powerful methods we’ve identified is offering 30-day free trials. By providing potential customers with an extended period to explore and integrate a product, businesses and digital creators can significantly boost engagement and conversion rates. This approach allows users to fully understand the value a product brings to their lives.

“As a platform which gives creators the ability to connect to a global audience, our mission is to empower digital product sellers with the insights and tools they need to succeed. By adopting proven lead generation techniques like extended free trials, creators can drive substantial growth and build lasting relationships with their audience.”

Photo by William White on Unsplash

John Lewis offers brand partners new online campaign management tools
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John Lewis has announced a suite of new retail media capabilities, which it says will help brands connect with customers shopping on its website, enabling them to create and manage their own campaigns, including via banner ads and sponsored product listings.

It also offers users a clear dashboard showing exactly how their campaigns are performing, how customers are engaging, and how many sales are coming through.

Brands can maintain always-on campaigns, and quickly adapt to seasonal trends and sales peaks such as Back to School and Black Friday. In addition, thanks to real-time data and performance metrics, brands can measure the impact of their initiatives right down to the individual product level and search terms.

The options have been delivered in partnership with Epsilon, the global advertising and marketing technology company which recently launched a similar offer for Waitrose.

As well as helping household names connect with millions of customers, the new options can also be particularly helpful for helping customers explore new brands that are relevant to their search and browse activity.

All ads are carefully reviewed by John Lewis’ in-house team to make sure they are suitable, beneficial and relevant for customers.

The investment underscores its dedication to improving the customer experience by better connecting individuals with the brands they care about, at the right time in their purchase journey.

Jemma Haley, Retail Media Business & Proposition Strategy at John Lewis, said: “While retailers have long been advertising on their own websites, we want to improve the experience, and make it even easier for customers to connect with the brands and products that meet their needs.

“As part of this, we’re providing brands with more targeted and relevant ways to connect with customers. Our shoppers are unique in terms of the ways they research, browse and buy, and we need to be ready to meet them in the moments they are ready to purchase or engage with a brand.”

Owen McAdam, Trade Marketing Manager, BSH UK & Ireland, commented, “John Lewis’ sponsored product ads performance is exceptional, driving both awareness and sales. Placing our Bosch and Siemens products in a prestigious setting like John Lewis helps to maintain a premium image and resonates with discerning consumers. The platform’s ease of use, campaign control, and transparency make it an invaluable tool for our marketing strategy.”

Epsilon’s Regional CEO Europe, Alban Villani, added: “John Lewis offers a unique and scaled audience across its online and in-store environments. People visit John Lewis in search of inspiration, to validate their research and to make purchases that often initiate a longer-term brand relationship. It’s a real opportunity for brands to evolve their strategies beyond performance goals to think about how they engage customers in ways that build awareness and loyalty.

“We look forward to supporting John Lewis further as they continue to test and learn across categories and build an even more impactful omni-channel media proposition for brands.”

Personalised promotions are ‘twice as likely’ to convert UK shoppers
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While discount codes top UK consumers preferred promotions, offers that are personalised and tailored to a specific product a consumer has viewed are almost twice as likely to prompt a sale compared to general ‘range-wide’ discounts, according to a survey of over 1,500 shoppers.

Original research by AI-driven performance marketing solution Wunderkind, published in its 2024 Consumer Insights Report, revealed that demand for personalised promotions remains critical to re-engaging consumers in the online buying journey, with 83% more likely to purchase from brand messages that highlight exact products they have recently browsed.

And, according to the poll, almost half (49%) of UK consumers are more likely to make a purchase when they are offered personalised, product specific discounts for items they had already viewed, compared to a quarter (26%) who would be influenced to buy after receiving general, brand-wide promotions.

While discount codes remained the most effective promotional lever for 54% of UK consumers, the poll highlighted the role of personalisation and product-specific offers in promotional effectiveness.  Over a quarter (27%) would be prompted to convert by reminders or low stock warnings about items they had put in their online shopping baskets, while 22% said they would be persuaded to buy after receiving a ‘back in stock’ message about an item they had previously viewed.  Meanwhile, a further fifth (19%) of shoppers would be influenced by offers on new products promoted to them that were similar to products they had looked at previously.

Wulfric Light-Wilkinson, International General Manager of Wunderkind, said: “Despite falling inflation, consumers continue to display high-consideration buying behaviours, often taking longer to validate where and when to spend.  In this context, bringing customers back to the products they’ve shown the highest interest and intent towards becomes all the more important.  To do this effectively, retailers need to be able to identify that individual shopper – regardless of device or cookie status – and then retarget them with highly personalised triggered messages, at the right time and via the right channels.”

Photo by Brooke Cagle on Unsplash

Digital marketing trends in retail that drive sales and engage Shoppers
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The retail landscape is constantly evolving, shaped by advancements in technology and shifting consumer behaviours. Staying ahead of the curve is vital and businesses need to leverage the latest digital marketing trends to remain competitive and relevant.

Expert advice from director-led performance marketing agency outbloom draws insights from industry research and their own expertise, identifying key digital marketing trends that are shaping the retail sector in 2024.

Digital marketing plays a pivotal role in driving sales and engaging shoppers in the retail sector. By embracing innovative strategies such as personalised shopping experiences, social commerce integration, omnichannel marketing, and more, retailers can stay ahead of the curve and thrive in today’s competitive landscape.

Julia Symonds, Co-Founder and Lead Consultant at outbloom, says: “Customer behaviour is constantly changing in retail due to trends, external events, or simple curiosity. Many retailers must embrace what the latest technology has to offer to reach more consumers on digital channels to generate sales, boost conversion and encourage recurring purchases. With more ways to shop than ever before, retailers must innovate to meet consumers’ constantly evolving, lofty expectations.”

So, what can retailers and consumers expect to see in the foreseeable future? outbloom has curated a list of some of the emerging and ongoing trends that will impact the retail industry in the coming years.

1. Personalised Shopping Experiences

Personalisation has become a cornerstone of successful digital marketing strategies in retail. Today’s consumers expect tailored shopping experiences that cater to their individual preferences and needs. Retailers can leverage customer data and advanced analytics to deliver personalised recommendations, product suggestions, and promotional offers. By understanding their customers’ behaviour and preferences, retailers can create targeted marketing campaigns that drive engagement and foster loyalty.

2. Social Commerce Integration

Social media platforms have become powerful tools for retailers to connect with their target audience and drive sales. The integration of social commerce features allows consumers to make purchases directly from their favourite social media channels, streamlining the buying process and reducing friction. Retailers can leverage social media platforms such as Instagram, Facebook, and TikTok to showcase products, engage with customers, and drive traffic to their online stores. By tapping into the vast reach and influence of social media, retailers can expand their customer base and increase sales.

3. Omnichannel Marketing Strategies

In today’s omnichannel retail environment, consumers expect a seamless shopping experience across multiple channels and touchpoints. Retailers must adopt omnichannel marketing strategies that integrate online and offline channels to create a cohesive brand experience. Whether shopping online, in-store, or via mobile devices, customers should have access to consistent product information, pricing, and promotions. By delivering a unified shopping experience across all channels, retailers can enhance customer satisfaction, drive sales, and foster brand loyalty.

4. Interactive Content and Immersive Experiences

Interactive content and immersive experiences are increasingly becoming key drivers of engagement in the retail sector. Retailers can leverage technologies such as augmented reality (AR) and virtual reality (VR) to create interactive shopping experiences that captivate and engage consumers. From virtual try-on tools to immersive product demonstrations, interactive content allows consumers to experience products in a more engaging and memorable way. By embracing interactive technologies, retailers can differentiate themselves from competitors and provide unique value to shoppers.

5. Influencer Marketing Collaborations

Influencer marketing has emerged as a powerful strategy for retailers to reach and engage their target audience authentically. By partnering with influencers who align with their brand values and target demographics, retailers can leverage the influence and credibility of social media personalities to promote their products and drive sales. Influencers can create authentic content that resonates with their followers, helping retailers to increase brand awareness, generate buzz, and drive traffic to their online stores.

Photo by The Nix Company on Unsplash

The rise of TikTok shop as a tier-one marketplace 
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TikTok Shop has emerged as a formidable player in the world of social commerce,  challenging established platforms such as Facebook, Instagram, and YouTube. The platform’s swift ascent has captured the attention of online sellers and industry observers alike. Sarah Znideric, VP of Global Partnerships at Linnworks, discusses the rise of TikTok Shop, some of its biggest success stories, and its potential to compete as a genuine tier-one marketplace…

TikTok Shop Success Stories

TikTok Shop’s success stories are nothing short of remarkable. From humble beginnings, some sellers have experienced exponential growth using the platform. One strong example of this is the case of Nature Spell, a hair and skincare company, which started with just a few orders a day and eventually peaked at around 9,000 product orders daily.

Other success stories on the platform have included Maters & Co, which received more than 100,000 orders for its pure honey products in its first year on the platform, and the influencer Cariad Ryan, who, as an affiliate, sold £90,000 worth of TikTok Shop products in four hours on Black Friday last year. These achievements demonstrate how TikTok Shop can help to translate ‘hype’ into real world success, and drive substantial sales and visibility for businesses.

The Diversity of TikTok Shop Products

The platform caters for a wide range of product categories, including beauty, fashion, homeware, pet care, food, refurbished tech, and books. While beauty and fashion products have seen perhaps the biggest success, sellers from diverse industries have also found sales success on TikTok Shop. And this success is driven by the platform’s inherent blend of community, entertainment, and shopping, which have contributed to its widespread appeal.

The Strategic Timing of TikTok’s ecommerce Move

Combined with the product offerings on the platform, the launch of the platform itself seems well-timed. In a similar vein to eBay’s growth trajectory 20 years prior, TikTok benefits from a mature infrastructure, ensuring a quick and natural expansion. TikTok’s commitment to ‘community commerce’ sets it apart, providing the app’s users with an immersive shopping experience from within the TikTok app.

Gaining New Customers on TikTok Shop 

The platform has proven effective in helping retailers to discover new customers without cannibalising their existing traffic. Often, TikTok Shop attracts an entirely different audience, or engages with customers that might not have otherwise made purchases on different marketplaces and platforms. The relatively fast sign up process, combined with the platform’s small commission fees ranging from 1.8% to 5% on sold products, have provided a cost effective and convenient revenue stream for sellers.

The Key to Success on TikTok Shop

While it is possible to simply list products on TikTok Shop, sellers that embrace a TikTok-centric approach will reap the most rewards, creating engaging and native content that aligns with the platform’s entertaining nature. This emphasis towards creativity extends to becoming a creator on the platform itself, where regular posts can generate a significant and engaged following. And for those that may be more camera shy and reluctant to get involved in this way, it is possible to leverage TikTok’s community of influencers to achieve an alternate method of product promotion, often in exchange for an affiliate promotion.

The Future of Online Marketplaces

The arrival of TikTok Shop represents a paradigm shift in online marketplaces, and provides a vibrant, community-driven shopping experience that promises a dynamic future for retailers. Its unique approach, coupled with a commitment to ‘community commerce’, positions TikTok as a formidable player in the evolving ecommerce landscape.

The increasing popularity of TikTok both as a social media platform, but also as a new online marketplace, presents online retailers with a compelling opportunity to take advantage of what is a uniquely diverse and engaged audience. The platform’s success stories, diverse product offerings, and commitment to community-driven commerce make it a strong contender for tier-one marketplace status. As the future of online marketplaces takes shape, TikTok Shop stands at the forefront, inviting savvy retailers to embrace the changing face of ecommerce.

Photo by Solen Feyissa on Unsplash

Why Christmas window displays can still make a great social marketing opportunity
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The Christmas window display has become a UK tradition up and down the country, especially in tourist hot spots. Since being pioneered by RH Macy’s in 1874, big businesses are still finding innovative ways to keep the festive feels fresh 149 years later.

This isn’t a coincidence, the best businesses in the country and beyond have realised that an innovative window display makes for the perfect festive marketing tool. Christmas window displays increase brand awareness, promote products, can be themed alongside marketing campaigns and do the rounds on social media.

In 2022, seasonal sales in the UK were forecast to reach £82 billion. This is the highest retail value of festival sales in Europe, making window displays more important than ever to help compete in this lively market – especially with UK adults buying roughly 32 gifts a year.

But what are the best and most inventive Christmas window displays of the last decade? We spoke to the slimline aluminium window experts at The Heritage Windows Company to get their perspective on which displays went above and beyond to stand out from the rest.

Harvey Nichols (2022) – a festive fashion show

A love letter to the glamour fashion trends of 2022, Harvey Nichols’ 2022 Christmas window display was adorned with mirror balls, high fashion and sequins – reflecting the faces of happy visitors at its iconic unveiling in Knightsbridge.

The focus on metallics and reflective surfaces lit the windows up like a Christmas tree, creating an eye-catching showcase of bright lights and fashion. All glitz and glamour, Harvey Nichols stood out from Harrods and Selfridges by getting their display ready by the end of October… we’ll let you decide whether that’s too early or not!

Harvey Nichols has understood what it means to create a workplace that welcomes customers and employees with fantastic use of lighting, a skill which can be applied anywhere with careful consideration.

We can’t wait to see what they cook up this year.

 

Harrods (2018) – Instagrammable festivity

Harrods’ 2018 display, Fantastica, showcased everything that captures the minds of the Instagram generation – finding inventive ways to reflect the spirit of social media in the festive season.

Each window in the display represents a different photo frame of Instagrammable festive subjects, from gift giving to Christmas dinner, all of which are elevated with a colourful and considered design.

Harrods established an entire department to design this display, The Department of Surprise and Delight. Sounds like a great place to work, if you ask us!

They did a fantastic job on Fantastica, mixing glamour, traditional Christmas spirit and modern trends in a way which didn’t feel out of place for a second.

Fenwick (2018) – we’re walking in the air

2018 was a great year for Christmas window displays across the country, with Fenwick’s Newcastle display tugging on the country’s collective nostalgic heartstrings. Their display, We’re Walking in the Air, reenacted famous scenes from the Christmas picture book classic, The Snowman (1978).

Each window as magical as the last, scenes from the book were lovingly recreated with impressive detail and lighting. The scenes were partly animatronic, too – capturing the feeling of the snowman coming to life surrounded by moving train sets, spinning platforms and all kinds of festive magic.

This display had something for everyone, especially for nostalgic parents and children discovering the magic for the very first time.

Fortnum & Mason (2019) – feline festive

A throwback to the department store’s roots, this Christmas display depicts festive characters from artist Edward Bawden’s Fortnum & Mason 1958 Christmas campaign.

The detailing in this display is simply outstanding, featuring feline characters making Christmas magic behind the scenes in a Christmas factory. Golden pipes, illuminated bottles of champagne being corked, Christmas crackers getting tested and more are represented in each subsequent window.

The charming feline models steal the show, however, with each as characterful as the last.

Selfridges (2018) – rockin’ around the Christmas tree

In 2018, Selfridges went for a ‘Heritage Rocks Christmas’ theme, dressing up Santa in an assortment of different rock’n’roll outfits over the decades.

From glam rock to the 90s, Santa absolutely sleighed all the iconic looks featured. With golden mic stands and plenty of power stances, we love the ambition to do Christmas a little bit differently – finding the fun in a Christmas winter display that invokes all the excitement of the first Slade track of the season.

We can’t wait to see what iconic displays are featured this year – but one thing’s for sure, it’s going to be hard to top these fantastic windows. We’re sure they’ll all be up for the challenge.

Brits to shell out up to £1,000 this Christmas, with local retailers set to benefit
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Over 45% of Brits will be spending the same this Christmas, with 33% spending more, despite ongoing cost of living concerns.

That’s according to new research from local gift card champions Town & City Gift Cards, which surveyed over 1,000 consumers, employees and organisations.

28% of people said they’ll be spending £751-£1000 this Christmas, with the need to purchase gifts for friends and family given as the reason for Christmas spend staying the same or increasing.

But finding the perfect gift isn’t always easy with a huge 73% of Brits worrying about finding the perfect gift. The research also revealed a move towards more ‘useful’ gifts that offer choice with 89% planning to buy at least one gift card this Christmas. 92.9% prefer giving a gift card to cash with 77% saying this is because it encourages the recipient to treat themselves.

And, naturally, gift cards are a Christmas present that people want to receive too, with 89% saying they would like to receive a multi-store gift card that can be spent at more than one business and 94% preferring gift cards that can be used in various sectors, such as retail, hospitality and leisure.

Support for local is higher than ever with 98% keen to support local this Christmas and 87% saying supporting local businesses helps to keep them open. 60% say shopping local offers a better experience.

Colin Munro, MD at Miconex, the firm which provides the technology for the Town & City Gift Card programme and said: “The research revealed changing attitudes towards gifting with a greater emphasis on gifts that can be used in a practical way and offer the recipient choice.

“There’s also a really strong awareness of the need to shop local because people realise the impact it has on their community. Local gift cards wrap up choice and support for local in one gift card, reducing the pressure and worry of finding a perfect gift as the recipient can choose exactly what they want from all types and sizes of local businesses.”