It’s easy to forget that social media is only about 10 years old. Its phenomenal growth in that time has changed consumers’ lives in many ways – not least when it comes to how they shop. It also continues to evolve and staying close to its innovation is vital for marketers.
Our recently released research reveals that 81% of social media users regularly use coupons, vouchers and deals when shopping, compared to 69% of consumers who haven’t engaged with social media in the last 30 days.
We’ve written a short article Social media influences how we shop where we identify three key trends that influence consumers globally - in the context of social media, and highlight the key lessons for brands using social media promotions.
2. Social media influences how we shop
The phenomenal growth of social media has
changed consumers’ lives in many ways – not
least when it comes to how they shop. Our
recently released research reveals that 81%
of social media users regularly use coupons,
vouchers and deals when shopping, compared
to 69% of consumers who haven’t engaged with
social media in the last 30 days.
Here we highlight three key trends from the
research that link to other behaviours and
attitudes we’ve identified in two studies; one
among more than 3,500 consumers and another
among 37,000 consumers across 25 markets.
3. Social media influences how we shop
01
TREND ONE
We’ve identified a variety of trends that influence consumers
globally. In the context of social media and consumer choice,
three of these macro trends stand out as being particularly
relevant:
1. The first is Considered Consumption, the idea that
consumers want an open and transparent relationship
with a brand, so they can make a purchase with a clear
conscience. Social media gives them the power to know
about a brand, to connect with it, and to build a dialogue
with it.
2. Secondly, we look to Redefining Value. In today’s
challenging economy, this is about people getting the
best value with the least compromise possible, rather
than the cheapest product. In this relationship, value
becomes more important than price.
3. Thirdly, and perhaps the biggest challenge for
marketers, is the trend of We’re All Influencers Now!
Consumers are increasingly sceptical of marketers and
advertising and they look more not only to their friends
and family for recommendations and advice (both offline
and online) but also to people ‘like me’, people who
they may not know, but who are connected to via social
media and whose opinions they trust.
Technology may not have created the desire but it does
provide the methods for people to be more involved with
brands, and to define that relationship in their own terms -
and this brings us neatly to savvy shoppers.
Social media gives consumers
the power to define brand value
4. Social media influences how we shop
02
People are increasingly turning to social media to find
out about companies and facilitate their search for the
best deals. According to GfK’s findings, one quarter (27%)
of social media users who took advantage of promotions
found them via social media, and 17% of social media users
who use promotions found offers from companies they
follow online. In comparison, digital word of mouth lags
behind – 8% tapped into a promotion by a friend “sharing”
it and just 4% through a friend posting a “like” or comment
about it.
Our research suggests that social media is an enabler of
the use and sharing of promotions, rather than a driver
of it, as Digital Consultant Richard Bussy explains: “social
media offers new possibilities to marketers seeking to find
modern day bargain hunters. Here we believe technology
is acting as a driver of change, working as a catalyst to
allow other pre-existing trends to flourish. Regular users
of social channels aren’t acting in different ways because of
social media, but rather are enabled by it to pursue their
interests more easily and to a greater degree.”
TREND TWO
Social media enables savvy shoppers
5. Social media influences how we shop
03
Social media is impacting how brands communicate with
their customers, and vice versa. And when we talk about
‘customers’ here, we really do mean a wide range of
people because while you might not be surprised to learn
that younger social media users are the most likely to be
tapping into promotions online (take-up is highest at 89%
amongst 16 to 24 year olds), you might be interested to
know that the bargain hunting impulse remains strong
amongst respondents of all ages – participation rates
remained high at 78% amongst the oldest respondents in
the survey, those aged 65+.
The path to purchase now is much more social – it’s about
reviews, recommendations, and direct contact with a
brand – and far less so about TV, and advertising pushing
out messages.
TREND three
brand interaction
6. Social media influences how we shop
04
Key learnings
In conclusion, we think there are three key lessons for
brands using social media promotions:
1. Think about targeting and planning offers and
promotions beyond demographics to deliver the
best return on investment. Social media is not only
fast-moving; it provides data and insight that can be
maximised for planning. Brands need to target their
offers to customers using attitudinal and behavioural
data alongside their own brand segmentations if they
are to maximise social platforms.
2. Redefine the path to purchase. People expect
brands to be on every channel they use, and to be
consistent. In social media it’s about being in the
right place with the right message when you are
needed.
3. If something on social media is good – i.e. it’s
involving and fun – the platform itself will let it grow.
Users will “share, like and retweet”, but to achieve this
viral growth brands must gain in-depth knowledge
of the channels and who uses them, what their
consumers like to do and where they go to do it, and
of course what it is people like about their brand.
Overall, to succeed in social media, brands must stay
close to it.
References
Roper Reports® Worldwide – consumer behaviour and attitudes in 25 markets
New Digital World – Social Media Insight, syndicated reports from GfK Consumer Trends
GfK Digital Market Intelligence – bespoke research from more than 3,500 UK consumers, February 2013
7. www.gfk.com/uk
Babita Earle
Head of DMI | UK
babita.earle@gfk.com
T +44 (0)20 7890 9467
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