consumer behaviour

EXCITING TECH FOR DIGITAL MARKETERS AND CONSUMERS

Technology developments are exciting no matter what field they occur in. In the world of digital marketing, this involves innovation that is complimentary to both marketers and the consumer. Whether its technology designed to enhance consumer experiences, or technology to aid digital marketers in their day to day operating environment, upcoming technology is exciting for all key stakeholders.

So, what are some of these exciting trends?

The Internet of Things (IoT)

Although the concept has existed for a while now, the technical elements that are being continuously improved provide a world of infinite possibilities for consumers and marketers alike. For those of you unfamiliar with the concept of IoT, I’ll leave you with the following quote.

“… [IoT involves] the concept of basically connecting any device with an on and off switch to the Internet (and/or to each other)… The IoT is a giant network of connected “things” (which also includes people).  The relationship will be between people-people, people-things, and things-things.”

Jacob Morgan, Forbes

The whole concept of IoT relies on the integration of so many other technologies to see its full benefit. Therefore, before IoT can be seen as beneficial to consumers, foundation technologies like 5G networks, blockchain and AI must prove to be highly capable.

An interesting application of IoT is within the healthcare sector. The Kaa Enterprise IoT Platform is an example of how IoT can be used to improve the quality and effectiveness of service in the industry. Seen in the infographic below, the integration of smart devices, medical data bases (likely to be protected through blockchain technology) and AI enables quick and easy access, analysis and action to be taken. This is particularly critical when tensions may already be high or there are existing time pressures.

Artificial Intelligence (AI)

AI has become an expected element to the consumer experience today. We often hear about AI enhancements for the consumer experience, but what about the aid it provides digital marketers?

Using AI means that a brand can optimise their return on investment by adopting technology that ensures their ad is only placed in front of relevant viewers. Therefore, they are not wasting resources on uninterested audiences.

Furthermore, AI also helps with content creation. Washington Post’s robot reporter, Heliograf, enabled them to publish an extra 850 articles in a year. Covering topics like Rio Olympics updates, Election Day and high school football games, the robot enables journalists to do more high-value work.

One of the most helpful tools brought about by AI would be predictive analytics. Not only does it help marketers optimise their campaigns and improve operations, predictive analytics takes the guessing work out of consumer behaviour. By using predictive analytics, a brand can quite accurately assume characteristics about their target market that is beneficial when it comes to implementing campaigns. As a result, it helps make marketers more efficient and can devote their time to more important areas.

What is your favourite tech that has shaped the world of marketing? Let me know in the comments!

INFLUENCER MARKETING

Influencers – the powerful craze taking over all social media platforms. Some may describe them as “wanna-be celebrities”. However, these people are transforming the way brands can promote their products and better reach their consumers.

The concept of influencer marketing can seem confusing and unbelievable. However, the truth is that it is effective.

So, why is influencer marketing effective?

“Someone who has the power to influence the perception of others or gets them to do something different”

Gerado A. Dada, Forbes

The role of influencers are to help make a product more relatable. This is particularly important to online-only businesses where consumers are not able to physically experience the product before purchase. Therefore, influencer marketing helps businesses to eliminate scepticism and make their products familiar.

It also relies on the concept of the mere exposure effect to sell products. Even if a consumer sees a sponsored post and have no direct purchase intentions from that post, the fact that they have been exposed to the brand in a casual context makes them more likely to be a future customer. Through subliminal messages, brands are able to secure a spot in the mind of the consumer without them even realising.

Consumers are starting to become annoyed by traditional advertisements and salespeople, particularly Gen Z and the Millennials. Compared to older generations, modern consumers are interested in authenticity and trust the opinions of those who live similar lives. In fact, 70% of teens trust influencers more than the traditional celebrity.

What are the implications for marketers?

The advantage of using an influencer to promote a brand’s product surrounds the idea that they do the hard work for you in regards to capturing an audience on social media. An influencer has intentionally built their own personal brand to be trusted by their audience. Their regular interactions with their audience means the ground work is already taken care of. Therefore, by creating a link to an influencer’s brand, it enables a brand to leverage the same associations through a seemingly natural, unforced approach.

However, despite its benefits, it is not the perfect method of advertising. Now that the use of influencers have well and truly saturated social media, consumers are left with an abundance of information that is sometimes too much to consume. This may lead to a post being ignored or potentially even negatively perceived, coincidentally meaning a waste of resources for brands.

Furthermore, the overuse of influencer marketing has driven platforms like Instagram to introduce certain measures that make it clearer when influencer posts are paid ads. This has involved using “#ad” or the inclusion of “Paid partnership with XXXXXX” in influencer posts. By making it clearer to consumers through these methods, it could be argued that this minimises the benefits of influencer marketing since they are supposed to be seamless and subtle. Examples can be seen through Kendall Jenner‘s instagram page as seen below.

What are your thoughts on influencer marketing? Do you believe this will forever be an effective mode of advertisement or do you see it becoming outdated just like other traditional methods?

THE MOUNTING PRESSURES OF MOBILE DEVICES

Mobile devices mean the world is literally at your fingertips. We live in a time where people want things done yesterday. Mobile devices put a lot of pressure on businesses to keep up with the ever-changing demands of consumers. Furthermore, brands are also expected to juggle the mounting cumulation of big data that these mobile devices generate as well as provide damage control for instantaneous displays of online word of mouth (WOM), that spreads like wildfire.

Have mobile devices destroyed loyalty?

There are endless statistics that suggest it is harder than ever for brands to retain customers. Accenture found that over 50% of consumers switch service providers within a year after a single poor customer service experience. In 2017, it was found 33% of customers will consider switching companies after one poor customer service experience. Astonishingly, Salesforce predict by 2020 that 45% of consumers will switch brands if a company doesn’t actively anticipate their needs.

It is now easier than ever for consumers to assess and entertain the idea of competing products on their mobile device. As a result, levels of brand loyalty are heavily depleting as consumers are becoming more price conscious and less prudent about purchasing from unknown brands.

The harsh reality of mobile devices

“One bad review can pull your star ratings down and cost you thousands of dollars in lost business.”

Nick McVey, small business owner

Regardless of how big or small your brand may be, mobile devices create a tough environment for businesses to operate in. Failure to keep up with the demands of an impatient consumer could result in unfair negative scrutiny. A single bad review could crush a small business, particularly when 93% of consumers are reading local reviews before making a purchase decision. Nick McVey, a small business owner, has felt this effect first hand when he received an unfair review which brought down his Yelp review from 5 stars down to 4.5. He believes this one negative review alone has cost him thousands in lost business.

Today’s consumer profiles

Today, mobile devices have shaped consumers to be impatient and demanding, requiring instant gratification whilst still remaining cautious by displaying traits of uncertainty avoidance. The true effects of the negative review McVey received are emphasised when the characteristics of the modern consumer are delved into.

Firstly, the impatient and demanding consumer. Mobile devices act as supercomputers in consumer’s pockets. It enables consumers to find, learn, do and buy whenever the urge surfaces. Brands are required to deliver mobile experiences smoothly and with rapid speed to ensure that consumers are not hindered in their on-the-spot decision making process. Failure to do so may result in punishment in the form of a negative review or WOM.

Next, the consumer that demands instant gratification. An emerging expectation for consumers, consumers are looking for instant answers with ease. At a push of a button, it is expected that a company responds to them quickly if not immediately. Facebook messenger, Instagram direct messaging and chat bots mean that consumers have many options to get noticed quickly by a company in comparison to the outdated email method. This type of consumer has created the need for organisations to provide support to every customer, every time, at anytime, anywhere.

Finally, the uncertainty avoiding consumer. This consumer can be quite conservative and loves to do their research. Hardly ever will they walk into a store and buy the first item they see. They will use their mobile device to compare performance, prices and features by filtering through copious amounts of reviews.

In summary, the significant role of mobile devices in a modern consumer’s purchase journey has created many challenges for brands. This includes shaping the demands of consumers. In addition, these devices have established a need for brands to introduce “damage control” measures to try minimise the destruction that consumers can cause with a mere push of a button. These mobile devices have created a realm of convenience for consumers, as well as a complex and often destructive element to a brand’s operating environment.

Do you believe the implementation of mobile devices have created a consumer that is impossible to please? Have mobile devices created a troublesome environment for brands?