The increased usage of mobile and social media has had a significant impact on purchase decisions. The widespread availability of smartphones and increased connectivity options have made it extremely easy for customers to access eCommerce sites. Additionally, while the vast majority of sales occur on brick-and-mortar stores, retail decisions are significantly influenced by digital.
One aspect of digital that’s played a massive role in influencing purchase decisions is social media. There’s a reason that modern brands have entire teams dedicated to managing their social media profiles, and that’s simply because digital marketing is as big as it is today. While digital marketing can be costly and competition is quite intense, it works exceptionally well and can lead to many conversions.
In particular, social media has a massive impact on purchase decisions due to a number of reasons.
People rely on peer recommendations
Recommendations from peers can significantly result in conversions. In fact, people are more likely to make an online purchase if they are recommended by others, especially people they know. This trend may have resulted from a general distrust of brands and conventional advertising methods.
Apart from this, however, influencers play a huge role in driving traffic through referrals. Product recommendations from influencers have the power to drive large amounts of social influence. This is because these influencers successfully gain the trust of their followers through their expertise and social capital.
Influencers on social media now drive fashion
Influencers in niches such as beauty and fashion, have the potential to sway their audiences. In fact, such influencers even ignite trends as they highlight products their followers can’t miss out on.
Hence, companies must identify which influencers have power over their audiences. These may include bloggers, publishers, vloggers, etc. Getting their approval might just be what a brand needs to further its audience along the sales funnel.
This influence isn’t just limited to the fashion and beauty industries, though; other industries such as the tech or gaming industries also boast a significant role of influencers who can dictate their consumers’ purchase decisions.
The growth of user-generated content
Many potential customers look out for user-generated content. Brands, understanding their importance, use such content to build on their branding and increase their followers.
User-generated content can encourage other followers to share their own content, such as stories, reviews, and images. Seeing content from other like-minded individuals can have a significant impact on purchase decisions.
When taken to the next level, user-generated content can potentially become content from brand ambassadors. These brand ambassadors can play a huge role in convincing their audiences to opt for your brand.
Engagement, not promotion or advertising, is often the drive behind purchasing decisions.
While it’s true that peers and influencers play a huge role in influencing purchase decisions, brands also have a more excellent opportunity to express their voices.
Today, engaging with a target audience yields better results. Social media gives brands the chance to engage with their customers, driving purchase decisions, and social media recommendations. Businesses need to make it a point to address their customers.
The key to success for today’s brands is to understand how consumers use different channels than they did in the past. They can use these changing trends to their advantage and build a brand that consumers can relate to more.