In the Journey to Influence Consumers, is Content the New Driver? An objective look at who really steers content that increases conversions
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- Abner Malone
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1 In the Journey to Influence Consumers, is Content the New Driver? An objective look at who really steers content that increases conversions Why read this paper? Consumers are driven to make their purchase decisions by a number of elements that exert various levels of influence, including psychological, cultural and social factors. Price, convenience, favorable shipping costs or speed may also be influencers. But in today s digital economy with social media and mobile as two of its primary engines, information, and more specifically content, seems to be wielding considerable sway in the consumer decision-making process. One of the most pressing questions for advertisers and marketers is what types of content are truly effective at increasing conversions and maximizing ROI? And can their effect on decision-making really be measured effectively? Expert content is 83% more effective than user reviews and 38% more than branded content. 1
2 Decisions, decisions. Where do consumers get their buzz? As digital, social media and mobile become ubiquitous, consumers are using them as conduits to access multiple sources of information to help guide their purchase decisions. Using brand websites, user reviews and thirdparty expert content, consumers tap into the information they need to learn about new and existing products/ services. Whether doing their searches to find out about specs, product details, good or bad peer experiences with the products/ services or independent testing, this type of content has the power to shape consumer decisions positively or negatively. Sites such as CNET, KBB.com (Kelley Blue Book online) and Angie s List all command attention and sway consumer opinion. There are also a multitude of user group forums and rating sites such as Yelp, which discuss the pros and cons of everything from dive watches to greasy spoons. The fact is consumers gather information from a number of divergent sources. And while social media and other digital content sources take center stage with consumers, old media and old-fashioned word-of-mouth conversations with friends and family can also influence them. Push, not pull: The ease by which any consumer can access a wealth of information on any product/service has changed the way consumers research and make purchase decisions. But what type of content exerts the most pull? According to research by Nielsen, objective sources do. 1 While it might seem obvious that independent, thirdparty reviews and articles rate higher than the inherent subjectivity of marketer websites and user reviews, which tend to be a mixed bag at best (quite often they are forums for the most vocal consumers with an ax to grind), most advertisers have not adjusted their tactics accordingly. The reason might be due to the higher percentage of consumers using social media (54%), 2 user reviews (52%) 3 and online advertising (51%) 4 relative to expert reviews (46%) 5 in the decision-making process. While those percentages alone would suggest that these information sources potentially have more of an impact, the impact of content types across the purchase process suggests otherwise. In fact, expert content is 83% more effective than user reviews and 38% more than branded content. 6 And expert content is the only content type that has proven to provide lift in all three areas of the purchase cycle: familiarity with a new product, affinity toward a brand or product, and purchase consideration of a brand or product. Information source usage in the consumer decision process Source: Nielsen/inPowered MediaLab study. Dec 2013-Jan 2014 Impact of content types across purchase process Source: Nielsen/inPowered MediaLab study. Dec 2013-Jan
3 They re objective so it helps you reach yours: So why are expert opinions so important in terms of content and what sets them apart from user reviews and branded content? Consumers tend to look upon third-party information as independent, unsullied and unimpeachable. An inherent credibility is baked into thirdparty content. Consumers believe that expert content can provide honest product assessment without bias. In terms of the final stage of purchase, this facet takes on even greater import. The Nielsen study supports this contention, as 50% of respondents noted that they would not trust a branded website for an unbiased product assessment, and 61% were less likely to trust product reviews paid for by the company. 7 Another important reason why consumers put more credence into third-party content is the perception that it provides a better source for information than either user or branded content. Expert content is thought of as a deeper dive made by individuals who have greater insight. Consumers looking for a more thorough evaluation than a superficial one that is, more opinion than fact, especially in the realm of products that are not of the parity variety will tend to veer toward expert content. As a marketer, you can use the fact that consumers rely on third-party content to your advantage. Consumers are looking for solid, reliable and tangible information to help them choose which products/services to purchase. It s in your best interest to provide them with concrete information and proof that your product will add value, especially relative to offerings made by your competitors. That s why you need to actively research and find unbiased sources of content that can act as brand ambassadors, advocates and evangelists. By linking your website to this type of content and including it in social media initiatives, you can take advantage of a tactic that has an impact more powerful than traditional media s testimonials. The reviews are in and they can help brighten your sales picture: There are situations where user reviews and branded content can prove effective in influencing consumer decision-making. If product specs are an important part of the decisionmaking process, as in the case of buying a new computer, branded content can help increase conversions. Consumers perceive that who knows better about a product s specs than the brand itself. User reviews can prove effective in influencing consumer purchase in categories where users tend to have a higher degree of product expertise, such as in the video game category. Gamers are perceived by other gamers as knowledgeable, so as a consequence they will trust their reviews. The fact is peer reviews do matter. Another Nielsen survey found that nearly 60% of online shoppers consult reviews prior to purchasing consumer electronics, and 40% would not even buy electronics without consulting a review online first. 8 Even commodity products should consider pulling in user reviews from external sites to add credibility. Sometimes it s good to shout, shout and let it all out: It s important to note that branded content is important in the mix, too, as cognitive fluency or the human tendency to prefer things that are familiar can exert an influence. So if content on your site or content pushed through social media increases familiarity, you can help influence consumer decision-making to a degree. Consumers who have tried your product and have had a good experience with it need the type of reinforcement and top-of-mind awareness that brand content delivers. This is especially the case with brands in the fast-moving consumer goods (FMCG) or CPG categories. 9 Branded content that extols the virtue of your brand and increases awareness can be a real influencer in the consumer buying decision process. With human nature skewing toward expediency, you can take advantage of the fact that they don t want to spend a great deal of time researching alternatives and risking a purchase that has the potential to create buyer s remorse. 3
4 Are you content with social media s impact? Social media content. Does it really influence consumer decision-making? There are conflicting views on the actual impact. A study by imoderate Research Technologies indicated that consumers are 67% more likely to buy from brands they follow on Twitter while 51% are more likely to buy from a brand they follow on Facebook. 10 But a report by researcher Forrester and GSI Commerce contrasted these findings and showed that social media rarely leads to purchases online. 11 The report goes further, suggesting that and search were significantly more effective for turning browsers into buyers. But like most marketing tactics, influence over purchase is cumulative and takes place over time, so social media s content involves a relationship-building process that will simmer and not heat up right away. Everybody s got an opinion but some count: Another factor that has relevance in the social media realm relates to opinion leaders and reference groups. Opinion leaders whom people follow on social media can exert a direct or indirect influence on consumers, who may use the information as fodder for their purchase decision-making. Reference groups within social media hold an emotional attraction to individuals as a basis for self-appraisal or as a source of personal standards. Where this comes into play is in the verticals involving luxury product purchases. These elites, of which the individual is either a member or a wannabe that aspires to be identified with, can act as motivators for a consumer to choose a particular brand or product. It s important as a marketer to identify and monitor these opinion leaders and reference groups, so you can take advantage of their influence with social media. Are you experiencing a measure of discontent? While there s abundant data to support that B2C marketers are using content to influence consumers (77% in North America, according to the Content Marketing Institute) and getting more effective at using it (37% in 2014, up from 34% last year) marketers are having a hard time measuring their content marketing efforts. In fact, only 23% of those surveyed by the Content Marketing Institute claimed to have been successful at determining ROI for their content marketing initiatives. And over half of respondents cited measuring content effectiveness as one of the tactics chief challenges. 12 It s important to note that measuring content and its influence by hard metrics alone does not take into account the magic metric Doug Kessler calls Ripples, which he defines as All the good things that happen when you produce something that resonates with an audience. These include invitations to speak, guest blog, interview, meet great people and help others with their projects. Stuff very few people measure but really generate value. 13 The convergence of influence: While objective sources such as expert content build trust and exert more influence on consumers, no content source should exist in a vacuum. Campaigns should be integrated with media and so, too, should the content types that can impact consumer behavior and decisionmaking. In other words, you might want to lead your marketing initiatives with expert content but should always supplement it with user reviews and branded content to build familiarity and reinforce purchase decisions to avoid buyer s remorse. These integrated strategies have a synergistic effect that could prove very effective with influencing consumers, especially in the final purchase decision phase. The bottom line is consumers need to be convinced by credible, objective information, not puffery or promises that are subjective. It s in your best interests to build your content strategy with this in mind. SOURCES: 1, 2, 3, 4, 5, 6, 7 The Role of Content In Consumer Decision Making, Jack Loechner, MediaPost; 8, 10, 11 Nine Things to Know About Influencing Purchasing Decisions, Peep Laja, ConversionXL; 9 The 5 stages of Consumer Buying Decision Process, Fanny Perreau, The Consumer Factor; 12 The Content Is Out, but Where s the ROI?, emarketer; 13 Content ROI Is a Myth, Kieran Flanagan, HubSpot. 4
5 About the author Ernie Capobianco When you consider Ernie s history, you can see the seeds for what was to come. A graduate of Boston University with an undergrad degree in accounting and business administration and a master s in computer information systems from Boston s Bentley University, he wanted to take the uncertainty out of marketing spend. His first taste of advertising was an auspicious one. As CFO of a multinational billion-dollar traditional ad agency, he saw clients spending millions of marketing dollars with little to no direct connection to sales. Ernie was motivated to build a new type of agency that uses conversion optimization to drive predictive modeling. His goal was, and still is, to take the guesswork out of advertising spend. Ansira has grown from 14 people to more than 125, in three cities, within the span of three years. Ansira: The Data-Driven Results Marketing Agency Ansira continually engages customers along the entire consumer life cycle and purchase funnel, using conversion optimization to drive higher sales at a lower cost. Our customer-centric approach applies data and analytics to every interaction, helping clients maximize customer profitability and optimize customer experiences. Designed to adapt with our clients ever-changing consumer base, we take the guesswork out of marketing. Our repeatable programs integrate all channels and media to steer consumers along the path to purchase pre and post leading to predictive ROI modeling. While traditional conversion optimization measures only one phase of the conversion process, we measure each and every consumer touchpoint to determine the best way to maximize marketing spend. Every single program is viewed as an opportunity to test, learn and optimize. Using multivariate and A/B testing, Ansira continually scrutinizes a variety of factors, including landing page effectiveness, messaging and targeting methodologies. We take full advantage of the latest in technology, message delivery and measurement. Contact Ansira at 5
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