Thursday, March 25, 2010
Form Usability and UX goodness
When we’re designing forms there are some simple things to keep in mind with regards to the UX and usability side of things that will make them that much better for our audiences.
Good Usability has two very useful articles about validation and preventing issues on web forms, well worth a read.
Preventing issues on web forms: http://www.goodusability.co.uk/2010/03/preventing-issues-on-web-forms/
Form validation: http://www.goodusability.co.uk/2009/08/form-validation/
Alistapart has an article regarding inline validation that shows us the wonderfulness of using real-time inline validation vs. validating by submission. By giving people an indication that their input is correct (or not) while they are filling in a form results in a far greater success rate and of course there is a much better experience for users.
http://www.alistapart.com/articles/inline-validation-in-web-forms/
Some other excellent websites to read where UX/Usability is concerned:
- Boxes And Arrows
- UI Scraps
- UX Booth
- Smashing Magazine has a few articles about usability and user experience that are worth reading.
Wednesday, February 24, 2010
IN SEARCH OF THICKER CONNECTIONS / THE SOCIAL WEB
Nice post from Contagious about the what, where and why of trusted sources
A lapse in trust between friends and peers, and why all social media connections are not created equal
A couple of days ago, Patricia McDonald of BBH Labs in New York put up a thought-provoking blog post entitled 'Will Social Media Eat Itself?' In this post, she responded to the startling finding, by the Edelman Trust Barometer, 'that we trust our friends and peers considerably less than we did two years ago'. Apparently, in the US, just 25% of respondents said that they regarded friends and peers as very/extremely credible - that's 20 points less than 2008. Go here for the full post - it's a great read.
We'll get into the loss of trust in real world environments towards the end, but for now, let's consider the 'media' angle of this social circumspection.
McDonald posits some different theories for the loss of trust with regard to the social web, for example: In times of trouble, we look to more established sources of information. As social media gets older, more commercial players treat it like old media and damage its credibility. Smart commercial uses of social information have been slow to emerge.
However, the suggestion we find most interesting is this:
As the network gets bigger, connections weaken.
BINGO.
We've been pondering this for a while. It is the great fallacy of social media that numbers mean power, and that all online connections are created equal. For example, on Facebook, there are people we communicate with all the time - close friends, family members etc. These we will term thick connections, as they facilitate regular exchange of content and sentiment.
Then, there are those creepy people from school that we agreed to be friends with because...well, that's Facebook, innit. These are thin connections. They are weak. They are barely used. They are breakable. They are there to bolster the numbers. And they were exploited deliciously and notoriously by Burger King at the beginning of 2009 with its Whopper Sacrifice app in which Facebook users were invited to sacrifice 10 thin connections in exchange for a free burger. 234,000 friends were dropped in five days, QED.
It's the different between blood and water. Online connections vary in 'thickness'. It's a fact of the web.
Twitter, too, is equally guilty of the numbers game, giving rise to a kind of hollow activism. Just because thousands of people are baying in 140 characters for policy change in Iran / the head of Jan Moir / Rage Against the Machine for Christmas Number One, it doesn't mean it will actually happen. (In the first two instances, it didn't. In the third, it was only when those people were persuaded to go one step further than retweeting, or adding their name to a Facebook group by actually buying the single that any kind of positive effect was produced).
There is no greater indication of the fact that numbers do not create de facto meaning than Chat Roulette, the random web chat service in which visitors are randomly paired with a stranger on the other side of the world. Acting as a kind of penis media delivery service, Chat Roulette exploded from 500 users in January to 10,000 by the beginning of February, despite the fact that most conversations either last only a few seconds or end in a picture of a scrotum. What does this mean? Nothing, probably. That we're bored. That we enjoy a little dose of unpredictability and randomness from the comfort of our own homes. Nothing that we didn't already know about human nature.
The rise of niche networks populated with enthusiasts and experts on a given subject has been predicted for a while. As McDonald points out, 'for a while this seemed counter-intuitive as I considered the all-conquering power of Facebook and the wisdom of fishing where the fish are.' However, the joy of a niche network is that all connections are thick connections. Information is shared on a regular basis on specific subjects by people who know or at least recognise each other's value, and enjoy interaction.
Dunbar's number is a theoretical number at which a community stops being 'stable' - the number at which people in the group cease to know and understand every other member of the community. The most commonly cited representative of this number is 150. It's fascinating to note that Facebook has more than 400m active users, yet the average user has 130 friends, pretty close to Dunbar's number. Even if marketers are judging the worth of Facebook on sheer weight of numbers, it appears that we know how to limit our social circles to manageable levels, tech or no tech.
It is here, we suspect, that the benefits for marketers may lie. By providing a utility, a platform, a sensitive addition to these connections, they get thicker, and stronger, and so does their association with the brand. Rather than an irritant, another clattering cymbal in the overwhelming noise of a network borne up by a million thin connections, the brand weaves itself into the DNA of a community. It is as much part of the experience as the participants.
Some other points to bear in mind:
In boom times, when we dedicate ourselves to the reckless accumulation of more stuff, it's more likely that purchase decisions will be made on the recommendation of a random peer or acquaintance. When money is less readily available and people are notably spending less, any purchase they do make is likely to be the result of more careful research from a number of different sources, both established and casual. It's not necessarily a reflection on the peer-to-peer relationship, more an indication of overall caution in the marketplace.
And finally - it's worth bearing in mind how exactly the report defines 'friend or peer'. As far as we could tell, the report makes no distinction between 'people that make me laugh on Twitter' and 'John and Sarah next door'. They're all just friends or peers. So - this isn't necessarily just indicative of a failure of trust in the connections that underpin our online lives. It points to something bigger. (Have a look at Richard Edelman's discussion of the results here.)
It's no coincidence that these results have emerged immediately following an absolute nail-biter of a year in which the global banking system came close to collapse, and many traditional sources of authority revealed themselves to be as clueless as the man on the street. Trust is not like energy. It can be both created, and destroyed, with devastating consequences.
According to the report, trust in the government is up, and trust in corporations (at least in the US) is slowly returning, yet trust in ALL information sources is down. Clearly, it takes time to rebuild what once was. So if we have less trust in our governments to protect us and our bankers to look after our money and our media outlets to be objective and our online social networks to be populated by anything other than mildly amusing strangers and old classmates, then what do we have left? The dichotomy of a world in which we are more in touch but less connected than ever before, and a feeling that if you want something doing, you know who your best bet is going to be
Wednesday, February 25, 2009
Digital Industry Statistics
Power of Word of Mouth
- "Person like me" still most trusted source for information about a company and, therefore, products. (Edelman Trust Barometer, November 2007)
- Recommendations from family and friends trump all other consumer touchpoints when it comes to influencing purchases, according to ZenithOptimedia. (AdAge, April, 2008)
- Recommendation is the number one reason for choosing a particular site. (Royal Mail's Home Shopping Tracker Study, September 2007)
- Users who contribute product reviews or post messages visit sites nine times as often as noncontributors do. Contributors also make purchases nearly twice as often. (McKinsey & Co./Jupiter Media Metrix study, January 2002)
- Review users noted that reviews generated by fellow consumers had a greater influence than those generated by professionals. (comScore/The Kelsey Group, October 2007)
- Adult Internet users surveyed chose recommendations from friends as the one type of promotion they consider most worthwhile. (DoubleClick, May 2007)
- Consumers trust friends above experts when it comes to product recommendations (65% trust friends, 27% trust experts, 8% trust celebrities). (Yankelovich)
- Consumers say that word of mouth is still the number one influencer in their apparel (34.3%) and electronics (44.4%) purchases (Retail Advertising and Marketing Association/BIGresearch Study, November 2008)
- According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer recommendations are the most credible form of advertising among 78% of the study's respondents. (Nielsen, "Word-of-Mouth the Most Powerful Selling Tool", October 2007)
- The two leading reasons people contribute content to social shopping sites are the need to feel part of a community (31%) and recognition from peers (28%). (IBM Institute for Business Value, August 2007)
- Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. ("Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape," JupiterResearch, March 2007)
- 86.9% of respondents said they would trust a friend's recommendation over a review by a critic, while 83.8% said they would trust user reviews over a critic. (Marketing Sherpa, July 2007)
- Two thirds of UK social networkers (66%) are more likely to buy a product as a result of a recommendation, compared to 52 per cent of non-social networkers. (Royal Mail's Home Shopping Tracker Study, September 2007)
- Tech decision makers give user-generated sites equal importance to traditional media sources when considering tech purchases. Decision makers consider their personal experience (58%) first when short-listing tech vendors, followed by word-of-mouth and industry analyst reports, tied at 51%. Advertising (17%) and direct marketing (21%) were listed as the least important information sources when short-listing possible vendors. (Study: "Tech Decision Maker," Hill & Knowlton, January 2009)
Consumer Demand for Ratings and Reviews
- Online reviews are second only to personal advice from a friend as the driver of purchase decisions; user reviews are more influential than third-party reviews. ("Web users and web community," Rubicon Consulting, Inc. October 2008)
- 81% of online holiday shoppers read online customer reviews (Nielson Online, December 2008)
- 86% of consumers read online business reviews before making purchasing decisions; 90% of whom say they trust these reviews. (Kudzu.com survey of 600 users, December 2008)
- The Trust in Advertising survey of 26,000+ found that Consumer Recommendations are the most credible form of advertising. ("Social Media Marketing: The Right Strategy for Tough Economic Times" Awareness, 2008)
- Nearly 49% of shoppers have made a purchase based on a recommendation through a social media property; respondents most relied on the following sources when making a purchase decision: 60.53% user reviews; 20.48% comparison charts; 15.41% editorial reviews; 3.58 shared shopping lists. (Razorfish, October 2008)
- Almost two-thirds (62%) of consumers read consumer-written product reviews on the Internet. (Deloitte & Touche, September 2007)
- When asked what sources of information they are "very likely" to consult before making a decision about their entertainment options, 62% named Web sites with user reviews as their top choice, even beating out a knowledgeable friend (59%). (Marketing Sherpa, July 2007)
- 46% of Britons now read online reviews or recommendations on a specific product before buying it and 32% are willing and able to publish a review online - but only 19% would be prepared to write a letter to a retailer. (1&1 Internet survey of 1600 consumers, December 2008)
- Seven in 10 (69%) consumers who read reviews share them with friends, family or colleagues, thus amplifying their impact. (Deloitte & Touche, September 2007)
- As of October 2008, almost half of US online adults read ratings and reviews at least once a month, and 19% post them. Nearly twice as many read reviews compared with 2007. (The Growth Of Social Technology Adoption, Forrester, October 2008)
- Nearly half (49%) of shoppers intend to do their holiday gift buying online (versus in-store), and 72% are planning to research products online prior to purchasing (vs. 65% in 2007). ("Mindset of the Multi-Channel Shopper Holiday Survey," e-tailing group, October 2008)
- 74% agree-including 14% who strongly agree-that they choose companies and brands based on what others say online about their customer service experiences, the survey shows. (Society for New Communications Research, May 2008)
- 58.7% of shoppers said they used product reviews to make decisions. Reviews rated higher than clearance sale pages (56.4%) and featured sale pages (51.3%). (Shop.org, November 2007)
- Compared to a base group that didn't read or contribute product reviews at all, people who read a review were 30% more likely to purchase a product and visitors who wrote a review were 80% more likely to convert, based on analysis across several Coremetrics clients. (Coremetrics, reported in BtoB, March 2007)
- Among the 46% of respondents who had posted or planned to post reviews about their online shopping experience, 88% said those reviews either were, or would be positive. (Nielson, 2007)
- More than eight in ten (82%) of those who read reviews said that their purchasing decisions have been directly influenced by those reviews. (Deloitte & Touche, September 2007)
- 55% of surveyed Internet users consulted other people's opinions online, making reviews the #1 resource for product research. (Avenue A/Razorfish "Digital Consumer Behavior Study," October 2007)
- In a study of 2,000 shoppers, 92% deemed customer reviews as "extremely" or "very" helpful. (eTailing Group, 2007)
- 59% of their users considered customer reviews to be more valuable than expert reviews. (Bizrate, October 2007)
- 63% of consumers indicate they are more likely to purchase from a site if it has product ratings and reviews. (Major consumer electronics retailer/iPerceptions study, January 2008)
- 81% consider the availability of customer reviews to be "very important" (33%)"somewhat important" (48%). (Major consumer electronics retailer/iPerceptions study, January 2008)
- 86.9% of respondents said they would trust a friend's recommendation over a review by a critic, while 83.8% said they would trust user reviews over a critic. (MarketingSherpa, October 2007)
- 84% of consumers earning more than $150,000 annually visit sites where customers review and rate products and services including restaurants. (The Luxury Institute, April 2007)
- 71% of UK online shoppers seek out ratings and reviews. (NetExtract, 2007)
- 70% of online consumers said they use the Internet to research everyday grocery products. (Prospectiv, January 2008)
- 67% of UK consumers research products via the Internet before shopping in a store. (Accenture, April 2007)
- 91% of millionaires say they always or often look at reviews before buying luxury goods; 68% of ultra-affluent shoppers use consumer reviews. (Unity Marketing/Google study, reported in AdAge, October 2008)
- Mobile user-generated content will generate $5.7 billion worldwide in 2012, up from $576 million in 2007. ("Mobile Social Networking: Opportunities & Forecasts 2008-2013," Juniper Research, October 2008)
- Satisfaction for those who recalled customer reviews on the retailers' site is 10% higherLoyalty increases, too: 7% higher likelihood to purchase online, 8% greater likelihood to purchase from the retailer next time they're buying similar merchandise and 11% greater likelihood to recommend the site to others. (30 UK Online Retail Satisfaction Index, ForeSee Results, January 2008) than those who said there were no reviews offered.
- 83% of shoppers said online product evaluations and reviews influenced their purchasing decisions. (Opinion Research Corporation, an infoGROUP company, July 2008)
- In an online survey of 4,000 consumers, 70% said they had done internet research on "everyday grocery products," and 63% said they had done so for health and beauty products. (Prospectiv, 2007)
- 57.2% of U.S. toy purchasers are influenced by product reviews online. (Ad-ology Media Influence on Consumer Choice, Fall 2008)
Marketer Demand for Ratings and Reviews
- 79% of online UK retailers surveyed reported that the main benefit of consumer-generated rating and reviews was that they improved site conversion rates. (eMarketer, 2007)
- 68% of online marketers believe "media is in big trouble and will lose dollars to user-generated content." (iMedia Connection, February 2008)
- 58% of the E-Commerce Guide 100 retailers implemented ratings and reviews in 2008, up from 50% in 2007; 24 percent sell by top-rated products. (e-tailing group's 11th Annual Mystery Shopping Survey, January 2009)
- 84% of marketers agree that building customer trust will become marketing's primary objective (1to1 Media survey of the 1to1 Xchange panel, April 2008)
- 43% of retailers have reviews - double in one year. (Marketing Sherpa, February 2007)
- 76% of US retailers said user-generated content would have a greater impact on their marketing goals in the near future. (SLI Systems/Zoomerang, November 2008)
- Of merchants who adopt customer reviews, 58% said improving customer experiencecompetitive advantage was the most important reason for adding reviews to their sites, followed by building customer loyalty (47%), driving sales (42%), and maintaining a (37%). (eTailing Group, June 2008)
- By 2020, 84% of marketers agree that building customer trust will become marketing's primary objective, and 82% agree that collaboration with customers will prevail over marketing. (1to1 Media survey of the 1to1 Xchange panel, April 2008)
- 11% of retailers reported a 20% or more overall increase in conversions as a result of adding reviews to their sites, 21% reported an 11% to 20% increase and 5% reported a 1% to 10% increase. (eTailing Group, June 2008)
- 81% of marketers surveyed say that their social media spending will meet or exceed their traditional advertising spending within the next 5 years. (TWI Surveys/Society for New Communications Research, November 2007)
- 56% of UK website owners say that user-generated content lifts conversion levels; 77% say it increases traffic; and 42% say it increases the average spend on site.(eConsultancy survey of 360 website owners across all sectors, November 2008)
- Dave Seifert of Bass Pro Shops noted at a Shop.org round table discussion that Top Rated Products were "the #1 merchandising technique ever utilized on their site." (Bass Pro Shops, June 2008)
- After their order, PETCO asked customers, "What online tool most influenced your purchase decision?" The #1 answer was product ratings and reviews, with site search coming in a distant second. (PETCO, June 2007)
- The Shop.org State of Retailing Online study, conducted by Forrester Research, found only 26% of the 137 top retailers surveyed offered customer ratings and reviews, but 96% of them ranked customer ratings and reviews as an effective or very effective tactic at driving conversion. (Forrester, 2007)
Consumer Demand for Ask & Answer™
- 76% of online shoppers surveyed report that content is insufficient to complete research or purchase online "always, most often or some of the time." (eTailing Group, June 2007)
- Online businesses lose as many as 67% of consumers due to a lack of online product information. (Allurent, January 2008)
- 83% of online shoppers would make purchases if sites offered increased interactive elements. (Allurent, January 2008)
- One in four (24.5%) shoppers said they left a store because of a lack of assistance. (Shop.org, November 2007)
- 90% of UK shoppers surveyed said they wish they could communicate directly with businesses - using live chat, forums or call-me-back facilities - via their websites; one in three require it from the UK businesses they currently use. (1&1, October 2007)
- 42% of consumers said they prefer being able to find the answers they need online on their own if they had a question or wanted help while shopping online. (Harris Interactive, May 2007)
- The share of traffic to question-and-answer Web sites has more than doubled from 2007 to 2008 (HitWise, 2008)
- Yahoo Answers had 25.3 million visits in February 2008 (comScore Media Metrix, March 2008)
- 68% of consumers trust "people like me" first for product advice. (Edelman Trust Barometer, January 2007)
- 42% of 1,179 online consumers surveyed have left a site without purchasing multiple products because they couldn't get a question answered about one of the products in their shopping cart; 41% decided not to make a planned purchase because they couldn't readily find a piece of information about the product or service. (JupiterResearch, September 2007)
Conversion Results
- MarketingExperiments tested product conversion with and without product ratings by customers. Conversion nearly doubled, going from .44% to 1.04% after the same product displayed its five-star rating. (MarketingExperiments Journal, July 2007)
- 79% of online UK retailers surveyed reported that the main benefit of consumer-generated rating and reviews was that they improved site conversion rates. (eMarketer, 2007)
- Online shoppers who look at TripAdvisor reviews on the Hayes & Jarvis site book trips at double the rate of online shoppers who have not seen the TripAdvisor reviews, based on first four months after launch. (TripAdvisor, January 2008)
- Shoppers who browsed the site's new "Top Rated Products" page, which features products rated most highly by customers, had a 59% higher conversion rate than the site average and spent 16% more per order than other browsers of products. (Bass Pro Shops, June 2008)
- Shoppers who browsed the site's "Top Rated Products" page, which features products rated most highly by customers, had a 49% higher conversion rate than the site average and 63% more per order than other site shoppers. (PETCO, June 2007)
- Giving shoppers the ability to sort products within a category by customer rating led to a sales increase of 41% per unique visitor. (PETCO, June 2007)
Average Order Value Results
- Consumers were willing to pay between 20 to 99% more for a 5-star rated product than for a 4-star rated product, depending on the product category. (comScore/Kelsey, October 2007)
- Top-rated products site navigation path featuring 4- and 5-star products in each category delivered 35% higher conversion and 40% higher average order value. (Bazaarvoice, June 2007)
- Reviews usage drives higher spending: 27% of users report an increase of 5-10%; almost 7% report an increase of 20%+. (Avenue A/Razorfish "Digital Consumer Behavior Study," October 2007)
User-generated Content Beyond the Web
- 64% of Social Researchers (those who refer to user-generated content when shopping) research products online more than half the time, no matter where they ultimately buy the product (store, Web, catalog, etc.). (eTailing Group, June 2007)
- Online consumers are becoming precision shoppers. For every $1 in online sales, the Internet influenced $3.45 of store sales. (eMarketer, 2007)
- 90% of those surveyed say they have a better overall shopping experience when they research products online before shopping in-store. (Harris Interactive, October 2007)
- 92.5% of adults said they regularly or occasionally research products online before buying them in a store. (BIGresearch, November 2008)
- Nearly one out of every four Internet users (24%) reported using online reviews prior to paying for a service delivered offline. (comScore/The Kelsey Group, October 2007)
- More than three-quarters of review users in nearly every category reported that the review had a significant influence on their purchase, with hotels ranking the highest (87%). (comScore/The Kelsey Group, October 2007)
- 97% of those surveyed who said they made a purchase based on an online review said they found the review to have been accurate. (comScore/The Kelsey Group, October 2007)
- Consumers who shop online for digital cameras and TVs spend 10% more on in-store purchases than consumers who do not search online. (ChannelForce for Yahoo Search Marketing, July 2007)
Email Campaign Results
- Email study: PETCO realized a 5X increase in email click-through rates by including relevant ratings and reviews content in the campaign promotion. (PETCO, June 2007)
- Top rated product email drive 46% higher revenue per email in A/B test. (Golfsmith, June 2007)
Search Engine Optimization Results
- In a study of a major electronics retailer site of 30,000 monthly natural language search visitors, converted 60% more often, spent 50% more, and viewed 82% more pages than search visitors to other pages. (Bazaarvoice case study with major electronics retailer)
- In a study of online UK retailers, 59% reported that the consumer-generated activity leads to better search engine optimization. (eMarketer, 2007)
Return Rates and Customer Satisfaction
- During the 2007 holiday season, consumers who recalled seeing customer reviews on a Web site reported 9% higher customer satisfaction levels, were 9% more likely to make a purchase and 8% more likely to purchase the next time they came to that site. (ForeSee Results, January 2008)
- Reviews drive 21% higher purchase satisfaction and 18% higher loyalty. (Foresee Results Study, January 2007)
- Online UK retailers reported improved customer retention and loyalty by 73% once they implemented consumer-generated rating and reviews. (eMarketer, 2007)
- Products with reviews have a 17% lower return rate than those without reviews. (Bazaarvoice PETCO Case Study, 2007)
- Products with 50+ reviews have a return rate that is half of those with fewer than five reviews. (Bazaarvoice PETCO Case Study, 2007)
- One study from IBM Institute for Business Management shows that while those adults in the UK who use social networking do so to attain a feeling of community, 17% of the adults surveyed say they do so because they like to participate with brands they favor. (IBM, August 2007)
Evolution of Advertising and Media
- 75% of people don't believe that companies tell the truth in advertisements. (Yankelovich)
Search
- SearchVoice study: of 30,000 monthly SearchVoice visitors, they convert 60% higher, spend 50% more and viewed 82% more pages. (Major electronics retailer case study, August 2008)
- The ability to refine site search results by customer rating led to 22% more sales per unique visitor on a same-session basis and 41% more sales per visitor on a multi-session basis. (Bazaarvoice)
Syndication
- RSS study: Burpee measured a 43% higher click-through on RSS feeds with reviews than without. (Burpee, December 2007)
Industry Articles
Positives About Negative Product Reviews. Worried about opening your company to consumer reviews? Don't be. (iMedia Connection)
Getting a Handle on Customer Reviews
These days, what the customer thinks is hardly a secret. Consumer reviews and ratings are popping up on a growing number of Web sites, sites on which users treat brands like contestants on American Idol. (Brandweek)
Online Influence Tied to Search, Social Media Use
According to a new research report by Yahoo! and Comscore, not only is social networking's influence on marketing growing, but particularly vocal individuals are having more of an effect than ever. (ClickZ)
CGM Changes Minds of Online Auto and Travel Buyers
Consumer Generated Media not only influences online consumers, it can get them to change their minds. (ClickZ)
Monday, January 12, 2009
Meet the 'New Info Shopper'
New Info Shoppers
By MARK PENN thanks to WSJ
With so much attention on psychological marketing these days -- finding new ways to tap into people's heads -- perhaps the single most neglected trend out there is the move towards more hard-nosed information-based shopping and purchasing.
While elites were busy shoveling money into Madoff's black box these past few years, strapped consumers have been poring over product spec sheets, third-party reviews and expert blog sites. This past holiday season they watched every dollar. A special kind of consumer has taken a major role in the marketplace -- the new info shopper. These people just can't buy anything unless they first look it up online and get the lowdown.
These shoppers have the Internet at work, typically hold information-based or office-park jobs, have some college or grad school, and are often making ends meet with two jobs, kids, and pets on a middle or upper-middle-class income.
Forget about huge, sweeping megaforces. The biggest trends today are micro: small, under-the-radar patterns of behavior which take on real power when propelled by modern communications and an increasingly independent-minded population. In the U.S., one percent of the nation, or three million people, can create new markets for a business, spark a social movement, or produce political change. This column is about identifying these important new niches, and acting on that knowledge.
They have become highly suspicious of many TV ads: in a shoppers survey we did, 78% of them said that ads no longer have enough information they need. So many of them search online for virtually everything. Window shoppers have become "Windows shoppers." They want, in the phrase often attributed to Dragnet's Joe Friday, "just the facts, ma'am."
Of course, there is still a healthy role for big emotional brand appeals and mega-advertising campaigns. For every trend there is a counter trend. But that's not the real new thing in consumer behavior.
A whopping 92% of respondents said they had more confidence in information they seek out online than anything coming from a salesclerk or other source. They believe the information they find, not in the information that is spoon-fed to them, and the vast number of clicks today prove that they really are devoting time and energy to ferreting out detailed info before they buy.
A good example of how information can transform a marketplace is the series of ads a few years ago for the Dyson vacuum cleaner. Founder and inventor James Dyson took a commonplace item and explained how he had transformed it with new scientific principles. Consumers weren't bored with the technical approach. On the contrary, sales took off -- and changed the marketplace for vacuum cleaners.
When we asked shoppers whether they would do online research before buying a vacuum cleaner today, a surprising 58% said that's exactly what they would do. His ads helped turn vacuum-cleaner buying into a largely information-based marketplace.
We have seen many of the big market areas convert to an information-driven model -- cars, homes, personal computers and medical care are areas where nearly 4 in 5 shoppers say they gather information on their own from the Web before buying. "Do-it-yourself doctors" (that is, info patients) show up at their doctor with the Web-derived diagnosis in hand, and a list of the medicines they need prescribed. Customers appear at the car dealership with the wholesale price and the model already picked out.
Information-seeking is not just an activity, it's a way of looking at the world. New info shoppers are proud of the progress they have made in putting facts over pablum. More companies should treat their customers as Dyson did and let them in on the secrets of their unique success. And they should invest more than ever in helping form their consumers into citizen corps, arming them with PCs, cameras and even asking them to use the phone's new video cameras to document their product usage and put them online.
But how many marketers today work back from what this new consumer is thinking and doing? Not many. Based on the advertising budgets in the U.S. where a typical company will spend 60 times as much on advertising than they spend on generating publicity, most lag way behind in creating a new model of consumers and the steps they take before they buy.
Some industries got it right away. Movies and restaurants have huge word of mouth and impulse components, but they are also very information-driven. Zagat's pioneered the concept of survey ratings and reviews, and smart restaurants use them. We're seeing the same in entertainment, where Metacritic and others provide professional and customer ratings of every movie.
Now this trend is spreading down the product chain. In our survey, 24% said they are doing online research before buying shampoo. The Breck Girl is being replaced by a shopping bot.
And they have questions. How does this shampoo work on different hair types, thicknesses and colors? Are the bottles recyclable? Has the product been tested on animals?
It used to be that the only time people expected 30-page, pre-purchase, inspection reports was when they were buying a house. Now some people want them just to buy a tube of toothpaste.
The point is that advertising isn't just moving to the Web, it's got to grapple with an entirely new kind of shopper and way of shopping. Marketers now have to balance traditional media, online media, and content that is generated by experts, bloggers and consumers themselves. An astonishing 70% of Americans now say they consult product reviews or consumer ratings before they make their buying decisions. Sixty-two percent say they spend at least 30 minutes online every week to help them decide what and whether to buy. Among Americans under 45, that number shoots up to 73%. Seventy-three percent -- that's more than four times the percentage in that age group who go to church every week. For some, smart shopping is more than a hobby. It's a religion.
Information aggregation sites – the ones that don't generate content themselves, but link to others' content, weaving a story about the industry and its products -- will become even more important. Much as the Drudge Report tells its readers where to find stories they will like, so consumer aggregation sites could grow and do the same for car buyers, PC buyers, and other consumer groups. Most of the sites so far have been too cheesy to really catch on.
Information shopping also means manufacturers have to get back to generating more information on their products, even offbeat factoids that are highly memorable if not always useful. Timex sold a lot of watches by showing its watches were still ticking after being thrown into a washing machine. To catch the eye of the info-shopping consumer, manufacturers should start hauling their wares up to Mt. Everest, drop them out of windows, put them in boiling water and reporting on how they do. In an info-seeking world, facts can again become the great differentiator.
New Info Shoppers are bigger than a microtrend. They represent a broad shift in the marketplace brought about by the Internet, higher education, and changing economic times. But the question is when is the marketplace is going to really catch up to them.
Image thanks to: http://informedbuying.net/computer_shopcart.JPG