THE WAY THE INTERNET IS CHANGING CONSUMERS’ ATTITUDES TOWARDS BRANDS

I recently attended a breakfast meeting hosted by AOL which focused on the way the Internet is changing consumers’ attitudes towards brands. AOL’s findings from their Brand New World Part 2 research study provided some compelling statistics and conclusions on the online landscape.

78% of users spend longer searching for information on brands (and products) with the advent of the Internet.
This extra information is modifying a consumer’s brand opinions and purchase behaviour regardless of whether the final purchase is made offline or on. Search engines rank the most important source of information whilst personal recommendations are still considered the most honest and fair information source. Search engines in this instance rank only 5th with 67% agreeing to this statement.

At Current Digital, many more services offering product reviews and ratings are being brought to our attention as the Internet tries to replicate the personal recommendation model. Studies by leading rating & review providers have shown increased conversions, higher AOVs and decreases in goods being returned as a result of product reviews. Many companies may be wary of opening up their business to review functionality but research by a leading supplier has shown 80% of all reviews are positive. The 20% of negative reviews should then be seen as a platform to respond and react and improve the business as a result.

56% of the users surveyed agreed that due to the Internet they look more favourably on brands whilst 42% changed their mind about a brand purchase and switched to another brand.
This statement indicates that the impact the Internet as a whole has on a brand is neither heavily detrimental nor positively influential. AOL’s first study suggested that the Internet has caused the consumer to be less brand loyal but this statement could be debated. However, what is certain is that online communications can help shift this balance in favour of the brand but if you step over the mark then it could all come crashing down on you. There is no doubt that the Internet has made life more transparent leaving all businesses open to scrutiny and examination whether they like it or not. Also, be aware that these statistics are not bias to offline or online purchases, so whether you have an e-commerce site or not, advertise on the Internet or not, no business is exempt from public scrutiny and retrieval of information.

Taking into account the consumer’s insatiable appetite for information a company must therefore offer a variety of information sources from which they can gather information. There are many avenues to explore, from advertising (on & offline), promotions, email marketing, blogs, forums and corporate websites to name a few. The trick is to maintain full commercial transparency, especially online, and roll with the punches if reviews/comments/publicity is negative. Never abuse the trust and manipulate a situation to your favour as you’ll only ever be found out. There are plenty of examples of phony blogs which are fronts for corporate websites which have gone badly wrong when they’ve been found out.

Another interesting insight raised by this study is that trust lies with the retailer online and not the brand.
When asked about online purchases 82% would buy a product if they were familiar with the retailer but not the product/brand, compared to only 54% who were familiar with the brand but not the retailer. Users familiar with both the retailer and brand scored 90%.
It should therefore be the job of the retailer to strengthen the relationship with the consumer and instil trust in them, however brands should still support themselves to achieve that additional 8% uplift. According to a leading supplier, e-commerce sites can lose up to 67% of consumers because there is not enough product information on the site, so don’t be caught out! Again, ratings & reviews can help provide un-biased information which resonates highly with potential consumers.

I appreciate that the classic branding model is based on a tightly controlled approach and particularly for product based brands, assumes consumer’s to be passive recipients of value. However as this article has discussed, blogs, RSS and search engines all require marketers to give up a degree of control. This step can be scary and unnerving at first but by applying your communication wisely the Internet becomes a fruitful landscape to build your business.

The AOL presentation left me considering the following indicators of performance for building trust and consumer engagement.
• Impact of website (download speed, navigation, usability)
o 61% strongly agree that if they have a poor experience online at a commercial website they are less inclined to buy from that company
• Website experience
• Clarity of information on website about product/brand – easy to extract information
• Dialogue present – interactivity available
• Company vigilant with personal information – transparency of privacy policies
• Ease of transaction (clear pricing, delivery schedules, stock availability)
• Service offering – consumers are more exacting and more inclined to punish poor service
So, how do your business practices stack up?

Finally, if nothing else, this presentation has reinforced the importance of synergy and integration required across all marketing practices. The Internet has liberated the consumer and handed them more power, companies must now embrace this change in behaviour and adapt accordingly – don’t be left behind!