by Sarah Dexter (@sarahlouisedex) While much is made of the vast, and ever-increasing amounts of information we are exposed to, consumers the world over generally feel more empowered and in control than ever before — with two-thirds of South Africans stating that “information availability has made me more confident in brand choices” and a whopping 76% feeling that “information gives me control in my buying decisions”. This is according to the latest New Realities research study across the US, UK, China, Russia, India, Brazil and, most recently, South Africa.
This notion of information equaling control is particularly high in relation to banking and software brands (and less so when it comes to “nominal” purchases such as snack food and fast food). And, interestingly, increased information appears to have a very positive impact on people’s satisfaction with brands.
Consumers want to be educated
This New Realities study didn’t reveal completely overwhelmed consumers — but rather people who welcomed this never-ending avalanche of information on the whole. There were those who sought to avoid too much brand- or service-related information but this segment only accounted for one in five people in SA and Brazil. Both countries exhibited high levels of info enjoyers (one-in-three for SA and two-in-five for Brazil).
However, that doesn’t mean we can simply push consumers anything we feel like communicating in any channel we feel appropriate. Findings regarding the role of channel and impact in the decision-making process mirrored our connected world attitude and non-linear path to purchase approach.
The role of advertising
Surprisingly for some, and happily for others, advertising is still seen as the prime mover for creating awareness and familiarity with a brand — nudging the sage advice of friends and family into second spot. However, it’s unsurprising that actual experience, expert product reviews and promotions are seen to be of more value to a consumer when making an actual brand purchase decision. Promotions help drive fast-food purchase far more than “considered” categories such as cars and insurance.
Loyalty and brand responsibility
And then the notion of some kind of loyalty kicks in — a hotly contested topic — but our study reveals that 38% of South African consumers claims to be more loyal to brands than before.
But with all this ‘loyalty’ and trust comes great responsibility: consumers are holding their brands to a higher standard than ever before, especially banking, software and skincare brands. If you think they will simply wax lyrical about you to all and sundry, you’d better rethink that notion.
Social media and the role of the influencer
It is generally accepted that social network sites are seen as a good source of word-of-mouth information on brand experiences. However, South Africans appear to be surprisingly much more reticent in sharing their views about brands than their global counterparts. This is particularly so compared to Chinese millennials, who’re more than happy to voice their opinions, unsolicited.
Perhaps this is why we are seeing a rise of the micro-influencer — online personalities with a small but dedicated following, who provide honest insights and opinions on products and brands — both globally and locally. Many consumers subscribe to the ‘I don’t share unless I’ve had a great experience’ school of thought and that ‘perhaps others are the same and hence I can trust them.’
In what may come as a surprise to many, this doesn’t hold true for celebrities — South Africans are quite aware that, more often than not, the macro-influencers are paid to endorse products, so regularly seek out the more “like me” influencers when considering whether or not to purchase a particular product or brand.
Consumers and brands face a new reality today
Nearly three-quarters of South Africans feel that there is more information available to them than was previously the case. The goalposts in terms of information gathering have moved substantially, and consumers face a daily barrage of brand messaging, not only from brands, family and friends, but also from advocacy groups, influencers (both paid and unpaid), and then there’s the additional aspect of fake news to keep in mind.
There are virtually no barriers to where consumers may access information. It’s ‘always on’, immediate and very often part of the daily discourse. As consumers grapple with the who or what to trust when making purchase decisions, it is critical that brands guide the conversation while being cognisant of how information is absorbed, processed and acted upon. While we’re not unlike our international peers, a simple copy and paste of what works in market X or market Y is not going to do it for your brand. Understanding how brand advertising, advocacy, influence and trust are interlinked and work within a defined market is more relevant than ever today.
Sarah Dexter (@sarahlouisedex) is head of MullenLowe South Africa, which recently partnered with IPG in the latest round of the group’s ongoing New Realities research study. This has been conducted for the past nine years across seven countries: the US, UK, China, Russia, India, Brazil and, most recently, South Africa. The research forms part of an extended study into the major changes in consumer behaviour, and how this is impacting the marketing world today.
“Motive” is a by-invitation-only column on MarkLives.com. Contributors are picked by the editors but generally don’t form part of our regular columnist lineup, unless the topic is off-column.
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