2018 CONSUMER RESEARCH: Why Product Experiences are What Win Consumer Trust in the Digital Age

Transcription

1 2018 CONSUMER RESEARCH: Why Product Experiences are What Win Consumer Trust in the Digital Age

2 BRANDS ARE BEING SQUEEZED FROM ALL SIDES Pressure on margins within online retail, an increasing array of private labeled goods, declining in-store sales, the growing popularity of native D2C and other upstart companies. But underlying all these trends is the reality, confirmed by both retail site behavior analysis and stated preferences, that today s consumers overwhelmingly value, and attribute brand trust, to a good product experience. They are both willing to pay more, and are likely to buy more often, from brands that deliver it. For brands to build this trust with a great product experience, so much relies on content, and this carries over to brands selling on online retail sites. A Salsify analysis completed in early 2018 demonstrated that if you take two listings that appear side-by-side in an Amazon search engine results page (SERP), the one with more images will convert at a higher rate and outrank the competitor 53 of the time. In the same way, a listing with more bullets will convert higher and outrank the side-by-side competitor 51 of the time. And finally, a listing with more reviews will convert higher and outrank the competitor 58 of the time. When brands deliver this experience on the product page, and back it up with an actual product to match, consumers keep coming back, write reviews, and create a virtuous cycle for the brand itself. A survey of more than 1,000 U.S. consumers who shopped online at least once in 2017, drives home the idea that ecommerce hasn t killed consumer loyalty or trust in brands, it s just shifted that trust from brand familiarity or visibility, onto more experiential terms. Brands have a golden opportunity to drive higher margins and more sales by focusing on online product content and delivering an overall terrific product experience.

3 Methodology: Age: Household Income: Results highlighted in this report are based off of survey responses from more than 1,000 US-based consumers who shopped online at least once in $20, $20,000 to $34, $35,000 to $49, $50,000 to $74, $75,000 to $99, $100,000 to $149, $150,000 to $199,999 8 $200,

4 Consumers are open to individualized experiences (e.g. Images, Videos, Text, Reviews) Likeliness to Buy with More Personally Relevant Product Page Content (e.g. Images, Videos, Text, Reviews) Extremely likely Very likely Likely Less likely Not likely at all Not sure 78 OF CONSUMERS MORE LIKELY TO BUY

5 Product content matters Number of Photos Needed When Shopping for Any Product Online Number of Photos Needed When Shopping for Any Product Online OF CONSUMERS NEED 3+ IMAGES OF CONSUMERS NEED 3+ IMAGES or more 60 What makes you trust a brand online?

6 Personal experience and user reviews matter most often more than traditional word of mouth What makes you trust a brand online? Had a good experience previously Many good reviews Been around a long time Friends and family recommend Identified as a best seller 26 Social media popularity

7 Shoppers are sensitive to product experience As online shopping has become more of a fixture in consumers lives, consumers have grown more discerning before clicking buy. In 2017, price was the most important factor for consumers across all product types surveyed. Now, particularly for considered purchases, consumers care less about price when a product has demonstrated trustworthiness - they ve already had a great experience with it, the product content answers their concerns or questions, and there are plenty of positive reviews.

8 Reviews and product information key for electronics category What s most important to you when buying electronics? Plenty of positive reviews Mnf'r information answers your questions Familiar/trusted brand name Lowest price 2-day shipping Great product images or videos Same day delivery Likeliness to Buy with More Personally Relevant Product Page Content (e.g. Images, Videos, Text, Reviews) Extremely likely 9 Very likely Likely Less likely Not likely at all Not sure OF CONSUMERS MORE LIKELY TO BUY Number of reviews read when purchasing electronics Number of Reviews Read When Purchasing Electronics or more N/A (I don t buy electronics online) Number of Photos Needed When Shopping for Any Product Online What s important to you when buying clothing on Amazon? 73 0 OF CONSUMERS NEED 3+ IMAGES or more Plenty of positive reviews Lowest price Mnf'r information answers your questions

9 5 or more Mnf'r information answers your questions 51 2-day shipping Familiar/trusted brand name Great product images or videos Clothing shoppers What makes are you trust a similar, brand online? with more price Same sensitivity day delivery What s most important to you when buying clothes on Amazon? Plenty of positive reviews Mnf'r information answers your questions Friends and family recommend Lowest price 2-day shipping Familiar/trusted brand name!"#$&'! Great product images or videos Same day delivery Had a good experience previously Many good reviews Been around a long time Identified as a best seller Social media popularity 9 Plenty of positive reviews What s important to you when buying electronics? Number of reviews read when purchasing clothing 42 Number of Reviews Read When Purchasing Clothing or more (I don t buy N/A clothing online) Pro Mnf'r information answers your questions Familiar/trusted brand name Lowest price All Consumers 1st or 2nd Shopping/Research Preference 2-day shipping Great product images or videos Online Retailers Other Same day delivery 9

10 MORE LIKELY TO BUY or more 2-day shipping Plenty of positive reviews Mnf r information answers your questions Great product images or videos 20 Price and brand trust are still N/A paramount for household staples (I don t buy electronics online) Same day delivery duct Online ine? What s most important to you when buying household staples on Amazon? or more Lowest Price Familiar/trusted brand name 2-day shipping Mnf'r information answers your questions Plenty of positive reviews Mnf r information answers your questions 66 Great product images or videos Great product images or videos 83 Same day delivery What s important to you when buying clothing on Amazon? Plenty of positive reviews 12 Lowest price 2-day shipping Familiar/trusted brand name 20 Same day delivery Number of Reviews Read When Purchasing Clothing Number of reviews read when purchasing household staples Number of Reviews Read When Purchasing Household Staples or more (I don t buy N/A household staples online) Between similar products online, which of the following has driven you to spring for a higher priced option? Better reviews A brand name you trust Method 0 Reduced shipping cost 11

11 Better reviews drive higher margins Between similar products online, which of the following has driven you to spring for a higher priced option? Better reviews A brand name you trust Reduced shipping cost Product information answered your questions No-hassle returns A product you ve heard about from others Quicker delivery Better product imagery or videos

12 Brands need to double down on online retailers 55 All Consumers 1st or 2nd Shopping/Research Preference All Consumers 1st or 2nd Buying Preference All consumers 1 st or 2 nd shopping/ research preference Online Retailers 34 Other Online Retailers Other All consumers 1 st or 2 nd buying preference Online Retailers Other mportant to you when buying houehold staples on Amazon? Lowest Price 69 On retail websites 83 r/trusted brand name 55 In stores 70 2-day shipping ty of positive reviews swers your questions uct images or videos Same day delivery 47 Where do you plan to do 45 more shopping in 2018? On brand sites (e.g. Nike.com) Via search engine (e.g. Google Shopping) Limited-time offer services (e.g. Rue La La) Via dedicated apps (e.g. Wish) Subscription services Social Media Via voice (e.g. Alexa) ber of Reviews Read When Purchasing Household Staples Methodology: Age Methodology: Income Who do you trust most to give you

13 ...but not neglect in-store buying experiences valued by millenials/gen Z as much as older consumers #1 Buying preference by age range Online as Top Choice to Buy In-Store as Top Choice to Buy

14 Online as Top Choice to Buy In-Store as Top Choice to Buy Online as Top Choice to Buy In-Store as Top Choice to Buy Methodology: Income Who do you trust most to give you the most useful product information or recommendation? 10 Amazon and Google remain tops for product search and research 4 $20, $20,000 to $34, $35,000 to $49, Which shopping $50,000 to $74, pattern best matches $75,000 to $99, your behavior? $100,000 to $149, $150,000 to $199, Amazon Google A brand Other retailers Start my search on Amazon and buy Amazon 27 Start my search on Amazon and buy Amazon Start my search on Start my search on Amazon Amazon and Which buy Amazon shopping pattern best matches and your buy behavior? somewhere else St a Start my search o and buy somewh 2018 $200, Start my search on Amazon and buy on Amazon 41 Start my search on Google and buy on Amazon 28 Start my search on Google and buy on elsewhere 16 ence by age range Start my search on another retail site and buy on that retailer s site Start my search on another retail site and buy somewhere else 7 5 Start my search on Amazon and buy somewhere else

15 ...and Amazon and Google are what most consumers trust, more than brands Who do you trust most to give you the most useful product information or recommendation? Amazon Google A brand Other retailers

16 Looking ahead - building trust is reachable and worthwile A consumer s experience with a product and the trust and loyalty and margins and market share that go with it are the rewards of a now constant battle fought every day on the digital shelf. The data in this report and elsewhere further emphasizes that in order to beat out their competition, brands have to go to war focused on this front. This includes inside their own organizations and with their retail/brand partners to aggressively drive towards goals that will provide a great experience. The right content. Quicker and more robust brand/retailer collaboration. Merging customer intelligence with product intelligence to individualize the product experience. Boosting their review count and quality. Reducing poor reviews through stellar products and customer service. Brands need to employ tactics consistently focused on improving these measures of trustworthiness in order to achieve both short- and long-term sales growth and ultimately survive in the face of a rapidly shifting marketplace. Salsify 3 Center Plaza, 3rd Floor Boston, MA (844) info@salsify.com