Word-of-mouth (WOM) recommendations from friends and family and user-generated content (UGC) are sources most trusted for information about the products people want and need, according to a new report by Nielsen.
Among consumers surveyed in North America:
90% trust (completely or somewhat) the recommendations they receive from friends and family.
68% trust consumer opinions posted online.
61% trust editorial content such as newspaper articles.
"Almost every major retailer, from grocery chains to investment banks to the U.S. Postal Service, has a "predictive analytics" department devoted to understanding not just consumers' shopping habits but also their personal habits, so as to more efficiently market to them."
Pepsi and Coke are among a multitude of companies buying into social media's ability to strengthen their brands. Consumers are 55% more likely to recall ads that include social-media components than non-social ads, according to a 2011 Nielsen survey.
"Pinterest is a place where we can demonstrate: 'If it weren't for all those mundane things that I do that I post on Facebook, this is what I would be doing and consuming. Here is my real self"
After months of iterating on different marketing strategies, you finally find something that works. However, the moment you start to scale it, the effectiveness of your marketing grinds to a halt. Sound familiar?
Welcome to the Law of Shitty Clickthroughs:
Over time, all marketing strategies result in shitty clickthrough rates.
"As a rule, fashionistas are fickle. So when merchants make trend-right buying decisions and the fashion-obsessed open their wallets for the season's must-haves, retailers score fast turns and fat margins. But when retailers get it wrong, stores are awash in markdowns and the bottom line takes a hit."
"As a rule, fashionistas are fickle. So when merchants make trend-right buying decisions and the fashion-obsessed open their wallets for the season's must-haves, retailers score fast turns and fat margins. But when retailers get it wrong, stores are awash in markdowns and the bottom line takes a hit."