How social media affects our buying behavior

Source: Search Engine Journal

Today, 3.96 billion people worldwide use social media platforms like Facebook, Instagram, YouTube, etc. More than 50000 posts are posted on Facebook, and more than 740000 messages are sent on WhatsApp per second. With such mind-boggling numbers, social media is slowly evolving into a new world in itself, which many people term as the "Digital World."  

Since an average user spends more than two hours on social media, it's a no-brainer that social media influences what we like and what we buy. Social media's presence is so colossal that fields like marketing and psychology have had to introduce entirely new branches dedicated to understanding people's behavior on social media.  

So, let's explore the different ways in which social media impacts our behavior and buying patterns.

Transformation of Marketing

When was the last time you saw a newspaper ad? Probably a few days ago. Now, when was the last time you saw an online ad on your phone or laptop? Probably a few seconds ago. Hence, this difference in overall reach makes social media an essential tool for marketers whose primary goal is to increase awareness of their product/ service.  

The rise of social media platforms has made traditional marketing methods run obsolete. Since we are constantly on these platforms, it makes more sense for companies to market their products through these platforms, wherein they can attract a massive audience through a single post.

Let's look at a few ways how social media has transformed marketing and how it ultimately affects our buying behavior.

Streamlined buying process: One of the main benefits of social media has been their recent inclusion of site links in posts or stories. So, instead of seeing an ad and searching for the product on Google or going to the store to buy it, these links help you instantly buy the products you see on social media. These direct links reduce the time gap between the time we get to know about a product and the time we buy it. Apart from making the consumer's buying process easier, this streamlined process helps companies convert more potential customers into actual buyers, leading to more profits.

Treasure of data: Another main advantage that social media has lent to companies is the instant feedback system. Thanks to the likes, comments, and shares system, companies can instantly know how their customers feel about their recent campaign or their new line of products. This system can then help the organizations build more consumer-friendly products.

Apart from the likes and shares, many organizations use data analytics to understand what their consumers like or dislike, what they prefer and how that data varies amongst the demographic. This further helps them build a much more effective and successful marketing strategy.

Social Media Trends and Brand Perception

If you use social media, you would have seen some topics and hashtags get extremely popular, such that every other post is related to that topic. These are called "social media trends." While many of these are limited to memes on a recent event, some lead to revolutionary social movements. Dove's ad campaign featuring plus-size models to promote #bodypositivity or LEGO's new "everybody is awesome set" promoting LGBTQ+ rights in PRIDE month serve as good examples of how brands try to associate their ad campaigns with a trend or a social cause.

As consumers, these strategies help us better associate with the brand's vision and hence, help build our trust in the brand.  

For example, let's say you want to buy a pair of sports shoes. And let's say a movement like #BlackLivesMatter resonates with you. Now, you see a post from Nike showing their support for #BlackLivesMatter. This instantaneously helps you emotionally connect with the brand and its vision. Therefore, after seeing this post, you are most likely to buy the shoes from Nike. Why is that? Because that social media post helped build your trust in the brand. So even though other brands may offer similar shoes, you are more likely to choose Nike for that reason.

Therefore, companies try to 'Keep up with the Joneses' and constantly improve their strategies accordingly. This perception-building strategy works because psychologically, we start viewing these brands as fellow humans who have emotions and stand in favor of social justice and equality. Ultimately, this deepens our trust in the brand and helps improve the brand's image.

The problem of impulsive buying

Do you feel a strong urge to buy a product because you just saw a beautiful ad or because your favorite influencer is endorsing it?

If yes, then welcome to the party!  

Before the age of social media, this problem of impulsively buying unnecessary things was non-existent. Mainly because we weren't constantly exposed to a product's ads and marketing campaigns as we are now. Even though celebrity endorsements existed before through mediums like TV and billboards, they never developed an urge as strongly as social media helps develop.  

But with the advent of technology, mobile devices, and social media influencers, impulsive buying has become a legitimate psychological disorder in many people.  

Celebrities have been replaced by influencers with whom we interact daily, all thanks to social media, wherein they regularly post content and do live streams. A 2020 social media report by GWI shows that Gen-Z is almost as likely to follow influencers as brands. This daily interaction helps build a strong connection between the viewer and the influencer. Hence, when they endorse a brand, we feel a strong urge to buy the product because we know and trust the influencer way more than a Hollywood, Bollywood, or sports celebrity.

Since social media and e-commerce have made marketing and selling much cheaper, companies can offer massive online discounts, an age-old stimulus of impulsive buying behavior.

Lastly, the compulsion to buy new products constantly comes from the fear of missing out (or #FOMO). As humans, we never like being left out. And not purchasing that latest iPhone makes us feel that we are left behind and somehow unsuccessful in life which is obviously not true.

A revolutionary review system 

Social media's massive and global presence has gifted the world with a beneficial and effective feedback system. As previously discussed, social media helps people voice their opinions about a particular product or ad, thereby helping businesses improve their product or service based on the consumers' needs.

Another essential feature of this system is the sharing of post-buying experiences. A 2020 social media report by GWI shows that people visit platforms like Reddit and Pinterest primarily to get user reviews to decide whether the product is worth buying or not. While this feature helps consumers make a more informed choice while buying a product or service, it can make or break a brand's image in the digital world.

Samsung's Note 7 fiasco is a classic example. In a world without social media, all they would have to do is to replace the faulty products and, at most, issue a public apology in a newspaper or a press conference. But social media almost wrecked the brand's image. People posted videos of their phones catching fire, which went viral, and people started distrusting the brand. It took Samsung months to regain its customer's trust- an integral part of running any business.

Conclusion

It's a no-brainer that social media is here to stay. Recent technologies like Virtual Reality (VR) and Augmented Reality (AR) are already being used by many companies to revolutionize the shopping experience. A few examples include being able to see how you look in a dress without actually trying it on or an online bot helping you find matching shoes and jewelry for your dress. These advancements coupled with social media can enhance the consumers' online shopping experience.

As social media brings us closer to one another, it helps us act like a family. Some random blogger on Reddit could be like your dad telling you to buy this and not that. An influencer in another part of the globe could be like your friend showing you her new bag and telling you to buy the same.  

Therefore, it is evident how social media has become an integral part of our lives. The recent pandemic further accelerated social media's growth and its importance in our lives. We can only expect an increase in social media's presence and its impact on our lives in the future.