Why are we afraid of smartphone online purchases?

Since the evolution of the iPhone which exploded the smartphone market, we have seen mobile phone or smartphone users increase in size. In fact, we can see in the Trend Report here that ever since late 2014 Australians are using smartphones more often than desktops or laptops.

With this knowledge, you would think there would naturally be an increase in online purchases for smartphones right? Well…

online purchase graph

In the above graph, Apac has shown that in 2015 the majority of consumers still use computers to purchase things online instead of smartphones. Personally, when I reflect on my purchasing recently, such as Ubereats, I would go to my room to get my laptop to purchase instead of using the app on my smartphone. So why do we do it?

The main reason why we tend to choose laptops over smartphones is because of security. A website that got data from Bankrate stated that almost half of consumers (41%) don’t purchase on smartphones because they feel like it is not as safe as a desktop. They feel like they will lose their security information, or that it will be misused.

The second most common reason is because it is easier to use. Going back to my Ubereats example, I can view many restaurants on one page compared to the small screen on my iPhone. There are also more options on a desktop screen compared to a limited phone capability of a website, or simply an app.

From that same website, they also formed a nice diagram to summarise the main reasons…

pie graph

So what does this mean for digital marketers?

Instead of purchasing through smartphones, consumers tend to use those devices to look up recommendations, look up reviews, compare prices and so on. So, during this pre-purchase stage, this is where digital marketers need to focus on smartphone mobile marketing.

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What is better: Paid or non-paid search engine marketing?

First of all, paid online marketing is known as PPC or pay-per-click, whereas non-paid online marketing is known as SEO or search engine optimisation.

Although it may be tempting to try and get ahead from your competitors by investing in paid search engine advertising, statistics from Smart Insights show that only 6% of customers click on paid ads compared to the non-paid ‘organic’ results from Google in the search engine results page (SERP).

click distribution

Clearly, we can now see that consumers do not trust ads, and that the organic results from google will almost always be clicked instead of paid ads.

So now that we know that SEO (free online marketing) is much more useful than PPC marketing, let’s look at how companies can achieve this. SEO is about optimising your website so that it can be ranked above everyone else’s in the search engine results page. Google’s algorithm determines how to rank websites in a search, and can be summarised well with this video below.

So after having watched the video, you might start to think well how do I improve my ranking of my website? Well the answer is you can’t. Rather, it is about satisfying your customers needs which naturally results in more clicks and other favourable consequences to your website.

A great example of this is the tour guide industry. They rely heavily on getting the best rankings on Google’s SERP and other websites such as TripAdvisor, so that they can attract more customers. In order to satisfy customers needs, tour guide companies are more commonly introducing ‘free’ tours. This of course will result in more popularity and clicks on the website as customers like things that are free. By far, the best tour guide agency in Melbourne that represents free tours is ‘I’m Free Tours.’

 

Screen Shot 2017-04-12 at 3.06.20 pm

This company is ranked 4th on the TripAdvisor Melbourne tours results page, and when typed ‘melbourne walking tours’ in Google it came up as the 1st on the organic or SEO results page as you can see in the picture above. Another big benefit this organisation has is its reputation. The free tours has resulted in perfect reviews around many different platforms, and so this SEO technique largely contributes to the top ranking SERP that it has, and is something that other tour guide companies aim to achieve.

Digital marketers of tours guide companies can continue to introduce free tours to try and improve their SEO. Receiving perfect reviews on TripAdvisor will help reputation, and having links from other ‘trusted’ websites to their website will also boost their rankings on Google and other platforms. Perhaps in the future we might see other creative ways other than a ‘free tour’ to appeal to customers needs?

Is my news feed different to yours?

Have you ever looked at someone’s Facebook news feed and thought why are theirs so different to mine? Well apart from the obvious such as what you search for on the web, what you buy etc. people are actually characterised into one of the four groups or segments that digital marketers target.

segmentation matrix

Hodis, M. A., Sriramachandramurthy, R. & Sashittal, H. C. (2015). Interact with me on my terms: a four segment Facebook engagement framework for marketers. Journal of Marketing Management, 31(11-12), 1255-1284, p. 10)

So if you’re someone like me, you would be classified as an ‘entertainment chaser.’ This segment are for the customers who go on Facebook for the thrill: to be entertained when bored. These customers have low consumption and low creation levels when on Facebook, so marketers respond to this by only providing them with quick, fun content such as polls and interactive games.

And then you have the connection seekers. These groups of customers go on Facebook to truely connect with their friends. They want to retain and improve their friendships, so they use Facebook to enhance their connections. They are characterised as having low levels of creation and high levels of consumption, so marketers will direct content such as groups and events to them.

Attention seekers love all the attention they get from their friends on Facebook. This segment is characterised as having high levels of creation and low levels of consumption. Unlike the segment devotees, attention seekers couldn’t care less about if someone wants to see their post, so they share many status updates and pictures all the time! So these type of people will most likely see celebrity endorsement advertising on their news feed. A great example of attention seekers would be…

Kim Kardashian Fragrance Launch           KIM KARDASHIAN!

Lastly, we have the devotees. This segment of users are labelled addicted to Facebook. They typically go on Facebook to run away from their worries and troubles in life, and are characterised as having high levels for both consumption and creation. They regularly post updates, reply to their friend’s updates, and as a result digital marketers like to advertise good role models such as CEO’s on these type of customers.

So this is a great example of displaying segmentation of consumers in a digital environment. These buyer personas that I have listed allow digital marketers to put out the right content to the right customers.

Let me know your thoughts about this by clicking on leave a comment!