>Consumers & Online Buyers Are Tapping Into the ‘F-Factor’ of Social Networking

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Consumers are increasingly tapping into their online social networks of friends, fans, and followers to discover, discuss and purchase goods and services, according to analysis from Trendwatching.com. The consumer trend analysis firm calls this trend the “F-Factor,” with the “F” standing for friends, fans and followers.

Social Sources Become Trusted

As a result of social networking and other online communication technologies, consumers can now use trusted sources they know to obtain information about products and brands, rather than rely on third party advertising or perform extensive first hand research.

Trendwatching.com advises that consumers have always relied on word-of-mouth advice from friends, relatives and associates, but modern technology is greatly accelerating its development as a major influence of purchase decisions.

Facebook Dominates the F-Factor

The F-Factor is currently dominated by Facebook, according to Trendwatching.com.  As of April 2011 Facebook has 500 million active users spend more than 700 billion minutes a month on the website and every month more than 250 million people engage with Facebook across more than 2.5 million external websites.

2010 Facebook data shows the average user clicks the “Like” button nine times each month and February 2011 Ad Age/Ipsos data shows 3/4 of Facebook users have liked a brand.

Consumers ‘F-Discover’ Best of the Best

Trendwatching.com has broken down five key ways the F-Factor influences consumer purchasing decisions. The first, ‘F-Discovery’ involves consumer desires to own or experience the best of the best and their desire for serendipity, excitement, interaction and community. People are curious and interested in what their friends and contacts think, do, eat, read, listen to, drive in, travel to and buy, because this will often be similar to how they want to think, act and buy.

Thus consumers are embracing communities, tools and apps that allow them to dive into and discover selections from friends, fans, followers, and so on.

Consumers Want ‘F-Rated’ Products

Consumers sometimes enjoy finding the best of the best through discovery; they are increasingly able to access personalized recommendations and reviews on something they know they want to purchase. Research from trendwatching.com shows more and more websites will automatically serve up friends’ recommendations, ratings and reviews next to goods and services that people are researching.

‘F-Feedback’ Makes Recommendations Personal

Anonymous reviews aren’t always what consumers need or want; they can lack relevance and context, and consumers with many options sometimes just want an unambiguous or finite opinion. F-Feedback involves consumers actively disclosing their purchasing intentions and reaching out to their friends and contacts for personalized feedback.

Trendwatching.com further advises that with more and more consumers increasingly viewing their online reputation as something to enhance as well as just protect, the quality of answers on Q&A services is rapidly improving.

F-Together Makes Shopping Social

While group buying platforms such as Groupon are revolutionizing local, consumers typically do not know the other members of the group that they are buying with. So, while consumers get to leverage the power of the web to benefit from better deals, the actual shopping experience frequently lacks the F-Factor. Consumers have strong incentives to share certain purchases, especially for F-Factor-friendly experiences such as buying event tickets where consumers can now automatically invite friends to a concert or movie right after purchasing a ticket.

F-Me Individualizes the F-Factor

Trendwatching.com refers to the trend of personalized products and services based on the activities and output of one’s social network as ‘F-Me’. This includes services that turn a user’s Facebook page into a daily newspaper and a user’s Twitter feed into a published journal.

Look for ‘Twinsumers’ and ‘Social-lites’

Both of these types of online consumers were identified by Trendwatching.com in December 2010 as critical to spreading positive word of mouth recommendations. Twinsumers are consumers with similar consumer patterns, likes and dislikes, and who are valuable sources for recommendations on what to buy and experience while  ‘Sociallites’ are consumers who consistently broadcast information to a wide range of associates online.

Social Networking and the integration of social factors with websites, online marketing and eCommerce are imperative in any Internet Initiative today.  Contact Internet Builder Consulting and the Social Marketing Builders social networking experts to build a BETTER website or Social Media Marketing solution today at 816-842-7774.

Robert ‘Dot Com’ Jackson
Internet Builder Consulting – Building BETTER Websites, Social Marketing & Consulting since 1995

Internet & Technology Used More by Higher Income Buyers (Your Target Audience)

Higher-income Americans have higher rates of internet and other technology usage than Americans of lower incomes, according to new data from the Pew Internet & American Life Project.

Almost All Higher-income Americans Use The Internet

Currently 95% of Americans who live in households earning $75,000 or more a year use the internet at least occasionally, compared with 70% of those living in households earning less than $75,000. Even among those who use the internet, those with higher incomes are more likely than those with lower income to use technology. Out of the 95% of higher-income internet users:

• 99% use the internet at home, compared with 93% of the internet users in lower brackets
• 93% of higher-income home internet users have some type of broadband connection compared to 85% of the internet users who live in households earning less than $75,000 per year. That means 87% of all those higher income households having broadband high speed internet at home
• 95% of higher-income households own a cell phone compared to 83% of lower income households

The Income Gap Applies to a Wide Variety of Technology Usage

Higher-income Americans are also more likely than those in lesser-income households to own a variety of information and communications gear including:

• 79% of those living in households earning $75,000 or more own desktop computers, compared with 55% of those living in less well-off homes.
• 79% of those living in higher-income households own laptops, compared with 47% of those living in less well-off homes.
• 70% of those living in higher-income households own iPods or other MP3 players, compared with 42% of those living in less well-off homes.
• 54% of those living in higher-income households own game consoles, compared with 41% of those living in less well-off homes.
• 12% of those living in higher-income households own eBook readers such as Kindles, compared with 3% of those living in less well-off homes.
• 9% of those living in higher-income households own tablet computers such as iPads, compared with 3% of those living in less well-off homes.

Wealthier People Use E-Commerce and Make Purchases Online

Significantly more higher-income Americans are conducting e-commerce activities than members of other income groups. Solid majorities of higher-income internet users research products (88%), make travel reservations online (83%), purchase products or services online (81%), perform online banking (74%), use the internet to pay bills (71%), and use online classified sites such as Craigslist (60%).

The Wealthy Also Use Government eCommerce

Overall 82% of internet users (representing 61% of all American adults) looked for information or completed a transaction on a government website between December 2008 and December 2009, according to an earlier
study from the Pew Internet & American Life Project. However, high-income internet users are much more likely than those with lower levels of income to interact with government via online channels.

For example, 91% of internet users earning $50,000 or more a year get information or complete transactions on government websites, compared to 76% of those earning less than $50,000 a year. The largest disparity by income exists in the practice of going online for data about government activities. Fifty percent of internet users earning $50,000 or more a year do so, compared to only 31% of internet users earning less than $50,000 a year.

People with the highest incomes are shopping online to make purchases, research future purchases and 95% of them in ALL age groups are using the Internet. To reach online buyers and sell more for your business contact Internet Builder Consulting for a BETTER website, Social Network Setup or Social Media Marketing and Search Engine Optimization today by calling the office to speak with an Internet & Technology Consultant:

816-842-7774 or Request a Website, SEO or Social Marketing Consultation Online.

Robert ‘Dot Com’ Jackson

Internet Builder Consulting – Building BETTER Websites and Online Marketing since 1995

Social Marketing Builders – Building BETTER Social Networking Solutions for Business

816-842-7774 Office

Netextinct – Business, Services & Items the Internet is making extinct

Netextinct –adjective
1. no longer in existence; that has ended or died out: travel agencies are quickly becoming netextinct.
2. no longer in use; obsolete: a netextinct business
3. having ceased operations; no longer active: an extinct business due to the Internet

The Internet provides millions of people instant access to information, products, services, friends and constantly evolves as a child coming of age. With the apparent benefits there have been those affected by netextinction replacing their business model or service with the click of a mouse. Consider when was the last time you called a travel agency to book an airline ticket? Online classified ads are up 500% while newspapers fail or close their doors daily. Car dealerships now accept that most buyers have researched prices, makes, models and know more about the vehicle they want to purchase (due to the Internet) than the salespeople making the classic ‘used car salesperson’ obsolete.

These businesses have become netextinct; victims of the ecommerce (another word that never existed before the Internet). What other businesses or services would you consider to be netextinct or in process of netextinction?

Robert ‘Dot Com’ Jackson
BuilderConsulting.com – Building Better Websites Since 1995
913-814-8844 Corporate Offices