(Graham Brown mobileYouth) Why People Buy Technology: Social Proof

mobileYouth® - youth marketing and mobile culture
analysis of the latest research, insights and trends by Graham D Brown
http://www.mobileyouth.org
Why People Buy Technology: Social Proof
SOCIAL PROOF IS KEY
Social proof is an important factor in why people buy or recommend technology.
When teens buy iPhones they don’t do it because “it’s cool” but because
they’re friends are using them.
When middle aged marketing execs buy iPads they don’t do it because “I can
prepare my presentations on it” but because Brian in media sales has one.
Social proof: We are social by design
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We turn to others for social proof our actions help us belong to our peer groups
and to derisk our behavior.
DEFINE SOCIAL PROOF (Wikipedia)
Social proof, also known as informational social influence, is a
psychological phenomenon where people assume the actions of others in
an attempt to reflect correct behavior for a given situation. This effect is
prominent in ambiguous social situations where people are unable to
determine the appropriate mode of behavior, and is driven by the
assumption that surrounding people possess more knowledge about the
situation.
The effects of social influence can be seen in the tendency of large groups
to conform to choices which may be either correct or mistaken, a
phenomenon sometimes referred to as herd behavior. Although social
proof reflects a rational motive to take into account the information
possessed by others, formal analysis shows that it can cause people to
converge too quickly upon a single choice, so that decisions of even large
groups of individuals may be grounded in very little information (see
information cascades).
We are social by design and one of the most powerful forces in marketing is the
fear of isolation.
"Social proof makes any decision other than using your company seem
outside the norm" - Andy Crestodina, Orbit Media
We are motivated to remain on the inside of our peer group, whether we know it or
not, and will behave accordingly.
We are social beings and fitting in (for most people) is a primary driver in shaping
our use of technology, including apps.
76% of teens switch to a new social media app because their friends are already
on it.
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More From Graham Brown's Series on How to Sell Technology
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Technology Companies need to Embrace the Unofficial or Die
Why People Buy Technology: Social Proof
“Because friends are already on it” was more important than reviews or ratings
about the app. Even though the app may be a waste of time, it was more
important that they followed the lead of their peer group.
Which technology you choose, which brands you recommend and how much you
are prepared to spend.
Social proof shapes everything in marketing today.
"When we're standing together next to each other and hearing from each
other, is so much more powerful, and that turns up the dial on what people
are willing to spend" - Rand Fishkin
But don’t start jumping to the conclusion that this is about the power of social
media. Social proof is not a new phenomenon, it has existed since time.
HOW WE USED TO DO SOCIAL PROOF
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Let’s go back a couple of hundred years.
In the pre-consumerist era we knew where most things belonged in our world. We
bought meat from the local butcher, barrels from the cooper and bread from the
bakery.
We trusted what we bought because we knew the people who made them.
Today, however, things are very different.
We don’t have those close personal relationships to trust so we turn to other
trusted sources for direction.
No longer are we dealing with the local butcher or baker, or brands from our own
country with familiar faces we’re operating on a global playing field with brands
from across borders so we have little base level of trust to operate from.
Most people didn’t know that Nokia came from Finland before they bought their
first phone. A lot of people still didn’t know where Finland was. The same could
be said of the less travelled consumer and Samsung / South Korea.
In the 20th century, we sought out advertising as a guide to fill this void.
Advertising filled the social proof hole left by the decline in those former village
relationships.
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When Pepsi splashed Michael Jackson across its billboard campaigns and MTV
airtime in the late 80s, it was a strong sign of social proof to every teenager
watching. Why? Because Pepsi could afford to pay $25m to MJ because people
like you were buying our cola. It was an era when we trusted brands simply
because they were on TV.
Marketers need to understand that advertising’s primary goal was creating social
proof and if it no longer fulfils this goal it has become worthless.
TRADITIONAL VS MODERN SOCIAL PROOF
Traditional Modern
Model Top-Down Model Bottom-Up Model
Influencers Authorized celebrities e.g.
DJs, magazine columnists,
editors, celebrities, TV
anchors, brand
ambassadors, official
reviewers (eg books,
restaurants)
Your friends, anonymous
online reviewers, peers,
word of mouth
How it spreads Official endorsement,
controlled channels, PR
campaigns
Peer-to-peer modeling and
word of mouth
SOCIAL PROOF PRESENTATION
In this presentation, I share with you my insights on Social Proof in the post-
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advertising era:
* Why social proof works still today
* Why social proof is not social media but inherent in our human nature
* How social proof is moving away from celebrity and towards peer-to-peer
transmission
SOCIAL PROOF IN THE POST-ADVERTISING ERA
In the digital era, advertising is no longer a monicker of trust or authority so we
inevitably turn to people we trust, who we have access to, to shape our opinions.
Brands still try and force their official narrative onto customers but in the
technology industry this is a waste of time; this is no more than trying to teach a
pig to sing.
An advert alone does not confer social proof on a product like it used to.
Everyone can advertise so everyone does advertise.
Word of Mouth - Visualized (Photo credit: mvellandi)
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83% of youth bought their mobile handset based on what peers, not what ad
agencies said, because peers are powerful sources of social proof.
Nobody wants to be left holding the handset that will get them laughed at or
unable to connect via the shared messenger apps that all the others have.
The most powerful form of social proof in the post advertising era is connecting
customers with each other. What can be more convincing that seeing someone
else using that handset or helping one Subaru enthusiast talk to another?
If the aim of the game for technology marketers is to create social proof, to create
trust in the manufacturer that we once gained from those village relationships, we
need to be investing our advertising budgets where it is needed - in peer
recommendation.
The best way to create Social Proof today is to stop trying to have a conversation
with your customers and start connecting them - with each other, not with your
brand.
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(Graham Brown mobileYouth) Why People Buy Technology: Social Proof

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(Graham Brown mobileYouth) Why People Buy Technology: Social Proof