Brand Discovery is Changing Dramatically

Brand discovery is changing. A lot. Social changed the way shoppers found out about products and brands 25 years ago. The arrival of ChatGPT and other AI is changing it again. A lot more.

How do you prepare?

What can you do as a brand marketer to deal with this? Today, capturing shopper attention and ensuring your brand stands out amidst the noise requires a pro-active, strategic approach to brand discovery. This strategy should:

-        Be cost effective, since the cost per converted lead through advertising will further increase due to increased power of the big platforms, eating away an increasingly larger budget

-        Take into account that search will disappear in its current form due to the incredible growth of ChatGPT, Bard, etc leading to an end of organic search results as we know them

-        That in turn will change SEO (probably even its name) and will require more advanced strategies to ‘end up’ in data sets models are trained with or at least findable through the on-line connection of models….which will be complex, costly or both.

So, brands will need another strategy to keep them independent of the big tech (ad) platforms and ideally including data generation to train your own models in due time.

That is the creation of a customer community. By building a dedicated space for your customers and shoppers to connect, engage, and share their experiences, you can establish a direct relationship that yields numerous benefits for your brand.

Brand Discovery in early 2023

Before we delve into the advantages of building a customer community, let's take a closer look at the brand discovery landscape in early 2023, just before AI chatbots and other AI tools start influencing product and brand discovery. The way shoppers found products up to today has been  different from methods employed longer ago, but pretty steady for the last decade. Generational cohort perspective has the best discriminatory value among all explaining variables. Millennials, Gen Z, Gen X and baby boomers have unique preferences to discover new brands and products.

According to recent GWI-research, the top 10 ways consumers find new products in 2023 include:

1.     search engines – 31%

2.     ads seen on TV – 30%

3.     word-of-mouth recommendations from friends or family members – 27%

4.     ads seen on social media – 27%

5.     brand/product websites – 25%

6.     TV shows/films – 23%

7.     ads seen on websites – 23%

8.     online retail websites 23%

9.     recommendations/comments on social media 22%

10.  consumer review sites 22%

While search engines hold the top spot across the board, the influence of various channels varies among different generations.

Generational cohorts: the true explaining variable

Gen Z discovers new brands through ads on social media, followed closely by search engines and ads seen on TV. Millennials, on the other hand, rely heavily on search engines, followed by TV ads and social media ads. Considering that search engines will change dramatically, marketers can expect to have to make changes if they target millennials. A brand customer community would start with taking them as a target group.

Gen X places importance on word-of-mouth recommendations from friends or family members, alongside search engines and TV ads. Baby boomers, too, value word-of-mouth recommendations, followed by TV ads and search engines. For these two generational groups, a customer community can fulfill the role as trusted referrer, or referral vehicle among members. You could check out the referral mechanisms Brand2Consumers offers for that.

Interestingly, research shows that the differences between sectors are relatively minor compared to the variations observed among generational cohorts.

Shifts in Brand Discovery in the 2nd half of 2023

Let's shift our focus to the changing dynamics of brand discovery. Three significant shifts have been observed that are transforming the way consumers engage with brands: the replacement of search by algorithms, AI and the changing importance of product research.

Social media platforms have been changing from ‘commenting on each other’ to watching algorithmically ordered user generated content, most prominent at Instagram and TikTok. These are still strong channels for brand discovery among younger consumers. Search engines are disappearing fast as the gatekeepers of information since the youngest demographic turns to these social platforms to explore and learn about new brands, both because that’s the ‘internet’ they know, and because they do not feel the need to do product research as older generations do.

While some consumers still conduct online research, people who meticulously research a product before buying are disappearing fast: a trend towards more impulsive shopping habits. Gen Z and millennials are more likely to make impulse purchases, with a higher frequency compared to older generations.

Third, the role of AI in product discovery is dramatically gaining prominence. AI-powered travel advisors have popped up and other sectors are following soon. Companies that lead the way gain tremendous first-mover advantages and are likely to be the new gatekeepers, more expensive to advertise in than search engines. AI-powered algorithms and recommendation systems are key to the brand discovery experience. AI uses user preferences, behavior and past interactions to deliver personalized recommendations and suggestions. AI now evolves into actively curating and tailoring brand content, exposing shoppers to products and brands that align with their interests and preferences…. If these brands can occupy that position.

How to Stay Discoverable as a Brand?

Considering these shifts in brand discovery behavior, building a customer community becomes a critical strategy for brand marketers to adapt and thrive. Only then you can keep direct customer contact and avoid the (expensive) filters of the gatekeepers. Here are the key advantages of creating a customer community:

1. Access to Targeted Audiences: By establishing a customer community, you bring together individuals who are already interested in your brand or products. This community serves as a dedicated space where you engage directly with your target audience, ensuring that your message reaches those who are most likely to be receptive to it. Moreover, the interactions within the community can provide valuable insights into your customers' preferences, allowing you to tailor your marketing efforts accordingly.

2. Enhanced Brand Loyalty: When customers feel a sense of belonging to a community, they become more loyal. By facilitating meaningful interactions, encouraging discussions and providing valuable resources within your community, you build strong relationships with customers. This translates into repeat purchases, increased customer lifetime value and positive word-of-mouth.

3. Valuable Feedback and Insights: A customer community serves as a goldmine for gathering feedback and insights directly from your target audience. By actively listening to their opinions, preferences, and pain points, you gain a deeper understanding of needs and can fine-tune your marketing strategies, product development, and overall brand positioning. This real-time feedback loop enables you to iterate quickly and stay ahead of the competition.

4. User-Generated Content and Advocacy: Engaged community members often become advocates for your brand, generating user-generated content (UGC) and spreading positive word-of-mouth. UGC is highly valuable as it provides authentic content that resonates with other potential customers, driving brand awareness and credibility. By empowering your community members to share their experiences and stories, you tap into a powerful marketing channel that can significantly amplify your brand's reach.

5. Co-creation Opportunities: Inviting your community members to participate in co-creation activities, such as product ideation or beta testing, not only makes them feel valued but also enhances their sense of ownership. Involving your customers in the brand-building process can lead to innovative ideas, product improvements, and increased customer satisfaction. The co-creation approach fosters a collaborative relationship between your brand and its community, resulting in a deeper emotional connection and higher customer engagement.

6. Customer Support and Education: A community can serve as a platform for providing exceptional customer support and educational resources. Members can share their experiences, ask questions, and receive timely assistance from both the brand and fellow community members. This fosters a sense of trust and reliability, ultimately enhancing the overall customer experience. Additionally, educational content, such as tutorials or guides, can be shared within the community, empowering customers to derive more value from your products or services.

7. Continuous Engagement and Growth: A thriving customer community ensures ongoing engagement with your brand. Regular interactions, exclusive content, events, and rewards keep community members active and invested, leading to sustained brand exposure and growth over time. As your community expands, it becomes a valuable asset for driving organic reach and attracting new customers who are attracted to the authentic engagement and positive experiences shared within the community.

How do you build a Customer Community?

To build a successful customer community, you need to focus on a few key elements:

-        Facilitate meaningful customer experiences

-        Use a reliable and flexible customer management platform

Read more on how to build a Customer Community here.

To do today

Building a customer community in the evolving landscape of brand discovery is a powerful strategy to establish a direct and meaningful connection with your target audience. By leveraging the benefits of a customer community, you can enhance brand loyalty, gather valuable insights, foster user-generated content, and create a thriving ecosystem that drives long-term growth and success for your brand in 2023 and beyond.

So today, you should start exploring how easy it would be to start a branded customer community, if you can find a company to help you with that and a platform to run your customer management with. Connect with us if you would like some starters.