The first age of e-commerce was all about the price and the ease with which consumers could compare offerings (price, features, availability, service etc.). Price comparison sites in Brazil, such as Buscapé, Bondfaro and Zoom, followed by increasingly specialist competitors covering everything from travel to insurance, made this task even simpler.
The second age added new levels of sophistication to the process. Daily deal sites such as Peixe Urbano transformed the consumer from informed bargain hunter into “mini stockbroker,” able to weigh the value of a particular product on a given day or within a given time period, as opposed to a delayed purchase at a (potentially) different price. The decision was also impacted by the behavior, and anticipated behavior of other consumers – deals are typically subject to a minimum volume of buyers before they take effect. Such decision-making is incredibly complex and completely individual, based on the specific circumstances and priorities of each consumer.
With increasing numbers of consumers simply “doing the math” before purchasing, has the Internet rendered brand loyalty irrelevant?
Research and new trends suggest otherwise. The attitude of a brand can be as important as the qualities of the product itself for Millennials. They “embrace brands that embrace them.” Eight-out-of-10 simply want a brand to entertain them and seven-in-10 are loyal and keep purchasing brands (they) love. According to Edeman’s brandshare study, in Brazil, 88 percent of Millennials prefer brands that share common values with them.
To maintain brand loyalty, the third age of e-commerce moves beyond the transaction; today, price arbitrage is a given and just the starting point for consumers. Brands are increasingly applying a type of sentiment trade off to the entire process. Having the best price on the web is no longer sufficient to secure the deal; today’s consumers also expect brands to have meaning and values. And this “emotional arbitrage” is just as important as the price comparison – even for online purchases.
Rational marketing can ensure that communications are personalized and relevant, that the customer experience is delivered in the preferred format across the customer’s platform of choice. However, unless brands strike an emotional chord, they will never reach their full potential in terms of awareness and loyalty. Practical experience and documented research confirms that this emotional element can generate a faster “call to action” (i.e. purchase) and generate higher and more sustained levels of loyalty (i.e. “brand inertia”).
Roger Darashah is executive vice president of technology & global business director, Edelman Significa, in Brazil.