The Social Feedback Cycle

The other day Mark and I were discussing a concept from the book Social Media Marketing: An Hour a Day by Dave Evans. In Chapter 3: What Is Social Media? Evans describes social media’s impact on the purchasing decisions of consumers. First he examines the traditional role of Marketing and Operations in ‘The Classical Purchase Funnel’ going from Awareness to Consideration to Purchase. Marketing makes a promise to consumers (Awareness); consumers form expectations based on that promise (Consideration); and Operations makes sure those expectations are being met (Purchase). A consumer’s opinion of a purchasing experience is what then drives word-of-mouth, but without the web this sharing of information occurs in a limited way. They tell their family, close friends, and maybe a few co-workers about their experience, whether it be good or bad. This closed and simple process represents the old way of doing business to please your consumers.

The Internet adds another dimension to include the element of “post-purchase” consumer-to-consumer interaction, namely in the form of social media. Evans calls this updated and expanded process ‘The Social Feedback Cycle’ and the Internet is what makes it possible on a larger scale than just family, friends, and a few co-workers. Now there are three more steps following Purchase: Use, Form Opinion, and Talk.

Consumers purchase a product, use the product, form an opinion about the product, and lastly – most importantly – talk about the product.

• Use: online shopping is super popular these days and with many sites offering free shipping and free returns, there is often no risk in ordering delivery. Consumers are able to test out the product from their own home (aka no pesky salespeople are trying to work their magical, persuasive ways on the customer).
• Form Opinion: people are being extremely honest with their opinions; there is an understanding among consumers that we all want the best deal and will help each other out to get it.
• Talk: Social media allows anyone to publicly broadcast what they think to anyone who is listening.

Everyone is talking. ARE YOU LISTENING?

- Gail