the elusive e-Commerce superhero: TikTok

Hello, OptiMIST People!

Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we explore the world of TikTok and how it has become a catalyst for change in the e-commerce world. 

TikTok has taken the world by storm and whilst we awe at its content, sneaking by is its powerhouse marketplace. With creators beginning with innocent content, more and more TikTok creators are making unique content for their sponsored goods. Even more interesting, regular creators are also able to add yellow shopping buttons to their content. This has created a feast for companies battling to platform their products on today’s hottest new board. But, with the presence of Shopee, Tokopedia, Facebook and all major digital marketplaces, how has TikTok become a market leader? 

Companies have discovered if a relevant ad is approved by a creator, half of customers are more inclined to engage with the product. Customers are reporting that the engagement of the content itself elevates the intrinsic value of the products being sold. This is shown as almost half of customers are highly likely to connect with a business if they see an advertisement featuring a creative. And this is all thanks to the colorful influencers sent out to sell. 

The most fascinating and dynamic aspect of influencers are the remarkably diverse spectrum of qualities among accessible talent. Influencers vary greatly in branding and emphasis, follower base, engagement rates, monetary requirements for participation, and skill sets—all of which contribute to the package the influencer can give a company. These categories are determined not just by the number of followers, but also by perceived authenticity, accessibility, knowledge, and cultural capital.

Alongside that, with today’s sociocultural climate promoting ethos beyond previously championed individualism, consumers feel they need influencers. They look to these influencers to make consumeristic decisions, with many fans even going to the extreme of purchasing only what their idols have. Although traditional media such as Facebook and Twitter also utilize influencers, TikTok’s interaction ecosystem has put it on the apex. And, due to this consumers have more purchase intent than on Twitter, Facebook, and Instagram.

Still in doubt? We’ve seen many e-commerce stores follow TikTok such as Shopee’s introduction of Live shopping and Tokopedia’s utilization of affiliate marketing. Thus, we can put trust in the idea that TikTok has set itself in stone as an agent for change, and companies are already following. 

Interestingly enough, the rise of TikTok e-commerce has mirrored China’s rapid rise as an economic superpower against the west. Following world economics, western media such as Twitter and Facebook have failed to provide as much economic value in today’s world as TikTok does. Is this connection too much of a reach? Let us know what you think. 

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The idea of delivering the most value for the consumer has evolved over the years. As we know, the best marketing strategy is cetera desunt for adaptive future-leader mindset that uncertainly evolved over decades. Companies began to use various promises in effort to persuade and attract customers. The fiercely increasing conditions of competition added the popularity of the concept of “brand” and “advertisement” by adopting the concept of neo-marketing and elaborate them with psychological terms. Albeit, all emotion influences consumers personal relationships, business choices, and buying decisions. The emotion itself has situational and reactive qualities, as well as satisfaction and expectations formed over lifetimes of experiences and interactions.

When a boy goes to an ice cream parlor or restaurant, he will feel befuddled. Choosing what he is going to get, that’s the thing that he despises. Would chocolate chip or strawberry ice cream please him better? Cheeseburger or fried chicken? He feared that what he selected will not give him as much pleasure as the other option would give. What he doesn’t choose could provide a higher sense of pleasure than the one he chose. One interesting finding utilized by neuromarketing is that people really don’t want to lose out. People are just as worried about what they might lose as to what they might gain.
In the meantime, one of the biggest challenges that marketers deal with is customers’ expectations in the pre-purchase phenomenon where the consumers haven’t fixed their buying decision yet. To tackle the challenge, many companies are competing to build relationships with their customers, with the expectations that they will be able to provide the best customer experience for specific individuals. Therefore, the company must be customer-centric to carry out a successful marketing strategy in order to be noticed by consumers and to forge a brand identity.

According to McKinsey (2019), by making a fundamental change of mindset of focusing on the customers, companies gained significant enhancement on several aspects. Along with operational and IT improvements, companies generate 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys.

To overcome these challenges, companies have to understand consumers’ behavior and expectations. Hence, companies should put a bigger concern towards consumers’ buying-cycle from awareness to its advocacy. By implementing the concept of Neuromarketing, stereotypes of the communication matters of the marketing basis will be integrated with taste of individual market itself. The more personalized the promotion, the higher the probability that the advertisement will work. It could be done by using big data to allow the company for this huge aggregation of all consumers personal information that they’ve ever revealed to build a precise representation of who they are, now, more than ever before. Data and insight are not delivered to consumers as a whole but individually by delivering the most value to the customers with a very specific scope based on how they think.

In order to win in today’s marketplace, companies must be customer-centered, to the point that ideally, each individual customer’s values are taken into an account to derive the value that they are truly seeking. In essence, by generating consumer reactions, and treating them not as reactionary receptacles of marketing strategies, but as each their own person with differing individual values. Therefore, reinforcing belief is a very important matter for marketers that influences consumers experience. They must deliver superior value to their target customers traditionally and digitally with knowledge of neuroscience marketing strategies combined. Neuromarketing will surely strengthen customer’s contentment of a product itself.