Consumers Go to Reddit for Purchasing Insights, Not for Validation
Two weeks ago, social platform Reddit published the results of a study they conducted alongside WPP Media to learn more about the factors influencing a customer's purchasing decisions.
The study observed and analyzed the behavior of prospective buyers on Reddit, and looked how the social platform's communities help shape the process. More than 13,000 Reddit users were surveyed for the purposes of the study.
One of the key findings was that consumers are researching their potential purchases more than last year. 68% of social media users reported conducting more research before making a purchase than they did a year ago. This percentage was much higher (79%) among Reddit users.
Reddit organically creates communities where users can share their own experiences and recommendations freely, opening conversations, and fostering relationships admittedly based on trust. It is unsurprising then that 77% of redditors visited at least 2 communities to validate a purchase decision.
Moving From Interest to Action
Whilst influencers, ads, and algorithms are great at sparking interest, consumers are now doubling down in their due diligence, and seeking authentic insights from real people to trigger them to act on that initial momentum.
This is a key piece of information for brands and marketers alike who often center their operations on awareness and influence. They may certainly capture consumer's attention, but will not necessarily sway them enough to turn them into customers.
According to the study, "while validation happens at every stage of the journey, it carries the most weight during the consideration phase, helping people build the confidence they need to move forward. It’s also where Reddit serves as a vital checkpoint: 1 in 3 redditors frequently use Reddit for pre-purchase research."
By discussing their purchasing plans with the community, redditors often get real-time feedback from both commenters, as well as up and downvoters, highlighting content that is relevant to their initial query. To put this in perspective, 63% of reddit users say "they’re more confident in decisions made based on Reddit community interactions when directly compared to other social platforms." In a way, Reddit acts a dynamic and ever evolving focus group (without the demographics).
Brand Transparency and Engagement
Since Reddit places trust as key value within the community, it is important for brands to be transparent when engaging with users. For instance:
44% of redditors say ads and sponsored posts feel most relevant when they are clearly labeled as such.
According to the study, "ads placed inside contextually relevant communities have driven up to 16x higher purchase intent compared to keyword-based targeting alone."
Redditors are also "30% more likely to engage with ads that appear in relevant subreddits compared to elsewhere."
58% of redditors also report that brand trust increases when a brand responds directly to a customer question in a thread.
Dove, the skin and haircare brand, and Tesco, the British supermarket, have both engaged with the Reddit community to obtain valuable insights into their products, operations, and customer service.
Dove: r/eal reviews
Tesco invited redditors to share their suggestions on how they could be more helpful to their customers, and Dove used real reviews on the platform for one of the products they had recently launched.
Tesco’s Video Asking Reddit Users for Suggestions
