The Tendo View

Insights and analysis for your strategic communications

Social media and the considered purchase

When was the last time you made a considered purchase? Or even tested the process? I just bought a used car and was amazed at how much the process has changed since my last used car purchase in 1999. That’s eons ago in Internet time. This time, for every phase in the process, I had a wealth of tools and information at my disposal, most of them free. And short of test driving the car, I could do almost everything from my computer.

My experience illustrates how integral the Web and social media have become to the considered purchase process. It also serves as a reminder of how much media and consumer behavior has changed and how important it is to continue to hone and examine your marketing strategy.

Here’s a compare and contrast between my car buying process in 1999 and 2009.

Awareness phase
Old process
I was shopping for a used car, so I asked friends and family if they knew of anyone selling a car. I probably bought car magazines, too, like Car and Driver or Consumer Reports.

New process
Because I was buying a used car again, I sought out friends’ opinions about cars that interested me. But this time, I was able to ask a wide variety of friends (and, by extension, friends of friends) at the same time by posting questions on my Facebook and LinkedIn pages. After narrowing it down to a few models, I moved on to the consideration phase.

Consideration phase
Old process
The Internet was still emerging, so I continued to talk to knowledgeable sources; I also used the classified ads in newspapers and even The Want Advertizer to get prices on the cars I liked.

New process
With so much information now available online, including magazines with online versions, I quickly researched the cars I was considering. I went to Consumerreports.org, where I found objective, detailed car reviews.

My criteria were fairly modest: reliable, strong service record, good mileage, room for my surfboards, and all-wheel drive (a plus). That narrowed it down to the make, model, and year I wanted.

Preference phase
Old process
It’s always hard to pinpoint exactly when you’re considering a product vs. preferring a product, especially for a car purchased 10 years ago. But one thing is certain: Beyond Consumer Reports magazine and the advice of friends and experts, there weren’t other resources to consult at this phase.

New process
Once I knew what car I wanted, I used Google to search for online owner forums and consumer review sites, where I could vet Consumer Reports’ reviews with the opinions of actual owners. This search yielded a number of sites, including epinions.com, which allowed me to review a bunch of owner reviews. They were all positive and further validated my choice.

Purchase phase
Old process
At this point, I’m sure I started following up on classified ads in the newspaper and The Want Advertizer, hoping I had educated myself adequately on the car I liked. I also would have had to pay for these resources and buy new issues daily (newspaper) or weekly (The Want Ad). That’s a hassle.

New process
Confident I had the right car in mind, I went to Edmunds.com and Kelley’s Blue Book online, two free sites that gave me baseline numbers for negotiating offers with sellers.

I then proceeded to Craigslist, the immensely popular community ecommerce site, which gave me an inventory of cars for sale, helped me determine my car’s local fair market value, and allowed me to compare prices based on mileage, year, and condition. It also gave me direct access to sellers, whom I began contacting.

The first car I pursued looked great–within my price range, low mileage, and in seemingly good condition. I was ready to test drive it, but a colleague insisted I first check Carfax.com to find out why it wasn’t driven for a year; according to the owner, this accounted for its low mileage.

After spending a few minutes signing up and paying $39 for three searches, Carfax allowed me to pull a detailed history of the car–every accident, its service record, where it had been registered and a list of previous owners. Amazing. This type of quick and accurate information was unfathomable a decade ago.

Sure enough, the car had been “totaled,” meaning it was in an accident and the insurance company at the time deemed it beyond repair. On to the next car.

A few more inquiries on Craigslist and I found my car. With 47,000 miles, excellent service records, room for my surfboards, and all-wheel drive, it was just what I wanted. I bought a 2000 Subaru Outback.

The car needed one repair done immediately. I went directly to Yelp, where I searched for a reputable mechanic with experience working on Subarus. Yelp is an online directory of local businesses, offering consumer reviews on everything from mechanics to hotels. The mechanic I found had a long list of satisfied customers, and he turned out to be a good choice.

Loyalty phase
The loyalty phase correlates to a company’s or brand’s effectiveness retaining a customer, so it’s not relevant to buying a used car from a private party. But since this is the first time I’ve owned a Subaru, I should theoretically form some sort of opinion of the brand. Hopefully I’ll become a loyal owner.

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Comparing the old and new processes, it’s obvious how much they’ve changed. The tools and sources of information people use today look very different than what was used 10 years ago. And while the process by which customers buy your product or service may not mirror my experience exactly, the Internet and social media have altered it considerably.

What about you? How have the Web and social media tools changed how you market to your customers—or how you experience the purchase process? Write us and let us know.

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