How do higher spenders engage online?
Take a closer look at two segments who outspend relative to their size.
CONTENTS
In part three of “From Browsing to Buying” — our series on what signals show us about the online shopping journey — we’re taking a closer look at higher spenders in the specialty retail category.
For this 3-part series, we created a unique shopper segmentation from signals captured with the Facebook pixel, engagement and app data. To learn more about our research methodology, in particular, how we were able to create segments based on pixels and other signals, check out our series page.
Two segments in particular — Shopping Mavens1 and Fashion Enthusiasts2 — outspent their counterparts. Together, these two segments made up 36% of shoppers, but they contributed to 41% of spend visible to Facebook across the specialty retail category, in February 2017. What inspired them to spend more?
Shopping Mavens3 and Fashion Enthusiasts4: the highest spenders in the category5
Within the specialty retail category, 40% of all shoppers self-indentified as being brand loyal. But, Fashion Enthusiasts were the most committed:6
52%of Fashion Enthusiasts said they are usually a loyal customer in this category
42%of Fashion Enthusiasts said they own loyalty membership cards for stores in this category
Retailers can use value optimization to identify higher and loyal spenders. Just as intuitive salespeople develop ongoing relationships with local shoppers, online retailers can foster brand loyalty with repeat shoppers through incentives like rewards programs.
So, what motivates these shoppers?
Higher spenders take fashion personally
Higher spending segments — Shopping Mavens and Fashion Enthusiasts — are as passionate as they are loyal when it comes their favorite brands. Two word clouds, below, visually represent their most-used hashtags, which include #fashion, #ootd and #beautiful.
Hashtagging a passion for fashion7
Shopping Mavens8
Fashion Enthusiasts9
Their devotion goes beyond simply talking about fashion. Survey responses from both segments suggest that the brands they choose and fashion overall plays a role in how they want people to perceive them.
Higher spenders love eye candy
So, where are these segments getting their fashion fix when they're not in a store or browsing a website? Prior Facebook IQ research showed how Instagram is changing how fashion is experienced. Our internal data reveals that Shopping Mavens and Fashion Enthusiasts are equally engaged to the platform:
75%of Shopping Mavens are active monthly users on Instagram
70%of Fashion Enthusiasts are active monthly users on Instagram
Many shoppers consider Instagram a haven where they can be inspired by the seemingly endless array of images and fashion, easily found by following favorite designers, celebrities and hashtags. Not surprisingly, our survey research shows that Shopping Mavens and Fashion Enthusiasts felt similarly.
Just as a store's window display entices a passersby to step inside, images on Instagram offer shoppers a sneak peak into a retailer's catalogue.
Surveyed Shopping Mavens are more likely to say12
“Instagram is a useful platform discovering new products or brands.”
1.1X
“I browse product/brand photos on Instagram.”
1.3X
“Instagram keeps me connected with industry experts (e.g. fashion experts, home decor experts).”
1.1XIndex against the combined average of all six segments across the specialty retail category.
Surveyed Fashion Enthusiasts are more likely to say13
“I always discover new types of products I did not know I want on Instagram.”
1.5X
“I often get inspired by content (e.g. photos, videos, posts) on Instagram.”
“Instagram keeps me connected with industry experts (e.g. fashion experts, home decor experts).”
1.5XIndex against the combined average of all six segments across the specialty retail category
What it means for marketers
Find and connect with higher spenders.
To find higher spenders, online retailers can use the Facebook pixel to link their audience to spend and ultimately target those most profitable to their businesses. Retailers can leverage tools like value optimization to bid more for people likely to spend more. Reaching higher value shoppers can open the door to relationships with people more likely to remain loyal to the brand.
Use eye candy to entice passionate shoppers.
Many shoppers who have a passion for fashion also have a passion for Instagram. They turn to Instagram to get ideas, discover new products and connect with experts. But remember, on Instagram, perfection doesn't matter as much as authenticity, so retailers should have fun with it. To inspire action, marketers can use stories to showcase new sides of their brands and video to show how clothes look and move on a real body.
Source unless otherwise specified: Facebook IQ Source: Based on Facebook internal data, a segmentation of ~1.6M shoppers captured by the Facebook pixel across the specialty retail vertical; US only; 18+; Feb, 2017. Survey data: “Facebook Pixel Segmentation” survey by Ipsos Connect on 1,216 Facebook users out of the above segmentation; US only; 18+; Feb, 2017.