Social proof: The key to building trust and increasing sales in the beauty industry
Social proof is crucial in building customer confidence, particularly in the beauty industry, as beauty products are often expensive and can produce sensitive results
As a business, it is a challenging feat to turn visitors into customers. Trust takes time, effort, and most importantly, social proof – one of the most powerful tools a business can use to build a strong relationship with potential customers.
Its impact on sales cannot be overstated. But what is social proof? And how can businesses in the beauty industry leverage it to their advantage?
At its core, social proof is a psychological concept that describes how the thoughts and actions of others often influence our decisions. We seek recommendations from friends and family or read reviews before purchasing anything. Social proof appeals to the "wisdom of the crowd."
In 2021, nearly 70% of online shoppers typically read between one and six customer reviews before making a purchasing decision. Less than one in 10 shoppers did not have a habit of reading customer reviews before buying, according to Statista.
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And as for the beauty industry, reviews play a more important role. 92% of consumers say that reviews are a factor they consider when accessing a new beauty product they've never purchased before, according to the PowerReviews Meeting Beauty Shopper Digital Expectations in a Post-Pandemic World study – which is based on survey responses from 11,115 beauty shoppers across the United States.
For any beauty brand, the ultimate goal should be to create a loyal customer base. According to an article published in the Times of India, acquiring new clients is five times more expensive than retaining existing ones. So engaging with and retaining existing customers is critical to reducing costs and increasing profits.
Social proof is crucial in building customer confidence, particularly when purchasing beauty products. These products are often expensive and can produce sensitive results.
Beauty companies usually use social proof to increase online sales, which takes three primary forms – reviews, user-generated content, and FOMO (fear of missing out).
Reviews are a powerful marketing tool as consumers trust the opinions of their peers. User-generated content, such as product photo galleries and customer photo walls, allows brands to showcase their products in use and appeal to customers' aesthetic preferences. FOMO is created through scarcity and urgency tactics, such as limited-edition products or displaying the number of people currently viewing a product.
Now let us look at how businesses collect each of these social proofs and how these social proofs affect a business.
Businesses gather consumer feedback by rewarding reviews with discounts, freebies, or loyalty points. Additionally, reviews may be requested via transactional letters or social media prompts.
Consumers in Bangladesh frequently consult reviews while making purchases of beauty items. Unfavourable reviews discourage customers from purchasing; positive reviews may persuade them to try a new product.
Customer reviews for cosmetics are available on the Daraz Bangladesh web store. These reviews may convince other shoppers to make a purchase.
Zoya Cosmetics, a beauty company from Bangladesh, uses client testimonials on its website to demonstrate the dependability and efficacy of its goods.
Millions of people upload photos on social media for thousands of beauty companies daily. Customers who buy beauty products love to flaunt them. It helps the companies demonstrate how their products appear in actual use, encouraging their customers to use them.
For example, Bangladeshi beauty brand Aarong launched a campaign encouraging customers to share their experiences with their products on social media using the hashtag #AarongBeauty. Customers shared photos and reviews of the products they tried, which provided authentic and trustworthy reviews for other potential customers.
Another beauty brand Farsali Beauty gained significant visibility in Bangladesh through User-Generated Content (UGC). The brand's products became popular on social media, with customers sharing photos and videos of them using them and raving about their effectiveness, which helped to increase brand awareness and attract new customers.
Beauty buyers detest the idea of missing out and the possibility that someone else might acquire their desired products. People enjoy feeling special, and letting them know that the supply is running low is an excellent method to give them that feeling.
Businesses that display low stock levels on their web stores warn customers that they might only be able to purchase this unique product if they act quickly. Beauty brands in Bangladesh often release limited edition products to create a sense of urgency and exclusivity that can lead to FOMO among consumers.
For instance, due to high demand, the Bangladeshi beauty brand Nabila's limited-edition lipstick collection was sold out within hours of its release. Fit & Glow Beauty frequently uses Facebook and Instagram to showcase their latest products and offers, encouraging followers to buy them before they run out.
Social proof is a powerful tool that the beauty industry can use to build trust in potential customers and increase sales. By leveraging reviews, user-generated content, and FOMO, businesses can create a loyal customer base and increase profitability.
Maruf Ul Abedin is a student at the Department of Marketing, Jahangirnagar University.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
