Digitally connected consumers have amplified the effects of word-of-mouth marketing, as interested parties take to the Internet to share their experiences. A new study by research company Diagonal suggests that the beauty industry, in particular, could benefit from tuning in to the ongoing discourse of “online beauty talk.”
In “An Analysis of Online Beauty Interest Communities,” Diagonal highlights the influence that online consumer sites and feedback forums exert on product demand. In a market constantly churning out new products and trends, consumers actively seek out trustworthy tips and recommendations. Social platforms and other forums provide a place for individuals to receive advice from their peers—other consumers relating firsthand experience.
The Diagonal report found that, although they do not represent the actual POS, these online beauty communities play a role in determining what kinds of products consumers will be reaching for next. Word-of-mouth is nothing new, but its migration to the Internet represents an opportunity for companies to tap into the conversation and glean unprecedented insight.