Marketing Your Business Online Understanding the Consumer Buying Journey

reachlocal.com | 888.861.6378© 2012 ReachLocal. All Rights Reserved. No reproduction without permission.

By Todd Ebert, Chief Marketing Officer

How Consumers Buy Today

Harnessing the Buying Journey to Get More Customers

Marketing Your Business Online Understanding the Consumer Buying Journey

It’s not debatable that the Internet and social media have changed the way we communicate, learn, work, play, and buy. So, have you taken the time to really think about the process your customers take to find you, research you, compare you to competitors, and ultimately choose you? We call that process the consumer buying journey, and this ebook explains how to apply it to your marketing strategy in order to get more customers.

How Do You Buy? 3

Table of Contents

How Do You Buy?

Power to the People

The Evolution of Consumer Buying

Apply the Buying Journey to Your Marketing

Case Study

Example Buying Journeys

What Influences Your Customers?

How Do You Buy? 4

How Do You Buy?

www

You’re not just a business owner or marketer; you’re a consumer,

too. Have you thought about how you’ve changed the way you buy

things today compared to a decade ago? Consider the last time

you needed a new car, braces for your kids, or even something as

simple as a restaurant for date night. Did you:

(Check all that apply)

Search on Google or Bing to see which businesses showed up?

Ask for a recommendation on Facebook?

Check reviews on Yelp, Google+ Local, or another local directory site?

“Like” or follow a business on social media that you were considering?

Compare the websites of a few different businesses to help make

your choice?

See a display ad that jogged your memory about a brand you

were considering?

Use your mobile phone to search for a phone number or directions

to a business while out and about?

Chances are that you did some or all of these, so you know firsthand just

how big an impact the Web and mobile have on the way we buy.

How Do You Buy? 5

Zero Moment of Truth Google has done extensive research on this huge shift in consumer

buying behavior and explains it all in their ebook Winning at the

Zero Moment of Truth.

Simply put, the Zero Moment of Truth, or ZMOT, is the decision-making process in which a consumer goes

online to conduct research, learn about alternatives, read reviews, look for coupons or discounts, and more,

for a product or service they are thinking about buying — all before ever calling or going to the store. That’s

why your business needs to be present during a consumer’s Zero Moment of Truth.

Zero Moment of Truth: The moment when you grab your laptop or phone and start learning about a product or service you’re thinking about buying before you call or go to the store. For a business it is the difference between winning and losing the battle for customers.

Google, 2012

Power to the People 6

Consumers online are searching for products and services, surfing across websites, and socializing on the top social networks. You need to be everywhere your prospects are, so they can find you, learn more about you, and ultimately buy from you. Consider this:

Have you ever seen a product or service mentioned in a Facebook post, featured on a TV commercial, or

reviewed in a news article online and thought, “I’d like to know more about that,” and then turned to the

Web to get more information? Picture this: You and

your spouse want go out for dinner, but you’re not sure

where you’d like to go. While you are visiting your

favorite local news site, you see a display ad for an

Italian restaurant in your area called Little Italy. You’ve

always eaten at the same place, but recently, you

remember seeing some friends recommending Little Italy

on Facebook. So, you search for “Little Italy reviews.”

After reading a few reviews on Yelp and getting recommendations on what dishes to order, you visit Little Italy’s

website, where you check out photos of the food and dining room, watch a video message from the chef, and

read customer testimonials. You also see that they are offering a 30% discount for first time customers. Now, you

know exactly where you will eat dinner tonight, and what you are going to order.

Power to the People

“If you’re not visible online when people are doing their homework, believe me, they’ll find others who are.” ~ Jim Lecinski, Managing Director, Google

We use the Web and mobile to instantly research a product or service anywhere, anytime.

We form powerful impressions of businesses after seeing pictures, posts, and reviews.

We actively share our own experiences with hundreds, even thousands, of others in an instant.

Search Surf Socialize

Power to the People 7

The Impact on Your BusinessToday, the average consumer uses over 10 sources of information

to make a purchase decision, up from just five sources in 2010.1

Turning these highly educated consumers into buyers is definitely

more complex than it used to be. In fact, it requires you to be in

the right place at the right time in order to give consumers the

information and confidence they need to make the decision to buy

from you instead of a competitor.

To reach these consumers at the exact time they are considering your products or services, you need to create

a strong Web presence that influences consumers at every stage along their buying journey. You need to

provide both helpful content (that you build) and engaging advertising (that you buy) across the many places

consumers search, surf, and socialize. And, to anchor it all, you need a robust website with fresh content that

rises to the top of search results, creates a great first impression with visitors, and compels them to contact you.

Since consumers are influenced all along their buying journey, you can’t just market to them at the beginning

and expect to win their business.

You need a total Web presence to reach consumers throughout their buying journey.

1 Google, 2012

“When consumers hear about a product today, their first reaction is ‘Let me search online for it.’ And so they go on a journey of discovery: about a product, a service, an issue, an opportunity. Today you are not behind your competition. You are behind your consumer.” ~ Rishad Tobaccowala, Chief Strategy Innovation Officer, Viraki

The Evolution of the Buying Journey 8

Historically, marketers have used a simple framework called the

“buying funnel” to describe the process that consumers go through

to buy products and services. Then, they use that framework to

determine the right strategy for reaching consumers at each

stage of that process. There are much more complex frameworks

to describe consumer buying, but for this ebook we’ll stick to the

simple funnel and its four primary stages: Discover, Consider, Buy,

and Repeat.

Many consumers start at the top of the funnel, where

they discover local businesses via advertising, social

media, or even word of mouth. As they continue through

the marketing funnel, they will see information about

you on social media pages, customer review sites, and

your website or blog that help them determine whether

or not to buy from you. It’s your job to use multiple

tactics throughout this entire process to help consumers

discover, contact, and choose to buy from you.

The Evolution of Consumer Buying

Contact

Discover

Choose

Review & Repeat

The Evolution of the Buying Journey 9

The Buying Journey Then (Before the Web)

Twenty years ago, we had limited ways to discover new businesses, so our path to purchase was pretty straightforward. Businesses informed us of our

choices by advertising in the relatively few places where we got our news and entertainment, like newspapers,

magazines, TV, and radio. Once we began to actively consider buying, we asked friends and family about their

experiences with local companies, we checked the Yellow Pages, and then we called several businesses for

estimates. After the purchase was completed, some of us would tell a handful of others about the experience.

Then, we waited to see a sale in the newspaper or coupon in the mail before going back to the business.

Discovered a product or service via offline advertising, signage, print directories, and word-of-mouth

Checked with friends for recommendations, visited store, or called for info

Bought the product or service, often after shopping prices or getting several estimates

Told a few people about your experience and checked the mail and newspapers for new sales and offers

Contact

Discover

Choose

Review & Repeat

The Evolution of the Buying Journey 10

The Buying Journey Now As news, entertainment, and communication shifted online, so did

the way we buy. Checking the newspaper for auto dealer specials

moved to websites. Searching the Yellow Pages for a plumber moved

to Google. Asking friends to recommend a dentist moved to Facebook.

Now, nearly every step of our buying journey takes place online.

Discover businesses as we search, surf and socialize online (with some offline ads in the mix)

Check out several business websites, review sites, and social pages and contact via phone and email

Share our purchase experience on directories, review sites and social media. “Like” the business or subscribe to email newsletter to get updates on sales and offers

Book appointments and buy offline, though some businesses now enable this on their websites

Contact

Discover

Choose

Review & Repeat

The Evolution of the Buying Journey 11

This shift online has made it much harder for businesses to reach us with mass marketing tactics; we’re bombarded with so many messages that we often ignore them. We’ve taken control of the purchase process by

actively looking for new businesses and instantaneously researching them online. And, increasingly, we book

appointments and buy online, immediately share our opinions via our mobile phones, and “like” our favorite

businesses on social media to get updates and offers that entice us to buy from them again. Interestingly,

we have so much information at our disposal that buying is not easier, but more complex than ever before.

Even a simple search for a dentist results in pages and pages of listings, including directories, blogs, videos

and websites. And then, we have to read dozens of reviews, sort through recommendations on social media,

evaluate a bunch of business websites, and process (or tune out) hundreds of ads.

Top

Do

wn

Vie

w in

to F

unne

l

Contact

Discover

Choose

Review & Repeat

Discover

Contact

Choose

Co n t en t Si t es Sear c

h En

gin

es B

usin

ess Websites Deal Sites R

eview Sites

S

oc

ial

Med

ia

Of f

l in

e M

edia

On l in e Med ia

Consumers seek and engage with many sources at each stage of the funnel,

so you need more than just one tactic to reach them.

The Evolution of the Buying Journey 12

“Consumers arrive online 24/7 ready to engage. They’re anybody’s to win or lose.” ~ Jim Lecinski, Managing Director, Google

The Impact on Your Business

1234567

All the information available online enables consumers to make

more informed decisions on what to buy and who to buy from. But at

the same time, it creates a whole lot of work for the businesses like

you that are trying to reach them.

Gone are the days when you could place an ad in

the Yellow Pages and wait for the phone to ring. Now,

you need to make sure you’re giving consumers the

information they want at each stage of the buying

journey. To do that, you need a comprehensive Web

presence everywhere consumers search, surf, and

socialize. That involves claiming key sites on the Web,

buying targeted advertising, and creating a steady stream of fresh, authentic, and engaging content that:

Creates awareness as consumers surf the Web

Increases your likelihood to be seen when they search for your types of products or services

Stands out from your competition when consumers research and evaluate you

Reminds them of your business as they consider buying from you

Makes a good impression when they visit your website, listings, and social profiles

Sparks their interest so they contact you and learn more about you

Engages and entertains them so they share it with their friends

The Evolution of the Buying Journey 13

Consumers can potentially see your content and advertising at each stage of their buying journey. Everything you do influences the other marketing

tactics and ultimately impacts the total performance

of your marketing.

Here’s how it all works:

YOUR BLOG

Consumer

Becomes aware of brands through offline ads

Notices display ads while surfing favorite sites

Sees business videos and pictures

Gets daily deals

Compares several business websites

Discovers businesses on search engines

Sees and shares social posts

Checks reviews on local directories

SITE

WEBSITE

All your marketing works together for maximum impact when a consumer is thinking about making a purchase.

BLOG

The Evolution of the Buying Journey 14

10 Remodeling TipsTWITTE R

@ReadytoConstruct

rca.st/ycXY0f11 Jan via ReachCast Favorite Retweet Reply

Let’s take a look at how these tactics work together to influence consumers: Search engines take social signals and online reviews into account when determining how you rank on the search results page so consumers can find you online.

Your brand advertising campaigns, both offline and online, help consumers remember you and increase their likelihood of clicking your text ad when it shows up during a search.

Your Facebook posts and tweets drive repeat purchases by current customers, and when shared, draw in other potential customers who then research you online.

When you understand the buying journey and direct your marketing across the

moments of maximum influence, you greatly increase your chance of winning customers.

NEWS SITE

Serving the Community

YOUR

AD

FACEBOOK

20% off Refer a friend!

Like Comment Share

122 People Reached 13 People Talking About This

Kevin Smith, Jason Jones, Rachael O’Niell and 3 others like this

Kevin Smith Thanks! I sent over a friend that is thinking

about redoing his kitchen!

View all 6 comments

Like Comment Share

122 People Reached 13 People Talking

Kevin Smith, Jason Jones, Rachael O’Niell and 3 o

View all6 comments

SEARCH ENGINE

Ready to ConstructReliable contractors in your city.

SEARCH ENGINE

Ready to ConstructReliable contractors in your city.

Ready to ConstructReliable contractors in your city.

Best Contractors“Ready to Construct did a fantastic job remodelling my kitchen. They were quick, clean, and professional.”

REVIEW SITEREADY TO CONSTRUCT

WEBSITE555.3333 FACEBOOK

Ready to Construct

Ready to Construct

10 Remodeling Tips

Like Message

FACEBOOK

20% off Refer a friend!

Like Comment Share

122 People Reached 13 People Talking About This

Kevin Smith, Jason Jones, Rachael O’Niell and 3 others like this

Kevin Smith Thanks! I sent over a friend that is thinking

about redoing his kitchen!

View all 6 comments

Applying the Buying Journey to Your Marketing 15

Now that we’ve covered the consumer buying journey, we can apply that knowledge to your business so you can develop a marketing plan that gets you more customers.

First, you need to define your target consumer, and then identify how they buy your products or services.

Having this key information will help you develop a marketing plan that influences the right people at the

right time with the right information and messages. Because not all consumers are created equal, you want to

identify those consumers that have the highest value for your business.

To get started, there are two important questions to ask yourself:

1. Who is my primary target consumer?

•What is their gender, age, and income level?

•Where do they live: what towns, zip codes, and radius

from my location?

•What other defining characteristics do they have

(hobbies, sports, etc.)?

2. What does my target consumer think about

my types of products or services?

•Do they think of it as a need or a want?

•Do they see it as a high cost or low cost purchase?

•Do they buy it quickly (over a few days) or slowly

(over a few months)?

Applying the Buying Journey to Your Marketing

Low Cost

Need

Want

High Cost

Gender & Age

Geographic Location

Education & Income

Hobbies

Applying the Buying Journey to Your Marketing 16

Now, applying the funnel framework, ask yourself the following questions to determine what influences consumers to discover, consider, and buy from you, and then return to your business.

While this approach oversimplifies a complex consumer mindset, it provides a quick way for you to get started

mapping out the buying journey of your target consumers. Every consumer journey is different, but this exercise

gives you a pretty good idea of what influences the buying journey for the majority of your target customers.

To illustrate this buying process, we mapped out a real world case

study and sample consumer buying journeys.

Discover

1. Where do they search online for my types of products or services?

2. What words and phrases do they enter into the search bar?

3. How can I get in front of them as they surf and socialize online?

4. Do they see me or my competitors when they’re surfing, searching and socializing?

How consumers discover my businessDiscover

Review & Repeat

1. How do I get more customers to write a good review about me?

2. How do they stay in touch with businesses like mine?

3. What types of information and offers will bring them back?

4. How do I keep them loyal?

What influences consumers to spread the word and buy againReview & Repeat

Consider

Buy

1. Which competitors are they likely to consider?

2. Where are they going online to check us out?

3. What information do they find about me on those places?

4. How differentiated am I from my competitors?

5. Does my website and online content impress them enough to contact me?

6. How well does my staff answer their questions and follow up with them?

7. How can I continue to stay in front of them until they are ready to buy?

How consumers research and choose me over competitors

Contact & Choose

Case StudyMy Landscaper Buying Journey

Recently, I needed a landscaper for a project at my home. Although I recalled

the name of one company whose truck I had seen in my neighborhood, I still

needed to find other companies in the area, research their Web presence, and

contact them for quotes. Here’s how my journey went.

DiscoverMy buying journey started online when I asked for

recommendations from my Facebook friends and

searched on Google for “landscaper in Frisco, TX”

to identify a few potential contractors aside from

the one I already knew about. That same week, I

also saw offline brand advertising in the forms of a

postcard in the mail from a local landscaper and

print ads in our city magazine.

Customer: Todd EbertNeed: LandscaperPurchase Type: High Cost WantPrimary Influence: Photos, videos, local directories, review sites, and recommendations

Contact Once I had gathered a few names of local landscapers, I decided to check them all out online. I

reviewed each of their websites, Google+ Local profiles, and their Facebook pages to get an idea of

what they had to offer. Here are some of the things I considered:

· Had I heard of them before (via radio, magazine, friends, etc.)?

· Did they showcase their work in pictures or videos so I could evaluate their quality?

· Did they have a lot of positive reviews and relatively few negative reviews?

· Did they provide helpful tips that showed they understood the local soil and weather?

· Did they share stories about their community service?

I ruled out landscapers with poor websites or a negative online reputation and after further

investigating their online presences, I narrowed it down to two landscapers that had the best

presentations across all the places I looked online. This whole process took roughly three weeks due

to my busy schedule. I contacted several top choices via phone to get estimates.

Choose I chose a landscaper based not just on their price, but also

on their quick response and scheduling availability, which

influenced me to choose them over their competition. After the

work was completed, I left a positive review on their Google+

Local page and posted a Facebook review of my experience

that was shared with my network of friends and family.

I think I’m representative of a typical consumer. It’s clear that my

buying journey was not simple, and the marketing tactics I saw along

the way included both online and offline advertising, website content

like photos and videos, local directories and review sites, and friends’

recommendations on Facebook. All of this influenced my decision as I

moved closer to purchase. This is just one example, and the buying journey

for your customers depends on the type of business you’re in.

Example Buying Journeys 19 19

Journeys To get an idea of an average consumer’s

buying journey for your business, let’s look at a few examples.

Example Buying Journeys 20

Journey 1

Low Cost Need Water Heater Repair Cindy’s hot water heater is broken so she has to

find a good plumber fast. She does a quick search

on Google and checks out several plumber

websites that she found via the local listings

and paid search ads that appeared on the search

results page. She checks their reviews and then

calls to check availability and price.

Example Buying Journeys 21

Previous Influence

Day 1

Day 2

ContactDiscover Choose Review/ Repeat

Radio ads

Billboards & truck signage

Display ads on local news sites

Visits websites of 2 plumbers

Checks several Google+ Local Pages to see photos, info & reviews

Calls to check times & cost

Plumber arrives 2 hours late

Selects plumber & books appointment

Leaves reviews on Google+ Local page & Yelp

Searches for “Dallas plumber”

Comments on Facebook about late arrival

Clicks on paid search ads & organic links

Journey 1 Low Cost Need Water Heater Repair

Example Buying Journeys 22

Journey 2

Low Cost Want Spa DayLinda wants to treat herself to a spa day. She’s

seen several ads for spas and recalls some

posts by friends on Facebook, but decides to

search online for top spas in town. She wants

a great experience, so she checks out several

different spa websites, Facebook pages and

Yelp profiles in order to choose the best one.

Example Buying Journeys 23

Previous Influence

Day 1

Day 3

1 Month Later

ContactDiscover Choose Review/ Repeat

Local magazine ads

Friends’ posts on Facebook

Display ads on lifestyle sites

Checks reviews on Yelp

Checks Facebook pages

Visits websites and calls for prices

Books an appointment

Visits Spa

“Likes” on Facebook for discounts

Books another appointment

Has a great experience so posts a review on Yelp with photos

Searches “top spas in Chicago”

Journey 2 Low Cost Want Spa Day

Example Buying Journeys 24

Journey 3

High Cost Need New Car Purchase Dan’s car keeps breaking down and the repairs

are getting costly. He needs to buy a more

reliable ride and has an idea of the make and

model car he wants to buy after seeing lots

of TV ads, magazine ads, and social media

campaigns. But before making such an

expensive purchase, Dan wants to thoroughly

research car prices and local dealerships

online to make sure he’s getting the best deal.

Example Buying Journeys 25

Journey 3 High Cost Need New Car Purchase

Previous Influence

Day 1

Day 7

Day 10

Day 13

Day 17

Day 18

Day 19

ContactDiscover Choose Review/ Repeat

Social media campaigns

TV & magazine ads

Friends’recommendations

Visits several competitor sitesto check prices

Researches prices on Kelley Blue Book

Sees local car dealer’s banner ad on KBB & clicks

Visits car dealer’s site & fills out form

Sees dealer’s retargeting ad

Checks reviews for dealers on Google + Local

Visits dealership and buys

“Likes” dealer on Facebook

Writes a review on Google+ Local

Dealer posts “Another happy customer” pic on Facebook

Example Buying Journeys 26

Journey 4

High Cost Want Kitchen Remodel Mary has dreamed of remodeling her kitchen

for nearly a year while waiting for her bonus.

During that time she has seen many ads for

local remodelers while casually surfing home

improvement sites and magazines. Now she

is ready to find a remodeler to do the job but

wants to make sure she gets a high-quality

builder who will do the job right.

Example Buying Journeys 27

Journey 4 High Cost Want Kitchen Remodel

Previous Influence

Month 1

Month 2

Month 3

Month 4

ContactDiscover Choose Review/ Repeat

Pinterest boards featuring local remodelers

Ads in local magazine

Visits home decor websites

Sees banner ads for local remodelers

Visits remodeler’s Facebook pages

Photos featured on remodeler’s site

Leaves a positive review on Yelp

Banner ads on home improvement sites

AD

AD

Work begins

Chronicles work on Facebook with photos

Sees retargeting ad from remodeler as she surfs the Web

Checks reviews on Yelp

Visits website for remodeler to get quote

Returns to vendor site and books appointment

What Influences Your Customers? 28

Think about customers that recently bought from you. Which of your

ads and parts of your online presence drove them to buy from you?

The bottom line is that new customers come from all of these places, which work together to influence their

decisions to choose you. It’s exactly why big brands like Apple, Chevy, and Verizon use integrated marketing

campaigns across print, TV, radio, billboards, banner ads, search engines, social media, mobile ads, and email.

They know that if they aren’t there to influence consumers and grab their mindshare when they are considering

a purchase, then they will lose them to competitors who are.

While this type of integrated marketing used to be beyond the reach and affordability of local business owners,

it isn’t any longer. Companies that specialize in online marketing, like ReachLocal, can help you create a total

Web presence with content and ads in all the places that consumers are searching, surfing and socializing

online. All so that you can influence more consumers along their buying journeys and turn them into customers.

Billboard on the highway?

Banner ads on their favorite websites?

Posts on Facebook?

Google+ Local listing?

Reviews on Yelp?

Videos on YouTube?

Product or service on your site?

Community service photos on your blog?

Email offer or coupon?

Did they see your...

What Influences Your Customers?

Top Down View into Funnel

Discover

Contact

Choose

Co n t en t Si t es Sear c

h En

gin

es B

usin

ess Websites Deal Sites R

eview Sites

S

oc

ial

Med

ia

Of f

l in

e M

edia

On l in e Med ia

Contact

Discover

Choose

Review & Repeat

How Do You Measure Up?

Get Your ReachScore!

888.861.6378

You need a total Web presence to make sure

potential customers are discovering you,

learning about you, engaging with you, and

deciding to buy from you — before they

ever contact or visit your business.

Contact us today to get your free Web presence evaluation and custom online marketing plan.

Marketing Your Business Online Understanding the Consumer Buying Journey

30reachlocal.com | 888.861.6378© 2012 ReachLocal. All Rights Reserved. No reproduction without permission.

About the Author Todd Ebert, Chief Marketing Officer

As CMO of ReachLocal, I lead the team responsible for all customer-facing marketing. I have 20 years of

experience in brand strategy, product marketing, content marketing, and

communications at technology startups and Fortune 100 enterprises. Prior to

ReachLocal, I held senior marketing positions at Entrust, 3M, Sprint, and Pfizer. In

my spare time, I’m a volleyball dad, social media junkie, and loud Longhorn fan.

You can connect with me on Twitter and my blog

This ebook would not have been possible without the outstanding efforts of two members of my team who

have suffered through so many meetings about the buying journey that they now see funnels in their dreams.

My most humble and sincere thanks to both Tamara and Lauren!

Tamara Weintraub, Content Marketing Manager

As a blogger, social media marketer, and content manager, I feed ReachLocal’s Web presence

while educating small businesses about online marketing. When I’m not writing, you can find

me catching up on my DVR, reading the latest Jodi Picoult novel, or rescuing homeless dogs.

Lauren Caiafa, Art Director

From ebooks and posters to web sites and interactive, I love bringing concepts to life. In my

free time, I’m a traveler, photographer, treasure finder, and upcycler. I also enjoy going to art

museums and naming untitled art.

Marketing Your Business Online Understanding the Consumer Buying Journey

About UsA global leader in online marketing, ReachLocal’s (NASDAQ: RLOC) mission is to help local businesses all over the world reach more local consumers online. Through a combination of our smart technology and smart professionals, we deliver the online marketing services that help you acquire, manage and retain customers online so you can grow your business.

31

facebook.com/reachlocal

blog.reachlocal.com

reachlocal.com

twitter.com/reachlocal

youtube.com/reachlocal

plus.google.com/+reachlocal

reachlocal.com | 888.861.6378© 2012 ReachLocal. All Rights Reserved. No reproduction without permission.

WANT MORE?Check out our...

NEWSLETTERreachlocal.com/newsletter

LEARNING CENTERresource.reachlocal.com