TikTok is a social media platform that is also a great digital marketing tool. Since the app’s release in 2016, it has transformed the consumer’s path to purchase so much so that it has translated outside the platform and into the real world too.

 

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In this article, we’ll be studying TikTok’s unique role in the retail consumer journey and how it’s rendering the traditional marketing funnel outdated.

 

TikTok’s Infinite Loop

The traditional marketing funnel is characterized as a linear path that steadily narrows from awareness to interest to consideration to intent to evaluation and then to purchase. Theoretically, after a customer was made aware of your brand, it would only take a matter of time and effort before they start purchasing something from you.

 

However, that model has since been made obsolete. As TikTok says in their study, the path to purchase is now an infinite loop where buyers can enter and exit in different stages. For example, a buyer could purchase a product they saw on a viral TikTok—here, the company didn’t have to advertise and convince the buyer to buy from them. Another example is a customer backing out from a purchase because of disagreements with the company—you could have the greatest product out there but customers could choose not to buy from you because your values don’t align.

 

This shift was largely due to technological advancement. Back then, the company had all the power—they gave customers information that was probably biased. After all, no company wants to talk bad about their product. The brand was probably only the only readily available option around too.

 

Today, customers can easily look for unbiased information about a brand from customer feedback and website reviews. They can also look for alternatives in a blink of an eye. Now, the power is in the customer’s hands, and brands have to work extra hard to earn revenue.

 

Where Does TikTok Fit into This?

TikTok allows the infinite loop to thrive because of its personalized content. A TikTok feed is built around the user’s interests and preferences, so you’re more likely to see products and services from brands you want to buy. TikTok also accelerates the path to purchase by being entertaining—the more entertaining a TikTok is, the likelier a customer will buy it. This puts pressure on companies to not only be convincing but also fun.

Here’s some interesting data they uncovered about TikTok users.

 

Pre-Purchase Behavior

TikTok affects a customer’s awareness.

  • 49% say they’ve discovered a new product on TikTok.
  • 35% say they learn something new on TikTok.
  • 29% say TikTok is a source of inspiration.
  • 44% say branded content has to be entertaining.

 

Promoting on TikTok is a great way of getting your name out there. Millions of people use the app every day, and they’re constantly looking for inspiration for their next purchase.

However, the entertaining aspect is also a must. It’s not enough to be visible—you must also be entertaining.

 

  • TikTok users are 1.4x more likely to research products and services they discover.
  • 38% say they interact with brands while doing product research.

 

We see here that people tend to do their own research nowadays. You can’t just spout a bunch of flowery words to convince them to buy from you anymore—you need to prove it. 

 

Post-Purchase Behavior

TikTok’s influence remains even after a purchase! People are very eager to be part of the consumer journey by sharing their experiences with a brand.

  • 1 in 5 make tutorial videos on TikTok
  • 1 in 4 show off new products they purchased
  • 1 in 4 tagged a brand on their videos
  • 1 in 4 commented on a brand’s videos

 

Because of the sharing nature of TikTok, a negative experience your customer may have will extend far and wide. Every drawback will be on full display, and there’ll be nowhere to hide! Anyone can see a negative TikTok or comment on your product and be convinced not to buy from you, even without conducting product research.

 

Thus, you need to ensure you deliver high-quality products and services at all times and respond to any negative reviews properly if you want to retain customers.

 

At the same time, however, if your customers have positive experiences with your brand, this can spark word-of-mouth marketing as you’ve never seen before. You can create viral trends and amass a ton of loyal followers and advocates. This, in turn, can lead to success even outside the platform.

  • TikTok users are 1.5x more likely to convince loved ones to buy products they’ve seen on TikTok.
  • TikTok users are 1.5x more likely to go out and buy something they saw on TikTok.

 

And TikTok’s infinite loop continues.

 

Conclusion

As an expert digital marketing agency in Orange County and Los Angeles, we conclude it would be best to adopt an infinite loop outlook on the consumer’s journey rather than the traditional funnel outlook. Social media apps like TikTok have given customers a lot of power with their purchases—now, they can decide on their own if they want to buy a product or not and also convince other people about your brand’s worthiness.

Additionally, we can’t deny how useful TikTok is as a digital marketing strategy. It’s a very popular app that can expand your brand considerably if you know how to utilize it properly. Even if, by a long shot, TikTok did decide to die tomorrow, its influence on consumer purchase decisions will continue to prevail anyway.

 

For the full study on TikTok’s role in the retail path to purchase, please click here.