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👯You Should... Power Up Consumers as Creators

👯You Should... Power Up Consumers as Creators
By YouShd • Issue #2 • View online

Hi there 👋
Welcome to the first edition of YouShd Know by YouShd (“you should”). Thanks for being a part of our small but growing community ✨
We’re excited to keep you in the know about the latest and greatest in the world of social commerce, marketing, DTC brands, and consumer research to help brands build authentic connections with their consumers.
What you will get from us 👌
A weekly newsletter released every Thursday filled with articles, primary research, teardowns, interviews, and insightful commentary around 🛍️ DTC brands, 🤳social media marketing, and 🧠 consumer psychology.
What you won’t receive 👎
Nothing we wouldn’t want to read ourselves. We know your time is valuable and only want to deliver something outstanding.
Before you go 🚨
Don’t forget to tweet @getyoushd and let us know what you think about our newsletter and your experiences with micro- and nano- influencers. We want to hear your thoughts on democratizing the creator economy!
Cheers,
MB & SK
TL;DR
We believe (and data shows) that the performance of content posted by influencers has nothing to do with the size of their community. It depends on the strength of their relationship with their audience. 
A Study even found an inverse relationship between audience size and engagement. We discovered that this happens because scaling organically becomes hard beyond a point. So, influencers try to go viral by posting more frequently and experimenting with trends. Sometimes this comes at the expense of content quality and authenticity, diluting the community beyond the original niche. 
We noticed that smaller influencers often achieve better conversions. Through our research, we were obsessed with QUANTIFYING the following equation:
Reach of [❌] influencers with 1000 followers = Reach of 1️⃣ influencer with a million followers*
*(Based on an internal survey conducted by YouShd Inc.)
👇Intrigued? Read on for more.
🤫Psst! It was a single-digit number!
🧟RIP Traditional Referral Marketing
2%…a paltry 2% is the benchmark referral rate for most industries, the highest ROI performing marketing channel for DTC brands. So, of course, when we asked brands if they were happy with their numbers, we heard a resounding No 🙅. But, upon digging deeper, no one exactly knew why this number was so low and how it could be increased…so we wanted to understand it better.
We learned that traditional referral marketing is too push-based and socially awkward for consumers.
FRICTION 1️⃣ I can’t think about which of my friends may be interested in this product at this point in time.
FRICTION 2️⃣ I haven’t messaged these friends who may benefit from this brand or product in a while
FRICTION 3️⃣ Are you telling me I have to message all these friends individually??
FRICTION 4️⃣ My friends will think I am spamming them if they don’t find the referral useful
And so on.
Given these frictions in traditional referral marketing, brands need a new way to amplify the powerful voices of real customers. They need a channel that is fun, social, and scalable.
♥️ Influencer Marketing vs. Super Powering Consumers
While traditional influencer marketing has been a game changer for DTC brands, this channel has been difficult to scale and has not been performance-led traditionally and hence not consistently proven its ROI.
The process of discovering and working with the right influencer is tedious, requires a ton of trial and error in making the content appear “authentic” (#plandidfail), and has extremely high costs of acquisition. On the one hand, paid content from a large influencer can put a brand back by thousands of dollars, while on the other, seeding micro- and nano-influencers with freebies is expensive because of the 1-2% success rate (as reported by brands we spoke to).
A New Paradigm
We believe brands can overcome the scalability and ROI issues of influencer marketing by flipping the model on its head. Rather than posing an influencer as a “consumer,” brands need to empower real shoppers to create authentic content and influence their social networks i.e. the, consumer reaches out to their entire network organically to talk about a product or brand they love.
We also have it from good authority that influencer marketing agencies are now advising influencers to create raw content, and shoot with hand-held cameras over staged, glossy productions. The future of social media marketing is all about authenticity, and who is more authentic than a real shopper?
🤳 Democratizing the Creator Economy
It has probably happened more often than you can count, where you absolutely love a life-changing product and go about recommending it to anyone who will listen. You’ve just done some influencing. Wouldn’t it be nice if you could get paid by the brand to talk about them on your social media? 
We found it cool when the cult classic movie Kick Ass challenged the very notion that to be a superhero, you needed superpowers. Do we wonder if a large audience is truly a superpower in the influencing world?
We don’t think so. Remember the equation we talked about? The one about how many folks with 1000 followers equate an account with a million followers? The magic number our research has found so far is 3.2!
YouShd (“you should”) exists to turbocharge a consumer’s comments “You should try this” or “You should check that out” when they genuinely like a product because their social circle trusts their recommendations. Even in the age of online reviews, haul videos, and influencers, we turn to our friends or family when we’re unsure where to put our money.
We want to democratize influencing and content creation, enabling the aspiring micro and nano-influencer to monetize what they’re already doing. Since 85% of young adults in the US are willing to post sponsored content about brands they like, we want to help D2C brands engage these consumers! 
We also believe that since social media algorithms are in constant flux, and there seems to be no definitive answer to what works, pay-for-performance models will become the norm in a democratized creator economy.  
Curious? Dive deep into the world of social commerce and social media marketing in our upcoming newsletters. Until then, follow us at @getyoushd on Twitter!
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By YouShd

A weekly newsletter on the latest and greatest happenings in the world of 🛍️ DTC brands, 🤳social media marketing, and 🧠 consumer psychology.

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