In 2023, Taiwan’s marketing landscape will become more challenging as consumers become more informed and deliberate in their purchasing decisions. They will spend more time researching products from multiple online and offline sources before making a purchase. Additionally, traditional advertising methods will likely see a decrease in their ability to convert viewers into buyers.
This article will provide a detailed examination of the shifts in consumer behavior in Taiwan and their impact on marketing strategies. Furthermore, we will offer suggestions to help businesses overcome these challenges and enhance the effectiveness of their marketing efforts.
1. Decline in Direct Conversion from Ads
Businesses relying heavily on paid ad promotion, such as on social media or Google, will face difficulties in converting customers directly through ads in 2023. In Taiwan, consumers are taking more time to research and evaluate products before making a purchase decision, looking at the brand’s official website and reviewing credible sources such as social media, websites, and forums. As a result, the chances of a direct purchase from an ad have decreased. Instead, tactics such as content marketing, search engine optimization (SEO) to rank higher in search results, and word-of-mouth marketing will become increasingly important.
Are Ads Becoming Irrelevant?
Ads are still crucial in raising awareness about your brand and creating touchpoints with customers, both of which are essential in the final purchasing decision. However, the approach and strategy used for advertising may need to be reevaluated to effectively reach and convert consumers in the changing market.
2. Increased Touch Points needed
The “rule of 7” theory in marketing suggests that a customer needs to see a brand 7 times before making a purchase. However, studies indicate that the average customer now requires 7-12 touchpoints before reaching a buying decision, with the number of touchpoints increasing with the cost of the product or service.
A typical customer journey in Taiwan might look like this: a mother searching for milk powder for her child will start by visiting the brand’s website to gather information, then encounter ads for the product on social media platforms, Google, and eCommerce sites while researching. Next, she’ll read reviews from other mothers on discussion forums or Facebook groups. Finally, she may request a sample for her child to try before becoming a customer of the formula.
3. Information Collection to Avoid Negative Outcomes
In the past, Taiwanese customers primarily collected information about products or services to find the best value for money (best “CP value”). However, with many similar options available, customers are now more focused on avoiding negative experiences (i.e. “stepping on landmines” in Taiwanese).
This shift is reflected in common Google searches for keywords like “disaster” (災情) or “negative reviews”(負評) after the product/service name. To maintain a strong market presence, it’s essential to ensure your products and services are of high quality and that after-sales support is top-notch. If a customer leaves a negative review, prompt and effective resolution can turn a negative into a positive, no matter the platform (e.g. e-commerce site, forums, social media, Google Map).
Taiwanese customers now collect info from both online and offline sources before making a purchase. Online research is still crucial, but offline experiences, like visiting a store to try a product, have become more important. To maximize the impact of your marketing, consider a mix of online and offline strategies. For high-ticket items, provide a way for customers to experience your product firsthand, as it can be a strong conversion factor. To tackle the challenges, enhance your brand’s online presence and offer quality after-sales services to avoid negative reviews.
Tips for marketing in Taiwan in 2023
-Focus on content marketing and improving your brand’s search engine optimization (SEO) to provide potential customers with favorable information and a solid foundation for their purchase decision.
-Establish multiple touchpoints with customers, both online and offline, to increase brand recall.
-Invite customers to provide reviews and participate in user-generated content (UGC) activities, such as posting photos with your product on social media. This can help build trust and convert customers.
-Consider balancing your advertising budget between conversion-focused ads and brand awareness ads to increase exposure and strengthen your relationship with customers.
Maximize your marketing strategy in 2023 with personalized advice. Book a coaching session with us to effectively target your Taiwanese clients based on your business, industry, and audience mindset and behavior.
Guest lecturer of Hong Kong Polytechnic University on copy writing and digital marketing.
Guest lecturer and regular blog contributor of HD course (a leading digital marketing and SEO school).
Guest speaker on digital marketing and publishing for various organizations in Taiwan and Hong Kong such as Hong Kong Trade Development council, VolTra, Startup Group and Rotary.
Best selling author of book “Tango Spanish and Buenos Aires Travel Tips”.