Consumers Slow to Embrace Social Media As Shopping Resource
Written by Debra MillerArbesman (contact - e-mail) -- January 27th, 2010 | Share - Save - E-mailThe Compete Online Shopper Intelligence study provides powerful insight into the complete online shopping experience. Please contact Matt Pace at mpace@compete.com or Debra Miller at dmiller@compete.com for more information.
According to a 2008 Rosetta study, in April of 2008, less than 1/3 of US e-retailers had a Facebook page. By November 2008, that number had doubled. Last quarter, Softpedia reported that 86 percent of US online retailers have a Facebook page, and they expect that number to reach 99 percent soon. With the vast majority of online retailers flocking to Facebook and other social media sites, the question I have to ask is: are consumers paying attention?
According to the Q3 Compete Online Shopper Intelligence study, consumers have been slow to embrace social media as a shopping resource. Social networking sites were ranked as the least used online shopping resource; 60 percent of all consumers surveyed said that they do not use social networking sites while shopping online. When questioned further, an even larger percentage said that they never visit retailer pages on Facebook or follow retailers on Twitter.
So how can retailers attract more consumers to their social media pages? Give them a highly compelling reason to visit—provide shoppers with discount information. In the study, shoppers overwhelming said that they visit retailer Facebook pages and Twitter feeds in order to learn about promotions and sales. Many retailers now offer Facebook Fans exclusive discounts and coupon codes for online and in store purchases. A few have even added a storefront to allow consumers to purchase products using those discounts without ever leaving Facebook. The bottom line is if retailers are looking for an ROI on social media, give shoppers the same thing. Below are some more interesting study findings:
- 61 percent of respondents indicated that they never visit a retailers Facebook page; 23 percent said they visit retailer pages less than once a month
- Among consumers who are fans of retailers on Facebook, 68 percent are fans of 3 or fewer retailers
- 70 percent of shoppers said they do not follow any retailers on Twitter
- Among consumers who follow retailers on Twitter, almost 2/3 of them follow 3 or fewer retailers
- Among those that do use these outlets, 2 out 3 responded that they use these tools to keep up to date on retailer sales and promotions
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January 27th, 2010 at 2:06 pm
I honestly don’t think buying from a Social Networking site is ever going to catch on. It’s a great way to be in contact with your customers and to help build brand loyalty. If companies use the tools right, like Twitter, it can help unsatisfied customers turn into satisfied ones. ‘e-Word-of-mouth’ goes a lot further, so if they are monitoring twitter properly they will have a better chance of saving, and converting, customers. But other than that I don’t see it going anywhere anytime soon. I know I wouldn’t be a fan of, or follow, a retailer, nor would I buy from them through a social network.
January 28th, 2010 at 2:43 am
thanks for your comments
January 31st, 2010 at 3:57 pm
[...] achieve.While US online retailers have been rushing into establishing their Social Media presence (86% now have a Facebook page), what value are they getting in return? Additionally, how many consumers actually care about that [...]
February 1st, 2010 at 6:27 am
I am slightly disagree with the thought that retailers and consumers have a great advantage from social media tools. It’s possible that you can creat a brand promotion, branding in respect to social media. But as compared to sales, its usually a standard way of buying and selling products through marketing.
February 7th, 2010 at 5:26 am
them through a social network?
February 23rd, 2010 at 10:37 pm
[...] there is some valid skepticism on whether social media will ever drive significant eCommerce (see this post by Compete), there is no denying that opportunity exists. And every day companies are out there driving new [...]
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