While social media is prevalent in most consumers’ lives, it is still not one of the top choices when it comes to shopping.  A global study from PwC indicates that less than 15 percent of consumers buy anything through social media.  Furthermore, only 18 percent of active social media users made a purchase as a result of a social media communication.  While over 50 percent of survey respondents said that they check social media sites daily, they are not using the sites to shop.

There is a bright side for retailers, though, looking to use social media to drive sales.  Of the 11,000 people surveyed across 11 countries, 59 percent did indicate that they connect with brands via social media, and 27 percent said they used social media to discover new brands.

Customers in China are the exception to the rule, in that over 25 percent of respondents have already made a purchase via social media.  These customers are classified as brand lovers, deal hunters, or social addicts who purchase to fit in with their reference group.

Social media is a critical promotional tool as it helps with brand building and should be part of retailers’ multichannel strategy planning.

 

Discussion Questions:

1. Are social media sites being used to purchase merchandise?

2. Do you expect the amount of merchandise purchased through social media to increase significantly in the coming years?  Why or why not?

 

SOURCE: Sarah Mahoney, Retail Wire, February 7, 2013