Social media has a powerful history of influencing the way people buy things. As the one of the world’s most potent word-of-mouth tools, social media platforms are an excellent way for consumers to share their purchase and product experiences with friends and family, even as those experiences are happening.
Last year, AdWeek’s SocialTimes Blog shared an interesting infographic called “How Social Media Influences Purchase Decisions.”
In it, they point out that “4 in 10 social media users have purchased an item online or in-store after sharing it or marking it as a favorite on Twitter, Facebook or Pinterest; 50% of those purchases take place within a week [and] . . . 80% take place within 3 weeks; [and] 71% of consumers are more likely to make a purchase based on social media referrals.”
That winter, they shared another infographic (they love infographics) covering social’s influence on the holiday shopping season. They spell out the key findings below, which bode well for emerging media all around:
“People believe their peers on social media more than ever before. The biggest influencer for holiday shopping was recommendations from friends and family on social media, with 68 percent of survey participants ranking at the top. Sixty-three percent were influenced by Amazon reviews, and 24 percent were swayed by blogger endorsement. Traditional media and celebrity endorsements filled out the bottom three on the list.
In-store mobile use has also increased dramatically. Sixty-seven percent use social sites on mobile devices while shopping, up from 24 percent last year. Fifty percent of those mobile users are actively comparing prices with online stores, 14 percent are sharing deals via social media and 13 percent are texting friends to validate their purchasing decisions.”
Those are some incredible numbers backing up social’s importance in the shopping decision. Those numbers are so powerful, in fact, that social platforms and the brands using them have begun laying the foundation for turning social media outlets into direct shopping centers, where those peer recommendations have far less time to fade in the potential buyer’s memory before a purchase decision is made.
Facebook’s testing buy now buttons that let the consumer “complete the entire purchase flow within Facebook, which could boost conversion rates and endear retailers to the social network.” Twitter users can use a hashtag to make a purchase directly in the platform, and even Pinterest is getting into the direct shopping game with their Product Pins, which allow shoppers to purchase products on their mobile devices right from a pin.
Newsy covered the trend last September:
Social media and direct shopping seems a natural fit, and I can’t see how this won’t take off over the next few years. I can even see where these purchase/payment experiments can lead to some interesting social purchasing. Think of crowdfunding donations directly in Twitter for a family that lost their home to a fire. Think of purchasing gifts for your friends and family right there in Facebook. It would be like those cheesy digital gifts from years ago but, you know, useful.
Social media as a shopping plaza is a great idea, particularly for social media sites who seek “data gleaned from the shopping experience to better target ads to users and perhaps better prove the return on investment to marketers.” It’s a smart move for retailers, too, who can skip all those traditional steps where a purchaser might fall from the funnel.
No matter how it pans out, it’s going to be interesting to watch how retailers get creative once everyone has a “buy now” button. It’ll be even more interesting to watch how socials are going to try to outdo one another as high-profile retailers begin working exclusively in a single platform.
Have you run across a social media purchase opportunity? If so, what did you see? The promise of a new way to shop? An annoying gimmick? A “Buy it Now” button for Unicorn Spam?