So How Much Does Social Media REALLY Matter to Your E-Commerce Site?

Did you check your Facebook profile today? Chance are you did. And multiple times, at that. Data from the Bureau of Labor Statistics shows that the average American spends over 40 minutes per day on Facebook.

If you work backwards on Facebook’s claim of having over 128 million daily users; it means that over 40% of all Americans check their Facebook account on a daily basis.

These numbers are not just about American attitudes to social media, they are a reflection of the global addiction to social media that we have witnessed in the last few years.

If users are on social media, it follows that marketers won’t be very far behind. It’s no wonder then that social media has steadily gained a progressively bigger share of the marketing budgets of brands worldwide.

Projected share of social media in marketing budgetsProjected share of social media in marketing budgets

Trouble is, social media does not seem to be living up to all it’s been hyped to be. The last touch attribution numbers – conversions by folks who came directly from social media onto your site – remains miserably low. Low enough that questions are being raised about the ROI of social media expenditure and the sustainability of social media marketing.

Data from Monetate’s Quarterly E-commerce Report for Q2 2014, shows that the total traffic that can be directly attributed to social media is a meagre 2.3%. Conversions, obviously are even lower.

Website Visits and traffic

Black Friday – the annual shopping bonanza that all retailers await for the whole year brought in record breaking numbers for e-commerce sites last year – $1.2 billion in sales to be precise. However, even during a ‘made for shopping’ holiday like Black Friday, social media accounted for just 0.34% of all online sales.

If a medium offers a business just 2.3% of the total traffic that it gets from all sources, and an even tinier share of conversions; does it really deserve a 9% share and going forward, a 21% share of overall marketing budgets?

Social Media Is NOT a Last Touch Medium

The short answer to that question is, YES.

Let’s now look at the long version of the answer. All the grouses about how social media has not performed to its potential come from people who are getting a very fundamental thing about social media completely wrong. Social media is NOT a last touch medium, it is an influencer medium.

Users are NOT going to go from a social media post you made about creative crafting ideas to buying a couple of boxes of colored glitter. What that post about creative crafting does instead, is give the user ideas about what to do the next time they want to work on a craft project, what tools to use, which products work best and so on. So the next time that user wants to create a model airplane, they will know where to go to buy their glue sticks and glitter pens.

Social media is your build up to the sale and not your salesman.

So what do you do to ensure that this medium that takes up swathes of your users’ time and attention on a daily basis contributes to your business meaningfully? How do you move out of the trap of looking at last-touch attribution figures for social media and writing it off as a failed marketing tool?

You do that by leveraging the things that social media DOES do well. Here’s a rundown of the various things that social media DOES offer without a shadow of doubt – things that once employed effectively by your business can only help in growing it to the next level.

1. Understand your audience

As we saw earlier, social media is the place your users spend a significant chunk of their time on. With 4 out of 5 Americans now active on social media, this platform is a treasure trove of user data, if only you take the time to look and learn. Social media tells you a ton of things about your audience – where they live, how old they are, how educated they are, what they like to do for fun, places that they frequent, brands that they identify themselves with and more. Each of these factors combine to paint a composite user profile that you can use as a guideline while marketing to them.

With insights like these, your business won’t end up making gaffes like selling spare parts for a Lamborghini to a Ford user.

2. Target Your Audience Clearly

So we saw how social media can tell you who your users are. Now take a look at social media from another perspective.

Social media is the only marketing platform that tells you exactly where to spend your marketing dollars, so you don’t waste them on people who will not respond to your communication. On social media, you have the option of laser-targeting only and only those individuals who fit the right age, sex, location, interests and activity profile that you have created for your ideal customers.

This prevents spillage of your budgets on non-responsive audiences, it improves the efficacy of your messaging among your real target audience and reduces the overall budgets you would need to achieve a particular result by streamlining your marketing.

3. Engagement

Users like, follow or share data from a brand only when it resonates with them and speaks to them in language that they identify with. Once you hit upon this magic formula for your posts, nothing stops users from sharing it with their friends and family and taking your content viral.

Some of the key things that ensure your users are engaged (and by extension, ready to spread your word of mouth for free!) include:

  • Your content matches their areas of interest
  • What you’re saying is very different from what they see other brands say
  • Your content tells them about something they did not know about before
  • Your content is exciting / funny
  • Sharing your content with their friends will portray your users as smart and cool, earning them brownie points from their peers.

Remember, the deeper your engagement levels are with your users, the easier it will be to convince them about the merits of your brand and products. In other words, building an engaged user base is basically the process of priming your users to become customers of your product.

4. Trust

Users log primarily on to social media to connect with their friends and family, not to follow brands or organizations. This primary function that social media has of being a social connector, means that users set a lot of store by what their friends and family have to say about various matters – political issues, environmental stands, entertainment gossip and brand endorsements.

A study of over 25,000 online consumers by Nielsen as part of their Global Online Survey showed that 90% of online consumers trust recommendations from their friends.

By building a positive, credible brand image for your business with your fans and followers, you are in turn creating brand ambassadors who have the power to influence their peers to a level that your marketing messages can never hope to achieve.

Solicit reviews of your products from existing customers on social media to get the benefit of virality and being seen by their friends and family. Use social proof like the number of fans you have or the number of positive reviews that your product got or the number of times people shared your blog post on social media as tools that help potential customers make up their minds and enable conversions.

5. Top of Mind Recall

For a radio ad to stick in a user’s mind, you need at least nine repetitions per day. That figure is similar for television. For any business to be able to afford that kind of airtime all year round, is an incredibly expensive affair, to say the least.

Social media solves this problem by offering itself up as a near-free platform to reach out to your users. With the right kind of organic posts, your brand can reach out to users multiple times every single day, every day of the year at no extra cost. This is an opportunity that no business, especially cash strapped small businesses, can afford to ignore.

Dig into your analytics and determine the times of day when your users are active on social media. Use social media as a completely free reminder medium with regular posts at these times in the day. Paid ads on social media too work best when they are targeted at the right times of day and on the right days of the week.

6. Inspire Your Users

As discussed earlier, do not look at social media as a salesman with revenue targets on his head. Instead, view this wonderful medium as your online brochure that users can browse through at their leisure to get ideas on what to buy and where to buy it from.

I am not endorsing salesy posts that say “Here’s my product, it’s so great, buy it now!”. What a smart social media marketer would do instead is to SHOW the users the various ways your product can be beneficial to them. Show them various use cases for your product. Highlight real-life stories of customers who have used your products and the pleasant experiences that THEY had.

Platforms like Pinterest, Instagram or even Facebook lend themselves beautifully to creating look-books or design guides that tempt users to check out your wares, instead of simply pushing percentage-off offers down the throats of unwilling and uninformed users.

7. Make Life Easier for Them (Social Login)

One of the cardinal requirements of a good business is to make life easier for your users. Does your website force users to create a username and password as a pre-requisite for transactions? Do users have to remember these username-password combinations each time they revisit your website? If you answered ‘yes’ to either of these two questions, you’re creating a wall between your website and its users.

Social media helps knock down this wall with the help of a social login. By allowing users to log into your website using their social media accounts, you are taking away the friction of creating a new account from scratch and remembering the password attached to that account for future visits.

Research by Monetate shows that users spend 127% more time on websites that allow social logins than those that don’t. It further goes on to say that 64% of users are more likely to return to a site that remembers them without the need for them to create a fresh username and password.

There’s yet another benefit that social logins offer you on a direct level. Users that sign on with social media accounts agree to share the data from their social media accounts with you in exchange for the convenience of a social login. This is invaluable data that you can access directly in your inbox, without even going to social media and digging around for details.

Invest in a social login, it will only help your cause with your target audience.

8. SEO

This is much debated, but now well established benefit that social media offers businesses, both big and small.

Facebook, LinkedIn, Twitter and without a doubt, Google+ help in backing up all the other ranking signals that your page has and help in making the final cut in where your page ranks in a particular search. Let’s understand with an example.

Let’s say I search for ‘Pizza places in Birmingham’ on Google. If a friend of mine on Google+ has left behind a +1 or a positive review about ABC Pizzas located in Birmingham, then all other factors remaining constant, ABC Pizzas will get a bump up in their search rankings compared to other pizza places. The simple reason here is relevancy. Google assumes that since this is a place recommended by MY friend, it would be more interesting to me, than a place that is rated highly by a bunch of strangers.

Searching for people on Google or Bing, typically pulls up their social profiles – another indicator of how search engines DO give points to social signals, much as they would like to confuse and confound marketers everywhere.

Conclusion

Social media may not fit into clear silos of ‘lead generator’, ‘lead nurturer’, ‘awareness creator’ or ‘last mile converter’ that we are used to for other marketing platforms that we use. To truly benefit from social media, you need to understand what social media brings to the table and maximize it for all that its worth.

Consider social media as an enabler for your sales, instead of a deal-maker and you’ll be surprised with the results that you see.

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