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This Is How Retailers Are Using Social Media In Stores To Drive Sales
This Is How Retailers Are Using Social Media In Stores To Drive Sales
Cooper SmithJun 27, 2014, 19:52 IST
BI IntelligenceSocial networks do not drive a lot of e-commerce sales directly (see chart, right), but they do influence shoppers by helping them discover new products to buy. Now some retailers are leveraging that influence to drive sales in stores. Nordstrom recently announced that it's installing video monitors in more than 100 of its stores to display products being shared on social shopping app Wanelo. "It's a purely customer-driven strategy," said Bryan Galipeau, Nordstrom's social media director, in a press release. "We take a snapshot of that trending category once every week, and we will then match that up against our inventory and what's available in those stores so we're providing a good customer experience." Brands such as Sephora and Lululemon are now using Wanelo and other social networks to keep tabs on women's fashion trends. A recent report from BI Intelligence noted the following stats about how social drives sales:
Facebook influences 30% of American women when deciding what professional clothing to buy. Pinterest influences 22%, according to a joint study by Netbase and Edison Research.
When it comes to clothing for a special occasion, Pinterest influences 28% of American women and Instagram influences 17%.
BI IntelligenceIn the BI Intelligence report, we analyzed the data and spoke to leaders in the social commerce space to understand how their companies are adding value at different stages of the retail and e-commerce "purchase funnel," the long process that ultimately leads to a retail sale.Some of the latest trends include building social networks around e-commerce platforms, partnering with brands, and otherwise transforming social commerce's strengths for Pinterest-style digital window-shopping. The report looks at the most important way retailers are leveraging social engagement to drive purchases. Access The Full Report, Graphics, And Data By Signing Up Today >>Here's how social commerce companies are driving sales:
It's not about click-to-buy: Social commerce is not simply transactional - it's not just about offering a click-to-buy link next to an offer on Facebook. Social commerce will never be what some have wanted it to be, an "Amazon killer."
There are a few ways to encourage purchases:Retargeted advertising may be one missing link. It enables social commerce to connect the sales funnel from end-to-end by serving ads that remind users of products they have browsed across the Web but have not yet purchased. Facebook has made huge strides with its retargeted efforts.
