Social Media Still Lacks E-Commerce Sales Power

Social media, including Facebook and Twitter, face a long uphill battle in the e-commerce space when up against proven solutions such as e-mail and search, concludes a recent Ad Age article by Tim Dunn of the digital agency Isobar. One piece of evidence is global management consultant McKinsey & Company's 2013 survey finding that e-mail is 40 times more effective at acquiring consumers than Facebook and Twitter combined. McKinsey results also showed that the average order value prompted by e-mail is 17% higher than those prompted by social media. Consumers just don't head to social media to buy things; shopping and browsing products didn't even register as reasons for using Facebook in a recent survey by Pew Research. Dunn hastens to add that social interaction still has a place in the sales cycle, especially as consumers break down the distinction between content and commerce, and that the drive to interact can be harnessed by brands. He notes that fashion brand Free People's user-generated fashion showcase (called FPMe) not only drove passion for brand loyalists but also delivered a 42% increase in same-session sales conversion. However, Dunn advises marketers to exercise skepticism about using social to prompt immediate purchase and urges refocus on e-commerce basics, including touchpoint tracking, site experience and e-mail targeting. See the complete online post at http://adage.com/article/digitalnext/twitter-s-buy-button-a-gravy-train-brands/294031/

Online Review Turns Customers Into Advertisers

With customers the most influential source of brand advertising today, marketers need to embrace online review to feed the customer relationships and loyalty that create brand advocates, urges Trustpilot CMO Jan Vels Jensen in a recent imediaconnection blog post. A Nielsen survey finding that 84% of respondents said word-of-mouth recommendations from friends and family were more trustworthy than brand advertising should be a wake-up call to marketers about the value of customer voices. Creating an online review community shows consumers the human side of the brand before they make a purchase and allows companies to build trust and social proof, says Jensen. Brands can generate 40% additional revenue each year and lift sales by 18% by highlighting customer voices and incorporating online reviews into their advertising strategies, according to his data. Online reviews have also been shown to increase conversion rates, prevent basket abandonment and encourage repeat purchases and brand advocacy, he adds. And when customers are alerted to online reviews, it affects click-through rates on paid and organic search. Read the complete post at
http://blogs.imediaconnection.com/blog/2014/07/14/how-to-give-the-loudest-voice-to-your-best-advertisers-your-customers/