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Social Loafing

SOCIAL LOAFING Retailers Underwhelmed By Social Media's Selling Power Social media marketing is one of the most talked about topics in retail and business today. The idea is as follows: if you're not on Facebook and Twitter, you're invisible to the world. But is that really the case? Maybe not. A new study from Shop.org suggests that in terms of bottom-line return on investment, social marketing may not be all its cracked up to be. SPENDING ON SOCIAL MEDIA The average marketing budget for web retailers in 2010 was $165,000 $5.5 Of that, an average of was spent on social network advertising. million How effective is this considerable investment? SOCIAL NETWORKING DISAPPOINTS IN TERMS OF R.O.I For all the money invested in social media marketing, retailers report that it's impact on sales has been underwhelming. Social's Poor Effect On Sales: 11% 68% of retailers reported 2% 1% that if Facebook disappeared today, it would not adversely affect this year's sales. 1--- Website customers who are also Facebook fans Total sales attributed to social Retailers who found Facebook effective at customer acquisition Further complicating the problem is the fact that many retailers aren't sure how to measure the success say the returns on have 62% metrics in place to measure social marketing strategies are unclear. their efforts. they're aiming for: While marketing on social networks didn't produce the sales retailers were hoping for, many did say it was very effective at building and maintaining relationships with customers. SOCIAL NETWORKING AND CUSTOMER RELATIONSHIPS While a retailer's primary goal is to sell, social media marketing isn't all about making sales. say the primary benefit of using social marketing is listening to and better understanding 61% 40% say Facebook in particular is most useful for brand building. their customers. But even though social marketing can help build loyalty, only a small percent of the retailers surveyed ranked the most common social tactics as "very effective" for their business. The big winner seemed to be social with an exclusive twist. Social Strategy *Percent Ranking As "Very Effective' 67% Social Shopping Microblogs Sites (Twitter, etc.) 20% 20% 20% Invitation-only shopping site Social Social Blogs games/ Virtual gifts network fan/ follower 4% 7% pages Only say that social marketing strategies have 29% helped them grow their business to date. COULD IT BE HYPE-BASED SPENDING? Despite being disappointed 729% by the small impact that social marketing has had on sales and R.O.I, a surprising strategies in 2011. of retailers plan to invest more money into these Could retailers be spending because of hype rather than results? The Shop.org study asked retailers about their motives for using social media: 19% 82% "Because senior management has pressured us to do so." 52% "Because we do not want "Because this is a great time to experiment and see what it can do." to be late movers." 45% "Because there is tremendous buzz about 36% 37% social networking." "Because it is "Because our inexpensive to do so." competitors are doing it." Milo Source: Shop.org ONLY

Social Loafing

shared by ColumnFive on Jul 23
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Social media marketing is one of the most talked about topics in retail and business today. If you're not on Facebook and Twitter, you're invisible to the world. But is that really the case? A new stu...

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Milo

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Business
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