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IBM research around the US thanksgiving holiday suggested social media had a tiny effect on sales. This presentation shows how it does have a commercial effect, but says we are measuring the wrong thing anyway.
Dirk Singer Twitter - @dirktherabbit Rabbitsocial media marketing - a waste of money?
This is unlikely to happenthat really depends what your aim isThose tweets almost certainly won’t directly make a sale. Social media is not a direct response sales tool
INSTEAD, SOCIAL MEDIA SUPPORTS THEWHOLE SALES CYCLE Through:1. Attention (attracting prospects)2. Interest (educating them) 3. Desire (fostering their desire) 4 . Action (actual purchase) 5. Advocacy (becoming ambassadors who spread the word) (Source - Get Satisfaction)
CONSUMERs DO BUY BASED ON ONLINE CHATTER According to 28,000 consumers worldwide (Nielsen), consumer opinions posted online - most often from strangers - are more trusted than editorial content, let alone ads
According to a study by Sociable Labs, 62% said they’d read a comment relating to a ‘vehicle or automotive service’, and 75% of those then clicked on the link (source)EVEN FOR HIGH VALUE ITEMS, SOCIAL MEDIA RECOMMENDATIONS COUNT
Approximately 51% of Along with reading online shoppers reviews, 33% of consider social sites as smartphone users use valuable and credible their device to look for resources for sales and specials. researching products (Source) and servicesSOCIAL MEDIA IS AN IMPORTANT RESEARCH TOOL
YOUR TWITTER FEED WILL BRING YOU WEB TRAFFIC According to Compete and Twitter, being exposed to tweets from a retailer makes you both more likely to visit and buy (source)
Simply sending a reply in response to a negative review will turn almost 1/5 detractors – 18% – into fans (source)YOU CAN TURN DETRACTORS INTO FANS
“When the product was one for which public consumption is desirable (e.g., sportswear or a desirable fragrance) the presence of the Facebook and Twitter icons made people 25 percent more likely to purchase. But when the product was more private in nature (e.g., Spanx, Clearasil), the icons suppressed purchase intentions, also by 25 percent.” (University of Miami)PEOPLE WILL SHARE....IN THE RIGHT CIRCUMSTANCES
Social media + People exposed OOH resulted in to social media 1.5x higher and PR increased likelihood of spending by 17% People exposed increase to social media and TV were twice as likely to buy as the following weekSOCIAL MEDIA WORKS BEST IN COMBINATION(source - Ogilvy)
ARE WE MEASURING IT ALL WRONG ANYWAY? The "rst click is the "rst step consumers will go on the sales journey - often this is a social media recommendation. The last click is the last thing they will do before going to buy Social medias impact on sales is undervalued by 94%, you need to look at 1st click and not at last click (Adobe)
SO ONCE AGAIN - SOCIAL MEDIA IS NOT INSTANTMARKETING GRATIFICATION. IT IS MORE LASTING It comes into play at every stage of the consumer decision journey, and will result in: 50% increase in customer satisfaction, 48% increase in business leads 24% increase in revenue (Companies that adopt social technologies - source McKinsey)
Rabbit, social media agency of the year hello AT therabbitagency.com www.therabbitagency.comFor more stats around this topic, check out this post on Lies, Damned Lies and Statisticsthank you!
CREDITSImages from Creative Commons•http://www.!ickr.com/photos/cobalt/7217055290/sizes/c/in/photostream/•http://www.!ickr.com/photos/68751915@N05/6355220839/sizes/z/in/photostream/•http://www.!ickr.com/photos/sar!ondondunc/4711492866/sizes/z/in/photostream/•http://www.!ickr.com/photos/27128437@N07/3020096760/sizes/m/in/photostream/•http://www.!ickr.com/photos/zizzy/51737298/sizes/z/in/photostream/•http://www.!ickr.com/photos/62693815@N03/6277336776/sizes/z/in/photostream/•http://www.!ickr.com/photos/rossendalewadey/3351778961/sizes/m/in/photostream/•http://www.!ickr.com/photos/apalapala/5841076706/sizes/z/in/photostream/•http://www.!ickr.com/photos/buou/4711008801/sizes/z/in/photostream/Content Sources•http://blogs.wsj.com/corporate-intelligence/2012/11/26/social-media-has-a-black-friday-fail/ (WSJ Blogs)•http://blog.nielsen.com/nielsenwire/media_entertainment/consumer-trust-in-online-social-and-mobile-advertising-grows/ (Nielsen)•http://www.slideshare.net/wikimotive/study-shows-huge-social-media-impact-for-automotive-sales-and-service#btnNext (Wikimotive)•http://www.commonplaces.com/inspiring-conversation/team-posts/how-social-media-and-mobile-devices-a#ect-consumer-behavior (Common Places)•http://searchenginewatch.com/article/2227816/For-the-18th-Time-Social-Media-Marketing-Doesnt-Suck-How-Twitter-Drives-Online-Sales (Search engine watch)•http://liesdamnedliesstatistics.com/2011/03/a-simple-reply-turns-15-of-detractors-into-fans.html (Lies, Damned Lies, Statistics)•http://bus.miami.edu/news-and-media/recent-news/townsend-social-media-12.html (University of Miami Business School)•http://www.slideshare.net/OgilvyCapeTown/ogilvy-social-media-impact-on-sales-study#btnNext (Ogilvy)•http://contently.com/blog/2012/03/23/social-media-sales-infographic/ (Contently)•http://www.mckinseyquarterly.com/Demystifying_social_media_2958 (McKinsey)•http://www.bbc.co.uk/news/business-18013662 (BBC)