Social media users are more prolific buyers

Post by Steven Cox on 29th June 2010
 in Social media, E-commerce

People who visit an online store after reading about it on a social media site are 10 times more likely to buy something than other users, new research suggests.

The research by payment services provider Sage Pay (PSP) has revealed that whereas seven per cent of all visitors to an online store make a purchase, more than 10 times as many visitors – 71 per cent – clicking through from a social media site will click through to the transaction section.

The study showed that while online retailers may be good at attracting consumers to the website in the first place, only a minority will be converted to customers.

It suggests such businesses develop stronger marketing tools to make this conversion, and adds that social media marketing such as advertising on Facebook is an undervalued tool, as it is highly effective.

Simon Black, Managing Director at Sage Pay, said: "Flitting from site to site, it takes a lot to entice today’s shoppers. 

“Once they’ve arrived in an online store, they might sniff around and put a thing or two in the shopping cart – but even when they have typed in their credit card number, there is still no guarantee that the sale will be closed."

Black added: "The modern shopper often looks for reassurance from a positive review, a special offer to make it more affordable, inexpensive delivery options and a quick, easy and secure way to pay."

Despite the findings, the survey also revealed scepticism about the power of social media among online marketers, with just five per cent of those polled believing that social media was the most effective communication channel.

This assertion was backed by Keith Weed, Chief Marketing Officer of Unilever, who called it "word-of-mouth on steroids" and added that brands could harness it for their benefit.