Social web now fundamental to retailers, analysts say

Post by Steven Cox on 12th August 2010
 in SEO, Social media, E-commerce, Search

The current state of the worlds of social media and search is like the early days of the Wild West just before the Gold Rush, according to a leading market research expert.

Helen Dickinson, Head of Retail at KPMG, says: "Beyond being a channel for transactions, the internet has created a powerful marketing tool and a huge “shop window” for products, provides valuable brand-building opportunities, increased profile through third party tie-ups and most importantly a new, constantly evolving and different communication mechanism."

And fast-moving sectors such as fashion are among those seeing the greatest consequences of the rush to social media, which Dickinson says is leading to "the consumer being increasingly complex for retailers to understand."

She adds: "However, it is clear that if they are to stay ahead of the game they need to invest now, before the rest of the retailing world catches on. 

"It’s a bit like the days of the Wild West – we are experiencing a massive grab for real estate – on the web. 

"Those business that get their organic search engine optimisation in sync with their blog and social network marketing will ensure that their websites are at the top of the search engines for the longer-term."

Dickinson goes on to give several examples of retailers which are using channels such as instant messaging to expand their marketing activities, and says that small and medium-sized companies are embracing these channels far more effectively because they can spot the less obvious opportunities to develop their businesses which come from such customer insight. 

And she cites a report from the Chief Marketing Officer Council which found that only one in six of 500 senior marketing professionals surveyed reviewed online comments, suggestions and complaints made about their own companies. This, despite 58 per cent of those CMOs acknowledging the influence which blogs and social networking channels have on customer attitudes and buying intentions.

"The platforms might be changing, but the fundamentals of retail remain unchanged – understanding the consumer and giving them what they want will always be the winning strategy", Dickinson concludes.