The Importance of... Facebook.. and Phones...

In case you still needed convincing, a new study into consumer shopping behaviour across retail channels (including mobile phones) has revealed that social media is having increasing influence on consumer purchasing decisions.

The study commissioned by IBM found that consumers are using social networks in a sophisticated way, researching products, prices, promotions and other consumers’ views, to validate their decision making. IBM said this is then influencing sales across all procurement channels, not just online.

50% of respondents aged 16 – 64 with access to the Internet, used social networks to assist with shopping decisions and of those that said they would be likely to follow a retailer on a social network, 35% stated they use social media platforms to read reviews or rank products and services. Of this same group, 57% said that the most likely reason to ´follow´ a retailer on a social network was to receive free trials of products or discount coupons. When going on to make the purchase, around 4 in 10 of these online adults said they would still purchase the final product from within the store.

This is key because it unequivocally demonstrates to retailers (many of who are still failing to grasp the importance of social media to their business as we've discussed in previous posts) that consumers are making more considered purchases, and increasingly relying on social networks to help them research products before buying- they are looking at prices, searching out discounts, looking for reviews and rankings, yet interestingly nearly half of correspondents saying they would still buy in-store- demonstrating the cross-channel effect a successful social media strategy can have on sales.
As David Hogg, commerce solutions regional leader at IBM, adds: “Social media provides a new window through which retailers can deliver a more personal brand experience across all buying channels. By harnessing real-time customer analytics from social media, retailers can act upon what is being said, delivering a personalised marketing offer based on the customers’ shopping profile, preferences and decisions, helping retailers to maximise revenues.”

Can't escape M-Commerce either... Other findings of the survey highlighted consumers’ increasing desire to shop through the mobile phone. 51% of online adults said that they have shopped through the mobile phone, with 67% of these consumers stating that it was important that they could not only capture, but also place an order. The survey also found that mobile phones are incremental in providing additional revenue opportunities through promotions and last minute purchases with 68% agreeing that price comparison on the mobile was important or very important.

“It is clear to see that the mobile phone is no longer just a viewing screen or digital catalogue - there is a growing acceptance of shopping through the mobile. As well as connecting to these customers through their preferred channel, retailers also need to make sure they have the means of effectively managing their supplier and trading partner network to ensure they have the products at the right time and place to meet changing consumer demands.” concluded Hogg.
In a nutshell, again as I've discussed in the past, a consistent and well executed multi-channel strategy is becoming a must- customers are now expecting to be able to buy goods and have ordered fulfilled, using their phones, they want the same service they'd get from the traditional e-commerce site or of course in store. The lines are becoming well and truly blurred between using a sophisticated smart-phone, a tablet, a laptop etc to browse the web, so there should certainly no longer be a difference in the consumer experience.