A large share of purchases are made online nowadays and in 2020 that number grew significantly due to the lockdown. As the number of internet users increases and tech companies develop ways to integrate the online world into shopping, online retail is expected to grow exponentially. Logically, many consumer buying decisions are made online as well, and where do people spend most of their online time — on social media.
According to GlobalWebIndex, 54% of social media users use social media to research products and 71% are more likely to purchase products and services based on social media referrals.
Whilst it is difficult to say exactly how much social media influences customers, not just what they buy, but their consumer habits in general, these platforms give us better insight into their interactions with the brand compared to traditional media.
According to a Deloitte report, 29% of social media users are more likely to make a purchase on the same day of using social media. That means that once they see a product, they simply click on the link and buy it: there’s no need to wait before they go shopping. Moreover, the same report states that consumers who are influenced by social media are four times more likely to spend more on purchases.
Social media has made product research more accessible to users. For example, if your customer sees a product on Instagram, they can immediately search the hashtag to look up other reviews and decide whether they should buy it or not. As a result, customers spend more time on research and check more sources for reviews.
62% of customers say they share bad customer experiences with other people. Thus it’s extremely important to keep an eye on your online reputation and seek out reviews on social media. Remember that every review on social media is important — and that fits nicely with my next point.