Goods sold through social media may rise sixfold by 2015, to reach $30 billion.
That comes from a report by Booz & Company. The consultancy talked to consumers who spend at least one hour a month on social media sites and who’ve purchased something online at least once over the past year, and learned that 27 percent of respondents would purchase physical goods through Facebook or other social media. Ten percent said such shopping would be in addition to purchases already planned to occur via other media.
However, the 73 percent that said they wouldn’t buy physical items through social media sites said concerns about security and privacy deter them from this ofrm of shopping. Booz recommends that companies focus on converting fans to buyers, or turning “likes” to “buys,” because:
At least for the moment, awareness seems to have limited value in actually spurring social commerce…. 71 percent of social networking users said their “liking” a company on Facebook would have no impact on their propensity to buy from that company. Social commerce will almost certainly have the biggest impact at the lower end of the funnel, in the consideration, conversion, and loyalty and service stages. These are areas where it is possible to establish clear metrics—including conversion rates, incremental revenue, and repeat business—and thus more accurately measure return on investment. The key for companies will be understanding how to use social media in each of these stages.
Right now, social commerce seems like something to discuss in the future conditional tense, yet makers of storefront software for Facebook are pushing hard for people to think of shopping on the site in the present. Our own opinion: Things like group buying and suggested purchases need an additional push or incentive to get consumers to start clicking. We look forward to seeing what retailers come up with to seed things.
Have you bought something through Facebook yet and if so, what motivated you to do so?