Monday, September 29, 2014

Despite Buzz, Social Commerce is Limited

A recent article on emarketer.com highlighted what may surprise some - despite the buzz surrounding social marketing, very few adults have actually made a purchase through social. This higlights a distinction between social marketing/advertising and social commerce; in other words, there's a difference between marketing/raising awareness through social and actually effecting purchasing behavior through the same channel.

According to the article , only 5% of US adults have ever made a purchase on a social platform such as Facebook or Twitter. The chart below dives into some of the factors that might increase the likelihood of a person making a purchase THROUGH social channels themselves.



It's interesting to see that many people cite security as a reason for holding back on purchasing via social. Security concerns have been grabbing headlines recently, and smaller purchase amounts seem to be of greater appeal (those less than $25). Everyday there seems to be a completely new credit card hack at a major retailer, and to make matters worse, social media sites are already associated with a lack of privacy. On these sites, in other words, users are already primed to worry about leaks of their personal information, even though much of it is voluntarily shared. It makes sense that they would be reluctant to share their personal financial information with these sites as well. This association could be sapping will or desire among consumers to buy.

In my opinion, though, the problem is a lack of infrastructure. Twitter's introduction of a buy button hints at this part of the problem. How many times have you been consuming social media marketing or marketing through social channels and found it easy to buy directly from the channel? Rarely is it as easy as purchasing through an Apple App Store or an Amazon.com. Limited infrastructure to actually enable buying through social channels - much social marketing simply drives users to conventional eCommerce sites - may due to the fact that users have reservations about the safety and security of the platform.

Source: http://www.emarketer.com/Article/How-Make-Social-Commerce-More-Appealing/1011231

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