social media doesn't drive sales. or does it?
DESCRIPTION
IBM research around the US thanksgiving holiday suggested social media had a tiny effect on sales. This presentation shows how it does have a commercial effect, but says we are measuring the wrong thing anyway.TRANSCRIPT
social media marketing - a waste of money?
Dirk SingerTwitter - @dirktherabbit
Rabbit
that really depends what your aim isThose tweets almost certainly won’t directly make a sale. Social media is not a direct response sales tool
This is unlikely to happen
INSTEAD, SOCIAL MEDIA SUPPORTS THE WHOLE SALES CYCLE
Through:1. Attention (attracting
prospects)2. Interest (educating them)3. Desire (fostering their desire)
4 . Action (actual purchase)5. Advocacy (becoming
ambassadors who spread the word)
(Source - Get Satisfaction)
CONSUMERs DO BUY BASED ON ONLINE CHATTER
According to 28,000 consumers worldwide
(Nielsen), consumer opinions posted online -
most often from strangers - are more trusted than
editorial content, let alone ads
EVEN FOR HIGH VALUE ITEMS, SOCIAL MEDIA RECOMMENDATIONS COUNT
According to a study by Sociable Labs, 62% said they’d read a comment relating to a ‘vehicle or
automotive service’, and 75% of those then clicked on the link (source)
SOCIAL MEDIA IS AN IMPORTANT RESEARCH TOOL
Approximately 51% of online shoppers
consider social sites as valuable and credible
resources for researching products
and services
Along with reading reviews, 33% of
smartphone users use their device to look for
sales and specials.(Source)
YOUR TWITTER FEED WILL BRING YOU WEB TRAFFIC
According to Compete and Twitter, being exposed to
tweets from a retailer makes you both more likely
to visit and buy (source)
YOU CAN TURN DETRACTORS INTO FANS
Simply sending a reply in response to a negative review will turn almost 1/5 detractors – 18% – into fans (source)
PEOPLE WILL SHARE....IN THE RIGHT CIRCUMSTANCES
“When the product was one for which public consumption is desirable (e.g., sportswear or a desirable fragrance) the presence of the Facebook and Twitter icons made people 25 percent more likely to purchase. But when the product was more private in nature (e.g., Spanx, Clearasil), the icons suppressed purchase intentions, also by 25 percent.”(University of Miami)
SOCIAL MEDIA WORKS BEST IN COMBINATION(source - Ogilvy)
People exposed to social media and PR increased spending by 17% People exposed
to social media and TV were twice as likely to buy as the following week
Social media + OOH resulted in 1.5x higher likelihood of increase
ARE WE MEASURING IT ALL WRONG ANYWAY?
Social media's impact on sales is undervalued by 94%, you need to look at 1st click and not at last click (Adobe)
The "rst click is the "rst step consumers will go on the sales journey - often
this is a social media recommendation. The last click is the last thing they
will do before going to buy
SO ONCE AGAIN - SOCIAL MEDIA IS NOT INSTANT MARKETING GRATIFICATION. IT IS MORE LASTING
It comes into play at every stage of the consumer
decision journey, and will result in:
50% increase in customer satisfaction,
48% increase in business leads
24% increase in revenue
(Companies that adopt social technologies -
source McKinsey)
thank you!
Rabbit, social media agency of the yearhello AT therabbitagency.com
www.therabbitagency.com
For more stats around this topic, check out this post on Lies, Damned Lies and Statistics
CREDITSImages from Creative Commons
•http://www.!ickr.com/photos/cobalt/7217055290/sizes/c/in/photostream/•http://www.!ickr.com/photos/68751915@N05/6355220839/sizes/z/in/photostream/•http://www.!ickr.com/photos/sar!ondondunc/4711492866/sizes/z/in/photostream/•http://www.!ickr.com/photos/27128437@N07/3020096760/sizes/m/in/photostream/•http://www.!ickr.com/photos/zizzy/51737298/sizes/z/in/photostream/•http://www.!ickr.com/photos/62693815@N03/6277336776/sizes/z/in/photostream/•http://www.!ickr.com/photos/rossendalewadey/3351778961/sizes/m/in/photostream/•http://www.!ickr.com/photos/apalapala/5841076706/sizes/z/in/photostream/•http://www.!ickr.com/photos/buou/4711008801/sizes/z/in/photostream/
Content Sources
•http://blogs.wsj.com/corporate-intelligence/2012/11/26/social-media-has-a-black-friday-fail/ (WSJ Blogs)•http://blog.nielsen.com/nielsenwire/media_entertainment/consumer-trust-in-online-social-and-mobile-advertising-grows/ (Nielsen)•http://www.slideshare.net/wikimotive/study-shows-huge-social-media-impact-for-automotive-sales-and-service#btnNext (Wikimotive)•http://www.commonplaces.com/inspiring-conversation/team-posts/how-social-media-and-mobile-devices-a#ect-consumer-behavior (Common Places)•http://searchenginewatch.com/article/2227816/For-the-18th-Time-Social-Media-Marketing-Doesnt-Suck-How-Twitter-Drives-Online-Sales (Search engine watch)•http://liesdamnedliesstatistics.com/2011/03/a-simple-reply-turns-15-of-detractors-into-fans.html (Lies, Damned Lies, Statistics)•http://bus.miami.edu/news-and-media/recent-news/townsend-social-media-12.html (University of Miami Business School)•http://www.slideshare.net/OgilvyCapeTown/ogilvy-social-media-impact-on-sales-study#btnNext (Ogilvy)•http://contently.com/blog/2012/03/23/social-media-sales-infographic/ (Contently)•http://www.mckinseyquarterly.com/Demystifying_social_media_2958 (McKinsey)•http://www.bbc.co.uk/news/business-18013662 (BBC)