“We’re finally seeing the correlation from social to sales that we’ve intuitively known to be true in our understanding of changing consumer behaviors. It’s only going to grow faster and the brands who’ve significantly invested in their social presence will be ahead of the pack,” says Suzy Ghov, Senior Strategic Planner at Ayzenberg, in light of a new social e-commerce report from Business Insider.
The report sheds light on what has been an as-yet difficult to quantify aspect of marketing and shows just where social lies in the e-commerce mix. While you can read the full report here, we’ve extracted the most important aspects of the report for marketers below.
- As more retailers are utilizing social to promote products, they are seeing earnings from these efforts. As a result, social shopping has grown 60 percent from 2012 to 2013 while e-commerce as a whole only grew 17 percent in that same period. But that’s not all. These are only the quanitiable numbers that we can measure with direct referrals and doesn’t account for the journey in the purchase process.
- “Buy” buttons only stand to improve these conversion rates. Facebook and Twitter are currently testing these utilities.
- Facebook leads the way for referrals and sales. A share on Facebook averages $3.58 in revenue and a Twitter share is 85 cents. Facebook has spawned Facebook-native e-commerce businesses as a result.
- Instagram AOV has increased from $51 to $128 per order in one year.
