Bizrate Insights Hot Topic Study: Social Media Part 1

Bizrate Insights Hot Topic Study: Social Media Part 1*Year-Over-Year Trends in SocialMedia Usage (2009 – 2011)October 2011*2011 data is from a joint study with Sucharita Mulpuru of Forrester Research

Table of Contents • Key Highlights • Social Media Usage • Online buyers who follow retailers via social media • Online buyers who do not follow retailers via social media • About this study 2 © Bizrate Insights | CONFIDENTIAL | 2011

Key Highlights Social Media Usage • Social media usage has increased from 54% in 2009 to 63% in 2011, mostly driven by Facebook. • Consumers “liking” or “following” retailers has grown significantly year over year, from 6% in 2009 to 19% in 2011. • This is driven by younger online buyers (Generation Y, specifically). Top 5 Reasons Online Buyers Follow Retailers via Social Media* 1. To find out about special deals. 2. To hear about the latest events. 3. To give the retailer their vote of approval or appreciation. 4. To read the latest news on the company. 5. Because they like having the retailer listed on their profile. Top 3 Reasons Online Buyers Do NOT Follow Retailers via Social Media** 1. It didn’t occur to them. 2. They are not interested. 3. They don’t see the benefit. *Taken from slide 9. **Taken from slide 12. 3 © Bizrate Insights | CONFIDENTIAL | 2011

Social Media Usage 4 © Bizrate Insights | CONFIDENTIAL | 2011

Online Buyers’ social media usage has grown 6.8% since 2010… • 63% of online buyers report actively visiting or using at least one leading social outlet in 2011, as compared to 59% in 2010. ‒ In 2009, 54% of online buyers reported actively using social media. Which of the following do you actively visit or use? 80% 70% 60% 56% 52% 50% 45% 46% 41% 40% 37% 30% 25% 21%21% 20% 10% 7% 5% 5% 4% 4% 4% 2% 2% 2% 3% 2% 3% 0% Facebook YouTube Twitter Message Boards Blogs Other (Specify) I dont actively visit or use any social networking sites 2011 2010 2009 Question: Which of the following do you actively visit or use? 2011 (n=5,932); 2010 (n=31,005); 2009 (n=131,282) 5 © Bizrate Insights | CONFIDENTIAL | 2011

… while “liking” or “following” of retailers increased by 46% • In 2010, 13% of online buyers were following a retailer on a social networking site. This percentage has reached 19% in Q3 2011. ‒ In 2009, only 6% of online buyers reported following a retailer. Percent of online buyers that reported liking, following or otherwise interacting with retailers via social media, blogs or forums. 2009 2010 2011 Yes, 6% Yes, 13% Yes, 19% No, No, No, 94% 87% 81% Question: Do you follow or like [MERCHANTNAME] on any social networking sites (e.g. [MERCHANTNAME]’s Facebook, Twitter) or read its corporate message boards or blog, if available? 2011 (n=5,848); 2010 (n=30,183); 2009 (n=129,845) 6 © Bizrate Insights | CONFIDENTIAL | 2011

Younger consumers lead the pack in social media • Social media usage is inversely proportional to age – a greater percentage of Generation Y online buyers are more active on each type of social medium than that of each successive older age group. ‒ Generation Y is also more likely to engage with retailers via social media. Which of the following do you actively visit or use (2011)? Generation Y Generation X Baby Boomers Seniors Facebook 79% 63% 47% 33% YouTube 45% 29% 17% 10% Twitter 18% 8% 3% 1% Message Boards 5% 5% 3% 1% Blogs 4% 2% 1% 1% Other (Specify) 2% 2% 3% 3% I don’t actively visit or use any social networking sites 15% 29% 46% 59% % Who follow or like a retailer via any social media (2011) 33% 22% 13% 8% % of Ecommerce (2011) 18% 30% 43% 9% Questions: Which of the following do you actively visit or use (2011)? Generation Y (n=1,016); Generation X (n=1,654); Baby Boomers (n=2,382); Seniors (512)…Do you follow or like [MERCHANTNAME] on any social networking sites (e.g. [MERCHANTNAME]’s Facebook, Twitter) or read its corporate messages boards or blog, if available (2011)? Generation Y (n=1,015); Generation X (1,640); Baby Boomers (n=2,334); Seniors (n=501) 7 © Bizrate Insights | CONFIDENTIAL | 2011

Online Buyers who follow retailers via social media 8 © Bizrate Insights | CONFIDENTIAL | 2011

Deals and promotions drive likes and follows • The top driver since 2009, special deals maintain the top position as the most popular reason why consumers like or follow retailers via social media. Knowledge of events has remained in the second spot year over year as well. • Only “give a retailer a vote of approval or appreciation” changed relative rank, increasing to the third most popular reason. Why do you follow this retailer on social networking sites?80% 68%70% 67% 63%60%50% 40%40% 38% 37%30% 26% 25% 23%26% 23% 21%21% 20% 19% 19% 18%20% 16% 16% 15%15% 12%14% 11% 10%10%12% 8% 9% 8%10% 2% 1% 3%0% Find out Hear about Give retailer Read latest Like having Be part of Share Watch videos Interact with Interact with Other about special latest events vote or news on retailer listed this retailers thoughts they post other customer (Specify) deals approval or company on profile community (good or bad) customers support or appreciation with retailer technical support 2011 2010 2009 Question: Why do you follow [MERCHANTNAME] on the social networking sites you chose above? 2011 (n=927); 2010 (n=2,698); 2009 (n=5,445) 9 © Bizrate Insights | CONFIDENTIAL | 2011

23% follow a retailer, just not the one they just purchased from • There is a primed and growing audience for retailers to increase their consumer following via social media. • The reasons for following other retailers mirror the reasons that consumers follow the retailer from whom they just made a purchase – with special deals leading the pack. 30% 23% 20% 20% 16% 10% 0% I follow another retailer on social networking sites 2011 2010 2009 Question: If you follow any retailers (other than [MERCHANTNAME]) on social networking sites, then please tell us why. 2011 (n=2,360); 2010 (n=12,372); 2009 (n=44,544) 10 © Bizrate Insights | CONFIDENTIAL | 2011

Consumers aren’t thinking about liking/following retailers• 41% of online buyers haven’t thought of looking to follow the retailer from which they just made a purchase. ‒ Capturing consumer interest with a compelling value proposition at a time in which they can like or follow is a key to success.• 23% of those who do not follow the retailer from which they just made a purchase do follow other retailers via social media. Why don’t you follow this retailer on any social networking sites? 41% Havent thought of looking to follow this retailer 41% 41% 32% I am not interested 34% 36% 15% Dont see benefit 19% 18% Dont want companies to see anything personal or 12% N/A specific about me N/A Thought about following this retailer but havent gotten 7% 6% around to it 6% 6% Dont want this retailer to have access to my profile 8% 6% 1% I looked, but couldnt find retailers page or feed 1% 2% 7% Other (Specify) 6% 6% 0% 10% 20% 30% 40% 50% 60% 2011 2010 2009 Question: Why don’t you follow [MERCHANTNAME] on any social networking sites? 2011 (n=2,582); 2010 (n=12,735); 2009 (n=49,797) 12 © Bizrate Insights | CONFIDENTIAL | 2011

About this study Bizrate Insights ran the 2011 Flash in partnership with Sucharita Mulpuru at Forrester Research, and the 2010 and 2009 data as part of its Hot Topic program. • Study data collection – Bizrate Insights provides free, independent surveys for online retailers. Data for this study was collected from online buyers via Bizrate Insights’ surveys offered immediately after purchase. It was run across Bizrate Insights’ Network of over 5,000 ecommerce retailers in the US and Canada, from August 8th – 15th, 2011, with nearly 6,000 consumers submitting surveys. In addition, Bizrate Insights fielded questions as part of its Hot Topic program from October 19th – November 8th, 2010, with 31,000 consumers submitting surveys, and from November 5th, 2009 – January 20th, 2010, with 131,000 consumers submitting surveys. • About Bizrate Insights – Bizrate Insights empowers retailers to achieve their end goal of growing sales and consumer loyalty by helping them listen to their customers. For over 10 years, Bizrate’s consumer feedback and ratings platform amplifies the consumers’ voice in a way that is fast and measurable, resulting in insights, action, conversion, and consumer loyalty. Bizrate Insights provides tools and reports to over 6,000 retailers worldwide to enlighten them about the customer experience and make them aware of the “why” in what consumers think and do. Visit http://bizrateinsights.com to learn more about our free and paid buyer and non-buyer survey and reporting products. – Bizrate Insights and Bizrate.com are part of the Shopzilla, Inc. network of websites that reach a global audience of over 40 million online shoppers each month. 13 © Bizrate Insights | CONFIDENTIAL | 2011

Bizrate Insights Hot Topic Study: Social Media Part 1

by BizrateInsights on Oct 27, 2011

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Bizrate Insights Hot Topic Study: Social Media Part 1 — Presentation Transcript

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