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Is social media working for retailers?


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Social media is popular among Canadians: 56% of retail consumers in Canada have recently used Facebook, with 33% of Canadians checking Facebook daily, while 38% use YouTube and 9% use Twitter according to a recent study conducted by our team at Fusion Retail Analytics. But can advertisers benefit from this trend? In retail the results so far have been mixed.

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Is social media working for retailers?

  1. 1. Is Social Media working for retailers? Retail thinking. Redefined.
  2. 2. Summary Although social media is popular, consumers are not interested in visiting retailer pages. They see social 1. media as a tool for communicating with friends and family and are not there with retailers in mind, unlike when they are looking at websites or reading a magazine. Social media has a small reach and overlaps with more powerful media such as website, while only 2. reaching a retailer’s core customers. As a result, social media has a limited ability to drive sales growth. It is recommended that social media be used sparingly and only as a means of maintaining a strong 3. relationship with core customers. When using social media, messaging should tilt towards younger, female consumers and should showcase innovative products.Source: Fusion Retail Analytics, December 2012 2
  3. 3. 64% of all retail consumers have recently used social media, with Facebook being the most popular Social media usage By channel – social media usage (in the last 4 weeks) (in the last 4 weeks) Did not use 36% 56% of all retail consumers used Facebook in the last four weeks 56% 38% Used 64% 9% All retail consumers 1 2 3 (Twitter)Notes: Self-declared via online survey, social media usage includes Facebook, Twitter and YouTubeSource: Fusion Retail Analytics, December 2012 3
  4. 4. 59% of Facebook users check their newsfeed every day Frequency of checking Facebook newsfeed 5% Less than once a month 9% Every few weeks 8% Once a week 20% A few times a week Nearly 90% of retail consumers who use Facebook check their wall or newsfeed at least 87% once a month and 59% check their wall or newsfeed everyday. 59% Every day Facebook usersNotes: Self-declared via online surveySource: Fusion Retail Analytics, December 2012 4
  5. 5. The vast majority of consumers have not visited any retailer’s social media page in the last 4 weeks Consumers recently visiting retailer pages (of all consumers, in the last 4 weeks) 82% 34% Did not visit any retailer’s page 56% …compared to 48% of consumers that have 38% recently visited a retailer’s website. 51%While many consumersuse Facebook, only 5% of 48% Visited at least one retailer’s pageconsumers have recently 36%visited a retailer’s page… 9% 2% 1% 8% 5% Facebook Youtube Twitter Website (Twitter)Notes: Self-declared via online surveySource: Fusion Retail Analytics, December 2012 5
  6. 6. Relatively few consumers are interested in viewing retailers’ Facebook or Twitter posts Consumers interested in viewing retailer media (indexed to overall average) 250 Many consumers are interested in 219 visiting retailer websites or receiving retailer newsletters via e-mail… 200 Indexed to overall average 161 150 120 100 …while very few are interested in receiving retailers’ Facebook or 66 Twitter posts 50 24 10 0 Flyer Website E-mail newsletters Television Facebook posts Twitter posts advertisementsNotes: Self-declared via online survey, based on responses to “How interested are you in receiving or viewing the following from ((retailer))?”Source: Fusion Retail Analytics, December 2012 6
  7. 7. Consumers find retailer Facebook posts do not contain information they want or need Consumer comments regarding retailers on Facebook “I don’t want to have to join another non-personal “Facebook is Social time, not budget time for me.” group and be bombarded with dozens of irrelevant - female, age 25-34, Newfoundland status posts… I would rather be able to look up Home Depot’s website on my own time and find out what sales are going on.” - female, age 25-34, Alberta “I only use Facebook for social networking and I “I find that Facebook posts from stores usually dont want to use it to associate with businesses.” dont apply to me and are too frequent.” - female, age 17-24, Ontario - female, age 25-34, Territories “What kind of short post would be something that I would be interested in? Someone in Toronto posting updates on “I dont pay much attention to Facebook posts. Facebook would have little or no bearing on what I in NS Additionally, I doubt they would give me information might need. If I want to buy something I will use the flyer or not contained in flyers or easily retrievable from the website to look it up. Facebook is for small independent website.” businesses to reach out to interested consumers.” - male, age 17-24, Newfoundland - female, age 35-49, Nova Scotia “I use my Facebook for friends ..not shopping.” “I use my FB ONLY to connect with friends and family who do not live near me. I DO NOT use it for - male, age 35-49, Quebec shopping.” - female, age 50-69, British ColumbiaSource: Fusion Retail Analytics, December 2012 7
  8. 8. Social media has little incremental reach Retailer Facebook and website reach (in the last 4 weeks) 4% visited the same retailer’s website and 1% Facebook visited only the retailer’s Facebook page While Facebook reaches 5% of all retail consumers, 4% also visit the same retailer’s website, leaving only 1% of consumers incrementally reached by 48% visited a Facebook retailer websiteSource: Fusion Retail Analytics, December 2012 8
  9. 9. Social media mainly reaches core customers Usage of Facebook by orientation to retailer (across all of Canada) Due to the low relative cost of social media it can be an effective brand maintenance tool with core customers, who are the only group of consumers with a significant portion visiting a retailer’s Facebook page. Facebook 10% 6% 3% 4% 1% In-store/ Think Consider Visit Core conversion Consumers with a… opportunity opportunity opportunity opportunity customersNotes: Data is retail averageSource: Fusion Retail Analytics, December 2012 9
  10. 10. Of categories tracked, Facebook pages have the highest reach in clothing accessories and children’s clothing Facebook reach by category (in the last 4 weeks, of all category consumers) Clothing accessories 9% Childrens clothing 8% Toys 7% Furniture 6% Home improvement 6% Auto 6% Groceries 5% Bed and bath 5% Sports 5% Electronics 5% Appliances 4% Books 4% Garden 3% Luggage 3% Pet 3% Adult clothing 3% Footwear 2% Drugs or cosmetics 2%Source: Fusion Retail Analytics, December 2012 10
  11. 11. If using social media, tilt messaging towards female, younger consumers Retail Social media consumer profile user profile Gender Female 52% 54% Male 48% 46% Age 17-24 15% 17% 25-34 21% 23% 35-49 32% 33% 50-69 28% 24% 70+ 4% 3% HH income <$30k 16% 16% $30-$60K 24% 24% $60-$100K 25% 25% $100K+ 35% 36% Region West 30% 30% Ontario 45% 45% Quebec 21% 21% Atlantic 4% 4%Notes: Of consumers aged 17 and older; consumer profiles balanced to percent of total spend; social media users must have used at least one form of social media in the last 4 weeksSource: Fusion Retail Analytics, December 2012 11
  12. 12. If using social media, tilt messaging to speak to having the latest products, one-stop shopping and great sales Social media users v. all consumers - attribute conversion importance variance Less important to social More important to social media users media users Latest/hottest 9% One stop shop 5% Great sales 4% Social media user tend to be more concerned with finding the latest/ Convenient 4% hottest products compared to Easy to get help 2% consumers in general… Reg. price 1% Product displays 1% Great loyalty 0% Supports local 0% Fast checkout 0% Store is clean 0% In stock -1% Large/spacious -1% Great advice -3% Returns -3% Wide selection -4% High quality -4% …and less concerned with private labels Private label -6%Source: Fusion Retail Analytics, December 2012 12
  13. 13. Methodology Methodology: A 15-minute online survey is sent to a representative panel of shoppers across Canada, balanced for demographic and geographic profile. Consumers are invited to fill out the survey which features approximately 40 questions along a number of dimensions regarding shopping habits, retailer behaviour and purchases made. Field timeline: Ongoing survey, in field monthly. Sample specifications: Sample of 8,000 completed responses across 80+ retail categories between Nov. 1st and Dec. 31st, 2012, cleaned for engagement on three separate proprietary criteria to ensure high quality data. Data balanced to reflect age, income, region and gender of Canadian population.Source: Fusion Retail Analytics, December 2012 13