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.

1. Dirk Singer
Twitter - @dirktherabbit
Rabbit
social media marketing - a waste of money?

2. This is unlikely to happen
that really depends what your aim is
Those tweets almost certainly won’t directly make a sale. Social media is not a direct response sales tool

3. 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)

4. 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

5. 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)
EVEN FOR HIGH VALUE ITEMS, SOCIAL MEDIA
RECOMMENDATIONS COUNT

6. Approximately 51% of
Along with reading
online shoppers
reviews, 33% of
consider social sites as
smartphone users use
valuable and credible
their device to look for
resources for
sales and specials.
researching products
(Source)
and services
SOCIAL MEDIA IS AN IMPORTANT RESEARCH TOOL

7. 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)

8. Simply sending a reply in response to a negative
review will turn almost 1/5 detractors – 18% –
into fans (source)
YOU CAN TURN DETRACTORS INTO FANS

9. “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)
PEOPLE WILL SHARE....IN THE RIGHT CIRCUMSTANCES

10. Social media +
People exposed
OOH resulted in
to social media
1.5x higher
and PR increased
likelihood of
spending by 17% People exposed increase
to social media
and TV were
twice as likely to
buy as the
following week
SOCIAL MEDIA WORKS BEST IN COMBINATION
(source - Ogilvy)

11. ARE WE MEASURING IT ALL WRONG ANYWAY?
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
Social media's impact on sales is
undervalued by 94%, you need to
look at 1st click and not at last click
(Adobe)

12. 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)

13. Rabbit, social media agency of the year
hello AT therabbitagency.com
www.therabbitagency.com
For more stats around this topic, check out this post on
Lies, Damned Lies and Statistics
thank you!

14. CREDITS
Images 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)