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Thursday, June 23, 2011

Social Media Originated Sales Exceed Traffic

Social Sales Exceed Social Traffic




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Social network-driven retail sales exceed social network-driven traffic to retail sites, indicating social retail visitors are highly likely to convert,according to [download page] the IBM Coremetrics "Online Retail Holiday Readiness Report." Less than 1.25% of retail site visitors in April 2011 were driven there by a social network, yet close to 1.75% of online retail sales were from customers originating on a social network.

While social-driven retail site traffic has steadily increased since December 2010, social-driven sales went from less than 1% in December to a little more than 1.25% in January, only to fall back to about 1% in February and then start a dramatic growth curve in March.

Mobile-Driven Traffic, Sales Grow

ibm-mobile-retail-sales-june-2011.JPGDuring the IBM Coremetrics six-month reporting period from October 2010 to April 2011, the mobile channel as a percent of total retail site sales nearly doubled, from 3.4% to 6.5%. Mobile-driven retail site traffic grew roughly 60% in that time, from a little less than 5% to almost 8%.

Social Visitors Convert at Double Normal Rate

ibm-page-views-june-2011.JPGSocial visitors are more than twice as likely as the overall population to convert, at a rate of 10.7% compared to 5.2%. IBM Coremetrics analysis indicates many of these social visitors are likely responding to offers, as their bounce rate (62.8%) is high and their time on site (3:26 minutes) is low.

Mobile Users Have Low Engagement

Mobile users are less engaged than the overall population, with fewer page views, less time on site, lower conversion, and higher bounce rates. IBM Coremetrics says although this is not surprising, it does underscore the need for retailers to monitor and optimize the mobile user experience.

Shop.org: SocNets Offer Monetary Possibilities

Popular social networks such as Facebook and Twitter may offer retailers the possibility of monetizing their presence on them, according to an April 2011 survey conducted by Shop.org, comScore and Social Shopping Labs. Findings from the "2011 Social Shopping Survey" indicate two-thirds of Twitter users (67%) say a post has spurred them to click through to a website, as do more than half of Facebook users (56%). In addition, approximately 90% of retailer blog users have clicked through to a website.

About the Data: Data in this report is based on Coremetrics Benchmark, which captures online marketing results and commerce data from more than 500 contributing US retailers.

[Sent from Ralph Paglia's iPhone]

Ralph Paglia
Vice President
Tier 10 Marketing
cell: 505-301-6369 
fax: 801-340-8918

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