How useful is social media for e-commerce?

Are social media really nothing more than pure sales platforms for e-commerce? Recent studies have once again called into question the use of social media for store operators. The reason: the ROI is simply too low.

Social media has arrived in the e-commerce sector. According to an article in “Handelsblatt “, 90 percent of online stores have a Facebook presence This trend was confirmed last year in a study by the consulting group “the e-tailing-group” from the USA. However, it also states that only one percent of traffic on the websites of e-commerce providers comes from social networks. Furthermore, 43 percent of omnichannel retailers state that less than one percent of traffic leads to sales. Handelsblatt also refers to figures that show that only 2.8% of visitors reach the ten most popular online stores via social networks. The benefits of social networks in online retail therefore seem highly questionable. Is it even worthwhile for store operators to distribute their own products via social media platforms?

The answer is quite simply: yes. Because social media are much more than just sales channels. In Europe alone, over 250 million people are active on social networks. Whether Facebook, YouTube, Twitter, Pinterest, Instagram or Tumblr – all of these platforms offer an unprecedented opportunity for online retailers to increase their own reach.

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With the individual channels, however, it is important not to see this stage as a product advertising platform, but as an ideal place to present the company and its values and to enter into an active dialog with existing and potential customers.

The aim should always be to create a brand community that is geared towards the needs and interests of the target group. A high recognition value through messages and design is also helpful. In addition, companies are well advised to generate regular content from the community through competitions, fun facts or surveys, for example.

It has proven to be a good idea for e-commerce providers to run their own corporate blog. A well-managed and regularly updated blog with a clearly recognizable central theme helps to enhance the company’s reputation, retain readers in the long term, generate content on the website and, as a result, develop pull power for your own store.

Conclusion: Why social media is important for e-commerce:

Even if the figures from current studies speak a different language, online retailers are well advised to include social media channels in their own communication strategy. Because these help

• to increase its own reach,
• services and, ideally, to develop them further,
• increase the loyalty of existing customers,
• respond to requests and suggestions,
• reduce the churn rate,
• Convert doubting customers into loyal customers
• and customers into brand ambassadors.

 
Social media for e-commerce – useful or a waste of time? What do you think? We look forward to your comments.
 

From Jacqueline Althaller