Do Social Media Results Justify Investment? New Study Says No
Social media remain far down the list of media that influence visits to retail Web sites, according to the annual report on social media effectiveness from the Ann Arbor customer satisfaction analytics firm ForeSee Results.
The report shows that social media interactions are a primary influence for only about 5 percent of visitors to retail Web sites. The research indicates that, in fact, more traditional marketing techniques like promotional e-mails, search engine results, and even "old media" advertising influence far more visits to retail Web sites.
Other highlights of the report include:
* More traditional marketing techniques like promotional e-mails influence not only more traffic, they deliver better-quality traffic. Some of the most satisfied site visitors arrived at the site because of previous familiarity with a brand, promotional e-mails, word-of-mouth, and product review Web sites.
* Most customers are eager to engage with retailers, but prefer to do so via e-mail or on retail Web sites, rather than on social sites. In fact, only 8 percent of online shoppers said that social media was their preferred way to interact with a retailer.
* People are more satisfied with retailers' presence on Facebook than they are with Facebook itself.
"Every retailer should know how many customers are influenced by promotional e-mails, advertising on Facebook or word-of-mouth recommendations, and furthermore, they should know which group is most likely to buy," said Larry Freed, president and CEO of ForeSee Results and author of the report. "They should also know how people want to hear from them and how well they're doing when it comes to communicating through those channels. Serious thought needs to be given to finding out whether social media is worth the investment for their business, and then if the answer is yes, they need to make the most of it by making sure that interactions on social media meet the needs and expectations of customers. Otherwise, the effort is wasted and could even be detrimental to the business."
ForeSee Results uses the patented, scientific methodology of the American Customer Satisfaction Index, developed at the University of Michigan, to identify improvements across all channels and touch points that drive customer satisfaction. With more than 58 million survey responses collected to date and benchmarks across dozens of industries, ForeSee Results offers unparalleled expertise in customer satisfaction measurement and management around the globe.
More at www.ForeSeeResults.com.
