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Social Media Lack of Influence in Holiday Online Purchasing

Social Media Lack of Influence in Holiday Online Purchasing

(Note: An interesting piece of correspondence from one of my colleagues in Australia. I’ll publish the actual report once I make sure it’s permissible to do so.)

Alan, I thought you might be interested in this report I just ran across being advertised on an Australian Small Business site. It looks at the US retail sector—last year’s data—mapping purchasing “paths” for online purchasing.

The analysis indicates that even in the online retail space, social media were correlated with less than 2% of online purchases over the US holiday periods in Q4 of 2010. That is, social media as yet has very little impact on people’s buying.

As you have said many times, social media have very little impact on true economic buyers for consulting services. Granted this study is strictly for online purchases but if, as this study indicates, social media currently have so little influence on purchasing patterns of those who are deliberately looking for retail products on the internet, how much “truer” is it for consultants offering high value services?

I “wonder” how social media gurus would respond?

Regards,

Peter McLean

Managing Director

Lamplighter

Written by

Alan Weiss is a consultant, speaker, and author of over 60 books. His consulting firm, Summit Consulting Group, Inc., has attracted clients from over 500 leading organizations around the world.

Comments: 5

  • Gareth Kane

    May 9, 2011

    Couldn’t agree more. The gurus focus on process rather than outcome.
    Realising that my social media network has limited buying power, I have started expanding my low cost/high volume products to suit their needs. I’ve never seen a social media guru suggest this sort of thinking.

  • Stephen

    May 11, 2011

    Disclosure: Although I have a focus in social media I don’t buy in to the hype. Indeed the way social media is so positively proclaimed to be a panacea for all business ills often makes me jaded.

    However.

    It seems to me (and I could be wrong since I haven’t read it) the research misses out the intangible influence social media has on purchasing decisions. For example, if Alan (who I respect and follow avidly in social media) blogs or tweets about the fantastic customer service he receives from Acme Corp, I (and no doubt others) are more likely to buy from Acme Corp because I (we) trust and value his opinion. Likewise if Acme doesn’t deliver the goods and Alan blogs or tweets his disdain I’m going to be less inclined to purchase from it.

    Now imagine people influencing each other every day like this across social media around the world. It’s been proven we are more likely to make a purchasing decision based on what our friends, family and people we trust recommend.

    Surely that has a big impact on purchasing decisions. Online or off.

  • Alan Weiss

    May 11, 2011

    Hard to reply if you haven’t read it, you may or may not feel the same way. I use personal referrals such as you mention only from those I trust. I find the recommendation by people on Facebook and other places to be completely random and often not in keeping with my personal preferences and standards. They’re often looking for cheapest, not best value.

  • Nhat Pham

    August 5, 2012

    Alan,

    Caught this post after reading another. Enjoy your posts, content and seminars.

    though I disagree with this one… or at least it needs an update.

    While I know this was done a year ago, there’s clearly a lot of change since then.
    Depending on if you’re B2C of B2B different mediums have different influences.
    Here’s one example with Pinterest
    http://buildersocialmedia.blogspot.com/2012/07/pinterest-influences-37-of-men-to.html

    You could Google several more stats.

    I have made several purchases because of friends post, my Linkeidn/Facebook/Twitter relationships and I both have reached out to others to each other and their recommendations that have lead to close business that never hit the stat meter.

    The real question, are you measuring your Social Media and making sure it connects to your lead generation in your CRM? Are you asking your end user during or after the purchase how they heard about your product or service and diligently training your staff to ask customers.

    The businesses with a Social Media real strategy where you identify KPI’s and measure them, and not ones who hire some college kid to do it for them, will win in this game.

    Best,
    Nhat Pham

  • Alan Weiss

    August 5, 2012

    You’re right, that article was a year ago, things do change.

    But it sounds as if you have a horse in this race, so in favor of full disclosure, are you involved in the industry, consulting, and so on? It sounds as if you have involvement.

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