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Only 1% Of Online Purchases Are Generated By Social Media

Discussion in 'Social Networking Sites' started by AndyPR, Oct 10, 2012.

  1. AndyPR

    AndyPR Registered Member

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    According to the report by Forrester Research 99% of online purchases are influenced by mediums other than social media. The research took into account 77,000 online transactions over a 14 day period and after the numbers were crunched and the data sifted, only about 1% of those transactions could be traced back to Facebook or Pinterest. Social media sites are good for massaging the customer to the point of sale but not the catalyst.
    39% of new customers were generated from paid and organic search and repeat customers were gathered mainly from email marketing. For now it seems, social media is more of a branding tool.

    Forester does note, however, that the study looked mainly at large online retailers, in this regard the researcher feels that smaller businesses may be able to use social media both for branding and sales. Nonetheless at a time when platforms like Facebook are trying to justify their worth, it doesn?t help that its core way of making money (advertising) offers up such potentially low ROIs.
     
  2. jstorm

    jstorm Registered Member

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    Interesting - and makes sense if you think it through, really. I mean let's face it, if you have the time to spend hours playing around on the likes of FB and Pinterest, you're just playing on the Internet playground, not really a serious shopper. And if you have that kind of time, chances are you're unemployed, too. :confused:
     
  3. KeyzDT

    KeyzDT Power Member

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    BULLSHIT. "77,000 online transactions over a 14 day" what kind of rinky dink sample is that
     
  4. kideze

    kideze Elite Member

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    bullshit, the influence of reviews travel from social media to peoples pocket books so this is a horrible analysis.
     
  5. LordCameltoe

    LordCameltoe Jr. VIP Jr. VIP Premium Member

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    I admit the sample size is a joke, but from experience in high volume sales, social media has always been a crapfest when it comes to conversions.