Sign-up to Check-out: How Social Data Influences Online Retail
What was once a social affair has boiled down to a solitary affair. From the time consumers planned on getting together with friends and family and decided on the date and time to go shopping to the time they wait for online deals to make irregular purchases alone, sales and marketing has come a long way.
Window shopping has really taken a literal sense with us having a new window opened for each of the ecommerce giant. Reason - the discounts and offers are often tempting and rewarding.
Today, the social media profiles speak more about consumers this is what marketers, brands and businesses find helpful. Called Permission Marketing - as quoted by Seth Godin - brands now have a better opportunity to understand our preferences and present to consumers the right product or service at the right time. Their social data and online behaviour are carefully transforming online retail and purchasing trend and this post is all about getting to some insider facts.
What is Social Data and How Does it Influence Online Retail?
Social connect is the term websites and brands use to refer a registration process we initiate when we log into their website. With this feature, customers use their Facebook, Google, LinkedIn or their Twitter account to sign up on the website and browse through products and services. When a potential customer signs up using social connect, brands can uncover insights on the following types of social data -
- a holistic perspective of our tastes and preferences
- an idea of what our friends and purchasing online and the products and brands they prefer
- decode the influencers in our circle and reverse engineer promotions
- understand our transactional behaviour
- gain significant insights on our demographics and gender
The influence this data has on online retail is phenomenal because brands now have a wider scope to take their products and services to their target audiences without intrusions or intermediaries. According to a study, 88% of consumers reveal that they tend to provide false or hurried information when they are asked to register every single time on an ecommerce website. This has a direct influence on the bounce rate of the portal because 54% of the consumers admit to leaving the website if they have a form in front of them to fill.
With social connect, users can instantly do what they intended to do on an ecommerce website without having to go through rigorous procedures. This not just saves time for consumers but allows businesses to leverage the potential of priceless piece of information from their social activities.
The Pros of Using Social Data for Ecommerce
With social data, brands can segment their target audiences across different niches, demographics, purchasing power, region, time zones and preferences and run targeted advertising campaigns for more lead-to-customer conversions.
- Nurture sequences can be run on email to keep the brand's target audience informed of the concern they face and how the brand could be the most ideal solution for their concern.
- Tailor content and organically bring in product information for concerns customers are seeking solutions for.
- Give personalized deals and discounts to attract potential customers in the segment for compelling purchases.
- Use big data and make data-driven decisions to fight cart abandonment concerns.
- Build a brand recall value for their business.
- When launching a new product or diversifying into a new segment, brands can use social data to simulate the performance of the new venture and gauge response in real time.
- Run retargeted ads to keep reminding people of the purchase they intended to make.
Social data is a treasure chest for brands and an experience for consumers. The edge online stores have over their retail counterparts is the availability of data and the power of social media data analysis and this is all that is required for profitable business. To experience this phenomenon in person, one has to simply log into an ecommerce platform with Facebook profile, browse a few products and sign out. The rest is history!
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