Offline WOM outperforms social banter on generating sales
I have just come across 2 recent studies on how social commerce is trending and impacting on sales in the US & Europe (the most insightful of which I am sharing with you here).
2 of their key findings which stuck out for me are:
#1 – 90% of the conversations about brands are still happening offline vs a meagre 10% online (source: InTV how to harness the power of conversations).
In other words, offline WOM still prevails by far and this behaviour is unlikely to change anytime soon with face-to-face chats with spouses, relatives and friends remaining the #1 influencers on purchase decisions, not the social banter.
#2 – Social media very seldomly directly leads to an online sale (ref. low conversion rates/direct referrals).
This is not to say however that social media hasn’t got a role to play – it may well trigger a conversation in the offline world with your loved and trusted ones, ultimately leading to a sale. So still worth investing into in order to influence/guide those offline conversations.
The problem for advertisers then becomes how to measure the true impact/ROI of social conversations on their sales – if at all possible. Any ideas, anyone?