Is Social Media "Effective" for Retailers?

We asked; you answered!

The ROI NEWS asked retailers this question about the effectiveness of Social Media: “Does it raise sales?!”

We invited retailers to take a short, quick, 6-question survey about their use of promotional tools in general, and, in particular, “Social Media”: Facebook, Twitter, Pinterest, Instagram, LinkedIn, Other.

We asked, and you answered!

You quickly confirmed that “social media” is in fact a hot topic among retailers!

And, you are willing to share your experience with it with others, and for that we say, Thank You!!

After reviewing the survey results, we have prepared some charts to summarize the findings. Scroll down to see:

• Which social media platforms are favored by retailers?
• Which types of social media are effective (or not) at raising sales?
• Are any platforms likely to be used more in the near future?
• And more!

Social Media Survey Results

Q. #1: In general, over the past couple of years, how has your use of promotional tools changed?

Of those who use these promotional tools, Print Advertising and Direct Mail are being used "much LESS" by retailers. 

What is increasing? The "digital media":

1. Social Media
2. Online pay-per-click advertising
3. Email blasts
4. Website and/or blog

But, not all retailers use these types of promotional tools, whether "traditional" or "digital". Here are the percentage of all respondents who "Do not use; have never used". 

In particular, "Online pay-per-click advertising" (aka Google ads) has been avoided (or abandoned?) by these retailers.

Q. #2: Now, about Social Media. If you are using it for your stores, which platforms do you use?

Facebook is by far the most popular platform among retailers, being used by 96% of all the survey respondents!

The next 3 in usage - Twitter, Pinterest, and Instagram - each represent but a third of the usage of Facebook.

Q. #3: Of each Social Media platform you do use, how long have you been using it?

Once again, Facebook is the runaway "winner" in terms of longevity among users. But, in fairness, this result may simply reflect the relative "age" of these platforms; some simply are newcomers!

Q. #4: Key Question: Of the Social Media you use, how has it INFLUENCED SALES?

Again, Facebook is "the winner". 76% of the retailers who use Facebook report it "Seems worthwhile" or is "Very Positive!" That likely explains why 96% of the retailers who responded are using/continuing to use Facebook.

Instagram – a relative newcomer – gets "Worthwhile/Positive" ratings from 2/3rds of its users, and Pinterest is similarly strong.

Meanwhile, "Not at all" is a popular choice, isn't it? (Of course, a given platform's effectiveness at influencing sales will be a function of how each one is used.)

Q. #5: Have you used any of the ADVERTISING PROGRAMS that are available on these platforms?

There is a high degree of participation in the paid advertising programs available for users of Social Media platforms, especially on Facebook. Those who are not already active in this way anticipate starting soon.

Q. #6: And finally, just a bit about your stores. How many do you have now?

Sure enough, the survey respondents are "representative" of the independent retailer community at large: about 1/3rd are multi-store operators.

Verbatim Feedback from Retailers:

"Does Social Media Effectively Influence Sales?" 

"Social Media". It's all around us. But what retailers want to know is this: "Is it effective? That is, does it raise sales?" 

So, in early August, 2015, we conducted a very short survey among readers of The ROI NEWS about how retailers use social media, and whether or not it effectively infleunces sales. 

Well, we sure tapped a nerve! Retailers indeed are very active with social media. 

And, we also confirmed that retailers – at least, those who responded to our survey – are very focused on accountability. They too keep examining "Is it working? Is it effective? Is it driving sales?!?" 

Key Findings from Retailers About Social Media

Previously we reported the quantitative results from this Social Media Survey (go here for those details). Just to recap the highlights: 

• About 1/3rd of the survey respondents are multi-store operators.
• Facebook is used by nearly every retailer (96%) who responded. 
• Three other platforms – Instagram, Pinterest, Twitter – each are used by at least 1/3rd of the respondents (and that usage is increasing).
• What about "effectiveness"?
  • Over 3/4ths of Facebook users agree that it "Seems Worthwhile/Is Very Positive!" for influencing sales
  • Nearly 2/3rds of both Instagram and Pinterest users report those platforms as "Worthwhile/Very Positive!" for influencing sales
  • More than half of Twitter users agree that Twitter has a "Worthwhile/Very Positive!"  effect on sales

Now, Here's "WHY" They Say That

We also received explanatory comments from retailers, either regarding the effectiveness of each social media platform, or about their experience with social media in general. Here are some recaps, verbatim (yes, including those smartphone typos) of many of their comments.

And, here are verbatim comments re each platform's impact on sales.

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