Report Says Social Media Overrated as Retail Information Sources
Retailers who focus on getting their product and services messages out on Facebook and Twitter are probably spending time and effort in the wrong area, according to data sourced from KubasPrimedia’s Major Market Retail Report (MMRR) study – a survey of over 1,500 consumers on their retail shopping habits and store preferences.
“Social media, like Twitter and Facebook, has been heavily hyped in advertising and promotion circles,” said Ed Strapagiel, Executive Vice President of KubasPrimedia. “MMRR shows that retailers and product manufacturers who are relying on social media to sway consumer purchase decisions may be misguided.”
“When consumers are researching a purchase online, over 70% visit retailer and product manufacturer websites. Only about 25% turn to social media sites or blogs for product or shopping information,” said Strapagiel.
KubasPrimedia has been conducting retail analysis for over 15 years. MMRR, based on surveys of Canadians in Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montreal, examined shopping behaviour in 33 product categories at 147 retailers to determine competitive retail metrics, such as market coverage, shopping levels, drawing power, loyalty, and retailer performance scores.
MMRR found that that 77% of Canadian consumers “often” or “sometimes” visit retailer websites and 71% visit manufacturer websites to get information about upcoming purchases. Only 27% use social media and just 23% use blogs. Comparison-shopping, such as pricing a specific item, is the most popular online retail-related activity, with 76% of consumers doing so “often” or “sometimes”. Comparison shopping activity is high across all demographic groups.
“Given consumer behaviour, a company’s website is still by far the top online priority for retailers,” said Strapagiel. “Retailers that pursue other digital marketing avenues risk taking resources away from where they’re most needed”.
While services like Facebook, Twitter, and WordPress are free, they are not cheap, says Strapagiel, “Utilizing social media properly and effectively requires time, money, and talent. Retailers have to focus on what will provide the best return on investment considering where their customers are turning to for information.” Read the rest of this entry »
posted in Business News, National News, Research Studies, Social Media By: Tami |







