Post on 18-Dec-2014
description
Is Social Media working for retailers?
Retail thinking. Redefined.
Summary
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Source: Fusion Retail Analytics, December 2012
Although social media is popular, consumers are not interested in visiting retailer pages. They see social media as a tool for communicating with friends and family and are not there with retailers in mind, unlike when they are looking at websites or reading a magazine. Social media has a small reach and overlaps with more powerful media such as website, while only reaching a retailer’s core customers. As a result, social media has a limited ability to drive sales growth. It is recommended that social media be used sparingly and only as a means of maintaining a strong relationship with core customers. When using social media, messaging should tilt towards younger, female consumers and should showcase innovative products.
1.
2.
3.
56%
38%
9%
1 2 3
64%
36%
All retail consumers
64% of all retail consumers have recently used social media, with Facebook being the most popular
Notes: Self-declared via online survey, social media usage includes Facebook, Twitter and YouTube Source: Fusion Retail Analytics, December 2012
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Social media usage (in the last 4 weeks)
By channel – social media usage (in the last 4 weeks)
Used
Did not use 56% of all retail consumers used Facebook in the last four weeks
(Twitter)
59%
20%
8%
9%
5%
Facebook users
59% of Facebook users check their newsfeed every day
Notes: Self-declared via online survey Source: Fusion Retail Analytics, December 2012
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Frequency of checking Facebook newsfeed
Every day
A few times a week
Once a week Every few weeks Less than once a month
Nearly 90% of retail consumers who use Facebook check their wall or newsfeed at least once a month and 59% check their wall or newsfeed everyday.
87%
5%
48%
51%
36%
8%
34%
Facebook Youtube Twitter Website
The vast majority of consumers have not visited any retailer’s social media page in the last 4 weeks
Notes: Self-declared via online survey Source: Fusion Retail Analytics, December 2012
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Consumers recently visiting retailer pages (of all consumers, in the last 4 weeks)
Visited at least one retailer’s page
Did not visit any retailer’s page
While many consumers use Facebook, only 5% of consumers have recently visited a retailer’s page…
56%
38%
9%
82%
…compared to 48% of consumers that have recently visited a retailer’s website.
(Twitter)
2% 1%
219
161
120
66
2410
0
50
100
150
200
250
Flyer Website E-mail newsletters Televisionadvertisements
Facebook posts Twitter posts
Relatively few consumers are interested in viewing retailers’ Facebook or Twitter posts
Notes: Self-declared via online survey, based on responses to “How interested are you in receiving or viewing the following from ((retailer))?” Source: Fusion Retail Analytics, December 2012
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Consumers interested in viewing retailer media (indexed to overall average)
Many consumers are interested in visiting retailer websites or receiving retailer newsletters via e-mail…
Inde
xed
to o
vera
ll av
erag
e
…while very few are interested in receiving retailers’ Facebook or Twitter posts
Consumers find retailer Facebook posts do not contain information they want or need
Source: Fusion Retail Analytics, December 2012
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“I don’t want to have to join another non-personal group and be bombarded with dozens of irrelevant
status posts… I would rather be able to look up Home Depot’s website on my own time and find out what
sales are going on.”
- female, age 25-34, Alberta
Consumer comments regarding retailers on Facebook
“I find that Facebook posts from stores usually don't apply to me and are too frequent.”
- female, age 25-34, Territories
“What kind of short post would be something that I would be interested in? Someone in Toronto posting updates on Facebook would have little or no bearing on what I in NS
might need. If I want to buy something I will use the flyer or website to look it up. Facebook is for small independent
businesses to reach out to interested consumers.”
- female, age 35-49, Nova Scotia
“I don't pay much attention to Facebook posts. Additionally, I doubt they would give me information not contained in flyers or easily retrievable from the
website.”
- male, age 17-24, Newfoundland
“Facebook is Social time, not budget time for me.”
- female, age 25-34, Newfoundland
“I only use Facebook for social networking and I don't want to use it to associate with businesses.”
- female, age 17-24, Ontario
“I use my Facebook for friends ..not shopping.”
- male, age 35-49, Quebec
“I use my FB ONLY to connect with friends and family who do not live near me. I DO NOT use it for
shopping.”
- female, age 50-69, British Columbia
Social media has little incremental reach
Source: Fusion Retail Analytics, December 2012
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Retailer Facebook and website reach (in the last 4 weeks)
1% visited only the
retailer’s Facebook page
4% visited the same
retailer’s website and Facebook
48% visited a retailer website
While Facebook reaches 5% of all retail consumers, 4% also visit the same retailer’s website, leaving only 1% of consumers incrementally reached by Facebook
1%3%
6%4%
10%
Social media mainly reaches core customers
Think opportunity
Consider opportunity
Visit opportunity
In-store/ conversion opportunity
Core customers
Usage of Facebook by orientation to retailer (across all of Canada)
Consumers with a…
Due to the low relative cost of social media it can be an effective brand maintenance tool with core customers, who are the only group of consumers with a significant portion visiting a retailer’s Facebook page.
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Notes: Data is retail average Source: Fusion Retail Analytics, December 2012
9%
8%
7%
6%
6%
6%
5%
5%
5%
5%
4%
4%
3%
3%
3%
3%
2%
2%
Clothing accessories
Children's clothing
Toys
Furniture
Home improvement
Auto
Groceries
Bed and bath
Sports
Electronics
Appliances
Books
Garden
Luggage
Pet
Adult clothing
Footwear
Drugs or cosmetics
Of categories tracked, Facebook pages have the highest reach in clothing accessories and children’s clothing
Source: Fusion Retail Analytics, December 2012
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Facebook reach by category (in the last 4 weeks, of all category consumers)
If using social media, tilt messaging towards female, younger consumers
Notes: Of consumers aged 17 and older; consumer profiles balanced to percent of total spend; social media users must have used at least one form of social media in the last 4 weeks Source: Fusion Retail Analytics, December 2012
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Retail Social media consumer profile user profile
Gender Female 52% 54% Male 48% 46%
Age 17-24 15% 17% 25-34 21% 23% 35-49 32% 33% 50-69 28% 24% 70+ 4% 3%
HH income <$30k 16% 16% $30-$60K 24% 24% $60-$100K 25% 25% $100K+ 35% 36%
Region West 30% 30% Ontario 45% 45% Quebec 21% 21% Atlantic 4% 4%
If using social media, tilt messaging to speak to having the latest products, one-stop shopping and great sales
Source: Fusion Retail Analytics, December 2012
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Social media users v. all consumers - attribute conversion importance variance
9%
5%
4%
4%
2%
1%
1%
0%
0%
0%
0%
-1%
-1%
-3%
-3%
-4%
-4%
-6%
Latest/hottest
One stop shop
Great sales
Convenient
Easy to get help
Reg. price
Product displays
Great loyalty
Supports local
Fast checkout
Store is clean
In stock
Large/spacious
Great advice
Returns
Wide selection
High quality
Private label
Social media user tend to be more concerned with finding the latest/hottest products compared to consumers in general…
…and less concerned with private labels
Less important to social media users
More important to social media users
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Methodology
Source: Fusion Retail Analytics, December 2012
Methodology: A 15-minute online survey is sent to a representative panel of shoppers across Canada, balanced for demographic and geographic profile. Consumers are invited to fill out the survey which features approximately 40 questions along a number of dimensions regarding shopping habits, retailer behaviour and purchases made.
Field timeline: Ongoing survey, in field monthly. Sample specifications: Sample of 8,000 completed responses across 80+ retail categories between Nov. 1st and Dec. 31st, 2012, cleaned for engagement on three separate proprietary criteria to ensure high quality data. Data balanced to reflect age, income, region and gender of Canadian population.