Consumers Engage with Retailers’ Facebook Pages More than Brand Sites

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Consumers are more eager to engage with retailers on Facebook than on brands’ official websites, with 90 percent of consumers saying social media engagement has a huge effect on brand spend. FourSquare, on the other hand, has negligible impact on consumer spend.

An independent study from Infosys – a consulting, technology, and outsourcing firm – released those key findings and more from an interview of 1,000 consumers and 50 retailers across the U.S.

Apart from the upshot of social media on consumer spend, the study shows how brands are having a hard time to build a reliable, tailored online and offline experience that drives more sales.

Key findings of the study

1. Social media matters – a lot.

a. Thirty-eight percent of consumers said they engaged with retailers’ Facebook Pages while 36 percent said they interacted with the brands’ own websites. And the difference in findings is clearer for the younger demographic.

b. Of those consumers who interact with the Facebook Pages, 89 percent said the social media engagement helped shape their purchase.

c. Women are twice more likely than men to make purchasing decisions after seeing images on Pinterest, whereas men are twice more likely than women to make a decision after watching YouTube videos.

d. Only two percent of respondents said FourSquare influenced their purchase.

2. Brand consistency greatly affects consumer spend.

a. Sixty-three percent of the sample population said consistency has a key role in their penchant to spend with a particular brand.

b. Thirty-four percent said high consistency across channels means greater brand spend, whereas 39 percent said low consistency lessens their tendency to spend.

3. Consumers see way less of tailored in-store offers than retailers’ claims.

a. Fifty-nine percent of consumers who received tailored offers believe it has a distinct impact on their spend.

b. Though 62 percent of retailers said they offer custom-made in-store offers, only 20 percent of consumers confirmed seeing those offers.

4. Online shoppers are more likely to receive tailored fringe benefits than in-store shoppers.

a. While 39 percent of retailers offer product recommendations based only on online customers’ purchase history, 10 percent use only previous in-store purchases. And 45 percent based their offers from both.

b. Though 48 percent of retailers offer custom-made offers or promotions based on previous online purchases, only three percent do it in-store. And 45 percent based their offers from both.

c. Consumers are thrice more likely to impulse-buy in-store than online.

5. Lack of technology is stopping retailers from offering better customer experience.

a. Ninety-six percent of consumers believe retailers will inform them of new offers. But only 34 percent of retailers can keep tabs on real-time consumer trends. It greatly reduces their ability to sell the right products and services that drive more sales.

b. Lack of technology is the most common factor, as it prevents 38 percent of retailers from shaping a more unified customer experience in their organization.

Infosys commissioned Vanson Bourne, an independent technology market research specialist, to conduct the research for its report. Two interview sets were conducted in December 2013: 1000 interviews with US consumers and 50 interviews with marketing decision-makers in retailers with more than 300 physical stores.

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(Flickr / Sean MacEntee)


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Author: Francis Rey

Francis is a voracious reader and prolific writer. He has been writing about social media and technology for more than 10 years. During off hours, he relishes moments with his wife and daughter.

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