Social media networks including Facebook, Twitter, Pinterest and Instagram, have introduced or are experimenting with buttons that enable consumers to purchase merchandise directly from their platforms.
Many retailers have high hopes for the buttons. A study by Boston Retail Partners found that retailers believe buy buttons will help bring a 34% increase in revenues from social media by the end of 2016, according to eMarketer. By reducing the number of steps required to complete a transaction, the buy buttons will give customers less time to change their minds and reduce fall out from sales funnels.
“From a standpoint of an ad placed on a site like Facebook or Twitter that then requires someone to click off of that site and go into a retailer’s commerce site in order to complete the transaction, every one of those steps in an opportunity for drop off,” Gartner analyst Jennifer Polk told TechRepublic.
Help Determines ROI
Social buy buttons may enable social media marketers to more accurately determine ROI, one of their major challenges.
“If you’re considering experimenting with social Buy buttons, it’s the perfect time to jump on board,” states Taylor Nelson, a digital marketer at Granify, in Social Media Examiner. Pinterest is the most promising platform for the buttons since 93% of pinners have the intent to purchase.
The buy buttons are still novel and it’s uncertain if or when most consumers will embrace them. A GlobalWebIndex survey found that just 17% of Tumblr users polled said they are interested buy buttons, according to eMarketer. The survey found that even fewer people are interested in Instagram’s (14%), Pinterest’s (13%) or Twitter’s (12%) buy buttons. In addition, fewer than half of US retailers were using them as of August 2015, according to email marketing firm Campaigner. It seems consumers may not want to combine buying with socializing. Maybe they’d rather keep social platforms for socializing and do their buying on e-commerce sites, principally Amazon.
PR Implications
The buy buttons also pose implications for public relations. PR practitioners and their clients must be even more strategic about what they post and share on social media. Creating a connection between PR activities on social networks and the brand’s sales can be problematic. Given the initial lukewarm initial reactions of consumers, companies will have to be cautious in adopting the use of buy buttons on public relations and consumer education communications in social media. Inevitably, however, some companies will find approaches that are acceptable to consumers and effective in generating sales. Early adopters may reap the benefits.
As the buttons evolve and become more accepted, they will impact the types of material companies and brands create on social media. It will also change the last-touch attribution model, which assigns credit for consumer actions in the sales funnel.
“You’re no longer driving people to a site, you’re delivering a brand experience within another brand,” Marco Iannucci, director of strategy at SparkPR, told PRNewser, an AdWeek blog. “The question for the PR paid/earned model is how do you optimize the experience? Every piece of content you put out now is critical. It’s so much more important to be on point.”
Bottom Line: Increasing use of social media buy buttons is one of the top digital marketing trends to watch this year. By simplifying the purchase process, the buttons can reduce drop outs from sales funnels and more accurately measure brands’ social media ROI. Although they are not widely accepted among consumers or retailers, early adopters could gain an advantage.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
Finally, don’t underestimate the power of simply requesting fans to like your page. You can create a page tab explaining the benefits of liking your page, such as being notified of company and product updates and showing your support of the company. Then periodically make a post directing users to that page so they can discover the benefits of liking your Facebook page.