Brands and Social Networks Need to Provide Security, Privacy, and a Seamless Experience to Activate Growth
With U.S. social commerce sales expected to reach $14 billion by 2015 (invesp), and social networks like Twitter and Facebook ramping up their commerce capabilities, a new survey commissioned by DigitasLBi, a global marketing and technology agency, and conducted online by Harris Poll shows that while only 5% of Americans have made a purchase on a social media site, 20% would consider doing so.
"Our study reveals tremendous untapped potential for growth in social commerce, especially among younger consumers," says Tony Weisman, CEO, DigitasLBi North America. "The 5% of Americans who have made a purchase on a social media site equates to around $14 billion in online retail revenue. If we can reach 20%, that figure scales to $56 billion. To activate that potential, brands and social networks need to provide social shopping experiences that meet the needs of consumers, including security around financial data, privacy, and a seamless buying process."
Security of Financial Data and Privacy are Key Components to Driving Social Commerce Growth
The survey uncovers a variety of shopping features that what would make social media users more likely to make a purchase on a social network:
Knowing their credit card information was secure (42%)
Knowing their purchase wouldn't be shared (38%)
A total purchase price under $25 (33%)
A "click to buy" feature that would allow users to complete their transaction without leaving the social network (26%)
The ability to save payment information within the site, so users wouldn't have to reenter it each time they make a purchase (24%)
Our research indicates that concerns over financial security have eased somewhat since 2012, when, according to a social commerce study commissioned by DigitasLBi, 55% of social media users were not "comfortable" giving credit card information via a social network.
When looking at who has made purchases on social media, the 2014 study shows that age and region play a role:
Those ages 18-34 are more than three times as likely as those ages 35 or older to have made a purchase on a social media site (11% vs. 3%, respectively)
Nearly one in ten parents with a child under age 18 has made a purchase on a social media site (9%)
Those in the South are more likely than those in the Northeast to consider making a purchase on a social media site (24% vs. 15%)
Over a third (35%) of social media users would use a hashtag when purchasing on a social media site if it offered a discount on a purchase
Younger Consumers More Likely to Engage in Social Shopping
Among social media users, a strong majority (85%) still report they would rather make purchases from an online retailer (e.g., Amazon.com, Walmart.com) where sharing is not a central function of the site. Despite these findings, a deeper look reveals that those ages 18–44 (33%) are more than twice as likely as those ages 45 or older (18%) to say they would consider making a purchase on a social network.
Additional results from the study include:
79% of Americans use social media
Women are more likely to be social media users than men (84% vs. 75%, respectively); that figure rises to 91% for those ages 18—34
Women are more likely than men to use social media on a daily basis (58% vs. 39%)
