Shop.org: Shoppers "friending" retailers on social media for deals, product info

Home Textiles Today Staff -- Home Textiles Today, 5/27/2011 10:00:22 AM

Washington - Shoppers are increasingly connecting with retailers via social media, especially when deals are offered.

That's according to the 2011 Social Commerce Study, a joint research project by National Retail Federation's Shop.org with comScore and Social Shopping Labs. The report, which evaluates shopping directly influenced by social media, polled 1,787 adult online shoppers in April.

Of those surveyed, 42% of online consumers said they have "followed" a retailer proactively through Facebook, Twitter or a retailer's blog, and the average person follows about six retailers. The majority (58%) said they follow companies to find deals, while nearly half (49%) said they want to keep up to date on products. More than one-third (39%) said they also follow retailers for information on contests and events.

Though many retailers use social media to build their brand, research indicates that companies may also be able to monetize the channels. According to the survey, more than half of Facebook users (56%) say they have clicked through to a retailer's website because of a Facebook post, while over two-thirds of Twitter users (67%) said a post has spurred them to click through to a website.

"Additionally, the appetite for buying directly through social networks appears strong," Shop.org noted. One-third of shoppers said they would be likely to make a purchase directly from Facebook (35%) or Twitter (32%).

Given the popularity of devices like iPhones and Droids, many shoppers are using smartphones to engage in social media on a regular basis. According to the survey, 42% of Twitter users access the site on their mobile phone at least once a day, while the same is true for 34% of Facebook users. In addition, about one-third (32%) of people view YouTube clips daily from their smartphones.

"Instead of waiting to get back on their desktop computer to watch videos or interact online, Americans are easily accessing social networks when they have even a few moments of down time, whether they're scanning Facebook news feeds while picking up their kids from school or tweeting about their shopping experience while browsing the mall," said Fiona Swerdlow, head of research at Shop.org. "The popularity of mobile devices will only boost the power of social commerce, which presents an incredible opportunity for retailers."

It also appears shoppers are also using mobile devices for research and information while shopping in stores, as nearly half of consumers (47%) have accessed customer reviews in store using their mobile device with men (55%) more likely to access these reviews in store than women (39%).

Also triggering more online-related shopping activity among shoppers are the still-fledgling group-buying sites like Groupon, LivingSocial and Gilt City. The survey found that eight in 10 (82%) online consumers are aware of group-buying sites, though only 19% of survey respondents said they have actually made a purchase through one of the sites. Those who do leverage group-buying sites appear to be enthusiasts, as the majority of consumers (57%) have spent over $100 through these sites to date. While some traditional retailers have experimented with group-buying offers, the majority of shoppers said they have purchased non-traditional retail items like food and drinks (18%), entertainment (16%), and personal care items (12%) through these sites.

"Many shoppers are aware of group-buying sites like Groupon and LivingSocial, but haven't yet been compelled to make their first purchase," said Peter Leech, founder, Social Shopping Labs. "As these sites gain momentum and spread to more cities around the country, retailers have an opportunity to experiment not only with established sites but also group-buy promotions on their own Facebook pages and websites."

The report also evaluated awareness and usage of location-based applications like Foursquare, Yelp and Gowalla. On the basis of sheer awareness among consumers, these platforms are still in the early growth stage among consumers: Foursquare has the highest awareness (16%), followed by Yelp (10%) and Gowalla (6%).