After years of wondering what impact social media has on sales, marketers have a quantitative, well supported answer thanks to research by ShareThis.
Across diverse products, positive comments shared via social nets or email increase consumers’ likelihood to buy by +9.5%. For consumer products, the influence is even greater at +11.2%. Social sharing is more powerful than most other input, including online professional reviews, consumer ratings, and consumer reviews. Only in-person recommendations from friends/family hold more sway.
Positive social posts have more influence than brand or price on many CPG purchases. An excellent endorsement shared socially can offset a roughly 5-10% price premium.
Breaking social shares into their component parts shows that how positive the comment is has the most effect. The review location and who shares it are less important. However, shares from friends/family have more influence than those from professionals or strangers.
On the other hand, a negative comment that is shared socially decreases CPG purchase intent by -12%, and a negative professional review has virtually the same impact.
While social sharing increases all consumers’ purchase intent, it is especially powerful among Hispanics. They are five times more likely to post about products and twice as likely to purchase those items.
What are the implications for your business?
- How should this data influence your social media marketing?
- Are you doing everything you can to encourage consumers to post positive comments about your products/services?
For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.
Sources: The Atlantic 2014, ShareThis 2014