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How people use social media to shop

Social Shop Research Overview

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42 percent of Americans are using social media to shop – this equates to nearly 95 million social shoppers in the U.S. – and that number continues to rise. In fact, when asked how often social media is used to shop today versus a year ago, almost 73 percent of people confirmed they are using it more. SocialShop – a national quantitative and qualitative research study – looks at social media usage from the eyes of a shopper to understand the influence each respective platform has on a person’s buying behavior. From Facebook and Twitter to YouTube and Groupon, people of all ages are using social networking sites and other user-generated content platforms as shopping tools. In fact, SocialShop found 42 percent of social shoppers are using Facebook more than they were a year ago, while 55 percent of shoppers are utilizing daily deals more and 46 percent of shoppers have increased engagement on review sites and forums. With rapid expansion of social channels and the frequent launch of new platforms, brands and marketers are trying to figure out how to successfully use social media to connect with shoppers. According to the research, success is not measured by visibility on all social media channels, but by leveraging the strengths of platforms that cater to your shoppers’ needs.

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Page 1: Social Shop Research Overview

How people use social media to shop

Page 2: Social Shop Research Overview

96% use social media

© 2011 Leo Burnett l Arc Worldwide

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42% incorporate social media into the shopping journey

© 2011 Leo Burnett l Arc Worldwide

Page 4: Social Shop Research Overview

And they use social media to enhance shopping beyond the desktop.

% for Heavy / Index Heavy vs. All Social Shoppers

In-store

54% On mobile phone

23% With Geolocation

20% On Twitter/Real Time

51%

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Social media has the power to grow your customer base exponentially

© 2011 Leo Burnett l Arc Worldwide

Page 6: Social Shop Research Overview

So we asked… Why do people use social media to shop?

© Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide

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January 2011 Quantitative

1500 online shoppers

700 social shoppers

Qualitative

+100 heavy social shoppers

4th Quarter 2011 Quantitative

1500 online shoppers

700 social shoppers

Qualitative

+100 Facebook shoppers

Two waves of research

© 2011 Leo Burnett l Arc Worldwide

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Reasons people use social media to shop – needs Types of social media people use for shopping – platforms Variations in behavior across categories – category

We learned…

© 2011 Leo Burnett l Arc Worldwide

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Today we’d like to share a framework that will help you use social media to influence shoppers

© Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide

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Our study uncovered 8 social shopper needs

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8 social shopper needs

© 2011 Leo Burnett l Arc Worldwide

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© Leo Burnett and Arc Worldwide 2011

Not all shoppers have similar social shopping needs

© 2011 Leo Burnett l Arc Worldwide

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Our segmentation revealed 6 shopper archetypes

efficient sprinter dollar defaulter quality devotee strategic saver opportunistic adventurer savvy passionista

Light Social Shoppers Heavy Social Shoppers

For broadcasting

latest trends, brands

and retailers.

To score fun,

unexpected

content or deals.

To comparison shop

and find savings on

brands she wants.

For reviews and ratings

to help validate choice.

To buy most popular

or convenient.

To find the cheaper

alternatives.

© 2011 Leo Burnett l Arc Worldwide

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And each shopper uses social media in different ways to accomplish different things.

© 2011 Leo Burnett l Arc Worldwide

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Shoppers with more utilitarian needs

To find the cheaper alternatives. To buy most popular or convenient.

dollar defaulter efficient sprinter

© 2011 Leo Burnett l Arc Worldwide

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For reviews and ratings to help validate choice. To comparison shop and find savings on brands she wants.

strategic saver

Shoppers with more informational needs

quality devotee

© 2011 Leo Burnett l Arc Worldwide

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Shoppers with more indulgent needs

For broadcasting latest trends, brands and retailers.

savvy passionista

© 2011 Leo Burnett l Arc Worldwide

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Shoppers with more impulse needs

To score fun, unexpected content or deals.

opportunistic adventurer

© 2011 Leo Burnett l Arc Worldwide

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Address these shoppers needs using social media platforms

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Each platform serves certain shopper needs better than others

© Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide

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Each platform serves shopper needs differently

© 2011 Leo Burnett l Arc Worldwide

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Know which platform best serves shoppers’ needs

© 2011 Leo Burnett l Arc Worldwide

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Know which social shopper needs and platforms to invest in

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Deciding platforms depends on the shopper needs in your category

© Leo Burnett and Arc Worldwide 2011 © 2011 Leo Burnett l Arc Worldwide

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burden

Shoppers tell us their needs change based on the category they are shopping passion

routine fun

© 2011 Leo Burnett l Arc Worldwide

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burden passion

routine fun

We’ve mapped "over 60 categories and channels

Luxury Cars

SUV’s PDAs

Regular Cars

MP3 Players HDTV

Investment Brokerage Firms

Car Insurance

Washing Machines

Cellular Service Providers

PC’s

Tires Credit Cards

Electronic Stores Shampoo

Bathroom Sinks & Tubs

Video Game System Vacation Destinations

Fine Jewelry Stores

Toys

Designer Clothes Pet Supplies

Hardware Store

Designer Jeans

Specialty Casual Clothing

Warehouse Clubs

Cell Phone

Banks

Airlines Makeup

OTC

Office Supply Stores Fem Care Deodorant

Laundry Detergent

Toothpaste

Bottled Water Gas

Light bulbs Salt Plastic Trash Bags

Batteries

Cereal

Fragrance

Bar Soap Carbonated Soft Drink

Sports Drinks

QSR’s

Ice Cream

Coffee Shops

Beer Frozen Entrees Greeting Cards

Shoes Mass Merchandise Casual Sit Down

Restaurants

Yogurt

Cookies

© 2011 Leo Burnett l Arc Worldwide

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burden passion

routine fun

We’ve also mapped social shoppers & needs for categories

© 2011 Leo Burnett l Arc Worldwide

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burden passion

routine fun

Giving us some direction on what platforms to leverage for each category need

© 2011 Leo Burnett l Arc Worldwide

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Three steps to developing a social shopping strategy

Diagnose your category mindset

Identify your shopper needs

Select relevant platforms 1 2 3

passion passion

© 2011 Leo Burnett l Arc Worldwide

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Passion categories "like apparel should "help shoppers:

passion

stay up with trends

share ideas

get inspiration

© 2011 Leo Burnett l Arc Worldwide

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burden Burden categories "like electronics should help shoppers do:

comparative research

digest complex information

solicit input from friends and experts

© 2011 Leo Burnett l Arc Worldwide

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routine

Routine categories "like groceries should help shoppers:

source local deals

do easy, on-the-spot product comparisons

© 2011 Leo Burnett l Arc Worldwide

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fun

Fun categories like sodas and books should give shoppers:

tailored recommendations

hot news and fun ideas

timely deals

reviews that are hard to pass up

© 2011 Leo Burnett l Arc Worldwide

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Before you develop your next social shopper program ask yourself . . .

© 2011 Leo Burnett l Arc Worldwide

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Thank You

To learn more about this study,

Please contact:

Lynsey Roumell

[email protected]