Social is a Key Element of Effective eCommerce Marketing

By Chris Crum - Tue, 07/28/2009 - 4:35pm.

Word of Mouth Always Helps

Consultancy firm Hill & Knowlton has shared findings from an interesting report on social media and eCommerce. The report was based on a survey of more than 600 adults in the US.

"Online retailing is being profoundly impacted by the integration of social media into what historically has been a transactional experience," says Joshua Reynolds, worldwide technology practice director, Hill & Knowlton and co-author of the report.

Here are some findings:

- 83 percent of respondents said "personal prior experience" has the greatest impact on where they choose to shop online.

- 48% said "family member"

- 44% said "friend"

- 43% said "online offer or ad from online store itself"

- Younger generations are predominantly influenced by social media channels: 27 percent of Gen Y are influenced by an "online community or blog" compared to 19 percent of Gen X and only 9 percent of Baby Boomers.

- 19 percent of all survey respondents were influenced by an "article in a newspaper or magazine"

- 12 percent by "radio or broadcast TV program."

The report also found highlights a link between thought leadership and corporate valuation. The firm says an analysis of over 300 traditional news articles covering the industry's top e-commerce leaders over a year-long duration indicates strong linkage between companies who talk about the industry (and not just themselves) and increased brand valuation.

As I've suggested, writing articles and producing valuable content within your niche is a good way to promote a positive reputation. According to the report, e-commerce companies that discussed "macro environmental topics" like the evolution of e-commerce, scored highest in "brand presence."

"The most effective way to reach consumers online is with highly-targeted campaigns tailored to engage micro communities that form around common interests," says Julie Mathis, vice president, consumer technology, Hill & Knowlton. "One-size-fits-all marketing is not a viable communications approach in today's PR 2.0 world."

Communities talk. They use social media. Friends and family members talk. They also use social media. Word of mouth is a powerful thing.

News Tags: Marketing, eCommerce, Research, studies, online marketing, online business, Online Retail, Social Media, reports, eBusiness, word of mouth

About the author:
Chris is a content coordinator and staff writer for SmallBusinessNewz and the iEntry Network. Subscribe to SmallBusinessNewz RSS Feeds.

Comments

By east london lettings (SBN reader) - Wed, 07/29/2009 - 8:56am.

great info!.. top post.

By Official Safety and Security (SBN reader) - Thu, 07/30/2009 - 10:04am.

Articles are important...

I use social media a lot to market my safety and security web site. I use Twitter, FaceBook and other social sites. I also place articles on my forum five days a week to help inform my visitors on ways to stay safe. The topic I'm working on now is dedicated to domestic abuse and how to detect it in a friend or acquaintance. Thanks, Chris.

By Notms (SBN reader) - Sat, 08/01/2009 - 6:46am.

Social Media-Inceases Visiability

Hi there:

I have found that even just using Twitter has increased my number of visitors and the social media side of business does work. It even gives a relaxing side of buisness.

Norma

By Mary Pauline (SBN reader) - Tue, 08/04/2009 - 10:05am.

Social Media Marketing of E-Commerce

Very informative and eye opening post. I for one think that any interection between you and a potential customer be it online or offline is a great opportunity to build trust and relationship that could lead to business transaction. The more you know about your potential customer the better targeted your marketing message would be.

By Two Way Radios (SBN reader) - Mon, 02/08/2010 - 6:32pm.

Two Way Radios

Yea I am posting on twitter, facebook on a daily base too.

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