What Influences Buying Decisions in Social Media?
Social media has revolutionized consumer purchasing behavior over the last few years, directly impacting the way
they buy products and services. The fact that there are billions of opinions and reviews out there means marketers
have to change their perception about social media from „fun to have‟ to „must focus on‟. The use of social media
platforms such as Twitter, LinkedIn, blogs and Facebook among buyers has grown considerably over the last two years.
Facebook, in fact, doubled in popularity from 2010 to 2011. Although Google search still leads the way in terms of
influencing online shopping behavior, the steady growth of social media is opening up new opportunities for marketers
to message and connect with customers. According to the 2011 Social Commerce Study:
58% of online consumers have „followed‟ a retailer proactively through Facebook, Twitter or a retailer‟s blog.
Almost half (49%) of the respondents were keen on keeping a tab on product updates through social media.
Over 1/3rd follow online retailers for information on contests and shopping events.
35% of shoppers are likely to directly purchase from Facebook, while 32% are willing to make a direct purchase
Group-buying sites like Groupon and LivingSocial are being used to purchase non-traditional items.
Several studies show that consumers are now sharing opinions in unprecedented numbers on various social networking
sites and blogs; for marketers, this growing hunger for information can easily be converted to actual purchases by
understanding what factors influence buying behavior most. Here‟s how marketers can influence online purchasing
1. By Understanding the Consumer Mind
Social media has changed the way marketing companies group their consumers. Online buyers can no longer be
slotted into a ‟stereotypical category‟. If you‟re looking to convert the „likes‟ to purchases in social media, it is
vital to understand the mind of the consumer first. A simple way to do this is by monitoring social media. Social
media monitoring is an effective way of researching and learning about your customer‟s age, geographic
distribution, what social media channels they use, if they are highly-engaged in social media circles (the
influencers) etc. By using monitoring tools such as Brand Monitor, marketers can get a clearer insight into
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consumers‟ mindset and know what customer types they are targeting. The social media common customer types
can be broadly classified into:
o The under-30s: Our research shows that younger buyers are more open to newer channels such as blogs,
Facebook etc. This age group is therefore more likely to make purchases through social media channels.
The good news for brands that heavily rely on blogs for marketing purposes is that the <30 age group is
three times more likely to use blogs to select products and suppliers, when compared to the +30 age
o The coupon collectors and freebie seekers: Identifying the coupon collectors and the freebie seekers
and offering deals to them is a great way to drive sales and increase ROI. Recent studies from Empathica
reveal that offering discounts via social media presents marketers with an opportunity to connect with
consumers, especially women. Empathica‟s research shows that:
47% of people using social media to find coupons and promotions are women.
Only 33% men look for offers on social media.
While 30% of the respondents said that they followed brands for information, 40% said that they
look for promotions and coupons.
Although, promotion hunting is a primary driver of social behavior, the survey also found this habit
was driving overall online behavior as well; 26% of respondents admitted to specifically look for
more coupons online.
Commenting on this, Gary Edwards, Empathica EVP of Client
Services, said that brands should recognize consumer
preferences and help them visit an establishment. For
marketers this is also the perfect way to convert consumers
into brand advocates.
Walmart uses its recently added Facebook feature called
Crowdsaver to offer discounts on products. The app, which is
similar to Groupon, requires a certain number of users to
„like‟ a product for the retailer to apply the discount. For
Walmart, this strategy helped boost its brand image, while
customers benefitted from the discounts offered.
o The multicultural audience: Several studies have
found Latinos and African-Americans to be the fastest
growing and the most loyal brand advocates on the
internet. According to a recent Ipsos U.S. Hispanic
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Omnibus study, U.S. Hispanics aged 35-54 are more likely to purchase products online (62%). One of the
companies that clearly understood the mindset of the „multicultural customer‟ was PepsiCo. The beverage
giant launched its „We Inspire‟ campaign in 2010, targeting African-American mothers. The home page on
the company‟s website featured the Facebook „Like‟ Widget, encouraged users to blog about their
experiences, and upload personal stories on YouTube. The campaign was a huge success, with PepsiCo
winning the NAACP award for “advancing positive multicultural images in advertising and media.”
2. The Power of Creative Campaigns
How are marketers encouraging ongoing involvement once a consumer has „liked‟ or „followed‟ a brand? Instead of
simply posting a banner ad on a social media site and waiting for the „likes‟, companies should make full use of
web‟s unique properties like interactivity, community-building, and the ability to specialize local offers. Listed
here are some examples that illustrate the power of creative social media campaigns and how they can increase
conversion rates for brands:
o Steaz Doubles Sales through Social Media: Organic tea brand, Steaz, took to social
media platforms to generate nation-wide awareness and drive sales at Target stores.
The company‟s social media campaign saw sales double after users downloaded and
shared coupons on Facebook and Twitter. Discussions on the benefits of organic tea saw
2,830 tweets recorded in one hour and 250,000 coupons being downloaded. The company‟s marketing
team aimed the campaign at moms after conducting a geographic and demographic research. According to
Steaz, mothers were the perfect audience to generate awareness and sales, as they usually looked for
coupons and were involved in health related discussions in social media.
o Colgate Uses Social Media to Drive Engagement: Following extensive research, the
marketing department at Colgate decided to promote its disposable toothpaste, Wisp,
through social media channels including Facebook, Twitter and YouTube. The company‟s „Are You
Kissable‟ campaign was aimed at the urban youth in the 18-25 age bracket. The campaign, which was a
resounding success, achieved a reach of 10,000,000+ rivaling mass advertising at small fraction of the
Companies that understand the potential of social media marketing are investing millions of dollars, launching
some highly innovative campaigns in the process. We believe that imaginative social media campaigns are vital
and highly effective in attracting customers and influencing buying decisions, resulting in increased traffic and
3. The Impact of ‘Followers’ and ‘Friends’
Social networks now have a huge
audience that spends a good amount of
time posting reviews and
recommendations related to various
products and services. Besides making
personal connections, Facebook,
Twitter and other sites are places
where buying decisions are influenced
through group interactions. Trust in
social recommendations has increased
to such an extent that, currently, 1/3rd
of social media users follow
recommendations made by their friends
and followers on Facebook and Twitter
before deciding to buy. HubSpot‟s
research shows that social media
conversations actively influence
purchases. According to a study
conducted by market research firm
Chadwick Martin Bailey, in 2010:
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o 60% of Facebook fans and 79% of Twitter followers are more likely to recommend a brand after
becoming a fan or follower.
o 51% of Facebook fans and 67% of Twitter followers are more likely to buy the brands they follow or are
a fan of.
The above statistics indicate that online research is one of the key factors influencing buying behavior. As
more and more people depend on social media research versus opinions from in-store sales associates,
marketers can no longer ignore user-generated reviews. With „followers‟ and‟ fans‟ having such an impact on
people‟s buying decisions, it is imperative for brands to:
o Not just have a social media presence, but listen to shoppers and find out what they are saying.
o Connect with shoppers in social media: If brands want to connect with shoppers and impact their
purchasing decisions, they need to devise strategies to „influence the influencers‟ by continuously
engaging with them.
o Incorporate customer feedback into their marketing strategies: Customers do not always address a
brand or a company directly; sometimes they choose to post reviews (either positive or negative) or
blog about their experiences. Smart marketers will monitor such social media conversations and
incorporate this feedback into their marketing strategies.
What marketers need to keep in mind is the fact that social media shoppers are not always „actively social‟. While one
in four social media shoppers contribute to a conversation about a brand or product, the others view these
conversations and decide if they want to make a purchase. While the „influencer„ group is small, the impact on those
„influenced„ is large.
With 95 million social-media shoppers in the US alone, the opportunity for online marketers is huge. According to
Forrester Research, social media marketing budgets will see a 34% growth between 2009 and 2014, which is faster
than any other form of online advertising. This data indicates that shopping via social media is poised for tremendous
growth in the years to come, with product reviews and recommendations playing an important part. This is not to say
that the role of traditional marketing channels in influencing buying decisions will decline; people watching and
listening to marketing messages on TV and radio are more likely to consult their friends and followers before making a
While reviews can help marketers further improve products, freebies and discounts function as powerful tools in
driving sales. The current trend of consumers scouting social media for coupons holds good not just today, but will
also be one of the primary factors driving online shoppers in the future. That said, the smart approach for digital
marketers looking to add value to their campaigns would be to understand their shoppers, study the impact of online
reviews and design their campaigns accordingly. We believe this to be the perfect recipe for that „creative
campaign‟, which will ultimately translate into profitable returns.
Currently, Google is the first stop for online buyers; however, the increasing influence of social media on online
shopping means the search giant could soon be looking at many ‟social‟ contenders.
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Position2 is a Search and Social Media Marketing firm that delivers continuous growth for our clients using our
proprietary “Surround and Intent” Marketing Methodology, delivered by our products. Our proprietary methodology is
a result of years of experience in working with diverse clients to deliver customer acquisition goals through search
engine optimization (SEO), social media marketing (SMM), and Pay Per Click (PPC) and online media advertising.
Position2 was founded in 2006 with funding from Accel Venture Partners, and has offices in Palo Alto, Bangalore and
Mumbai. Position2 is a certified agency with Google, Yahoo, Bing and is also part of the Google Adwords advisory
Position2's flagship product is Position2 Brand MonitorTM, a platform that allows users to listen, discover and engage
with social media conversations in real time. With a team of over 100 professionals, Position 2 also provides expertise
in online marketing solutions: SEO, PPC, Media and Advertising.
Position2 works with leading global brands:
This article is also available on the Position2 Blog: http://blog.position2.com.
For more information, visit http://brandmonitor.position2.com or email firstname.lastname@example.org.
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