Social media a growing factor in buying decisions – IBM study

Social media a growing factor in buying decisions

Social media a growing factor in buying decisions – IBM study

Social media is increasingly important in influencing consumer buying decisions, both online and in-store, while purchasers have a growing wish to be able to buy products through their mobile phones, according to a new IBM European study.

The research into consumer shopping behaviour across retail channels found that consumers are using social networks to research products, prices, promotions and other consumers’ views in order to validate their decision making. This is then influencing sales across all procurement channels.

According to the findings, over 50pc of respondents use social networks to help with their shopping decisions. Of those who would be likely to follow a retailer on a social network, 35pc said they use social media platforms to read reviews or rank products and services. Additionally, 25pc of these respondents said they think it is important to be able to use social networks to assist with buying decisions.

Of this same group, 57pc said the most likely reason to ´follow´ a retailer on a social network is to receive free trials of products or discount coupons.

When going on to make the purchase, around four in 10 of these online consumers would still buy the final product from within the store

“Social media provides a new window through which retailers can deliver a more personal brand experience across all buying channels,” said David Hogg, commerce solutions regional leader at IBM. “By harnessing real-time customer analytics from social media, retailers can act upon what is being said, delivering a personalised marketing offer based on the customers’ shopping profile, preferences and decisions, helping retailers to maximise revenues.”

The survey also highlighted consumers’ increasing desire to shop through the mobile phone. Over half (51pc) of online adults said they have shopped through the mobile phone.

The survey also found that mobile phones are incremental in providing additional revenue opportunities through promotions and last minute purchases, with 68pc agreeing that price comparison on the mobile is important or very important; 38pc saying it is important to receive discount coupons and 29pc stressing the importance of getting special offers through the mobile phone; and 38pc wanting to be able to review and change their shopping basket items at a later time, on their home computer.

“It is clear to see that the mobile phone is no longer just a viewing screen or digital catalogue – there is a growing acceptance of shopping through the mobile,” said Hogg. “As well connecting to these customers through their preferred channel, retailers also need to make sure they have the means of effectively managing their supplier and trading partner network to ensure they have the products at the right time and place to meet changing consumer demands.”

These findings were the result of annual consumer research by IBM, across 4,000 adults in Great Britain, France, Germany and Italy who have access to the internet.