Today’s technology-driven environment continues to…
have staggering effects on shopper behaviour, shifting the power of purchase from retailers to consumers. A quarter of all purchases of FMCGs are influenced by exposure to one form of social media or another and this proportion is growing. Retailers have to establish a social media presence in order to stay connected with consumers.
Social media is giving voice to brands and providing a continuous two-way conversation with the target consumer. Retailers aim for a comprehensive and integrated Social Media Strategy.
The various social media outlets can be utilized for targeted marketing campaigns that will touch consumers at each stage of the purchasing continuum, from pondering brands and products through the post-purchase experience. 37% of grocery shoppers access stores’ social media sites and seven out of ten European shoppers, who own a smartphone or tablet, would like promotions sent to their mobiles based on the items they tend to buy.
Additionally, social media is emerging as an essential tool to observe, respond, magnify, and guide consumer behaviour. Retailers can monitor their private brands in terms of what is being said, where, and how the conversation is influencing others. The polarity, intensity and volume of each conversation can also be measured. This insight into consumers’ thoughts of a product or brand can be early warning of potential changes, both positive and negative, in shopper activity, and allow for the retailer to react real-time to consumers needs.
Response in social media is of the utmost importance. Whether it is to counter negative comments or reinforce positive ones, consumers are increasingly seeking conversations with the brands and products they interact with daily. This engagement and relationship will be enhanced through direct and honest response. It also enables the retailer to reinforce consumers’ attitudes and actions, strengthening their belief that they made a smart decision and advising on how to make the most of their purchase.
A key benefit to the retailer of social media is that it enables consumers to become leaders, providing input back to the retailer as to their needs and desires. Crowdsourcing has emerged as a new trend with consumers being glad and eager to participate in product development and feel a sense of ownership in the product solutions available on the shelves. This ability to gain product-development and consumer behaviour insights is one of social media’s most significant advantages.
Given the viral qualities of social media, consumers are empowered to lead and influence their community toward or away from specific brands and products. Retailers are seizing this opportunity and encouraging shoppers to share their experience and opinions with their peers. Tesco, a leader in new technology and communication, has embraced social media as a key component of their marketing strategy. For example, Tesco launched a Facebook promotion incentivizing customers to ‘share’ products in exchange for double loyalty points.
While still in its infancy, for retailers to engage in social media is a must. The challenge is to harness the power of social media to its maximum potential. Social media has the ability to become a vital tool in building brand dialogue, which will ultimately lead to increased sales and growth.
