Is social media working for retailers?

Is Social Media working for retailers?

Retail thinking. Redefined.

Summary

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Source: Fusion Retail Analytics, December 2012

Although social media is popular, consumers are not interested in visiting retailer pages. They see social media as a tool for communicating with friends and family and are not there with retailers in mind, unlike when they are looking at websites or reading a magazine. Social media has a small reach and overlaps with more powerful media such as website, while only reaching a retailer’s core customers. As a result, social media has a limited ability to drive sales growth. It is recommended that social media be used sparingly and only as a means of maintaining a strong relationship with core customers. When using social media, messaging should tilt towards younger, female consumers and should showcase innovative products.

1.

2.

3.

56%

38%

9%

1 2 3

64%

36%

All retail consumers

64% of all retail consumers have recently used social media, with Facebook being the most popular

Notes: Self-declared via online survey, social media usage includes Facebook, Twitter and YouTube Source: Fusion Retail Analytics, December 2012

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Social media usage (in the last 4 weeks)

By channel – social media usage (in the last 4 weeks)

Used

Did not use 56% of all retail consumers used Facebook in the last four weeks

(Twitter)

59%

20%

8%

9%

5%

Facebook users

59% of Facebook users check their newsfeed every day

Notes: Self-declared via online survey Source: Fusion Retail Analytics, December 2012

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Frequency of checking Facebook newsfeed

Every day

A few times a week

Once a week Every few weeks Less than once a month

Nearly 90% of retail consumers who use Facebook check their wall or newsfeed at least once a month and 59% check their wall or newsfeed everyday.

87%

5%

48%

51%

36%

8%

34%

Facebook Youtube Twitter Website

The vast majority of consumers have not visited any retailer’s social media page in the last 4 weeks

Notes: Self-declared via online survey Source: Fusion Retail Analytics, December 2012

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Consumers recently visiting retailer pages (of all consumers, in the last 4 weeks)

Visited at least one retailer’s page

Did not visit any retailer’s page

While many consumers use Facebook, only 5% of consumers have recently visited a retailer’s page…

56%

38%

9%

82%

…compared to 48% of consumers that have recently visited a retailer’s website.

(Twitter)

2% 1%

219

161

120

66

2410

0

50

100

150

200

250

Flyer Website E-mail newsletters Televisionadvertisements

Facebook posts Twitter posts

Relatively few consumers are interested in viewing retailers’ Facebook or Twitter posts

Notes: Self-declared via online survey, based on responses to “How interested are you in receiving or viewing the following from ((retailer))?” Source: Fusion Retail Analytics, December 2012

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Consumers interested in viewing retailer media (indexed to overall average)

Many consumers are interested in visiting retailer websites or receiving retailer newsletters via e-mail…

Inde

xed

to o

vera

ll av

erag

e

…while very few are interested in receiving retailers’ Facebook or Twitter posts

Consumers find retailer Facebook posts do not contain information they want or need


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“I don’t want to have to join another non-personal group and be bombarded with dozens of irrelevant

status posts… I would rather be able to look up Home Depot’s website on my own time and find out what

sales are going on.”

- female, age 25-34, Alberta

Consumer comments regarding retailers on Facebook

“I find that Facebook posts from stores usually don't apply to me and are too frequent.”

- female, age 25-34, Territories

“What kind of short post would be something that I would be interested in? Someone in Toronto posting updates on Facebook would have little or no bearing on what I in NS

might need. If I want to buy something I will use the flyer or website to look it up. Facebook is for small independent

businesses to reach out to interested consumers.”

- female, age 35-49, Nova Scotia

“I don't pay much attention to Facebook posts. Additionally, I doubt they would give me information not contained in flyers or easily retrievable from the

website.”

- male, age 17-24, Newfoundland

“Facebook is Social time, not budget time for me.”

- female, age 25-34, Newfoundland

“I only use Facebook for social networking and I don't want to use it to associate with businesses.”

- female, age 17-24, Ontario

“I use my Facebook for friends ..not shopping.”

- male, age 35-49, Quebec

“I use my FB ONLY to connect with friends and family who do not live near me. I DO NOT use it for

shopping.”

- female, age 50-69, British Columbia

Social media has little incremental reach


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Retailer Facebook and website reach (in the last 4 weeks)

1% visited only the

retailer’s Facebook page

4% visited the same

retailer’s website and Facebook

48% visited a retailer website

While Facebook reaches 5% of all retail consumers, 4% also visit the same retailer’s website, leaving only 1% of consumers incrementally reached by Facebook

1%3%

6%4%

10%

Social media mainly reaches core customers

Think opportunity

Consider opportunity

Visit opportunity

In-store/ conversion opportunity

Core customers

Facebook

Usage of Facebook by orientation to retailer (across all of Canada)

Consumers with a…

Due to the low relative cost of social media it can be an effective brand maintenance tool with core customers, who are the only group of consumers with a significant portion visiting a retailer’s Facebook page.

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Notes: Data is retail average Source: Fusion Retail Analytics, December 2012

9%

8%

7%

6%

6%

6%

5%

5%

5%

5%

4%

4%

3%

3%

3%

3%

2%

2%

Clothing accessories

Children's clothing

Toys

Furniture

Home improvement

Auto

Groceries

Bed and bath

Sports

Electronics

Appliances

Books

Garden

Luggage

Pet

Adult clothing

Footwear

Drugs or cosmetics

Of categories tracked, Facebook pages have the highest reach in clothing accessories and children’s clothing


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Facebook reach by category (in the last 4 weeks, of all category consumers)

If using social media, tilt messaging towards female, younger consumers

Notes: Of consumers aged 17 and older; consumer profiles balanced to percent of total spend; social media users must have used at least one form of social media in the last 4 weeks Source: Fusion Retail Analytics, December 2012

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Retail Social media consumer profile user profile

Gender Female 52% 54% Male 48% 46%

Age 17-24 15% 17% 25-34 21% 23% 35-49 32% 33% 50-69 28% 24% 70+ 4% 3%

HH income <$30k 16% 16% $30-$60K 24% 24% $60-$100K 25% 25% $100K+ 35% 36%

Region West 30% 30% Ontario 45% 45% Quebec 21% 21% Atlantic 4% 4%

If using social media, tilt messaging to speak to having the latest products, one-stop shopping and great sales


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Social media users v. all consumers - attribute conversion importance variance

9%

5%

4%

4%

2%

1%

1%

0%

0%

0%

0%

-1%

-1%

-3%

-3%

-4%

-4%

-6%

Latest/hottest

One stop shop

Great sales

Convenient

Easy to get help

Reg. price

Product displays

Great loyalty

Supports local

Fast checkout

Store is clean

In stock

Large/spacious

Great advice

Returns

Wide selection

High quality

Private label

Social media user tend to be more concerned with finding the latest/hottest products compared to consumers in general…

…and less concerned with private labels

Less important to social media users

More important to social media users

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Methodology


Methodology: A 15-minute online survey is sent to a representative panel of shoppers across Canada, balanced for demographic and geographic profile. Consumers are invited to fill out the survey which features approximately 40 questions along a number of dimensions regarding shopping habits, retailer behaviour and purchases made.

Field timeline: Ongoing survey, in field monthly. Sample specifications: Sample of 8,000 completed responses across 80+ retail categories between Nov. 1st and Dec. 31st, 2012, cleaned for engagement on three separate proprietary criteria to ensure high quality data. Data balanced to reflect age, income, region and gender of Canadian population.

Is social media working for retailers?

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