Traffic To Retail Sites Up to - 7.8% From Social Media, Only 3.4% From Portals

Social media is driving more traffic to retail sites as a percentage than ever before; this surge has been captured in the latest figures from hitwise which have been outlined in during the recent online retailer conference.

For some time Facebook and in some cases Myspace consistently feature in up and downstream reports for online retailers even when these retailers to not have a social media strategy. This is more a reflection of the prominence of these social networking sites in the users browsing patterns rather than a result strategic outcome for online retailers.

However these figures also reflect a more strategic outcome being achieved by an increasing number of savvy online retailers. Online retailers are increasingly engaging with their customers through a range of social networking approaches, tools often utilised include smart targeted “for sharing” EDM campaigns, Facebook Connect promotions, Twitter promotions, etc

A strategy often utilised to great effect can be incentivising current customers to engage with their friends on Facebook. User can be offered free samples, discounts, points or even gift cards for inviting friends to engage with an online retailer. For some retailers Facebook Connect is great for feed marketing as users can be very excited about their purchase and what to broadcast their “lifestyle” purchase to their friends. Other solutions can even incentivise the user by offering tangible, measurable benefits when their friends successfully engage. Effectively you offer a simple affiliate style incentive to your customers when they successfully engage their friends; you chose how to tier your rewards based on your business goals, for example as a first tier you might offer a % discount  when 10 friends invited by a user through Facebook connect sign up to the newsletter. For a second tier offer a $10 gift voucher for each friend who makes a purchase on site after their referral.

Portals also offer unique advantages and continue to be utilised by users for price and quality comparisons but figures are indicating users are more likely to trust their friend’s recommendation then they are to trust portals recommendations. Affiliate schemes are very sophisticated and mutually profitable the portal publishers and the retailers alike but online shoppers are increasingly recognising the vested interests many portals have in promoting or listing some products over others. This is starting to be reflected in the traffic percentages.