Why You Can’t Sell with Social Media

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Social media can give your company many different benefits.

It can increase awareness and introduce you to new people. It can be used to help customer service, and follow-up with disgruntled customers. It can also be used to get the elusive, but effective word-of-mouth marketing.

But it can’t sell. At least, that’s what people say.

Market research giants Forrester Research and GSI Commerce looked at online retailer data in 2010. They were trying to determine how many actual retail sales came from social media visits.

The results aren’t pretty.

Less than 2% of all orders were from social networking shoppers. (Conversely, paid, SEO and email marketing converted the most).

The most common objection for people using social media is, “What’s the return-on-investment?”. And when you try to come up with an ROI, you get results like these (dismal, to say the least).

So what’s the solution? Give up entirely?

Or should you just look a little more closely..

[as seen of Fix Course]

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4 thoughts on “Why You Can’t Sell with Social Media

  1. Hi Nubi,

    It is totally possible to sell with social media, but I take your point that as a whole it is quite a low return. The key is that you don’t sell in the same way as a normal, anti-social e-commerce store. So the opportunity is in making those few sales work really hard.

    For example, I’ve seen online retailers post a product image and sell that product through their facebook comments. So they don’t just get a sale – they get a small amount of advertising when that comment appears in the buyer’s friends feeds. (The retailer Miishka grew HUGE with that tactic). It’s about making the most of the medium.

    1. Interesting how you ‘absolutely’ disagree with the statement and then make a referral to GraphScience. Just saying I expected more. Why do you disagree and what’s your opinion?

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