Social Media Recommendations May Increase Online Purchases

A lot of recent research suggests that social media recommendations tend to increase the chances of people buying products or services. For instance, a study found that 50% of people under 35 followed the recommendations of their social media friends, compared to only 17% who bought on celebrity endorsements.

Another significant study done by Payment provider Sage Pay, and featured in Marketing Magazine reveals that while on average 7% of visitors to an online store make a purchase, if directed to the retailer via a social media network, the percentage of visitors who will go to the transaction section goes up to 71%. This means that people accessing an online retailer via social media are ten times more likely to buy something than other users.

Ironically, the study also revealed that despite the above findings, only 5% of online marketers surveyed believed that social media was the most effective communication channel.

Marketing Magazine

[via Lies, damned lies and statistics]