Is social media working for retailers?

Is Social Media working for retailers?

Retail thinking.
Redeﬁned.

Summary

Although social media is popular, consumers are not interested in visiting retailer pages. They see social
1. 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
2. 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
3. relationship with core customers. When using social media, messaging should tilt towards younger, female
consumers and should showcase innovative products.

Source: Fusion Retail Analytics, December 2012

2

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

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

Did not use 36%
56% of all retail consumers used
Facebook in the last four weeks

56%

38%

Used 64%

9%

All retail consumers 1 2 3

(Twitter)

Notes: Self-declared via online survey, social media usage includes Facebook, Twitter and YouTube

3

59% of Facebook users check their newsfeed every day

Frequency of checking Facebook newsfeed

5% Less than once a month
9% Every few weeks
8% Once a week

20% A few times a week

Nearly 90% of retail consumers who use
Facebook check their wall or newsfeed at least
87% once a month and 59% check their wall or
newsfeed everyday.
59% Every day

Facebook users

Notes: Self-declared via online survey

4

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

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

82%

34% Did not visit any retailer’s page
56%

…compared to 48% of
consumers that have
38% recently visited a retailer’s
website.
51%
While many consumers
use Facebook, only 5% of 48% Visited at least one retailer’s page
consumers have recently 36%
visited a retailer’s page… 9%
2% 1%
8%
5%
Facebook Youtube Twitter Website

(Twitter)

Notes: Self-declared via online survey

5

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

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

250
Many consumers are interested in
219 visiting retailer websites or receiving
retailer newsletters via e-mail…
200
Indexed to overall average

161

150
120

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

50
24
10
0
Flyer Website E-mail newsletters Television Facebook posts Twitter posts
advertisements

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

6

Consumers find retailer Facebook posts do not
contain information they want or need
Consumer comments regarding retailers on Facebook

“I don’t want to have to join another non-personal “Facebook is Social time, not budget time for me.”
group and be bombarded with dozens of irrelevant
- female, age 25-34, Newfoundland
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

“I only use Facebook for social networking and I
“I find that Facebook posts from stores usually don't want to use it to associate with businesses.”
don't apply to me and are too frequent.”
- female, age 17-24, Ontario
- 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
“I don't pay much attention to Facebook posts. Facebook would have little or no bearing on what I in NS
Additionally, I doubt they would give me information might need. If I want to buy something I will use the flyer or
not contained in flyers or easily retrievable from the website to look it up. Facebook is for small independent
website.” businesses to reach out to interested consumers.”
- male, age 17-24, Newfoundland
- female, age 35-49, Nova Scotia

“I use my Facebook for friends ..not shopping.” “I use my FB ONLY to connect with friends and
family who do not live near me. I DO NOT use it for
- male, age 35-49, Quebec shopping.”

- female, age 50-69, British Columbia


7

Social media has little incremental reach

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

4%
visited the same
retailer’s
website and 1%
Facebook visited only the
retailer’s
Facebook page

While Facebook reaches 5% of all retail
consumers, 4% also visit the same
retailer’s website, leaving only 1% of
consumers incrementally reached by
48%
visited a
Facebook
retailer
website


8

Social media mainly reaches core customers

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

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.

Facebook

10%
6%
3% 4%
1%

In-store/
Think Consider Visit Core
conversion
Consumers with a… opportunity opportunity opportunity
opportunity
customers

Notes: Data is retail average

9

Of categories tracked, Facebook pages have the highest
reach in clothing accessories and children’s clothing
Facebook reach by category
(in the last 4 weeks, of all category consumers)

Clothing accessories 9%

Children's clothing 8%

Toys 7%

Furniture 6%

Home improvement 6%

Auto 6%

Groceries 5%

Bed and bath 5%

Sports 5%

Electronics 5%

Appliances 4%

Books 4%

Garden 3%

Luggage 3%

Pet 3%

Adult clothing 3%

Footwear 2%

Drugs or cosmetics 2%


10

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

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

11

If using social media, tilt messaging to speak to having
the latest products, one-stop shopping and great sales
Social media users v. all consumers - attribute conversion importance variance

Less important to social More important to social
media users media users

Latest/hottest 9%

One stop shop 5%

Great sales 4% Social media user tend to be more
concerned with finding the latest/
Convenient 4% hottest products compared to
Easy to get help 2% consumers in general…

Reg. price 1%

Product displays 1%

Great loyalty 0%

Supports local 0%

Fast checkout 0%

Store is clean 0%

In stock -1%

Large/spacious -1%

Great advice -3%

Returns -3%

Wide selection -4%

High quality -4% …and less concerned with
private labels
Private label -6%


12

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.


13

Is social media working for retailers?

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