5 Reasons Why Facebook Drives Consumer Buying – Infographic

Facebook  provides a wide ranging and encompassing online social network ecosystem that allows you to share music, photos and information that can be seen by your friends in their timeline and ticker.

5 Reasons Why Facebook Drives Consumer Buying - Infographic

Its impact is also starting to be seen as influencing consumer decisions as people notice online comments by friends on Facebook and make purchases based on this sharing.

Facebook’s role in the socialization of the online buying process continues to expand as it entrenches its presence as the social network of choice globally for over 800 million users. In fact it is is predicted that Facebook will hit the 1 billion user mark by August.

Some of the power of Facebook in the online shopping environment is in its ability for people to share what products they like to their friends and also highlight their buying decisions

Why Use Facebook for Registering on your Online Store?

Facebook is even recommended as the preferred login for people to use when they visit an online store when they register. This is due to the fact that up to 75% of all online transactions that are launched but not completed, fail because users abandon their online shopping carts, according to Monetate.

The company also added that 40 percent of consumers prefer social logins with most people (60%) preferring Facebook.

The other advantages for using Facebook to simplify registration are the gathering of additional data such as

  • Birthdays
  • Gender
  • Interests

These can be used to personalize the site for the user when the user who registers with Facebook returns.

How Social Sharing Influences Consumer Behavior

A recent study by Sociable Labs which included 1088 online shoppers revealed that social sharing is as helpful as Google search in shopping.

The major takeaways from the study are:

1. Social Sharing is a Vital Activity for Discovering What to Buy

62% of online shoppershave read product related comments from their friends on Facebook.

Facebook social sharing for online buying

2. Social Sharing Causes Consumers to Act

75% of shoppers who read social sharing comments have clicked on the product link in their friends’ Facebook posts, taking them to the product page on a retailer’s website.

53% of the shoppers who have clicked through to the retailer’s site have made a purchase.

Social Sharing Causes Consumers to Act

3. Positive Social Sharing Creates a Virtuous Cycle of Sharing and Purchasing

81% of consumers who purchase products they learn about through social sharing are valuable social sharers themselves, thus creating a cycle of sharing and buying.

Positive Social Sharing Creates a Virtuous Cycle of Sharing and Purchasing

4. “Social Proofing” – Increases Confidence in Buying

Social proofing, which is the activity of showing friends activities on a website is a powerful motivator for buying. The study showed that 32% of visitors are more likely to stay and shop on a site that shows activities of shoppers who have purchased there, even when those shoppers are not their friends. When the shared activities include the shopping behavior of the visitor’s friends, that number nearly doubles to 62%. With respect to purchase, 57% of shoppers are more likely to purchase on a site that shows their friends who have purchased on that site.

Social Proofing – Increases Confidence in Buying

5.  Match the Motivations of Sharers to Share with the Motivations of Shoppers to Act

When comparing sharer and shopper motivations, a key takeaway from the study is to encourage sharers to include the reasons they bought the product, as this is the strongest motivator for shoppers to act.

Match the Motivations of Sharers to Share with the Motivations of Shoppers to Act

Social Impact of Facebook for Consumers

How Facebook Drives Online Shopping - Infographic

Source: Sociable Labs

Study Conclusions:

The Social Impact Study from Sociable Labs, confirms that consumers are highly influenced by their friends.

Low friction Social sharing is a major source of product discovery for a significant percentage of consumers. If you haven’t already incorporated social sharing applications into your ecommerce experience, it is recommended that you do.

To drive significantly higher-velocity sharing, you should consider leveraging Facebook’s Timeline Apps initiative.

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Comments

  • http://jeffbullas.com Jeff Bullas

    Thanks Roger for your kind compliment :)

  • Kiah Duncan

    Do you really think 62% of people buy shared products?  That seems high to me, I just don’t notice too much of that going on it seems… but I could be off base here!

  • http://www.ebazr.com/ online shopping

    When you are sharing your online business with people using facebook it really become very helpful to your business. Also the online communities or groups in facebook also become helpful to your business. 

  • http://twitter.com/JCharlesMuir Charlie Muir

    Sick post!  Totally refueled and energized my social proof efforts!

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  • http://twitter.com/DavidOuzts David Ouzts

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  • Adrian Escutia Soto

    Great summary about the study and completely agree about benefits of using Social proofs and online registration with Facebook. Additionally, for brick and mortar stores it would be possible to engage customers, sharing WiFi and setting up a captive portal which Facebook registration, that would increase lead generation and of course, integrated with other systems (POS, CRM, marketing tools) would allow to know better the customer behavior, for example, when the customers visit physical store after visiting online store, how frequently, etc. What do you think about this?