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.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
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.
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.
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.
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.
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.
Social Impact of Facebook for Consumers
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.