Retailers need to prepare for growing importance of social media
There are many strategies that retailers use to create awareness about their brands and promote their products, and with the emergence of social media, merchants now have additional tools for showcasing their offerings. However, recent research has revealed that if companies take to social sites like Facebook and Twitter to strictly market their merchandise, they stand the risk of losing out on customers. Focus also needs to be given to providing service to shoppers through the networks if businesses want to leverage the technology effectively. By taking the approach of offering service options through social media as well as using the platforms for marketing, retailers will see that their efforts are successful and customer satisfaction increases.
Two-pronged strategy for social media
According to a report by J.D. Power and Associates, consumers of all ages are reaching out to brands through social media to resolve service issues and gain access to coupons and discounts, most of which are given out for marketing purposes. Companies need to take a look at the social media behaviors and preferences expressed by patrons, and then develop methods that meet those needs and wants, the research notes.
"Companies that are focused only on promoting their brand and deals, or only servicing existing customers, are excluding major groups of their online community, negatively impacting their satisfaction and influencing their future purchasing decision. A one-pronged approach to social is no longer an option," stated Jacqueline Anderson, J.D. Power and Associates' director of social media and text analytics.
Anderson goes on to add that failing to provide both marketing content such as coupons and discounts along with service options can have negative consequences for brands, mainly in the form of decreased customer satisfaction and retention.
Social media will continue to grow in retail industry
Social media sites are expected to become increasingly important for retailers, as more consumers will take to the sites to browse for, review and even purchase products. Computer World writes that research from Gartner estimates that by 2015, half of the new customers to merchants' websites will use their social media accounts to log in. This will give businesses a variety of information pertaining to consumers' preferences and needs, allowing them to offer products and services that are relevant. Getting a head start on social media now will help brands develop strong strategies that will boost their operations in the coming years.
