Social Media and Its Impact on Retail

By Author: Mr. VIPIN AGRAWAL (MENTit Both)
Affiliation:

The company which did the research report- Synchrony

About the company- Synchrony is a premier consumer financial services company delivering customized financing programs across key industries including retail, health, auto, travel and home, along with award-winning consumer banking products.

Area of research- Social media 

Name of the organization which did the survey - Synchrony

Participants of the survey- 1211 respondents (online) with data weighted to census data on age and gender of ages 18, who shopped with major US retailers in the past 6 months.

Duration of the research survey- April 30, 2018- May 16, 2018

The main points of discussion in the survey:

1. Social media usage
2. Influence on purchase
3. Convenience is a major driver
4. New retail products and concepts of delighters
5. Major convenience 

Findings of the survey:

1. Social media is ubiquitous across all major segments of the U.S. population.
2. Brands must be aware of the drivers of engagement for social media channels they use. Not all channels are a perfect fit for all brands.
3. Posting on social media should be relevant, value-added and ensure privacy.
4. Social media posts that announce exciting new retail concepts or products attract the most attention.
5. Social media usage is widespread across all ages-
1. Facebook and YouTube are the most used social channels.
2. Facebook and Snapchat users check their account more frequently, driven by millennials and GenZ.
6. Social media influences purchase- 
1. Social media influenced purchase has almost doubled over the past 3 years.
2. 78% of the US population say that they have made 5 purchases or less after seeing it on social media
3. 58% of customers have purchased apparel and accessories while 41% purchased electronic appliances.
7. Convenience is a major driver, but brands must ensure relevancy-
1. Drivers: convenience (51%), good reviews (49%), discount (46%).
2. Barriers: find unsolicited advertising annoying (68%), security concerns (49%), privacy concerns (45%).
8. New retail products and concepts of delighters- those who shop on social media express positive feelings about their experiences.
1. 77% agree completely/somewhat with the statement “Social media introduces me to new retailers.”
2. 76% agrees completely/somewhat with the statement “I find items that I cannot find elsewhere”
3. 67% agree completely/somewhat with the statement “I follow retailers that I shop with on social media.”
9.   Click-to-buy functionality is a major convenience –
1. 41% of the US population have used the click-to-buy button
2. 57% consider payment information already stored as a driver
3. 49% consider as the fastest checkout option as a driver
4. 46% consider security concerns as a barrier
5. 34% consider privacy concern as a barrier

To conclude, social media is a great tool for increased conversions at the point of purchasing decision.

Questions

1) The report was done by?

1. Standard chartered
2. Global markets
3. Societe generale
4. Synchrony

2) What is the title of the study report?

1. Ways of achieving financial goals
2. The race to save
3. Social media and its impact on retail
4. economic growth

3) What kind of service is provided by Synchrony?

1. Auditing
2. Human resource
3. consumer financial services
4. Investment policies

4) Who did the survey?

1. Standard chartered
2. Global markets
3. Societe generale
4. synchrony

5) When was the report done?

1. 2020
2. 2016
3. 2018
4. 2017

6) How many participants were included?

1. 5234
2. 1211
3. 1234
4. 4321

7) Where were the participants from?

1. India
2. China
3. US
4. Asia

8) What are the most used social channels?

1. Facebook and youtube
2. Youtube and Snapchat
3. Snapchat and Twitter
4. Facebook and Twitter

9) What % of the US population says that they have made 5 purchases or less after seeing it on social media?

1. 45%
2. 56%
3. 67%
4. 78%

10) What % of customers have purchased apparel and accessories after seeing them on social media?

1. 25%
2. 58%
3. 82%
4. 47%

11) What % of customers feel that social media has introduced them to new retailers?

1. 55%
2. 66%
3. 77%
4. 47%

12) What % of customers agree to find items that they cannot find elsewhere?

1. 87%
2. 65%
3. 92%
4. 76%

13) What % of customers follow retailers that they shop with on social media?

1. 67%
2. 56%
3. 78%
4. 84%

14) ______ is a major driver.

1. Discount
2. Good reviews
3. Convenience
4. Availability

15) ______ is the major barrier.

1. Unsolicited advertising
2. Security concerns
3. Privacy concerns
4. Non-transparency

16) What % of the US population has used the click-to-buy button?

1. 54%
2. 41%
3. 73%
4. 36%

17) What % considers payment information already stored as a major driver?

1. 68%
2. 79%
3. 24%
4. 57%

 18) What % considers security concerns as a major barrier?

1. 46%
2. 778%
3. 62%
4. 84%

19) ‘Those who shop on social media express positive feelings about their experiences.’ 

1. True
2. False
3. True when shopping for a particular type of product
4. False when shopping for a particular type of product

20) ______ functionality is a major convenience.

1. Simplicity
2. Safety
3. Click-to-buy
4. Security