June 29, 2022
How Social Media Impacts Consumer Behavior
Have you ever been talking about a good or service you wanted and an advertisement pops up when you open your social media platforms? Companies now have the ability to use your data to directly target specific items to you. Through this, these businesses have been able to greatly increase their conversion rates by making their products more accessible to their target audiences.
In recent years, companies have greatly increased their presence across platforms such as Instagram, Snapchat, Facebook, Twitter, and most recently, Tik Tok.
Along with social media comes the idea of social proof, which occurs psychologically when a person sees others using a product and wants to conform to new social norms. Oftentimes, consumers read reviews, posts, and view videos relating to a product they are looking to purchase. These types of posts are called User Generated Content, one of the most influential strategies used to persuade potential customers to make a purchase.
How many timeshave you seen posts including a product in which the person who posted tags the company of an item of clothing they are wearing or a product they are using? This naturally increases traffic to the company’s social media pages, which can end up leading to a purchase. Also, many companies have implemented buttons that allow users to quickly contact them, bring customers directly to their website, or even directly to a purchase. Social media has allowed for easier ways to purchase and review products. Data has found that customers trust their peers more than advertisements, making the implementation of social media a pivotal moment for advertisements and increasing conversion rates.
More recently, platforms such as Instagram and Facebook have created a “shop” icon to the bottom of a user’s page. Here, a business can use powerful tools to scale their business, including a customizable shop, the option to group items into collections for an easier user experience, and the ability to control the shop across multiple social media platforms. These shops allow for specific target markets to be reached in one simple place. Many businesses have also invested in a one-tap checkout option, such as Shop Pay, making it faster for a consumer to purchase a product and less time to change their mind.
Social media has also allowed for an increase in celebrity endorsements. Celebrities have the greatest reach across social media, allowing for a product to be recognized by a large group of people. While this can be a good thing, it also can be detrimental as the celebrity can overpower the advertisement and become the “star” of the post.
Not to mention, social media has allowed for a less costly, more time efficient way to provide content through entertainment content, curated content, educational content, or promotional content.
Social media can be one of the most powerful tools for your company. By creating an account, interacting with followers, and generating content, companies can use social media as a free marketing tool by sparking conversations surrounding the products and/or services they provide.