How Social Media Influence 71% of Consumer Buying Decisions

Social media influences consumer purchasing choices due to the increase in internet commerce and the number of time individuals spend on social media.

• Consumers influenced by social media are four times more likely to overspend.
• There are four ways that social media influences buying choices directly.
• The consumer path has been reduced thanks to social media and internet commerce.
• Social media magnified the power of social proof or word-of-mouth.
• One of the most efficient methods to reach your audience is via social media influencer marketing.
• Ephemeral content and stories are a new approach to interacting with your audience.
• Every social media site is unique and may be used for various purposes.

Due to the lockout, a significant portion of transactions are now performed online, and this percentage is expected to increase dramatically by 2020. Online retail is predicted to rise tremendously as internet users grow and software firms create new methods to incorporate the online world into buying. Many consumer purchasing choices are made online, and consumers spend most of their internet time on social media.

According to GlobalWebIndex, 54 percent of social media users use the platform to investigate items, and 71 percent are more inclined to buy products and services after hearing about them on social media. I’m sure you’ve made a purchase based on anything you saw in your feed at least once, whether a post from a friend or an ad that persuaded you.

It’s difficult to tell how much social media impacts consumers’ buying patterns, not simply what they purchase. Nevertheless, social media has altered the way we market things and even provided us with new avenues for advertising. So let’s look at some of the current elements that influence consumers.

What role does social media play in consumer purchasing decisions?

1. A more efficient customer journey

The shorter customer journey is the first thing you notice about consumers on social media. It used to be that consumers learned about a product, saw it advertised on TV many times, and then went shopping the next week to buy it. This procedure may now take minutes.

According to a Deloitte study, 29% of social media users are more inclined to make a purchase the same day they use the platform. Once consumers see a thing, they just click on the link and purchase it; there is no need for them to wait before shopping. Furthermore, shoppers who are influenced by social media are four times more likely to spend more on goods.

The client journey has become not just shorter but also more complex. Users may now do product research more efficiently, thanks to social media. If a buyer discovers a product on Instagram, they may quickly search the hashtag to read other reviews and determine whether or not to purchase it. Consequently, buyers devote more time to study and consult more review sources.

Sixty-two percent of consumers tell others about their terrible customer service experiences. As a result, it’s critical to monitor your internet reputation and seek out social media reviews. Remember that every social media review matters — which ties in neatly with my following suggestion.

2. The impact of peer pressure

Social proof isn’t a new concept: we’ve been giving one other recommendation for generations since man is a social animal. The problem is that hundreds of individuals may now hear these suggestions and counter-recommendations.

Your social media followers will see your tweets or posts about this fantastic café or the shampoo that worked wonders for your hair and maybe inspired you to try it. Unfortunately, opposing views and rants are treated the same way. According to Forbes, 81 percent of buyers are impacted by their friends’ social media postings while making shopping decisions.

Furthermore, individuals seek suggestions regularly (and brands unfortunately often ignore them). For example, only 9% of brand discussions are replied to consumer inquiries, according to Awario. Yet, depending on the business, there might be over 100 individuals asking for suggestions on social media in a month.

As previously said, social proof mainly affects your friends and acquaintances. However, an increasing number of users on social media follow influencers in addition to their friends. This is where influencer marketing enters the picture.

3. Influencers’ effect on customer purchasing choices

Influencers are social media users with a large, devoted following with similar interests. Their views are inevitably viewed by many individuals, particularly those who trust them.

According to the Influencer Marketing Hub research, over half of Twitter users have made purchases as a direct consequence of an influencer’s Tweet.

Micro-Influencers are particularly good at influencing their audience since they are generally specialists in a narrow field, making them a natural source of recommendations on that issue. Finding social media influencers in your area — Instagram bloggers, vloggers, TikTokers, or Facebook group managers — is a terrific method to reach your audience if you’re offering a specialized product.

Eighty-four percent of millennials think user-generated material from strangers has at least some effect on how they spend their money, indicating that Gen Z and Millenials are more likely to be affected.

The impact of narratives on consumer purchasing choices

Ephemeral content is a newer trend, but it’s already gaining popularity among social media users and marketers. Although Snapchat was the first to employ Stories as a format, Instagram was the one to popularise it, with over 500 million daily active users.

Instagram Stories material is often more raw and uncensored, allowing marketers to project a more realistic image. In addition, it will enable businesses to take customers behind the scenes and reveal how they function their work culture and the people that make their goods. All of this contributes to a genuine relationship with a brand.

These are the unique elements of social media that influence client behavior nowadays. However, as you are undoubtedly aware, each social networking site is impressive. Therefore, brands often question which social media channel they should prioritize. Let’s look at a few of the most popular platforms and see what sets them apart.

The most widely used social media sites

1. Facebook

Despite a slew of recent scandals and issues, Facebook remains the world’s most popular social media site (with about 1.7 billion members).

Because of the network’s size, you’ll be able to reach out to more individuals, but keep in mind that Facebook isn’t as popular as it once was. According to Edison Research’s Infinite Dial research from early 2019, 62 percent of 12–34-year-olds in the United States use Facebook, down from 67 percent in 2018 and 79 percent in 2017. This drop is especially significant since consumption among the 35–54 and 55+ age groups has remained stable or even grown.

Despite this, according to Business Insider, Facebook accounts for 50% of all social referrals and 64% of total social income.

According to DigitasLBi Commerce, Facebook influenced half (52%) of customers’ online and physical purchases in 2015.The corporation has recently attempted to repair its image by offering more control over advertising and data management.

2. Instagram 

Instagram is a fantastic platform for companies since it allows you to showcase your goods in various ways, including photographs, videos, Stories, galleries, filters, and more. It presently has a monthly active user base of over one billion people.

What’s nice about the platform is that it appeals to people of all generations and worldwide. For example, a business account is followed by 80% of Instagram users. Seventy-three percent of American teenagers believe that the superb method for marketers to contact them with new items or promotions is via Instagram.

Furthermore, the site makes buying easier by including shopping tags and checkout choices in the postings. One hundred thirty million Instagram accounts click on a shopping post every month to learn more about items.

3. The TikTok app

Although TikTok is a relatively young platform, its rapid development has made it a valuable source of brand recognition for social media users, particularly Generation Z.

TikTok currently has 800 million active users globally, with 41% between the ages of 16 and 24. So TikTok is the place to be if you want to attract a younger audience.

TikTok’s algorithm, which curates your feed based on your likes, is fantastic for specialized and specialty businesses. The algorithm will push your material into the feeds of your target audience, making it more straightforward for you to gain new followers.

Furthermore, TikTok has introduced additional options for firms to advertise on the app, allowing them to reach a wider audience.

4. Twitter 

For many users, Twitter, according to Hubspot, is a source of product discovery.

It’s a great location to ask for suggestions because of its speed and capacity to interact with almost everyone. According to SproutSocial, 53% of customers promote companies or items via tweets, with another 48% going on to buy those products or services.

5. YouTube 

There is still discussion whether YouTube is a social networking platform or more of a streaming or content platform. Nonetheless, it is one of the most widely used platforms.

People are increasingly using the site to search for product reviews. However, keep in mind that 80% of those who said they viewed a YouTube video relevant to a product they wanted to purchase did so at the start of their purchasing process.

It may be a very gratifying activity if you’re willing to put in the effort to create a YouTube video. Take a peek at the BonAppetit channel, which is affiliated with the same-named magazine. When the magazine’s total circulation does not surpass 1,600,000 copies per year, it has over 6 million subscribers and over 1,3 billion views.

Conclusion

As you can see from the facts and our everyday Internet experience, it’s difficult to deny that social media impacts purchasing choices. Many variables contribute to the influence of social media on client purchasing choices, including social proof, social media penetration, and the availability of online shopping.

However, making your company stand out on social media is challenging. You may do this by focusing on the right platform, developing unique social media marketing campaigns, and using cutting-edge technology.

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