The True Effectiveness of Social Media in E-Commerce

By: Maria Pospelova E-commerce prosperity and the development of social media believed to be highly interconnected. Burberry is one of the examples of how social media involvement can be a great tool to rebrand and gain trust of a younger customer segment audience, and multiply profits. RichRelevance, one of the global leaders in omni-channel personalization, has challenged those beliefs. According to the recent study during which RichRelevance observed 700 million shopping sessions, purchases linked to social media do not even account for 1 percent of all online shopping sessions. The result of the study reveals the need of investments in social media platforms to be arguable, suggesting businesses not to put the most efforts into the development of their social media presence, as the method does not provide the high enough ROI in driving sales, in contrary to what many would assume. Meanwhile, Burberry is still actively releasing its collection updates on the social network websites, and J.Crew and Topshop are sharing its latest collections on Pinterest. There are hundreds if not thousand of books, and papers written on how important it is for businesses to be aware of its everyday practices and to pay special attention to customer service. As social media rapidly develops, the world becomes a smaller and smaller community. Online presence, and regular interactions with customers through social media can guarantee a positive revenue shift similarly as one unfavorable customer post online via one of the social media platform can destroy future revenue from current and potential customers. It has not even been a decade since social media emerged into our lives and completely changed the way we interact and build relationships both as human beings, and as businesses. Social media growth influences the way we search for entertainment and professional opportunities and, of course, impacts the way we shop and advertise. With this constant online sub reality evolution, only time will show whether the study’s verdict is accurate enough, and whether social media importance is overstated for those in e-commerce.                

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