An analysis by Yes Lifecycle Marketing of more than 200 retailers across five major categories found 91 percent now have a presence on two or more social channels. But follower growth rates for the two most tapped channels — Facebook and Twitter — are both slowing down.
Only retailers in the big box and home goods categories saw significant Facebook follower growth rates.
Michael Fisher, president of Yes Lifecycle Marketing, said in a statement that while the focus on Facebook made sense years ago, follower growth for that channel has plateaued for most retail categories.
"The answer isn't necessarily to shift resources, but rather turn a serious eye to audience preferences and return on social investment," said Mr. Fisher. "Social media has moved past the experimental phase, and retailers must know their audience and know the ROI of their efforts."
Across all retailers, 98 percent of retailers were present on Facebook; 91 percent, Twitter; and 79 percent, YouTube. Only 43 percent engaged with their consumers via Instagram, despite its 237 percent average follower growth rate.
Source: Nordstrom on Instagram
PwC's Global "2015 Total Retail Survey" from earlier this year found social communication between retailers and consumers having a notable impact on shopping for the first time. When asked if their interactions on social media had led them to buy more, a total of 62 percent of respondents answered either "Yes in most cases" (19 percent), or "Yes in some cases" (43 percent).
PwC's survey also found that virtually all consumer and retailer social media engagement saw an increase from previous years. Among areas notably expanding:
- Thirty-four percent of consumers followed their favorite brands or retailers on social media;
- Twenty-eight percent found brands they didn't know;
- Twenty-seven percent researched a brand using others' feedback;
- Twenty-three percent provided comments about their experiences with products;
- Twenty-one percent viewed videos about products.
Still, PwC noted that only 15 percent of respondents worldwide either "liked" products or shared them with others; 11 percent "checked in" at stored via social media; eight percent connected with people who liked the same product they did; and seven percent purchased directly via social media.