Wednesday, May 11, 2011

Why Social Media Isn't Helping Online Retailers Find Customers?

This is the terrible thing someone could have ever done. Is kind of Like Mixed signals to entrepreneurs that are starting to use Social Media Marketing. Let me tell you is not that SMM is everything, but is a huge help when it comes to SEM (search engine marketing) the blogs that you write the Tweets that you send the specials that you have on facebook is a huge population that see's that and you are not reaching if you would only do Outbound advertising. Let's Face it, Social Media can help boost your position on the search engines and because the difference between the referrals from your work on SEO (search engine optimization) is more than the referrals coming from the SMM which is less doesn't mean that SMM is not working. We haven't find tools that can be more specific in the importance of SMM.



Just look at this, many of the people think that by just creating a Facebook account and a twitter they are doing social media. Just because you have a concentration in Marketing that doesn't mean that is going to work the same on SMM. Social Media is proven to be cost effective and with the right tools and the right person handling the social media efforts you will have great results.

Amplify’d from www.entrepreneur.com

Why Social Isn't Helping Online Retailers Find Customers

Online retailers in the U.S. reaped an impressive $176 billion in sales last year, an 11 percent increase over 2009. That pretty much establishes Web retailing as a legitimate tactic that should command respect from those who market and sell their wares exclusively within a brick and mortar environment.

But a new study finds that while online sales continue to compete well with physical retail establishments, most online merchants believe that social media-related marketing does little in the way of lifting sales -- calling into question what if any benefits businesses actually derive from participating in social media.

Sixty-two percent of online retailers say their return on investment is either unaffected by social media or that the benefits remain unclear, according to Forrester Research's The State of Retailing Online 2011: Marketing, Social & Mobile, which was released earlier this week to members of Shop.org, the online retail division of the National Retail Federation.

Although the online retailers polled say they are underwhelmed by the results of their marketing efforts within the social networking utility Facebook and microblogging platform Twitter, they do point to a number of benefits such as building brand awareness and improving customer service.

So, then, what works for finding customers?

A whopping 90 percent of online retailers said search-engine marketing was the most effective source used to acquire customers last year, while 49 percent pointed to affiliate marketing, or paying a commission for referred business. Further, 44 percent of online retailers cited organic search traffic as having helped them find customers, while email marketing and having a social network presence each garnered 18 percent. Ten percent of those surveyed also indicated that direct mail and sweepstakes were a help, whereas about 7 percent cited offline ads and remarketing -- that is, targeting website visitors who have previously visited your site with ads that appear across the Web. Finally, just 1 percent said microblogging -- a.k.a. Twitter -- helped them find customers.

And while online retailers say social-commerce marketing has been less than successful for their businesses, many claim they’ll continue to place more of their marketing dollars into social networking, citing the potential for improvements from those channels in the future.

Read more at www.entrepreneur.com
 

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