30-second summary:
- Due to the rise of online shopping and the amount of time people spend on social media, social media impacts consumer buying decisions.
- Consumers who are influenced by social media are four times more likely to spend more on purchases.
- There are four ways in which social media has a direct influence on purchase decisions.
- Social media and online shopping shortened the customer journey.
- Social media amplified the impact of social proof or word-of-mouth.
- Social media influencer marketing is one of the most effective ways to reach your audience.
- Stories and ephemeral content are a new way to connect to your audience.
- Every social media platform is different and can be useful for different goals.
A large share of purchases are made online nowadays and in 2020 this number has grown significantly thanks to the lockdown. As the number of internet users increases and tech companies develop more ways to integrate the online world into shopping, online retail is expected to grow exponentially. Logically, many consumer buying decisions are made online as well, and where do people spend most of their online time — on social media.
According to GlobalWebIndex[1], 54% of social media users use social media to research products and 71% are more likely to purchase products[2] and services based on social media referrals. I bet you yourself made a purchase decision based on what you saw in your feed at least once, be it a post from a friend or an ad that convinced you.
It’s hard to say exactly how much social media influences customers, not just what they buy, but their consumer habits in general. Social networks changed the way we promote products and even gave us new ways