Conversion Factor

26 09 2012

Just when you think you have all this futurecasting under control, social media presence cemented, and mobile devices charged and ready to go, along comes a report that says that less than 1% of online sales are influenced by social media.

Gulp. How can that be?

It is admittedly very difficult to track such influence, regardless of the source. While the study examined 77,000 online transactions during early April 2012, it had to rely on sophisticated tracking the grabs click-throughs like where the shopper came from immediately prior to the purchase. The study concludes by recomending “traditional online marketing tactics” be relied upon more than social media.

First of all, allow me a brief chuckle while I process the words “traditional” and “online” in the same sentence. That’s another way of saying organic and paid search, as well as email. Email? Who does email anymore?

My, we have come a long way, baby. How many years has it been since Amazon opened? (It was 17 years ago, in case you didn’t know.)

But what the study does not begin to include is the cumulative effect of consumers having been exposed to ads, wherever they may be. Older “traditional” media are likewise not included (how could one begin to tabulate whether the shopper just put down his Sunday newspaper?), nor have we included the soon-to-be-introduced concept of live television shopping (see it, click it, buy it). And, of course, nor does it include seeing all those pesky ads down the right-hand pane in Facebook, the images on the corporate Instagram account, the cool pics and information available on the company Pinterest page, or the last month’s worth of branded tweets.

In other words, it was a noble effort to understand online buyer behavior, but there’s just too much else going on that we cannot begin to think in isolation. Search (both organic and paid) may still reflect a high degree of consumer purposiveness (after all, you were Googling it, right?). Website traffic may still be driven by shoppers seeing your URL plastered somewhere. But so, too, are consumers driven to your social media sites.

If anything, the high road is one paved with a durable macadam of old and new, and everything in between.

Which, of course, is another way of saying “everything in moderation.” Don’t put all of your advertising eggs in one electronic basket, or you might miss the sale. Because at the end of the day, it’s all about converting people, getting them to become your customer, and keeping them coming back for more. Studies like this one need to be viewed through the proper lens. And when you do, you will see that the futurecast may be complicated, but with proper planning you really can dress for this weather.

Dr “View Cart” Gerlich

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