Share of Social Generated E-Commerce Revenue and Sales

Retailers and brands are therefore increasingly focusing their attention on social commerce.

Overall usage on social media platforms is exploding. Millions and millions of consumers are expressing likes on Facebook, tweeting about products on Twitter, and pinning on Pinterest every single day. Many owner/managers look at these numbers differently either clear understanding or lack thereof ‘how to translate online traffic into tangible numbers to their online platforms and then into sales’.

Social Commerce Revenue ImgA

Source : March2013-April2013

What you don’t get are any sales. And sales continue to be the only ROI metic which really matters in business.
Engagement is is banded around online, and working with many craft and food business who actively engage online through many sites with their followers, I have begun to question the logic in investing money in an army of ‘Fans’ who couldn’t give two hoots about the brand and have very little intention to engage with you to purchase your products.

Social Commerce Sales ImgA

Engagement – ‘Likes’, shares, comments.
The problem with engagement? The metric becomes the goal and, quite understandably, stressed-out social media managers focus on new likes, tweets, pins or what ever tickles their fancy (KPI’s) rather than delivering real value. Hence you get pictures and comments of animals, social events. Cute kittens and a disproportionate interest in how audiences are going to spend their weekends.

Social Commerce Sales Revenue Comparison

Audience size doesn’t always translate into more revenue. Smaller brands tend to have bigger audiences and I think this is due to better communication strategies
How is social media ROI measured?
Often times you as the business owner focus on shiny numbers like Likes and Followers. Numbers that are definitely part of social media measurement but does it reflect on the bottom line, money in the till at weeks end?  The fun part is when the accountant asks:
“So now, how can we turn all those likes into tangible sales?”