Partner Article

Retailers missing sales from army of advocates

Customer-led social sharing can help retailers derive more value from purchase process

With the general retail outlook remaining gloomy, Have You Seen, part of Traffic Junction, is leading a call to the industry to encourage retailers to look beyond the confirmation page in order to maximise the return on investment from their marketing efforts. Instead of seeing the checkout screen as the end of a purchase cycle, Have You Seen argues that the initial customer purchase should be viewed as a launch pad for further sale referrals. By failing to continue the marketing cycle through checkout and beyond, thousands of retailers are losing out on valuable incremental sales every single day.

In the UK, where social referral marketing is now starting to gain pace, retailers do not have the tools they need to empower the army of advocates (i.e. newly satisfied shoppers) they are investing in through their marketing spend. Have You Seen believes that retailers are missing a significant opportunity to spread the word about their products and services by capitalising on the goodwill a customer feels straight after completing an online shopping purchase.

It is well documented that referrals made by trusted friends convert much higher than customers acquired via less personal channels. This suggests that a carefully timed and well-placed incentive to recommend a product would drive interest and create positive exposure for the retailer’s brand. These recommendations, which can be tailored to be shared via social media, publicise products purchased by existing customers to potential customers - the ultimate aim of any social marketing campaign.

Dan Pearce, director at Have You Seen, leads this call to the retail industry:

“Retailers work hard to offer quality goods and excellent customer service, but too many aren’t encouraging their own customers to share experiences with their friends and family. Retailers should focus less on cost of acquisition and more on cost of access to the customer’s social network. It’s one of the most natural things to make recommendations to the people closest to us. Research by Have You Seen has revealed that 45 per cent of Brits have already recommended products or services online via email or social media, proving that this is something that is already part of everyday life. Equally, we’re more likely to buy a product that someone we trust recommends to us. This is a basic concept which, if implemented, could make a big difference to the retail industry.

“Many retailers are still scratching their heads regarding social media and the ways in which they can use it to their advantage. The answer lies closer than they think – with their customers. Considering the power behind ’word of mouth’, they should encourage and incentivise satisfied customers to tell their friends and families about new purchases through their own social networks. They’re likely to be advocates of the product having just bought it - and this is the opportune time to invite them to share this.

“This is a great way for smaller retailers to get involved in affiliate marketing, but by incentivising their customers as opposed to third party businesses. For larger retailers who already work with an affiliate network, this provides a good opportunity to drive more incremental, referred sales.“

This was posted in Bdaily's Members' News section by Dan Pearce .