Ecommerce businesses should concentrate more of their efforts on traditional online marketing tactics like search and e-mail than social media. That’s the conclusion of a Forrester study released Tuesday, which examined 77,000 online transactions made between April 1 and April 14. The study found that less than 1% of them could be traced back to social networks like Facebook or Pinterest.
Determining how web activity influences purchases is tricky; although many often credit the last touchpoint for a sale, Forrester found that half of repeat customers and a third of new customers touch multiple touchpoints prior to a purchase. As such, certain funnels, like display advertising and e-mail, may be undervalued.
Nevertheless, ecommerce websites still convert more highly than any other channel, accounting for 30% of transactions. Thus it’s smart for retailers to promote their domain names as much as possible.
Following direct visits, organic search and paid search are the two biggest drivers of purchases from new customers, accounting for 39% of new customer transactions. That’s because the web continues to be a useful tool for what Forrester calls “spear fishers” — consumers who know what they are looking for and find it through search.
For repeat shoppers, e-mail is the most effective sales influencer: Nearly a third of purchases from repeat customers initiated with an e-mail. As such, businesses should up their efforts to collect e-mail addresses, and tailor their e-mail marketing messages to each recipients’ device and prior purchase behavior.
Social media’s potential as a shopping portal has yet to be realized. Less than 1% of transactions from both new and repeat shoppers could be linked to social networks, Forrester found. That said, the researcher believes social media can still be a powerful marketing tool, and that social media’s influence on purchase behavior likely can’t be measured in the 30-day attribution window the report examined. Forrester also asserts that social media is a bigger sales driver for small businesses, which were not included in the study.
Social networks may one day figure out a way to drive more purchases, but for now, retailers seeking higher sales conversions should concentrate on the products that have longed performed for them — search and e-mail marketing — as well as in the marketing of their URLs.
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