Retailers See Digital Media Value Outside Store
Retailers are more inclined to see digital media as providing value in driving store traffic than in improving the in-store experience,
according to a new study from
RSR Research.
New Digital Media Recognized as Traffic Driver
Results from "The Customer-centric Store 2010" indicate that a majority of retailers view new digital media (i.e., social networks and smartphones/PDAs) as helpful in driving store traffic. Twenty-five percent of retailers see having a presence on social networks as providing a lot of value in driving traffic to the store, while 57% see it as providing some value. Only 18% see a presence on social networks a providing little or no store traffic value.
Retailers are less enthusiastic about the value smartphones and PDAs provide to driving store traffic, but almost half still see at least some value (48%), while 17% see a lot of value. One-third (35%) do not see any significant value from smartphones and PDAs in driving store traffic, however.
New Digital Media's Perceived Value Drops in the Store
Retailers are far less likely to see new digital media as offering value once the customer is in the store. Ten percent of retailers see having a presence on social networks as providing a lot of value in the store, and 33% see some value. Almost six in ten (57%) see little or no in-store value from social media.
In a reversal of how retailers see the value of new digital media in driving store traffic, they are slightly more positive about smartphones and PDAs once a customer enters the store. Twelve percent see smartphones and PDAs as providing a lot of value, while 37% see them as providing some value. Just more than half (52%) see no value from smartphone and PDAs in the store.
Retailers Miss In-store Opportunity
RSR Research advises retailers that both social networks and mobile devices provide substantial in-store value. Customers already regularly use mobile apps to reference product information and price, and as these apps become more refined, low-cost retailers in particular will find themselves even further squeezed in price competition.
In addition, RSR Research says as the proliferation of social networks enables shoppers to preview what a particular purchase might mean in their particular social circle both before and during the shopping process, a brand’s ability to connect with that shopper may make the difference in converting them to a loyal customer.
Social Media Aids Customer Acquisition
Social media networks are successful tools for acquiring customers,
according to the “State of Inbound Marketing Report” from internet marketing firm
Hubspot.
More than four in 10 companies overall have acquired a customer from four major social media channels. Forty-one percent of companies have acquired a customer from both Twitter and LinkedIn. That figure rises to 44% for Facebook and 46% for a company blog.
About the Data: RSR conducted an online survey from March?May 2010 and received answers from 103 respondents.
