Social media helped retailers and brand manufacturers gain higher conversion rates over the 2010 holiday season, says ShopIgniter, which sells software that helps web merchants generate revenue through social networks. More than 100 companies use ShopIgniter software, the company says.
Between Thanksgiving and Christmas Day, ShopIgniter clients with Facebook stores experienced conversion rates that were twice as high as for their clients’ e-commerce sites. Moreover, the value of transactions conducted in Facebook stores were 8% to 10% higher than for transactions on the e-commerce sites.
ShopIgniter data also show the power of friends in purchasing decisions. Customers who came to a retailer or to a purchase decision after being referred by a Facebook friend converted at a rate 15% higher than for other shoppers this holiday season.
"Progressive retailers and brand manufacturers are leveraging the dynamic nature of social networks coupled with our broad set of solutions to drive additional revenue," says Matt Compton, CEO of ShopIgniter. "Until recently, measuring tangible return on investment from social media efforts has been impossible. But with advanced technology built from the ground up to be social, our customers are seeing tremendous results."