Retailers increase use of video and social networking, Cisco Systems says

Online retailers are beginning to capitalize on alternative marketing strategies such as social networking and community functionality, according to the second annual e-commerce study from Cisco Systems Internet Business Solutions Group.

The study found that 67% of retailers provide a venue for customer reviews and ratings, 63% offer some form of online shop-with-a-friend feature and 41% provide moderated message boards. In addition, 86% of online retailers use some form of video during the shopping experience, up from 52% last year. Only 26% provide music, primarily clips of downloadable songs, Cisco says.

“As retailers look to provide a more interactive, engaging experience and as video becomes more ubiquitous, retailers will start to use a YouTube-type approach to connect with and get closer to customers,” said Mohsen Moazami, vice president of Cisco retail and consumer products. “We believe video is driving an increase in customer loyalty and profitability.”

Cisco rated Toyota Motor Sales’ Scion brand as the leader in engaging online consumers under the age of 35. Part of what sets Scion apart is its use of social networking and community participation, Cisco says.

Scion has a section on Scion.com devoted to registered users. “Scion.com also offers customers the opportunity to have a one-on-one chat with Scion customer experience representative,” Cisco says. “In addition, Scion sponsors a variety of special events for its customers throughout the country. Owning a Scion enables a buyer to become part of a community that feels like an exclusive club with a unique lifestyle that’s supported through Scion.com.”