Power of social media in retail
- Written by Andrew Blair, Analyst at Capterra
What does the end-to-end customer journey look like online for consumers across various generations and what does an increasingly digital world mean for online shopping?
Capterra's Elusive Online Consumer study analysed the online shopping behaviour of more than 5,500 consumers across 12 countries globally, including nearly 500 Australian consumers to determine what affects the end-to-end customer journey from initial search to purchase.
Gen Z gravitate towards visually engaging, short-format content
With the digital revolution becoming more rampant and accessible to younger generations, Gen Zs are exposed the most, making them consider other factors more when shopping online. Multiple methods are utilised by Gen Zs, including search engines (76%) and social media (47%) in seeking new products or services. Social media is most popular among Gen Zs, particularly TikTok. Millennials, on the other hand, visit Instagram the most, while older generations prefer Facebook when searching for new products and services.
The findings suggest that Gen Zs are influenced beyond low price points, as they gravitate more towards visually engaging, short-format video content on social media platforms for product discovery or may be drawn to authentic user-generated content. When it comes to exploring or switching to other brands, Gen Zs shared they are influenced by online advertising (32%) and social media recommendations (42%).
Buying journeys end on individual retail websites despite social media popularity
Further analysis of final purchasing channels where consumers typically end up making purchases also shows a difference between age groups. Predominantly, 70% of Australian online shoppers say they typically end up purchasing from individual retailer websites or apps. However, there are significant disparities between age groups for respondents who say they typically end up purchasing from eCommerce marketplaces and department store websites. As you can see in the graph below, older generations were more likely to cite eCommerce marketplaces, such as Amazon, than other generations.
Optimise a social media marketing strategy
The popularity of social media platforms among Gen Z, and even specific platforms for each generation, can be a great avenue for reach and organic discovery of new products and services. Additionally, focusing on a social media marketing strategy motivates younger generations to try new products or services beyond price. However, due to low conversion rates on social media platforms, businesses should place more emphasis on driving conversions by funnelling leads to their individual retailer websites.
By Andrew Blair, Analyst at Capterra
