How Social Media Is Influencing Consumer Buying Decisions

Social media is effectively playing the role of a sales rep for brands and there are many statistics testifying to this.

• According to Forbes, social media posts influence 81% of consumers’ buying decisions. 

• Stackla says that social media photos from other consumers have inspired 66% of consumers to purchase from a new brand. 

• Also, this study says consumers are 71% more likely to buy a product based on social media referrals.

As you can see, the significance of social media in business is enormous. Business owners are making sales and consumers are getting what they want without hassle. And one thing that has made this possible is online shopping. 

Online shopping has taken over the market scene. It has become the new normal so much so that if you talk about buying a product, you will get a suggestion to ‘order it’.

Why is this? And how has social media changed consumer buying behaviour? Let’s find out. 

How Social Media Is Influencing Consumer Buying Decision 

• Comfortable Shopping Experience

Online shopping is one successful social media strategy that brands are jumping on nowadays. Gone are the days when you only got to see a new product via a newspaper or TV ad. These days, you can window shop right on your bed because adverts pop up on your timeline everytime. 

Sprout social, in a survey, noted that 65% of people surveyed have already made purchases directly through social media. This means that consumers don’t even have to take time off their busy schedules to visit a market. They can make every purchase transaction on a spot.

Particularly, Instagram shop and check out is making buying and selling simple. All you need to do is visit the brand’s shop, check their product catalogue and make a purchase from the app via Instagram check out. 

This comfortable and time-saving process has no doubt inspired consumers to make purchases, even when they never planned to.

• The Social Proof Factor

When people are looking to buy something online, one thing they tend to do before making the purchase is read reviews. People don’t need to depend on their instinct to decide if a product is great or not. Just a scroll through product reviews from other consumers will tell them all you need to know. This is why there is a 133% increase in conversions when online shoppers see positive reviews before purchasing.

It also helps that consumers on social media are not quiet about their purchases. They want to tweet or make a Facebook post about how the new dress they got from a store fits well.

Some brands also post user-generated content and this further convinces their target audience that a product is good. 84% of millennials say user-generated content has some influence on what they buy.

• Discounts and Promotions

Another major driver of consumer buying decisions is special deals and giveaways that brands host. When there is a chance to buy a product at a discounted price, consumers are more likely to make purchases.

A paper on the Impact of Sales Promotion on Consumer Buying Behavior shows that:

“Analysis through correlation and regression modelling helps to conclude that buy one get one free, price discounts and coupons are positively related with consumer buying behaviour…”

In simpler terms, discounts and promotions actively push consumers to buy products.

• The Effect of Social Media Influencers

Influencers are popular people on social media who have gained the trust of their followers. Influencer marketing has been a vital accelerator of social media marketing, which is why about 95% of marketers have subscribed to it. Since influencers have a large following and more views, they can reach more people.

Influencers usually create compelling content with good captions about a brand they love or are in partnership with. With these Influencer posts, shoppers are most likely to visit an online store and buy a product because someone they trust recommended it. 

Many Celebrities and famous people usually work as influencers. Because of their large following and loyal fanbase, they can easily influence consumers’ buying decisions. Just like reviews, an endorsement from someone people consider a ‘media god’ spurs many people to buy a product. And sometimes, consumers seek reviews and guidance from influencers if they are doubtful of a product.

For example, if a fashion influencer wears a brand and gives good reviews about the clothing, their followers will consider buying that product. Also, some YouTubers, say a tech YouTuber, may put up a video reviewing a gadget. Whenever consumers want a similar gadget, they will go on YouTube to search for reviews and watch the video. This will most likely influence their purchase.

• Increased Product Awareness

From social media advertising to product recommendations by friends and influencers, these days finding a product is almost effortless. Products and Services are only a Google search away.

Companies continuously put out information about their products and services online to increase product awareness. Since consumers can find what they are looking for without stress, it becomes easy to make purchases.

• Better Brand-Customer Relationship

Today, almost every brand an account across different social networks. This has put a face on brands and even made customers more confident in a brand. Consumers can interact with brands by engaging in their posts through retweets, likes, comments and shares.

Social media has broken the barrier of communication between brands and consumers. Customer care services are much better and easily accessible. If a consumer has a problem with services rendered, they can easily access the brand through their DMs.

Brands can also share valuable tips on their products and services to help customers better understand and use them. Meanwhile, by engaging their audience in this way, these brands build a loyal customer base.

• The Power of Social Media Trends

Social media is always alive. This is mostly because there’s always one thing or the other ‘trending’. Usually, topics that drive conversations pop up, and with engagements from users, the algorithms shoot these topics up. These topics will appear more on timelines and news feeds and capture people’s interest. 

The takeaway? Trending topics about an amazing product or service can influence consumers buying decisions.

How Brands Can Leverage Social Media Influence on Consumer Buying Decision

Some online businesses are lagging in sales because their strategies don’t entail realistic ways to attract customers. Here are some tips on how brands can wield the effect of social media on consumer’s purchases:

• Create a user-friendly shopping website that is easy to navigate. This will give shoppers a more comfortable shopping experience.

• Post user-generated content and good customer reviews to convince potential customers.

• Run discounts, promotions and special offers to encourage consumers to make purchases.

• Incorporate Influencer marketing into your business strategy so that your brand can gain more customers.

• Build a good relationship with your customers. Reply to DMs, like and comment on customer’s posts.

• Have an amazing customer care service that replies quickly. Use chatbots and quick reply features on social media apps.

• Ensure that your product catalog and product details are accessible to the public.

• Pay attention to what people are saying about your products and understand consumer buying behaviours. This will guide you through modifying your strategies for better results.

Grow Big on Social Media

It is no longer a secret how social media influences consumers to make purchases. A range of factors like easy shopping, social proof, influencer marketing and excellent brand-consumer relationship are responsible for this. To grow big on social media, implement these factors into your brand marketing and see your business take off.