New research shows that retailers and brands that embrace reviews and recommendations into their online retail strategy on average see a sales uplift of some 18 per cent.
This uplift is worth a potential £8bn to UK retailers, on top of the UK’s existing £44bn of online retail sales.
But what exactly is social commerce Think of it as a mash-up of social media and e-commerce; it’s the best of both and a buzzword for 2011.
“Social commerce should now be a core strategy for every retailer, one discussed right at the top of the company – or it will, eventually, have serious consequences for the bottom line,” says Richard Anson, CEO and co-founder of Reevoo.
“With average disposable income likely to become tighter and tighter, there is no room in anyone’s wallet for “buyer’s remorse”; people will increasingly adopt a buying process that minimises the likelihood of such regrets.”
Of the 18 per cent total uplift possible by adopting social commerce to your business, 11 per cent is due to conversion improvements, five per cent to increased average order value and a further two per cent to repeat visitor uplift.
The data, from social commerce company Reevoo, shows how, when reviews and recommendations are read by consumers:
- Conversion rates increase by 177 per cent
- Average product purchase value almost doubles
- Visitor return rates rise by 13 per cent
“The magnitude of the sums involved makes it essential that retailers start to regard ratings and reviews as an essential and strategic part of their eCommerce strategy,” adds Richard Anson.
“There is an opportunity here for a step-change in the mindsets of retail marketing directors and boards, through a decision to put trusted reviews at the centre of their marketing strategy rather than bolt it on as an afterthought.”
Want more Check out Reevo’s guide, The Six Essentials of Social Commerce (which, thankfully, it isn’t too salesly – download it below).