A fairly new tool is now available to companies who wish to improve sales through various digital channels. That being said, social media remains misunderstood even today by many businesses, whether it be in terms of their promotional effectiveness our their ability to generate leads and sales.
Even companies that use social media as a selling tool often have trouble analyzing their effectiveness. Does social media generation meaningful revenue? The question is valid.
According to a recent study by e-commerce giant Shopify (who monitors the impact of social media on a daily basis), 1.85 percent of visitors coming through Facebook ultimately buy something. That number doesn’t seem very high, but the overall success of Shopify’s sales strategy will depend on a host of variables that go beyond the simple conversion percentage. The initial investment needs to be compared with the revenues that are generated.
Back to the initial question then, can social media become a significant revenue generator? It would seem that the answer is yes. That said, it will depend on the types of products and services offered; and it can be difficult to evaluate the actual impact. It should be noted that the price of the product will be quite important in determining how useful it is to sell through social media.
An optimized digital sales strategy still need to include various social media channels. These offer unique possibilities, especially when it comes to communicating with a targeted audience. After all, social media allows companies to assess their clients’ opinion about their products, and the message these clients are provide about your business to their circle of friends.
After having understood the importance of the tool, however, we must be capable of assessing its impact.
It can be complex to figure out just how successful a social media sales campaign is, or even how useful an ad putting forward a specific product actually is. Using a coupon or promo code that forces the user to interact with the ad allows us to quickly determine the conversion rate, but these tools are not really applicable to more expensive items. They work better with products that are less expensive.
In the end, it remains easier than we think to evaluate how effective our social media ads destined to grow sales are at converting users. How costly are these ads, and how many sales do they generate. There are many e-commerce platforms that can help in this regard.
It certainly is worth giving it a shot. Your ROI may just end up being positive, not to mention that you may increase your brick-and-mortar visits collaterally through an increased promotional presence.