Brokers looking to establish a social media presence may take note of a recent PwC study that shows consumers are more inclined to research a product online than buy it online.
Social media such as Facebook and Twitter aren't replacing the in-store experience anytime soon, according to a PwC report on the myths of multi-channel spending released on January 28. In fact, only 7% of 1,333 Canadian consumers surveyed in PwC’s Multi-Channel Retail Survey reported using social platforms to shop.
However, the report shows consumers are using social media to engage with retailers and gain more information about companies' value propositions. Nearly half of those surveyed (44%) say they use social platforms to follow their favourite brands.
Forty-two per cent of Canadians surveyed said they use social media at least once a day; an additional 17% said they use these channels once a week.
“Social media is a daily part of life for many Canadians and with increased competition for market share and more U.S. retailers entering the Canadian market, companies now need a strategy that allows them to connect with customers directly online, while still providing a seamless in-store experience,” said Robert Scott, PwC's leader in national consumer, industrial products and services.
“It has become crucial for retailers to create a platform that focuses on engagement and conversation and puts the emphasis on building strong and lasting relationships with consumers.”
One counterintuitive conclusion of the report is that cost isn’t always top of mind when a consumer chooses between brands. Nearly three-quarters (74%) of respondents said price is important when deciding where to shop, but price was outranked by the following five factors driving a consumer’s decision:
• the products on offer,
• the ease of using the retailer's website,
• a good return policy,
• a sense of trust in the brand or retailer, and
• the stores themselves.
“For the savvy consumer, value isn't just about price,” says Scott. “Shoppers want the whole package; as a result, brand personality and access drive customer choice and ultimately grow revenue. This further emphasizes the need for retailers to make meaningful engagement with consumers a priority, both online and off.”
