Twitter for Business

We have discussed how important it is for retailers to be planning their holiday shopping campaigns now, and there is new evidence to suggest that incorporating Twitter and Facebook into those plans could pay off.  There are over 7.5 million Twitter users in the UK, and about half the population uses Facebook.  When a shopper lands on a retail website via Twitter or Facebook, they are less likely to make a purchase than someone who is directed through Google, AOL, or Yahoo, but the silver lining is that they spend more.  Twitter has the highest AOV, or average order value, of the bunch.

When a consumer is directed to a retailer via Facebook, whether from an ad or a friend’s link, they have a typical conversion rate of about 1.2 percent; and when they come from Twitter, it is even lower at 0.5 percent.  This is primarily because users come to Facebook and Twitter for social interaction and information, not ads and shopping.  Google, on the other hand, sends about 81 percent of organic search traffic to retailers.  But the AOV of Twitter users is over $122, while the AOV of other users is $116.58, down almost two dollars from last year. The fact that Twitter users are more likely to have a higher AOV suggests that they are influenced by onsite ads and, in essence, make impulse buys.

Facebook and Twitter do not pull great volumes of traffic to retail sites; in fact, they account for only 1 percent.  Retailers have found social networking sites valuable as a mode of communication and engagement with consumers, not as a traffic- or sales-driving force, but savvy businesses are using these forums to cash in.  Dell, for instance, provides followers with exclusive coupons, helping boost revenue by $3 million.  It works for small business as well; Teusner Wines, in Australia, began using Twitter to reach out to customers and create personal relationships.  They have found that more people are coming for winery tours, visiting their website, and asking where the wines are available for purchase.

Twitter doesn’t drive a lot of traffic yet; but it does have the ability to deliver quality connections and visibility, which is essential in the upcoming holiday season.