Posted on | June 28, 2012
Written by | Ian Griffith
I was recently asked what advice I would give an audience of wine store owners who want to use social media to increase sales. My response was not to bother, which reflected the experience of the retailers in the room, none of whom had an eCommerce website. My answer shocked me a little, as I’ve had great experiences using social media, but from a practical perspective, the measurable impact of social media for a retail store is pretty small. For a store with no experience selling online there are several more significant steps to take that will produce sales.
A recent Wired magazine article projected that 80% of U.S. companies will participate in social media marketing this year. The article likens the current climate to the early days of TV where companies are experimenting with the platform, but aren’t seeing or expecting to see revenue from it. This lack of accountability is partly due to the fact that social media marketing can be notoriously difficult to measure, and are unpredictable in their impact.
A review of the web analytics for the top 40 retailers on the BevSites eCommerce platform gives a pretty consistent view of the impact social media has in driving referrals to the store website. This group of stores includes several multi-million-dollar websites that are pretty sophisticated with their marketing. Yet, only 10 stores were able to generate more than 1% of their referrals from social media.
It could be argued that the benefits of social media don’t show up with analytics tracking. New customers might be influenced by reviews or a post from their friend’s Facebook news feed, but the transaction or even the visit to the website might not follow a measurable path from social media. It is also true that the impact of social interactions accumulates over time and can have a multiplier effect.
The following are the different levels of social engagement we see for wine stores:
In deciding your level of participation, you want to look at it in the context of your overall marketing strategy and how social media fits into that plan. Who are your customers and where do they hang out? Also important: who is going to feed the beast? It is rare for a store owner to be drawn to social media and have the capacity to feed it while juggling the priorities of the store. It is more common for stores to set loose salespeople who are already active online and gravitate to social media to express themselves.
To comment on this column or to learn more about how Beverage Media can help with
a website for your store, visit BevSites.com or contact Ian Griffith at 617-864-1677.
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