This Is How Retailers Are Using Social Media In Stores To Drive Sales

Social networks do not drive a lot of e-commerce sales directly (see chart, right), but they do influence shoppers by helping them discover new products to buy. Now some retailers are leveraging that influence to drive sales in stores.

Nordstrom recently announced that it’s installing video monitors in more than 100 of its stores to display products being shared on social shopping app Wanelo. “It’s a purely customer-driven strategy,” said Bryan Galipeau, Nordstrom’s social media director, in a press release. “We take a snapshot of that trending category once every week, and we will then match that up against our inventory and what’s available in those stores so we’re providing a good customer experience.”

Brands such as Sephora and Lululemon are now using Wanelo and other social networks to keep tabs on women’s fashion trends. A recent report from BI Intelligence noted the following stats about how social drives sales:

  • Facebook influences 30% of American women when deciding what professional clothing to buy. Pinterest influences 22%, according to a joint study by Netbase and Edison Research.
  • When it comes to clothing for a special occasion, Pinterest influences 28% of American women and Instagram influences 17%.

In the BI Intelligence report, we analysed the data and spoke to leaders in the social commerce space to understand how their companies are adding value at different stages of the retail and e-commerce “purchase funnel,” the long process that ultimately leads to a retail sale.

Some of the latest trends include building social networks around e-commerce platforms, partnering with brands, and otherwise transforming social commerce’s strengths for Pinterest-style digital window-shopping. The report looks at the most important way retailers are leveraging social engagement to drive purchases.

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Here’s how social commerce companies are driving sales:

In full, the report:

To access the report and BI Intelligence’s ongoing social media and e-commerce coverage — including charts, data, and analysis — sign up.

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