Retailers overlooking power of social media

New research shows that many retailers are overlooking the potential of transforming their online stores through the integration of social media. Retail analysts, Verdict, in this report, suggested that many retailers see e-commerce and

social media as separate forces and are missing the rewards that could come about by integrating the two.

Charlotte Woods, analyst at Verdict, said: “Most retailers have recognised the value of social media, but very few have realised its potential to benefit their online stores. By viewing and running the two operations separately, retailers simply aren’t realising the full power of social media. Retailers have the ability to attract increased levels of traffic to their online stores by using social media to create entertainment destinations which consumers can get excited about. As a result, retailers have the ability to create retail theatre online.”

Social media can really enforce a brand identity. If retailers can create a lifestyle through social media that consumers can identify with, they will undoubtbly spend more time on the site and make more purchases.

Ms Woods continued: “Retailers across all sectors should not underestimate the potential of creating online retail channels dedicated primarily to entertainment. The concept would work particularly well for entertainment retailers, which could use interviews with authors and actors in the content of their homepage."

She added: “This sort of strategy will become increasingly important as competition continues to grow. Retailers will therefore have to work harder to engage customers, and integrating social media with their online stores could prove lucrative to those that get on the front foot.”