Is social media the key to bigger orders?
Are you making the most out of social media for your business? You could earn twice as much on the average order through Pinterest, over Facebook, new study suggests
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Marketing yourself and your business can be tricky, and time consuming. The truth is no one knows your audience like you. However, if you're looking for new ways to shake up your strategy, a new study by Nosto may shed some light on new avenues for success.
The study uncovers the true value of Pinterest and Instagram, showing that whilst they may not provide volume in term of traffic (compared to the liked of Facebook), they might encourage customers to spend more per order. While they drive relatively small amounts of traffic, Pinterest and Instagram deliver the highest average order values from mobile devices for large online fashion retailers – bigger than Facebook. And overall the mobile order values delivered via paid social sources (such as ads) are higher than those that come via unpaid activity.
Earlier this year, the AI giant Nosto, revealed a shift in shopping habits that saw customers spending more via mobile shopping than through desktop. The company's studies' prove valuable for anyone looking to grow their business. In this study, Nosto tracked the source of mobile traffic and orders to large, enterprise online fashion retailers based on the ‘last click’ (where a visitor came from prior to landing onto a retailers’ site from both paid
and unpaid traffic sources). It reveals that Pinterest and Instagram deliver the highest average order value (AOV), way ahead of Facebook, on both paid and unpaid social media. The AOV on Pinterest is $154 (paid), unpaid $68, while on Instagram paid AOV is $103, unpaid is $65. In contrast Facebook AOV is just $69 paid/$58 unpaid.
However, Facebook has the highest conversion rate on social media - 1.24% unpaid, 0.73% paid. Given that it is also the biggest driver of social media traffic to fashion retail, Facebook generates more orders overall, but they are smaller on average. Snapchat trails the other social networks in both conversion rate and AOV. This is most likely because it is more of a top of the funnel discovery channel where consumers go
for inspiration rather than immediate purchases. Overall, average order values on unpaid social media activity are lower (for example less than half as much on Pinterest), showing that when consumers click through from paid social media and make a purchase, they tend to buy more. However, unpaid conversion rates are higher suggesting that consumers from these sources are more committed to making purchases and more likely to buy overall
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