Impact of social media on buying behavior of customers

According to a global survey, 94 percent of the social media marketers used Facebook to promote their business while another 76 percent used Instagram for promotion of their brand. The massive user base of these platforms enables brands to reach billions of potential customers effortlessly. Improved traffic, lead generation and a growing fanbase are some of the reasons why marketers find social media campaigns enticing. According to a Gartner report , companies are spending an average of 13.5 percent and 8.6 percent of their budget on digital marketing and paid search marketing respectively. All of these makes sense from the fact that in 2020, a little over 3.6 billion people were using social media worldwide, a number that is projected to reach almost 4.41 billion in 2025. . On average, internet users spend 144 minutes per day on social media and messaging apps, an increase of more than half an hour since 2015 and marketers want a piece of that cake.

Statista. (July 30, 2020). Social media advertising spending in selected markets worldwide in 2020 (in million U.S. dollars) [Graph].

The meteoric rise of platforms like Facebook gave rise to a new form of marketing : social media marketing. Brands use social medias to connect with the customers and increase sales volume and website traffic. They post relevant content on their social media profile in an effort to engage with customers and serve relevant ads to them. The versatility of the medium gives the marketers an array of opportunities to communicate with their existing and future customers. Social Media encourages customers to share their shopping experiences with their friends. Regular updates in social media platforms are being made to integrate shopping features. This will encourage potential customers to turn into real shoppers by cutting down the inconveniences. Marketers are continually adapting their strategies as consumers are preferring an online shopping experience. The onset of the pandemic has catapulted the influence of social media on the buying behavior of consumers. The product information, reviews and feedback have a significant impact on the buying decisions on the potential buyers. Social media provides a two-way communication between the buyer and the brand which was non-existent. As the digital landscape grows more vast each day, so has the reach of the social media networks.

Types of Customers

As customers shop online, they are continuously sharing their shopping journey with their online acquaintances. Brands have to face a variety of customer social media, they can be broadly classified into:

1. Venting customers People of this category are very vocal about their expectations and opinions of the brands. Their posts engaging with the brands conveys extreme dissatisfaction or enthusiasm. Satisfied customers are one the major sources of popularity of the brand.

2. Passive customers Passive customers normally have a laid-back attitude towards a brand. They do not engage with the brand on a regular basis,

3. Customer advocate They are what we call brand evangelists. They drive the brand awareness and ultimately sales among their followers by advocating for the product/service. They share content produced by the brand and show an unfettered enthusiasm and reinforce the brand personality.

4. Collaborative customer Collaborative customers give constant feedback and ideas to the brand to improve their product.

5. Future customers This group of people are the most essential from a brand's point of view as they are potential customers. The social media presence and sentiments of the people determines if they want to be involved with a brand.

The Road to Evolution

In recent years, social media platforms have evolved from a place where people discover new products to a place where they can actually buy them. In the recent wake of the pandemic, there has been a paradigm shift where brands are integrating social media platforms in their e-commerce profile. Facebook and Instagram have reinforced this by adding 'Shopping' feature to their respective platforms. Companies like Target and homegrown Tata Cliq have leveraged the Shoppable posts feature to eliminate the hassle of going to their website. Customers can purchase the products they see by two taps. As brick and mortar stores remain closed, shoppers have shown an increased propensity to buy online. Brands have expanded into influencer and recommendation profiles to increase brand visibility. 92% of millennials and 97 % of the Gen-Z acknowledges that social media heavily influences their shopping decisions. They are browse Instagram and YouTube to find out about new products. Parents with kids are influenced by their kid's social media habits. Social media shoppers are prevalent across al generations. Social media provides an interconnected experience to the shopper by being a one-stop destination for all the their needs. The motive of brands today is to delight the customers with an incredible shopping experience and make an impact on them. A practical example of a brand leveraging social media is Snickers. Snickers rolled out its new product offering - Snickers Peanut Brownie. The brand created a microsite and devised a scheme where the first 1000 consumers would receive a box of the candy when it releases in January 2021. Following that campaign, Snickers turned to Instagram and Twitter for advertising its new offering. Fans could visit their official handles to get a first look at the chocolate bar. This move boosted the engagement rates. Similarly, Tata Cliq had created a virtual store on their Instagram pages where customers could browse through various brands and offerings

As brands are racing to optimize their businesses for multiple channels, the importance of social media as an essential customer touchpoint has come to the forefront. By providing relevant information and connection with the brand and its products to the customers, businesses can convey their vision, mission and goals to their existing and future customers. Many of the platforms are about to see an increase in spending from both parties, that is the brands and the consumers. A high percentage of marketers have increased their digital spending and focused on social media platforms and customer acquisition due to the significant effect of social media on the buying behaviour.

iVend Retail. (February 19, 2019). Frequency of online consumers who have made a purchase based on online or social media advertisements as of January 2019 [Graph]. In Statista. Retrieved November 28, 2020, from https://www.statista.com/statistics/303726/social-media-targeting-effectiveness/