The Influence of Social Media on consumer shopping behavior

Social media has become an integral part of our modern lives, impacting various societal domains. They significantly influence how consumers shop and make purchases. Platforms like Instagram, Pinterest, and TikTok serve not only as sources of inspiration (a substantial number of consumers make purchases based on recommendations) but also as direct sales channels where influencers, advertisements, and user-generated content strongly affect buying decisions.

Through targeted advertising, online community-building, shoppable videos, and livestreams, the gap between discovering products on social media and actually purchasing them is continually narrowing. The result? An interactive shopping experience that seamlessly aligns with the needs and preferences of the modern consumer.

However, to provide such an experience on social media, retailers must have the right tools. A modern ERP system is essential for delivering a strong omnichannel experience that maximizes the power of social media marketing. In this article, you will learn more about the influence of social media on customer shopping behavior and discover how social media can be effectively used to increase conversions and sales.

Does Social Media influence buying behavior?

Social media significantly impacts the buying behavior of modern consumers in various ways. Reviews and recommendations on platforms like Facebook, TikTok, or Instagram create social proof—a strategy that leverages shared experiences to foster a sense of authenticity and reliability, encouraging consumers to make purchases more quickly.

A strong presence on social media often boosts engagement through email. Prospects and customers are more likely to open emails containing interesting offers and product suggestions. Social media, particularly visually-driven platforms like Instagram and Pinterest, serves as a creative showcase, helping sellers highlight products and evoke emotions and desires that increase the likelihood of a purchase. Visual content has the power to create an emotional connection between the seller and the buyer that transcends mere functionality.

Examples of successful sales channels via social media include:

• Instagram Shopping: This allows brands or sellers to create a digital storefront. Users can purchase products directly from the app.
• TikTok Trends: These showcase ‘viral’ trends that often lead to a sudden spike in sales of specific items, such as clothing or gadgets featured prominently in popular TikTok videos.
• Facebook Marketplace: This enables users to easily buy and sell products locally. Marketplace is particularly effective for trading second-hand goods and unique items.

Generational differences

The influence of social media on consumer buying behavior varies by generation. While we see that Generation Z and millennials often make purchases after seeing an advertisement on their timeline, older generations are not as quick to do so. For instance, 88% of the Silent Generation and 76% of baby boomers have never made a purchase through social media. According to the Dutch Consumer Trends Report by Retail Radar, the majority of Dutch people have never bought anything on social media (51%) or from an influencer (66%).

Although direct marketing via social media certainly has its advantages, influencers and social ads primarily appeal to younger buyers. However, creatively utilizing influencers and the right verbal and visual content can bridge the generational gap. For older demographic groups, customization is essential, along with a tailored influencer approach that reflects their preferences. For example, a well-coordinated combination of email and in-store events can be effective.

Strategically using Social Media with a modern ERP

A modern ERP system is an essential tool for maximizing the return on marketing and sales efforts on social media. By integrating ERP and POS systems with social media, you can unify and personalize customer journeys and experiences across all channels and touchpoints, creating a true omnichannel experience. An advanced ERP system helps utilize customer data, sales information, and inventory details in such a way that (potential) customers can be reached on social media with the right products, offers, advertisements, and content.

How Does TCOG Help?

TCOG offers solutions, such as LS Central from LS Retail and Microsoft Dynamics 365 Business Central, that centralize and optimize all aspects of business operations. This includes essential processes like inventory management and omnichannel integration. Through AI-based analysis and predictive modeling, retailers can adjust their inventory and marketing strategies to better meet the needs of different generations, resulting in more efficient operations and higher customer satisfaction.

Modern POS systems and omnichannel integration provide seamless and personalized shopping experiences that combine the best of digital and physical retail. This allows you to maximize sales opportunities through social media while seamlessly integrating them with your physical sales channels. At the same time, sustainable practices reduce operational costs and enhance brand perception.