UK retailers missing out on a potential £9bn in additional revenue online
UK retailers are missing out on a potential £9bn in additional revenue online by not offering online recommendations to consumers, nToklo has suggested in its latest white paper.
According to its research, the use of user generated content and recommendations could account for up to a 27% uptake in sales, but 50% of retailers do not provide customers with recommendations through their website, and 73% do not offer consumers the ability to actively discover or share recommendations through social platforms.
Anton Gething, co-founder and product director at nToklo, said: “The increasing interest in social commerce stems from the natural progression of two trends that have seen tremendous growth in recent years: online shopping and social networking.
“However, this research shows that social commerce is yet to become the sum of its parts and many businesses are missing out on a potentially significant additional revenue opportunity. In strained times, this additional revenue could provide a much needed lifeline for British retailers.
“Presenting users with relevant, timely recommendations has been an understood and valuable part of the traditional retail purchase funnel for a number of years, whether in-store or online. However, with the explosion in social engagement, recommendation content is no longer provided by the retail brand alone and increasingly consumers are seeking out more ‘social’ user reviews and recommendations. Therefore, those retailers in a position to offer a cohesive social experience online will be in a position to take advantage of the potential growth in revenue available to them.”
It was discovered that 95% of retailers have a Facebook page and 94% are on Twitter, showing how they do realise the importance of ‘being social’, but 76% do not have their own social community functions on site despite many requiring customers to sign-in to the site to make a purchase.