Curalate Consumer Survey: Social Content is the New Storefront

CURALATE CONSUMER SURVEY: Social Content is the New Storefront 1 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

Executive Summary Brands go where consumer attention goes. Today, things you never knew existed? That’s the role of that attention is online. And when people get discovery. And while e-commerce hasn’t historically online, the single largest share of their time goes been great at discovery, social is rooted in it. to social channels. This has changed how people consume information and learn about the world When people follow others on social, they’re around them — including how they learn about intentionally opting to receive content from that products and brands. With billions of people person or brand. That content can make thumbs inhabiting major social networks, the content they thumb through has the potential of setting into motion a journey that leads from discovery to purchase. In effect, content on the social is introducing people to things they never knew they needed in their lives. And that’s going to be transformational for digital commerce. Digital commerce has always been great if you knew what you were looking for. That’s because traditional e-commerce is rooted in search. But what about the 2 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

stop and cause people to ask, “What’s that?” In To learn more about the intersection of social that moment, people stumbled across something media and commerce, we surveyed 1,000 U.S. new. Creating moments of discovery represents consumers about their online shopping habits. The a massive opportunity for e-commerce — the takeaway? Visual content shared on social media opportunity to go beyond search and to introduce has become the new storefront. It entices people people to their next great find. to explore and, ultimately, gets them to buy. In fact, 76% of the consumers we surveyed said they have purchased a product they’d seen in a brand’s social media post. In the following report, we’ll take a deep dive into the ever-expanding role of social media in commerce. We have some surprising results about just how often people shop online and how they behave after discovering a product on Social’s ability to drive discovery has gotten social. We’ll discuss what frustrates them about the attention of the internet’s biggest players. online shopping and explain why they respond Facebook, Instagram and Pinterest are each so positively to user-generated content (UGC). investing heavily to develop ways to unlock the We hope the insights we uncovered will help contents of visual content. Meanwhile, Amazon is brands understand more about their customers now offering discovery-friendly experiences that and develop marketing strategies that grab their mimic social media. attention and lead to conversions. 3 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

76% of U.S. consumers have purchased a product they saw in a brand’s social media post 4 | Curalate Consumer Survey: Social Content is the New Storefront NNoovveembmbeerr 2 2001177

What fuels social platforms? Content. As all of the impulse purchases that come with it. major platforms have become dominated by visual content – images and videos – and as more and Finally, while social channels tend to gain adoption more brands occupy outposts on social platforms, (and notoriety) by younger audiences first, it’s also it’s no surprise that an increasing amount of social interesting to observe that social has taken a broad content features products. swath of people from discovery to purchase. In 65% of those who went on to But is all of this branded content noise? Or is it a purchase something they means to introduce people to things they never WE ASKED: discovered on social did so at a knew they needed in their lives? It turns out, What action did you take after discovering a product in later date, either online or in-store. a brand’s social media post? across generations, it’s the latter. Over three- quarters of people report that content on social 9% 11% has caused them to buy. However, consumer purchase behavior suggests that attempting to 14% evaluate social solely as a direct-response channel undervalues social’s contributions to selling. In fact, 65% of those who went on to purchase something 21% 44% they discovered on social did so at a later date, either online or in-store. Over 20% of those people Bought immediately Have never purchased purchased in-store — which is truly impressive. a product they’ve Bought later online seen in a social post While no one would be faulted for thinking that a Bought later in a Other reaction social user is a digital buyer, the data suggests that physical store social can add foot traffic and all the benefits of 5 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

fact, nearly 60% of people between 35-65 have purchased something they’ve discovered on social. BREAKDOWN BY AGE Surveyed consumers that indicated they had Engaging with consumers where they spend time purchased a product they’ve seen in a brand’s social media post: is the backbone of marketing. So it’s no surprise that introducing consumers to products via great 80% content on popular social channels, works. The 18 - 24 years old real problem is one of attribution. For marketers who are dogmatic about direct-response, 82% today’s attribution models will likely leave them 25 - 34 years old uncomfortable with social’s contributions. However, 78% for marketers who take a more holistic view of the 35 - 44 years old customer journey and operate with a longer time- span, social is a valuable channel to not only drive 78% awareness, but sales as well. 45 - 54 years old 67% KEY TAKEAWAY: Visual content is fueling social, and it’s introducing people 55 - 65 years old to brands and products they never knew existed. 6 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

52% of U.S. consumers report seeing a product they were interested in on Facebook in the last 3 months 7 | Curalate Consumer Survey: Social Content is the New Storefront NNoovveembmbeerr 2 2001177

Brands are in a constant battle for consumer attention. Offline, they create gorgeous window WE ASKED: displays to draw consumers into physical stores. In the last 3 months, have you discovered any retail Online, they’re inspiring consumers with the images products that you were interested in buying on any of the following social media channels? and videos they share on social. The intention is clear: stop us as we stroll — or scroll — by. 52% Facebook 22% Pinterest 18% Instagram 17% Twitter 7% Snapchat Today, social content is functioning as the modern-day storefront. It’s an enticing peek into a brand’s product line and has the ability to introduce consumers to products they never knew they needed in their lives. It’s a great way 8 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

for brands to reach the most active shoppers. For consumers who buy online at least once a week, 18 - 34 YEARS OLD: 70% follow brands on social and 77% say they’ve In the last 3 months, have you discovered any retail seen a product on a brand’s social media channels products that you were interested in buying on any of the following social media channels? that they want to learn more about. 78% With so many great channels, it’s hardly a surprise Facebook that consumers are discovering products on multiple platforms. Facebook’s custom news feed 59% naturally piques people’s interests. Instagram has Pinterest become the go-to channel for beautiful imagery 59% and influencer marketing campaigns. Pinterest was Instagram literally built for browsing and discovery. Twitter has a large, loyal user base that relies on the platform 34% for current events and the latest info on products Twitter and brands. Snapchat has an incredibly young 22% demographic that loves the conversational nature Snapchat of its quick-hit content. It’s crucial for brands to provide a seamless KEY TAKEAWAY: consumer experience from every social channel Consumers are discovering products and brands on every — not just one. It means more chances to connect social channel. It’s key that brands don’t play favorites and instead share compelling visual content to every channel inspired customers to products they’ll love. where customers spend time online. 9 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

65% of U.S. consumers say the link in a social media post led them to a product they weren’t interested in 10 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

“Perfecting the post” is something we see social teams striving for everyday. From creating content WE ASKED: calendars and previewing content with multiple Have you experienced a link in a social media post that teams to styling a photoshoot to achieve a look led you to a product that you weren’t interested in? that’s just right for their audience, an enormous amount of time and resources goes into creating 35% social posts. So it’s a real shame that those posts lead to bounce rates that can reach 65%. All of that effort 65% is leading to traffic that’s not finding what it’s looking for. Yes No In fact, our survey shows that 65% of consumers have found that the destination they were driven to from a social post wasn’t right for them. This may happen when a marketer showcases a product in a post but drives the visitor to the brand’s homepage In all of these cases, the underlying problem is — forcing a consumer to find the product themself. that e-commerce systems were never designed to It can also happen when a marketer posts an “talk” to social channels. This forces marketers to image with multiple products but chooses just make a tradeoff: move fast and direct consumers to one to send a consumer to. Out-of-stock products wherever they see fit or wait for specialized landing contribute to this problem as well. pages to be created for each social post. 11 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

Inspiring consumers only to lose their attention a click later doesn’t just represent lost revenue. It BREAKDOWN BY SHOPPING FREQUENCY also represents a frustrated customer. Creating a Surveyed consumers that have experienced a link in a tighter linkage between social and commerce is social media post that directed them to a product they weren’t interested in: critical for taking advantage of social’s role as a key top-of-funnel customer acquisition and brand- 85% awareness source. Daily 77% A few times per week 67% Once a week 58% Once a month 50% Once every six months KEY TAKEAWAY: Brands are frustrating their most valuable potential customers — including 76% of 25-34 year olds and 75% of consumers who shop online once per week or more. 12 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

50% of all respondents said that UGC would make them more likely to buy products through a brand’s social channels 13 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

Word-of-mouth is powerful. When someone you admire recommends a restaurant or pair of BREAKDOWN BY AGE Surveyed consumers that indicated they were more shoes, you listen. It’s been that way for years. likely to purchase after seeing more images from But now, social media has made word-of-mouth consumers who had previously bought the retail product, showing it in real life: recommendations easy to find and easy to share. 60% Those recommendations are increasingly coming in the form of user-generated content — images 18 - 24 years old 64% 25 - 34 years old 57% 35 - 44 years old 42% 45 - 54 years old 43% 55 - 65 years old 14 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

or videos published to social by consumers. They allow people to share their thoughts, feelings and WE ASKED: experiences, without being clouded by branded Which of the following things would make you more messaging. Seeing real products on real people adds likely to buy a retail product through a brand’s social media channels? authenticity and helps consumers envision those products in their own lives. That’s why an increasing 50% number of marketers tasked with feeding content to UGC like images from customers who social channels are sourcing and republishing UGC as previously bought the product part of their overall content strategy. 49% Easy payment system with information That UGC is impacting purchasing decisions. Half already saved (like Amazon Pay) of the consumers we surveyed said UGC would 39% make them more likely to buy an item through social. While brands are investing heavily in Recommendations of other products I’d like personalization and recommendations, UGC 36% actually ranked higher than those investments as Ability to buy directly through social media something that consumers want. Since bringing UGC to a commerce site is a relatively quick win as compared to personalization, the fact that UGC aligns with an experience that consumers desire KEY TAKEAWAY: Consumers trust UGC. It’s authentic, helps people envision suggests that commerce experiences can be products in their own lives and can be the catalyst that enhanced with low-hanging fruit. leads to a sale. 15 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

49% said the ability to use an easy payment system like Amazon Pay would make them more likely to buy through social 16 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

Social content drives inspiration, and when inspiration strikes, it happens on mobile. Today, BREAKDOWN BY SHOPPING FREQUENCY all of the major social platforms are overwhelmingly Consumers that indicated an easy payment system dominated by mobile visitors. As anyone who has would make them more likely to buy through social: attempted to fill out a checkout form on their phone can attest to, inputting a shipping address, billing 85% address, and credit card number is an enormous Daily pain on a five-inch phone screen. While mobile 61% conversion rates are improving, they’re still less A few times per week than half their big-screen brethren. The implication? Going from inspiration to transaction is hard. It 53% yields large drop-off rates that reflect lost revenues. Once a week 43% So it’s no surprise that reducing friction in the Once a month purchase process is something that consumers want. Nearly half of our respondents said that payments 28% systems like Amazon Pay, in which the consumer’s Once every six months payment and shipping details automatically populate upon a click, would make them more likely to purchase. As these types of payment options become KEY TAKEAWAY: more widely adopted by brands and consumers, There’s too much friction on mobile. With easy payment solutions, there’s no reason for brands to lose out on sales expect to see more opportunities for consumers to from inspired mobile shoppers. buy what they see, where they see it. 17 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

40% of consumers shop online at least once a week, including 7% who shop daily 18 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

For many, transacting online is becoming muscle memory. Overall, 40% of online shoppers shop WE ASKED: at least once a week and nearly 10% do so daily. How often do you typically shop online for retail And for younger, digitally native consumers, these products? e.g clothes, technology, health & beauty etc. numbers are even more pronounced with over 50% 5% 7% shopping at least weekly and 16% daily. 21% 18% This shift in spend from bricks to clicks poses a challenge that few brands have truly awoken to. Customers who visit physical stores don’t just buy, 14% they browse. Brick-and-mortar stores are great 35% for enabling consumers to explore. That’s why it’s so common for people to walk out of stores Daily A few times per week with things they never knew they needed. Online, Once a week Every two to four however, e-commerce sites are largely set up for Every two to six weeks explicit intent. This makes it difficult to drive the months Once a year or less often type of incremental sales that browsing achieves in stores. These incremental sales are critical for expanding cart sizes, growing margins and increasing revenues. KEY TAKEAWAY: There’s a dedicated group of consumers fueling e-commerce. Find them, engage with them and watch Solving this “discovery” problem is vital. As sales climb. consumers spend more of their time online and 19 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

WE ASKED 18 - 34 YEAR OLDS: How often do you typically shop online? 16% Everyday 20% A few times a week make more of their purchases electronically, 16% discovery is critical for capturing those shopping Once a week moments when a consumer is simply looking to be inspired. The same content that gets thumbs 31% to stop on social channels can be leveraged Every two weeks to one month on a brand’s commerce channels to inspire site visitors as well. Leading brands and retailers are 17% now creating dedicated spaces on their sites for Once every few months or fewer galleries of social content that are connected to products. The effect is an increase in time-on- site and order values as people explore content, learn about products, and stumble across things that they just have to have. 20 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

Methodology This report is based on responses to a wide- ranging survey conducted in August 2017 along with OnePoll, a marketing and research firm specializing in online quantitative research and polling. We surveyed 1,000 consumers spanning in age from 18 to 65. They hail from all five major regions of the United States (Northeast, Southeast, Southwest, Midwest and West.) They represent 10 unique income levels and have a variety of online shopping habits — from those who buy online daily to those who never buy online. We asked each consumer 10 questions about how they shop, discover products and how social media impacts their purchase decisions. 21 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

Curalate is a leading marketing technology company that enables brands to sell online more effectively. The Curalate Discovery-Driven Commerce Platform is currently in use by over 800 of the world’s most loved brands including Urban Outfitters, Neiman Marcus, Sephora and J.Crew, and touches hundreds of millions of consumers, monthly. With Curalate, brands grow engagement and revenue, at scale, utilizing images and videos from a wide variety of sources, including user generated content (UGC). Curalate is has four offices: Philadelphia, New York, Seattle and London. On average, our clients see the following lift in key metrics: + % + % 31 79 CONVERSION RATE TIME ON SITE + % + % + % 41 16 45 PAGE VIEWS AVERAGE ORDER VALUE REVENUE PER VISIT 22 | Curalate Consumer Survey: Social Content is the New Storefront November 2017

OVER 800 LEADING BRANDS CURALATE 23 | Curalate Consumer Survey: Social Content is the New Storefront November 2017