While we love measuring our Twitter success in terms of followers or influence, most marketers are really after one thing, and one thing only: conversions. How many of those Twitter followers eventually become actual customers?
Well, as Marketing Pilgrim tells us, there’s a new study that offers good news and bad news for social media marketing defenders. Apparently, Twitter doesn’t convert very many followers into purchasers – but those that do convert spend a lot.
A report from RichRelevance examines the conversion rate of different channels.
Facebook, for instance, has increased its conversion rate 92 percent between August 2010 and August 2011. However, its 1.2 percent conversion rate is far below sources like AOL (2.9 percent) and Yahoo (2.6 percent). But it is still astronomically higher than Twitter’s paltry conversion rate: 0.5 percent.
That’s right: according to this study, only half a percentage of Twitter users convert into sales.
However, this isn’t a sign that you should shut down your Twitter account. Despite the low conversion rate, Twitter users actually spend more than users from any other channel.
The average order price for a shopper from Twitter is $121.33. That price beats out Facebook ($102.59), AOL ($105.27), Yahoo ($105.13), Google ($100.16) and all the rest of them.
And while the findings of this study might contradict those of a previous one which saw respondents cite Twitter as more influential in their online purchases than Facebook, the underlying idea is similar.
Whether more people are actually being influenced by Twitter, or whether those who are are simply purchasing more, Twitter is quickly becoming a valuable marketing tool for many brands able to engage their customers on a two-way conversation.
Twitter may just be one of many online marketing tools, which include Facebook, email and a company website, but it’s not one to be ruled out.