News & Trends: Are the majority of successful online retailers using
social media to their full advantage in promoting deals? According to the findings of a market analysis by Interpret, the answer is no. While 22 out of the top 25 online retailers offer a form of a "flash sale" on their websites, they have yet to fully tap in to the social-media tool being called collective buying.
The study, New Media Measure, sites Groupon, Gilt, and ideeli are examples of online retailers that are utilizing collective-buying promos most effectively.
An online retailer activates a flash sale, which leads to collective buying, by presenting a promotion online before the discount is real. In order for the discount to be valid, a specific number of consumers must agree to buy the coupon or the item(s) at that discount.
"The most successful online retailers are not using social media to promote their deals effectively," said Zak Kirchner, senior research analyst at Interpret. "Unlike dedicated flash sites Groupon and Gilt that have leveraged the social Web to achieve strong flash sales success, very few of the major retailers have used social networks to promote their flash sales, which is a missed opportunity."
The study, which is based upon surveys from 9,000 consumers aged 12 to 65, also cited that 68 percent of online shoppers are cutting back on spending in this tight economy.
