Monday, April 9, 2012

Why Pine for the Pinterest Consumer? They're Worth More

Retailers may want to take a hard look at online sharing site Pinterest if they aren't already doing so.

Evidence continues to suggests that the social media website is a good way to generate customer leads. That's certainly is the experience Wayfair, an ecommerce company that sells home furnishings, is having.

Wayfair CEO Niraj Shah said his company has found that customers that come to its website from Pinterest have a 70 percent larger ticket overall than those that come from other social media sites.

"The social channel has a higher average order size," Shah told CNBC. He suspects that when customers come to Wayfair from social media sites they are already "inspired" to make a purchase.

He suspects that shoppers referred to Wayfair from Pinterest buy more because they may have already formed an emotional connection to the product compared with other shoppers.

"It's about the pictures," he said. "You have decided you like it before you know what it costs. The more you decide you love it, the more you are going to be willing to stretch to buy it."
Shah said Pinterest is "exploding," with traffic coming from Pinterest growing substantially in the first two months of the year, and he expects it to continue to ramp up in the months ahead.
Studies have shown that there is still plenty of room for Pinterest to grow. Online price comparison website PriceGrabber did a survey of 4,851 U.S. online consumers between March 13 and 26 and found that 58 percent of consumers are not yet on Pinterest, and about a third didn't even know that it was.

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