{"id":3590,"date":"2020-10-08T12:12:26","date_gmt":"2020-10-08T06:42:26","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3590"},"modified":"2024-11-22T12:35:37","modified_gmt":"2024-11-22T07:05:37","slug":"e-commerce-business-social-proof","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/e-commerce-business-social-proof\/","title":{"rendered":"Social Proof and Its Impact on Your E-Commerce Business"},"content":{"rendered":"

A term coined by Robert Cialdini<\/a>, social proof is a circumstance where people reference the actions of others in an attempt to adapt to their own given situations. In certain conditions where we aren\u2019t sure about what to do, we would assume that the people around us would have a better sense of what to do next.<\/span><\/p>\n

Due to the increase in digitalization and internet usage around the world, the importance of showcasing social proof has never been this relevant. Through social proof, any online business can allow its customers to speak about its brand or product to a wider audience.\u00a0<\/span><\/p>\n

To understand social proof for businesses, let\u2019s assume that you have two footwear stores in front of you, where one is packed with customers, and the other one is vacant. Which one would you choose? The packed one, probably? Because the store was already filled with customers? That\u2019s social proof for you. <\/span>
\n<\/span>
\n<\/span>For marketing, social proof is one of the most important aspects that drives the purchase decision of customers. It revolves around the idea of a website seeking validation on the internet through the action of users.\u00a0<\/span><\/p>\n

Online shoppers feel more accustomed to websites that give them a sense of trust through things like customer reviews, shareable links, etc. This type of content on your website can lead to an increase in conversion rates and sales. <\/span>
\n<\/span>
\n<\/span>To show social proof, e-<\/span>commerce sites might display the number of purchases or customer reviews, while a B2B business might display a list of enterprise customers or testimonials. <\/span>In this article, we will be looking at the types of social proof, its relevance, and how you can implement it to increase conversions on your e-commerce website.
\n<\/span><\/p>\n

If you\u2019re wondering how to include profit margins and get real-time GST inclusive & exclusive rates for your e-commerce products you can check out our free GST calculator<\/a>
\n<\/span><\/p>\n

Types of social proof<\/span><\/h2>\n

Since e-commerce sites cannot physically present products and attract customers at present, they can adopt various strategies to thrive and breathe new life into existing content. <\/span>
\n<\/span><\/p>\n

Any online platform with an online presence can generate social proof, and if your business has both, a site and an array of social media networks, the opportunity of attracting more customers increases too.\u00a0<\/span><\/p>\n

Customer reviews<\/span><\/h3>\n

Reviews are amongst the crucial factors that impact the buying behavior of customers in e-commerce. In fact, according to a <\/span>report<\/span><\/a> in 2019, 91% of consumers trusted the reviews that were posted online and went on to buy their desired products.\u00a0<\/span><\/p>\n

Having a reviews section on your e-commerce website helps you convert visitors to customers, allows you to incorporate it in other marketing channels to boost sales, and most importantly, fortifies your brand around your competitors as well.\u00a0<\/span><\/p>\n

Audience and engagement<\/span><\/h3>\n

The growing popularity of a brand attracts potential customers and makes people talk more about it. Things like the number of views, comments, likes, shares, and the number of followers or subscribers on your social media channels and website determines where it stands online and how popular your brand is.\u00a0<\/span><\/p>\n

User-generated content (UGC)\u00a0<\/span><\/h3>\n

UGC refers to the content that is shared by your customers online. This includes users putting out detailed posts on the internet regarding your brand or product and showing the products in action with real-time images\/videos.\u00a0<\/span><\/p>\n

In a world where there is an abundance of content and reviews available online, UGC gives your customers an idea about what and who to trust while making a purchase decision and acts as a powerful tool to show social proof.<\/span><\/p>\n

Evidence of demand\u00a0<\/span><\/h3>\n

This type of social proof talks about the sales volume of your business. If the sales volume of your products is steady and growing, it increases the demand for your products, which helps in generating more sales. <\/span>
\n<\/span>
\n<\/span>With the help of certain online tools, you can access the number of people who visit your e-commerce website, the number of products sold, etc that allow you to convince viewers about your brand or product.\u00a0<\/span><\/p>\n

Celebrity and influencer endorsements<\/span>
\n<\/span><\/h3>\n

As we all know, customers trust the opinions and views of the people they follow and admire, when compared to the views of the brand itself. So, the addition of recommendations and reviews of influencers, reputed bloggers, etc who have a huge following base makes it easier for your business to show proof.<\/span><\/p>\n

You can easily verify any business using a GST Verification<\/a> Tool and minimize cases of fraud or any wrongdoings in the name of your business entity.<\/span><\/p>\n

Importance of having social proof\u00a0<\/span><\/h2>\n

Social proof is one of the most important factors in marketing that allows you to promote your brand and improves the probability of attracting more customers. Let\u2019s have a look at its impact on your business.\u00a0\u00a0<\/span><\/p>\n