Social platforms drive traffic but lag in conversion: ESW report reveals trust gap
A global survey released by ESW in June shows that social platforms play a prominent role in product discovery, but a lack of trust leads to low purchase conversion rates. 62% of consumers say they are influenced by social platforms, while only 6% prefer to buy there; nearly one-third prefer brand or retailer websites, a figure that rises to 52% among U.S. Baby Boomers. The report recommends that companies optimize cross-channel shopping experiences and build trust to boost conversion.
Core Insights
- According to a report released by ESW in June, global consumers are happy to discover products and services across many channels, but prefer to make purchases onchannels they trust. The report is based on online interviews with 23,000 consumers across 18 markets.
- For example, 62% of consumers said they are influenced by social platforms, but only 6% prefer to buy on such platforms.
- Nearly one-third of consumers prefer to buy on brand or retailer websites. In the U.S., 37% of consumers prefer brand websites, and this proportion rises to 52% among Baby Boomers.
Deep Dive
Social media has become the primary channel for consumers to discover new products, but due to a lack of trust in in-platform checkout processes, the consumer journey is becoming fragmented.
About half of consumers discover new products through social media. Among Gen Z, this proportion is even higher, at three-quarters. In comparison, only 38% of consumers globally discover new products via search engines, and 36% via physical stores.
However, a lack of trust limits purchasing behavior. In the U.S., only about a quarter of consumers trust the checkout experience of social commerce.
"U.S. consumers are open to new ways of discovering products and capturing value," said ESW CEO Eric Eichmann in a prepared statement. "Nearly half of consumers are open to using AI for price comparisons, and 45% discover products via social media, but when these experiences get closer to checkout and payment, confidence drops sharply."
ESW notes that businesses need to design for the fragmented shopping journey. Consumers may discover a product on Instagram, verify quality and price on third-party review sites or AI tools, and ultimately make the purchase on a trusted platform.
In this cross-channel handoff, any friction can lead to consumer attrition. ESW suggests that businesses can build trust by offering clear pricing, familiar payment methods, and a secure shopping environment.