Social Proof: Why is It Important for E-commerce?

E-commerce sales have seen a steady increase since 2020, and more people than ever make their purchases online. The marketplace became more crowded. Advertising became louder. Newer brands and businesses that do not have the marketing budgets of established brands often struggle to cut through the noise and get their messages heard by the right people.

Inarguably, ad campaigns for your products and services can help drive sales, but are not the only way to attract new customers and convince them to choose you over the competition. 9 out of 10 online shoppers incorporate reviews into their purchase decision. If yours are current or even missing on your website, you risk losing potential customers.

If you are looking to increase your conversion rates for your e-commerce business and spread the word about your brand, social proof might be the answer you have been looking for.

What is Social Proof?

Social proof is a psychological phenomenon where consumers rely on the experience and feedback of others to make a buying decision. When a person purchases a product and then shares their experience with the brand or the product, they engage in social proof, often expressed through ratings or reviews.

What Does It Look Like Today?

The concept of social proof is as old as marketing itself. In the age of the internet and e-commerce, social proof can take on many different forms. The most common type of social proof are reviews by customers that purchased a product and write about their experiences on websites and blogs.

Other forms of social proof include:

Certifications by trusted organizations like Fair Trade or USDA Organic

Expert testimonials by industry thought-leaders and other reputable experts

Friends that have made a purchase or subscribed to a service and share their experiences on social media or verbally

Trust Icons usually indicate that your brand was mentioned in a journal or magazine. This form of social proof often says “as seen in” or “mentioned in” followed by the name of the publisher

Influencers and famous people can have a massive impact on sales through social proof when endorsing a product or service. Subconsciously, people perceive the product as superior

Suggestions: “Customers also bought” suggestions can help get more products in front of people by showing them frequently bought items by other customers

Best Sellers: Similarly to suggestions, showing your customers which your most popular items are helps with increasing conversions for those products

There are many ways marketers can leverage social proof to help buyers make a purchasing decision by easing the minds of wary customers. Although customer reviews are the most common form of social proof, you can implement a variety to drive results.

Why It Works

In times of uncertainty, we often tend to look at what others are doing to determine how we should behave or what we should think. People often rely on the experience of others to determine whether something is good or bad before trying it themselves. From restaurants to online stores to hotels, people tend to rely on the reviews of others to determine whether or not to make a reservation or put in an order.

By doing so, potential customers gain insight on how the product performs in reality rather than relying solely on advertising messages. After all, according to Vendasta, 92% of consumers read online reviews before making a purchase, and 94% of consumers would consider using a business if it had at least a 4 star rating. Stats that every marketer and emerging brand should take seriously.

Positive social proof strengthens the legitimacy of your business and boosts customers’ confidence in making a purchase. When a celebrity or a group of people expresses that they have had a great experience with your brand, others are more likely to give your brand a try and purchase your products as a consequence. Psychologists call this the bandwagon effect. Ideas, beliefs, trends, and concepts are spread between people, and the more people adopt them, the more are influenced to do so.

Social Proof Stats

Here are a few more stats that emphasize the importance of social proof in e-commerce and why businesses should take it seriously:

44% of consumers say a review must be written within one month to be relevant. Be sure to keep your reviews current and encourage your customers to rate their recent purchases

Over half of people aged 18 to 34 say they trust online reviews more than the opinions of friends and family

86% of people will hesitate to purchase from a business that has overwhelmingly negative online reviews

88% say they trust reviews as much as personal recommendations, highlighting the importance of including social proof for your e-commerce store

95% of consumers suspect censorship or faked reviews when they don’t see poor scores. Be sure to include all reviews, even the less-than-optimal ones. Besides risking hefty fines, censoring can hurt your business by reducing trustworthiness

Leveraging Social Proof

As trust in advertising continues to decrease, leveraging your brand’s positive social proof can help ease the minds of undecided customers and increase conversion rates, amplify customer voices and more. Consider incorporating different types of social proof in your marketing, but be careful to not overdo it.

Above all, make sure the customer journey is well thought out every step of the way, so people will be incentivized to share their  experiences with others.