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Ignore social networks at your peril, retailers told
The potential is huge, says Gartner

By Tim Ferguson

Published: Friday 02 May 2008

Retailers need to wake up to the potential of social networks in order to tap into the huge numbers of consumers using the sites.

Analyst house Gartner says social networking sites are starting to attract a broader spectrum of consumers with the rise of career-based networks such as LinkedIn and shopping-based sites.

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Hung LeHong, research vice president at Gartner, said retailers have previously seen social networks as relevant only to younger consumers so have not given them the attention they deserve.

Lehong added retailers could create social communities for product feedback and use social networks as an effective marketing tool.

Gartner's tips for retailers wanting to get in on the social network action include looking beyond the big names of Facebook and MySpace due to the huge amount of activity in the area.

Retailers should also look into the potential of viral marketing campaigns on social networks, as well as building third-party applications.

Amazon, for example, recently unveiled its social shopping application for Facebook.

But Gartner warns social networks aren't yet ready for commerce so retailers shouldn't jump in before they have understood implications.