Millennials Transform Social Commerce: Hashtag “Buy” Buttons?
Conducted By:
Nora Ganim Barnes, Ava M. Lescault,
Center for Marketing Research
University of Massachusetts Dartmouth
Introduction
Social commerce is a term used to describe a form of commerce mediated by social media that
facilitates the sharing of information about products and services for both online and offline
purchases. Yahoo first used the term in 2005 in a launch of a new online shopping store. Social
commerce is shaping emerging commercial channels and marketers are taking advantage of
social technologies to expand their businesses. Given the potential of social commerce and the
size and buying power of Millennials, along with their propensity to make social inspired
purchases, a study on this group is invaluable in developing new strategies for selling to this tech
savvy and always connected cohort.
It is estimated that Millennials will have a combined purchasing power of $2.45 trillion
worldwide by 2015. Forrester Research estimates social commerce in the US to reach $30
billion by 2015. This buying will be carried out online and in stores. At this time, tracking
meaningful social commerce conversions tied to user behavior is at its early stages. While we
can assume that social interactions in the form on online reviews, posts, forums and
recommendations is driving some purchasing, documenting the scope of this activity and final
channel for purchases is difficult. This is further complicated by the race of the most popular
platforms to add “buy” buttons and new payment options to encourage buying while remaining
on the platform.
The driving force behind social commerce can be attributed to the Millennial generation’s
penchant for social media. Numbering 76 million strong, Millennials, also known as Generation
Y, are defined as the demographic cohort born between 1980 and 2000. Their size and combined
purchasing power make Millennials a valuable market segment for the future success of most
companies.
However, unlike past generations, Millennials are not influenced by traditional ‘push’ marketing
strategies. Born and raised in the age of technology, Millennials consume information when and
how they want to. This has grave implications for companies who cannot adapt their marketing
strategies quickly enough to capture and capitalize on their intermittent attention. Social media
has provided companies with valuable tools to attract and engage Millennials on their own
terms. However, despite the prevalence of social media, social commerce remains a relatively
new phenomenon. It will demand a new understanding of the power of sharing and its impact of
consumption patterns.
In September 2014, ShareThis released one of the first studies focusing on Millennials and social
commerce gathering data by observing online browsing and social patterns of Millennials. They
conclude that for these young consumers, interactivity and discussion are central to purchase
decisions. The study did not report on behaviors for any specific platforms and reported findings
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only in relation to the non-Millennial population, for example saying Millennials are “3x more
likely” to behave in a certain way.
This study, conducted by the Center for Marketing Research at the University of Massachusetts
Dartmouth, is an in-depth look at current purchasing habits and trends of Millennials using three
of the most widely used social media platforms (Facebook, Twitter and Pinterest). Last year, the
Center conducted its first study on this topic, which served as the basis for this 2014 longitudinal
look at Millennials and social commerce. Changes over the past 12 months will be noted.
In an effort to discern what turns a like, follow or pin into a sale, this study, like the 2013 study,
explores and analyzes lead conversion tactics as identified by Millennials themselves. Also
included is a look at mobile technology and its role in online purchasing. The potential for “buy”
buttons is explored for the first time along with specifics on what products Millennials are
buying on the most popular platforms.
Highlights of the study include:

35% of Millennials are likely to use a “buy” button on Facebook and 24% are likely
to use one on Twitter, should those be provided by the platforms.

Facebook declines but is still the most popular platform among Millennials when
looking to interact with companies/brands online. While their numbers have fallen
slightly, Twitter and Pinterest have made modest gains. Fifty-five percent of respondents
currently like at least one brand on Facebook (down from 62% last year). Twitter has
29% (up from 23%) and Pinterest has 16% (up from 11%) of Millennials following or
pinning a company/brand.

Nike is the most liked/followed brand on Facebook and Twitter for the second
straight year.

Hair, Beauty and Apparel continues to be the category in which most products are
purchased by Millennials across all platforms studied.

Relative to users of larger platforms, Pinterest again has the highest online sales
conversion rate. Fifty-one percent of Pinterest users make their purchases online
exclusively compared to 16% of Facebook users and 35% of Twitter users. The userfriendly, highly visual design of the website facilitates information search and evaluation
of alternatives. Pinterest makes the transaction process flow with optimal ease for
consumers.

48% of Millennials use smart phones to make purchases online and 21% use tablets.
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Methodology
Like the 2013 study, this study was conducted via a comprehensive survey available in both
digital and physical form for distribution. Qualification for participation required the respondent
to be a member of the Millennial generation, using the popular demographic for this group of
having been born between 1980-2000. The surveys were hosted on online and the URL was
shared online by channels including, but not limited to, email, Facebook, Twitter and
LinkedIn. All data was collected during the fall of 2014. A total of 405 surveys provide the
basis for this report.
In an effort to identify the link between online interest and related purchases, respondents were
asked detailed questions about their social media decisions. The survey was divided by the
platforms Facebook, Twitter and Pinterest. Respondents were first asked if they currently follow
any companies or brands on that platform. If they did not, or indicated they did not have an
account on that site, respondents were instructed to move to the next section.
For those that did qualify, questions were asked relating to respondents’ motivations for
following a company online and if they ever made a purchase resulting from their online
experience. Respondents were asked to classify their purchases by platform and product
category. Millennials were also asked to indicate what a company would have to do in order to
convert their like/follow/pin into a sale. This iteration included questions about the new “buy”
buttons currently being tested by Facebook and Twitter.
The 405 respondents in this study are diverse. They represent 26 US states and 37 people (9%)
residing outside the US. There is nearly an even split in respondents’ gender with 49% male and
51% female. The youngest Millennials, those 14-17 years old, make up 17% of this study, 38%
are between 18-22 years old, 25% are between 23-27 years old and 21% are in the upper range of
28-33 years old.
1a. Online Liking, Following and Pinning Behavior
When looking to interact with companies/brands online, Facebook is the most popular platform
with 55% liking companies/brands, followed by Twitter at 29% and Pinterest at 16%.
In last year’s study, 62% of Millennials liked companies/brands on Facebook, 23% followed
them on Twitter and 11% pinned them on Pinterest. As it relates to companies/brands, there is a
7% decrease in liking behavior on Facebook and an increase of 6% following and 5% pinning on
Twitter and Pinterest. This is consistent with many studies showing Millennials engaging less
with Facebook and exploring other platforms.
Although not a major player at this time in the social commerce space, Instagram appears to be a
popular alternative/supplement for Millennials rethinking their Facebook use. As ads are now
beginning to appear on Instagram, it will be important to watch buying trends on that platform
going forward.
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Do you follow any companies/brands on social media?
(% Yes)
100%
2013
90%
2014
80%
70%
60%
62%
55%
50%
40%
29%
30%
23%
20%
11%
10%
16%
0%
Facebook
Twitter
Pinterest
1b. Top Companies/Brands ‘Liked’ on Facebook
The top 5 companies/brands most “liked” by Millennials on Facebook remained mostly the same
as last year, except Dunkin’ Donuts has replaced Starbucks while Amazon has also entered the
rankings. Nike led the way for the second year in a row with Apple again in second place.
Amazon and Target rounded off the top 4 while Dunkin’ Donuts and Forever 21 tied for fifth.
1.
2.
3.
4.
5.
Nike
Apple
Amazon
Target
Dunkin’ Donuts / Forever 21
1c. Top Companies/Brands ‘Followed’ on Twitter
Millennials follow a range of companies on Twitter. Championing across platforms, Nike
remains the most “followed” brand and Starbucks continues to make the top 5. Mega brands
Victoria’s Secret and Forever 21, along with coffee company Dunkin’ Donuts, are newcomers to
the top 5 replacing ESPN, NHL and NFL. Millennials were still following sports, but there was
more following of individual teams this year than leagues.
1.
2.
3.
4.
5.
Nike
Victoria’s Secret
Dunkin’ Donuts
Forever 21
Starbucks / Footlocker
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2. Motivation for Liking, Following and Pinning
When asking Facebook users why they like a company/brand, many respondents said it is to
support the brand they like, receive regular updates from brands or get a coupon or discount on
their next purchase.
The top reasons why Twitter users follow a company or brand are similar to those reported by
Facebook users with the exception of their prime motivation. Twitter users report that getting
coupons or discounts, supporting a brand and receiving regular updates from brands are most
important to them. These results are consistent with last year’s study.
Pinterest users also pin brands to support them and get coupons or discounts. The biggest
difference between the 3 platforms is that Pinterest users are motivated by their desire to share
their interests/lifestyle with others. This is consistent with last year’s findings.
To support the brand
To receive regular updates from brands
To get a coupon or discount
To research brands when I was looking for specific products/services
Seeing my friends are already a fan, follower or have a board
To share my interests/lifestyle with others
To participate in contests
A brand advertisement on TV, online or in print led me to like the brand
Someone recommended me to like, follow or pin the brand
To share my personal good experiences
Other
Facebook
84%
83%
66%
40%
36%
40%
37%
28%
31%
26%
3%
Twitter Pinterest
78%
70%
47%
N/A
85%
41%
34%
67%
28%
36%
35%
76%
37%
27%
25%
21%
21%
29%
23%
38%
9%
11%
Respondents citing “Other” motivations stated that they follow their own employers or those of
their family and friends. Others saw opportunities for professional networking. On Pinterest
specifically, potential pinners seek out advice on fashion, cooking, and other fun DIY activities.
3. Lead Conversion across Facebook, Twitter and Pinterest
Companies have long been trying to understand how to convert traffic to their social media sites
into sales. Millennials in this study indicated across Facebook, Twitter and Pinterest, that those
companies offering coupons or discounts in exchange for a like/follow/pin would be more likely
to see an increase in sales. Other similar incentives suggested include exclusive offers, free
products, and more directed advertising.
4. Ease of Purchase on Pinterest
Sixty-three percent of Pinterest users find it easy to make a purchase through the site. The userfriendly, highly visual design of the website facilitates information search and evaluation of
alternatives. Pinterest makes the transaction process flow with optimal ease for consumers.
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How easy is it to purchase something you see on Pinterest through the site?
100%
90%
80%
70%
60%
50%
45%
40%
30%
20%
18%
18%
10%
10%
8%
Very Difficult
No Response
0%
Very Easy
Somewhat Easy Somewhat Difficult
5. Purchasing Habits as a Result of Social Media Exposure
When it comes to social media purchasing, Facebook and Pinterest resonate with Millennials.
Thirty-one percent of respondents with Facebook accounts said they had purchased something
online after liking or sharing it while 17% of Twitter users said they made a purchase after
following or sharing the item. For Pinterest users, 28% purchased something after pinning or
sharing it.
A white paper was released in 2013 on social commerce. It did not focus specifically on
Millennials. Business Insider (The Rise of Social Commerce) concluded that “…one of the
obstacles holding back social commerce has been the inherent friction in the buying process and
the lack of intelligent buy now features incorporated directly into the social conversion.” Their
data comes from retailer tracking codes where sales are attributed to referrals from social media.
The table below compares the results of that study with our study. Our study indicates
Millennials buy more on Facebook (3%) and Pinterest (5%) and less on Twitter (5%) than the
general population.
Comparison of Recent Studies on Purchasing After Liking/Following/Pinning*
Source of Study
Facebook
Twitter
Pinterest
University of MA
31%
17%
28%
Business Insider
28%
22%
23%
*The University of Massachusetts Dartmouth study focused solely on Millennials
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100%
Have you ever purchased something after liking, tweeting, or pinning it online?
(% Yes)
90%
80%
70%
60%
50%
40%
30%
31%
28%
17%
20%
10%
0%
Facebook
Twitter
Pinterest
6. Facebook, Twitter and Pinterest Purchases by Category
Of those purchases made after sharing something online, Millennials clearly prefer to buy goods
in the category of Hair, Beauty and Apparel. This is the category where the most purchases were
made across the three platforms studied, accounting for approximately half of all purchases.
Pinterest is leading the way with these purchases with nearly 2 of 3 users purchasing items in this
category.
On Facebook, Tech and Electronics was the second most socially influenced purchase category
with 18% coming from this category. On Twitter, second place is also “Tech and Electronics”
(23%), while Pinterest users are likely to buy Art, Design, DIY, Photography and Craft products
next (23%) as a result of online social influence. Facebook and Twitter users are least likely to
purchase Gardening & Décor. Pinterest users purchase “Food & Drink” the least. More Tech &
Electronics are purchased through Twitter and Facebook while more Art & Design, DIY,
Photography and Crafts are purchased through Pinterest than through their competitor platforms.
Social Media Influenced Purchasing By Category
Purchase Category
Facebook Twitter
Food & Drink
8%
8%
Art & Design, DIY, Photography, Crafts
9%
3%
Gardening & Décor
3%
0%
Hair & Beauty, Apparel
53%
53%
Tech & Electronics
18%
23%
Other
9%
15%
©University of Massachusetts Dartmouth Center for Marketing Research
Pinterest
2%
23%
4%
64%
6%
0%
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7. Millennials as Multi-Channel Shoppers
All three platforms contribute to both online and in-store purchasing. Although in the past year,
there have been significant changes. The survey asked if purchases were made solely online,
only at a brick and mortar store, or if both channels were utilized.
As might be expected, the number of Millennials making their final purchases online, after
viewing or sharing on a social network, has increased. For all three platforms studied,
Millennials are staying on the site to click through to a purchase. Facebook realized an increase
of 6% online only buyers since last year’s study. The increase was even greater for Twitter with
35% now buying online and Pinterest with 51% of users remaining on the site to click through to
their purchase.
Those saying they only use brick and mortar stores for their actual purchases increased by 3% for
Facebook users and 1% for Pinterest users. Twitter users are 6% less likely to go to a store than
they were last year. The most striking change in the past 12 months is the number of Millennials
who make both online and in store purchases. That group is down 8% for Facebook users, 11%
for Twitter users and 27% for Pinterest users. Clearly, some of those buying both online and in
stores last year are now buying more online through their social networking sites.
After viewing something on a social media platform,
where do you make your purchase?
100%
90%
Online Only
In-Store Only
Both Online and In-Store
80%
69%
70%
60%
55%
50%
40%
51%
35%
35%
30%
20%
16%
15%
10%
10%
14%
0%
Facebook
Twitter
Pinterest
8. Percentage of Millennials Using Smart Phones/Tablets to Make Purchases
Similar to last year, nearly half of the Millennials surveyed have used smart phones to make
purchases online while 21% have used tablets to make purchases. With the recent introduction of
technology like Apple Pay, CardBlanc and others, mobile devices will play an increasing role in
online purchasing behaviors in the near future as the buying process is optimized.
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Have you ever purchased anything using a mobile device?
(% Yes)
100%
90%
80%
70%
60%
48%
50%
40%
30%
21%
20%
10%
0%
Smart Phones
Tablets
9. How Much Millennials Spend
Smaller purchases (less than $20) are most common on Twitter. Purchases of more than $75 are
most common on Facebook. More than half of Pinterest users spend between $20-$49 buying on
the site.
Social Media Influenced Spending
Spending Category
Facebook Twitter
Less than $20
18%
28%
$20-$49
36%
44%
$50-$74
27%
22%
$75-$100
10%
6%
Over $100
9%
0%
Pinterest
17%
52%
19%
8%
4%
10. Internet User Identification
When asking respondents what type of Internet user category they fall into, the majority, with
42% claimed to be a Functional User, using the internet as a tool for shopping, organizing,
notifying and information. Thirty percent described themselves as Connector/Sharer types, 18%
are Casual Participants and 6% are Content Producers. There are fewer casual participants and
more functional users this year, as Millennials become more dependent on their mobile devices
in their daily lives. Millennials use the internet for purposes that exceed connecting with friends.
The following definitions for each type of user were given to help Millennials in best identifying
themselves online:
Functional User
Connector/Sharer
Casual Participant
Content Producer
Use internet as tool for shopping, organizing, notifying and information
Spend most of your time connecting with friends, family, sharing content
Check in periodically with family and friends or make an occasional purchase
Constantly creates new content, blogs, uploads video
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What best describes how you use the internet?
100%
90%
80%
70%
60%
50%
42%
40%
30%
30%
18%
20%
6%
10%
4%
0%
Functional User
Connector/Sharer Casual Participant Content Producer
No Response
11. Buy Buttons
In July 2014, Facebook announced the addition of a “buy” button and Twitter quickly followed
suit. In both cases, once a user establishes a payment account with an address, they can purchase
anything that appears in their feed. The goal is keep users on the platform even as they make
purchases.
While it is early in this experiment and only select consumers have been exposed to the buy
button, we asked those who use Facebook and Twitter how likely they would be to use this
option.
For users of Facebook, 7% said they would be very likely to use a “buy” button and 28% said
they would be somewhat likely. Responses were lower for Twitter with 5% saying they would
be very likely to use a buy button and 19% were somewhat likely. Given the large number of
Millennials with accounts on these two platforms, there is potential for enormous success. Other
mitigating variables will be the payment plans the platforms utilize and how many clicks will be
needed to secure information and a purchase.
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If Facebook and Twitter had a “buy” button for a product, how likely
would you be to use it to make a purchase?
100%
Facebook
90%
Twitter
80%
70%
60%
46%
50%
36%
40%
19%
20%
10%
27%
28%
30%
24%
7%
5%
2%
5%
0%
Very Likely
Somewhat Likely Somewhat Unlikely
Very Unlikely
No Response
12. Older vs. Younger Millennials
In this study, there are statistically valid differences between Millennials when broken down by
age. The 18-22 year olds are the most active across all three platforms studied with 45% pinning
companies on Pinterest, 63% liking them on Facebook and 39% following them on Twitter. The
least active in liking, following or pinning companies/brands are the youngest Millennials.
Approximately 1 in 10 of the 13-17 year olds is engaged with retailers on these platforms. Of
those engaging with businesses in the 23-27 year old group, more do it on Facebook and for the
28-34 year olds, more do it on Twitter. Younger Millennials were far more receptive to the
concept of a “buy” button than older Millennials.
Conclusion
Millennials are embracing social commerce and putting their own mark on it. There is evidence
that the companies/brands they like, follow and pin changes with time as does their preferred
way to purchase products. Smart phones and tablets are central to social influenced purchasing.
Older Millennials engage with businesses on Twitter while the youngest Millennials (13-17 years
old) are least likely to engage with businesses through social networking sites. If Facebook and
Twitter move ahead with their plans to add “buy” buttons, there is interest among this group.
For social commerce, that addition could be a game changer.
Millennials share information online through recommendations, reviews, ratings and referrals
leading to purchases via social networking platforms. For companies and brands looking to
target these connected, mobile and multi-channel shoppers, it is essential to understand what they
want as social commerce is poised to explode.
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About the Authors
Nora Ganim Barnes, Ph. D.
Nora Ganim Barnes is a Chancellor Professor of Marketing and Director of the Center for
Marketing Research at the University of Massachusetts Dartmouth. Nora has worked as a
consultant for many national and international firms. Working closely with businesses in the
Northeast US, Nora and her students have provided marketing research assistance to hundreds of
small businesses.
She has published articles in academic and professional journals and proceedings, has
contributed chapters to books, and has been awarded numerous research grants. Her work has
been covered online and in print by Business Week, the NY Times, Washington Post, CNN,
Reuters, Wall Street Journal, Fox News, Computer World, Time Magazine and the Harvard
Business Review among others. She has been named Co-chair of Research by the Society for
New Communications Research.
Dr. Barnes is a frequent speaker at corporate meetings and keynote at conferences.
She can be reached at nbarnes@umassd.edu.
Ava M. Lescault, MBA
Ava M. Lescault is Senior Research Associate and Associate Director of the Center for
Marketing Research at the University of Massachusetts Dartmouth. Ava graduated from UMass
Dartmouth with a BS in Marketing and a Master's Degree in Business Administration with a
concentration in Marketing Research. She recently completed a Certificate in Marketing
Research from the University of Georgia. Ava has worked on approximately twenty-five
extensive research projects and is a published author. Her clients include the cranberry industry,
the shellfish industry, a national juice manufacturer, the Massachusetts Department of
Agricultural Resources and a Fortune 500 company. She was the first person to hold the position
of Senior Research Associate in the Center.
Ava can be reached at alescault@umassd.edu.
Acknowledgement
The authors wish to acknowledge the work of MBA candidate Kevin Augusto, as well as
Brenden Baskin, Andrew Boucher, Melanie Freitas, Henry Ho, Dave Merken, Bailey Rice,
and Ami Walz, students in the Social Commerce Marketing class at the University of
Massachusetts Dartmouth, in the data collection and preparation of this report.
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