Later this month, Pinterest users will be able to purchase some of the products they "pin" without leaving Pinterest's app or website. The new "Buy It" button will show up next to the "Pin It" button that appears when you're about to pin an image of a pair of shoes you like or a coffee table you've had your eye on.
According to a recent survey of more than 2,000 Pinterest users, from Pinterest and Millward Brown Digital, 87 percent of them looked to the service when researching a buy, but 25 percent say they didn't make a purchase or visit a manufacturer's website after viewing an item. The "Buyable Pins" should be a boon for businesses, particularly retailers that see engagement from the site but few sales.
"What's interesting about Pinterest is [the] engagement rate has always been incredibly high," says Susan Etlinger, industry analyst at Altimeter Group. "At the same time, they have not had the corresponding ability to know whether pins translate into sales."
The Buy It button is a fairly simple feature, but it could have a big impact on businesses. Today, Pinterest users have to click on the image of a product and go to the original website to find out more or to purchase it. Buyable Pins eliminate the second step and let users buy products from the Pinterest app or website using a credit card or Apple Pay.
Customer data in a Pinterest pin
From the retailer's perspective, the Buyable Pins will provide much more data on the people who pin their products, as well as who buys them. This information is critical for companies that use Pinterest as a sales and marketing tool.
"The code in that tiny button enables them to see a whole lot," Etlinger says. Retailers can learn about products that are selling that they may not have known about and see the times of day with the most sales. "It's rich analytical information."
Companies that think the new feature will detract traffic from their websites should be patient and focus on the discovery rather than the conversion, according to Etlinger. For example, if a consumer sees a pair of shoes on Pinterest from Macy's.com, and they aren't already a Macy's customer, that's a win for the retailer because it could gain a buyer who otherwise wouldn't have discovered the shoes. Pinterest also isn't taking a cut of the sales, and companies won't be charged a fee to use the Buy It button, at least not at first.
"It will be interesting for Macy's to look at the difference from traffic that comes to their site with intention versus traffic that comes through Pinterest," Etlinger says. "Pinterest will be a place to focus on better understanding the customer's discovery process."
Sign up for CIO Asia eNewsletters.