Remember just ten years ago when on any given Saturday people filled malls to socialize and shop all day? Shoppers of today have shifted gears in how they like to socialize and shop, and it’s no shock to learn that social media is the preferred outlet. And while the effects of Covid might have jump-started this process, it will have a lasting effect on future consumer shopping habits.
Today’s consumers want on-demand convenience and social channels provide that. Over the past year, more than 70% of people have seen a product advertised on social media and then purchased it directly from their phone, with over half of those people doing it once a month or more. Furthermore, according to Gartner, over the next five years, about 60% of younger consumers—Gen Z and Millennials—will choose to make a purchase on a social platform versus more traditional digital commerce destinations.
The opportunity social commerce provides isn’t lost upon executives in retail. The State of Social Media Investment Report shows they overwhelmingly agree that social commerce is driving an increasing portion of the company’s marketing-driven revenue. In fact, 8 in 10 reports they plan to be selling via social within the next three years.
Social commerce is much more than a transactional relationship between the consumer and brand. Social commerce allows a brand to interact with shoppers in a natural way, bringing a more personalized approach.
Additional benefits that brands are reporting when adding social commerce to their omnichannel strategy include:
Social commerce is more than just product discovery and consideration, but is now the complete shopping journey, including the purchase all within the social platform.
Where several years ago it was near impossible to find such a complete process, that has all changed. Social media platforms have evolved to allow consumers to purchase desired products directly from their site or app, meaning the whole shopping journey without ever leaving the platform.
The investment in social commerce for the platforms continues to rise with the demand. For example, in-app shopping for some brands is now available through Snapchat while Meta has added a direct shop from posts for Instagram and a native checkout feature for Facebook and Instagram users in the United States.
Social networks have long been helping brands find customers who may have otherwise never heard of them. Like other sales channels, the platforms also offer advertising and ways for merchants to seek out their ideal customers.
Paid social advertising has been a key strategy for many companies that see success on the platforms. It allows brands to reach new audiences, establish brand trust, and build overall awareness. Our team recommends reviewing your paid social advertising and taking stock of your competitor's advertising in order to target ads in the most effective way in order to engage with the right audience, in turn increasing CTR.
Social commerce presents a tremendous opportunity for retailers. However, there’s a big learning curve for businesses when it comes to social commerce. Beyond setting up social media accounts, retailers need to come up with content that drives traffic and sales within each specific platform and understand the best ways to use social advertising budget. On top of all that, brands need a comprehensive omnichannel channel in order to see the true benefits and gain a competitive edge with the platforms.
As a leading digital commerce-focused agency, Echidna helps brands shape strategic vision, design delightful experiences for customers, and implement the technology to make it all work together. We embrace every stage of digital commerce, tailoring our services to ensure your brand growth and dedicated to knowing your business in order to design a modern commerce engine that will power your next phase of growth and innovation.
Start a conversation about your social commerce goals today.