The Rise of Social Commerce; Six reasons your company should be using it
Social commerce is a subset of e-commerce. It refers to a customer completing the entirety of a sales journey, from product discovery to checkout and payment, all on a single social media platform. And it has created a unique opportunity for businesses: get easily noticed, grow their customer outreach, and provide customers with a streamlined shopping experience.
The main difference between traditional e-commerce and social commerce is that social commerce connects to social media giving brands a chance to create a strong relationship with customers. We expect more brands and customers to embrace social commerce in 2023, as it has changed how we shop online.
Anna Stella, CEO of the Global Outsourcing Marketing Agency BBSA - states," Social commerce is expected to grow three times more than traditional commerce globally and reach $1.2 trillion by 2025. Small businesses, like large corporations, should also embrace social commerce for growth."
It’s not easy, but mastering the art of e-socializing with your customers is more important than ever. Some of the top benefits include:
1. It’s lucrative
Unlike before when large corporations and fortune 500 controlled e-commerce, small businesses can now thrive in the e-commerce space. According to research, 62% of customers and Generation Z trust local and small retailers more than big companies. Social commerce has also enabled small brands to connect directly to consumers through social media. Doing so has huge benefits. A survey of millennials found that 72% of them are likely to become loyal customers of a brand if engaged on social media.
Social commerce is most popular with people aged 18-35; the digital natives. Generation Z spends 2 to 3 times more time shopping on social platforms, with Instagram, TikTok, and Snapchat taking the lead. Looking at the recent social media usage and online shopping trends, we also see a shift in other demographics. Demographic groups who historically didn't embrace social commerce are expected to adopt and start using the concept in the coming months. For instance, Generation X is shopping online and preferably through Facebook and Instagram.
2. You don’t have to know everything
Social commerce offers excellent opportunities to drive sales for small businesses; however, it is an intricate and dynamic space. That’s why more and more companies are opting to outsource their marketing.
Outsourcing marketing has a number of advantages over in-house production. For one, it’s flexible and scalable. It offers the opportunity to experiment with new strategies without taking a dive into the deep end. And when it’s time to grow quickly? You can make that large investment in a short period of time. Finally, during off-season months, marketing activities and costs can also be scaled down according to your need.
Another reason to outsource is that you can benefit from the expertise of others. By focusing on what you do best and letting others do the same with your marketing, you can become more efficient. You may see some impressive returns due to your decision.
3. Opportunity to build consumer trust
Trust is the pillar of social commerce strategy. For social commerce to thrive, brands can take advantage of social media to build trust, engage, inform and prompt customers to take action.
Brands can also look to their existing platforms, both direct and indirect, and figure out how they can complement each other and grow their presence. A good social media strategy can enable brands to boost engagement and create a positive environment for social commerce to flourish.
4. Help drive consumer engagement.
One of the main objectives of social media is to encourage users to interact. Brands can grow their social commerce by engaging customers. They can do this by building communities around their products and asking customers to share their experiences, images of products, and feedback.
In addition to building product communities, brands can also learn how to use customers' content to grow their social commerce. Customer content is a gold mine for brands as it provides brands with social proof and helps drive more sales.
However, like anything else, engaging users can sometimes bring in critical voices, and brands shouldn't shy away from them. Instead, they should address the issues and work closely with the customers to solve the problem and build lasting consumer trust, which is critical to social commerce success.
5. You can pick a social platform that fits your consumer profile
Social commerce buyers in the US alone are expected to reach 100 million users in 2023. Brands have the potential to reach more audiences not just in the US but across the globe, but they first need to identify early on which social media platforms are best for them and invest in. With the right platform, brands can effectively target and manage their sales campaigns.
Different social media channels attract different demographics and ages. TikTok, for example, is more popular with generation Z, while Facebook attracts older demographics. Platforms and opportunities to connect are abundant, but companies must ensure they build their presence in the right places. They should make this decision with their audiences in mind.
6. The convenience of a one-stop shop experience
Unlike social media marketing, where customers are redirected to a website to make a purchase, social commerce allows users to start and end their shopping experience on social media platforms. A one-stop shop experience is quick and efficient.
The customer journey is streamlined, and whilst the customers are making the most of unique content like reviews, recommendations, and advice, the sellers get to use social proof to increase their audience baseline and scale up fast.
