Social Commerce - a revolution or just hype?
This week our Head of Strategy sat down with Tim Richardson at your basket is empty to talk about social commerce.
You can read the full article here - however in a snapshot, here are the key takeaways:
The future of social commerce looks promising and is expected to continue growing. Here are some key trends and potential developments:
Increased adoption: More retail businesses are embracing social commerce as they recognise its value to reach and engage with a large user base, especially when customer acquisition is a business driver. Some of our clients are seeing as much as 10% of their monthly revenue being generated on social platforms. Social media platforms themselves are investing in features and tools to support eCommerce journeys, making it easier for businesses to sell directly to consumers. To that point, some platforms (like Facebook) are looking to remove their ‘click through’ buttons on organic posts, in an attempt to push customers into buying within the Facebook checkout. 💀
Augmented reality (AR) and virtual reality (VR): The online shopping experience could be improved by these technologies, which could have a substantial impact on social commerce. Users can virtually try on products, see how they appear in their environment, or visit virtual showrooms thanks to augmented reality (AR). Immersive shopping experiences, including virtual stores or product demos, can be made possible via VR. I see this trend as having a low adoption rate until there is a tipping point of consumers using VR headsets for everyday tasks.
Personalisation: Social commerce platforms can leverage vast pools of user data and advanced AI algorithms to provide personalised product recommendations, tailored promotions, and targeted discounts. These strategies can enhance user engagement and will increase conversion rates.
Influencer marketing: By recommending products and influencing consumer choices, influencers play a key role in social commerce. The relationship between businesses and influencers will likely develop, with more authenticity, transparency, and rules to protect consumer trust.
While social commerce offers exciting opportunities, it also presents challenges such as privacy concerns, data security, and competition. The future of social commerce will depend on addressing these issues while continuing to innovate and provide value to users and businesses.
In my opinion, Social Commerce is not just hype - there are major opportunities for retailers to benefit from increased brand awareness. With millennials (born post-1981) and Gen-Z (born post-1997) beginning to take a larger share of retailers' order volume, and 50% of these generations typically use social media daily, it is a huge mistake to ignore social commerce.