Shoppers increasingly taking to social media for getting recommendations, reading reviews and sharing their experiences, has paved a way for a whole new business model – social commerce. The unprecedented growth of e-commerce and growing popularity and influence of social media has resulted in the boom of social commerce. Over 50% of marketers believe that it is critical to invest in social commerce to stay afloat, while more that 70% users who tried social commerce say they would use social buy buttons again. In fact, Facebook’s ad revenue is reached about $26 billion in 2016, approximately 57% increase from 2015.
However, this trend has proved to be a double-edged sword for businesses – compelling both online and offline retailers to revisit their strategies to drive deeper customer engagement and outperform social networks who have jumped on the wagon. But, before we understand why social commerce is increasingly becoming important for businesses, let’s take a peek into its business model.
So, what is social commerce? According to an online definition it is a part of ecommerce that involves buying or transacting using social media networks. For instance, shoppers can not only browse, review and compare products on Facebook but also make purchase on the same platform instead of visiting the company’s site. As of now social media sites that are actively promoting social commerce include Twitter, Pinterest and Facebook.
The winds of change
The businesses across sectors especially retail industry is going through yet another phase of digital evolution in the face of emerging trends including social commerce and emotional branding. To keep pace with market changes, both conventional as well as online players need to adopt new and innovative strategies to retain and gain market share.
Social media sites offer fun and dynamic platform for businesses to connect and interact with individuals and social commerce, over the last couple of years, social commerce has gained quite a popularity. Today, customers are looking for more options such as product portfolio information, reviews and ways to make the purchase on social media when they follow or look up a certain brand. It is therefore important for businesses to move beyond having a simple social media storefront and embed strategies and solutions that engage and allow users to make a purchase.
Sailing with the wind
To keep pace with the social media trends, there are many brands who are actively adding buy buttons to their social profiles, however some of the brands are taking a different and innovative approach to establish a deeper relationship between social and sales. Some of the leading fashion brands are increasingly using Twitter to drive traffic to their stores or using live streaming apps such as Periscope to advertise their products on Snapchat to reach and engage their target audience. Good news is that there are realistic and simple solutions that can help you yield maximum benefits from social commerce, but you have to move now and get social.
Connect with us to find out how we can help you take advantage of the social media influence and drive deeper engagement across networks.