The weather is getting colder, the days are getting shorter, the end of the year is approaching and that can only mean one thing. Marketers around the world are getting ready to compete for our attention as us, consumers prepare to tackle our holiday shopping list. For an entire year, marketers have been gathering insights, deciphering the wheres, whys, and hows of consumer behavior in order to truly nail the biggest sales events of the year. While the hottest way to shop seems to point on social media, there’s a question to be asked; should we focus our efforts on social commerce?
The Pros and Cons of Social Commerce
What started out as a single social platform made to connect and share content with friends and family has quickly transformed into a series of platforms made with brands and businesses in mind. Not only are businesses able to create loyal communities through their social profiles, but they are also able to bring awareness about their products and services, further pushing the consumer down the purchase funnel.
Social media platforms for businesses are tools that can bridge the gap between inspiration and tangibility, desire and fulfillment, and most importantly for brands, leads, and conversions. According to Digiday, 74% of consumers rely on social media platforms to make informed decisions.
Whether it be finding new and exciting products on a platform, finding relatable applications and uses for a product through influencer testimonials, or simply finding discounts through content, the role that social plays in current consumer behavior is significant and undeniable. Curalate’s insights further show that out of those who choose to inform themselves through social platforms, 76% of consumers end up purchasing products seen on social media.
Now insights don’t lie, but they can be misleading. While social media has the power to influence purchases, it faces a hard time closing the deal within its own respective platform. The shift towards social commerce comes at an important time where direct-to-consumer brands are dominating the marketing field by cutting out distributors and developing personalized experiences for consumers largely through social media content and interaction.
However; it also comes at a time where distrust in social media is at an all-time high. With an increase in security breaches on platforms like the ones that Facebook and Google+ have recently faced, many consumers are skeptical to trust social platforms to complete purchases, leaving the destiny of loaded shopping carts to be unfulfilled.
The Season’s Predictions
As someone who works at a digital marketing agency, one thing I constantly hear about is the importance of offering mobile experiences. Now more than ever, people are using their phones to purchase goods, peaking during the holiday season. Salesforce’s insights show us that mobile continues to be on the rise and there’s no way of stopping it. This holiday season, mobile purchases will make up 46% of all orders made online on Black Friday and 56% on Christmas Eve. Out of those orders, more than 5% of traffic will solely be social media driven.
While social media generates less purchases than other mobile mediums, it’s not a force to be ignored. This season’s predictions and insights show that social traffic will increase by 17% compared to last year, largely due to the newly added features that make shopping on social media more accessible to its users.
The Social Commerce King
One particular platform that is worth noting for social commerce is Instagram which shows a projected growth of 51% in social to website traffic referrals according to Salesforce. Since 2016, Instagram has been rolling out features that allow brands to facilitate the shopping process through the platform. While the release of Instagram ads and sponsored posts have made it easier for brands to build awareness and reach new consumers, features like product tagging and call-to-action buttons have made it easier for the consumer to get what it wants when it wants it — a characteristic typical to the platform’s main user base: millennials and Gen Z. Appealing to this demographic is crucial since, according to Disruptive Advertising’s insights, millennials alone make 54% of their purchases online.
Season Takeaways
If there’s one thing to take away from this all is that a well-rounded strategy is the best strategy when it comes to social and e-commerce. Looking at the bigger picture will help you and your brand or client reach greater results this holiday season. Remember, a good consumer experience is crucial to drive sales regardless of where they are finalized. Be more than your product and use social commerce to leverage the power of social interaction and influence, but do so in a way that adds to the over all mobile experience that you have to offer.
Sources
www.disruptiveadvertising.com
www.salesforce.com
www.adobe.com
www.retailtouchpoints.com