Why strategy is essential for successful social commerce

Social commerce has been a hot topic for years. Now, consumers’ shopping surveys are finally reflecting an awareness as to how influential their digital networks are on their buying behaviours. A staggering 97% of Gen-Z consumers consider social media their primary source of shopping inspiration, and as much as 90% of consumers who follow a brand on social media say they’re more likely to buy from them. It’s no surprise that brands are increasingly using social platforms to promote their products and services in the hope that a double tap turns into a transaction.

What is social commerce? 

Social commerce refers to a practice that allows consumers to purchase a product from a company directly through social media platforms. Currently, Facebook Shops allows brands to create an online storefront. Businesses based in the US can also create native shopping experiences on Facebook and Instagram, for an end-to-end shopping experience. A rival proposition, Twitter Shops, launched recently too, but would-be customers are directed to a merchant’s website to complete the transaction.

Although many brands have built a strong presence in the online spaces frequented by consumers, social platforms are not yet a one-stop shop for e-commerce. In many instances, brands create social content to drive conversions, but purchases take place elsewhere – on owned apps and websites. As a result, retailers need a strategic approach to social commerce. 

How can they optimise across multiple channels for commercial success, while creating shopping experiences that are truly ‘social’?

Social media platforms: the appvantage

Strong retailer social strategies should result in higher consumer engagement with their own social accounts. But, with the way social commerce is currently set up, their other digital platforms should also benefit. Apps and websites need to include features that connect to their discovery and engagement, which often first happen on social channels.

A European retailer may, for instance, engage a consumer via a Shop Spotlight on Twitter or an influencer partnership on Instagram, but the retailer’s own social account is a key point of ongoing contact, and its apps and websites are where commercial activity actually happens. If a newly interested consumer doesn’t choose to stay connected to the brand by following their social account, or if that first inspiration moment doesn’t seamlessly take them to a shoppable platform, there’s potential for them to never cross over into buying mode. For this reason, ideally, commerce and social experiences would happen in the same place.

Apps provide a solution for hosting the social and commercial aspects of retail in one space. There is a clear case for championing the platform: European consumer spending in mobile apps increased by 22.8% from 2020 to 2021. App usage also allows businesses to gather data, reward loyalty, and encourage repeat custom, without the competition of the social media marketplace. Brands can notify customers about news or product launches, and build frictionless and personalised experiences by storing details and preferences.

How do you engage online shoppers?

When it comes to the ‘social’ aspect of social commerce, brands must create the kinds of shared shopping experiences that consumers enjoy on the high street. These social experiences are the key to transforming the excitement generated on the discovery pages of TikTok and Instagram into tangible conversions, and encouraging customers to come back, time after time.

What are the interactions that brick and mortar stores make possible, and how can they translate onto apps and websites? From collaborative wish lists, to shared browsing sessions, to crowdsourced fit input, brands must create functionalities that are optimised by social settings. In addition to better customer experience, this also leads to an empowered shopper, and services spreading by word of mouth. 

There are clear benefits to this kind of social functionality. When consumers feel that their engagement encourages others to interact with a brand they enjoy, many feel a sense of pride that helps build lasting relationships. Equally, another customer might need their friend’s advice before making a purchase online, and that friend may go on to make a purchase of their own once they have offered their virtual feedback. 

Augmented Reality (AR) can level up the shared engagement in social. Brands can leverage AR to simulate authentic interaction with products, such as allowing customers to virtually ‘try-on’ garments or even browse entire stores and then send a link to their close friends so they can join them in the mixed reality viewing. These are the kinds of behaviours we’re starting to see in Decentraland, which saw its transaction volume increase by 90% last year alone. Meanwhile, a recent study discovered that 70% of consumers who visited a virtual store made a purchase.

Connected commerce

Data is fundamental to delivering connected, engaging retail experiences. If engagement data and path to purchase data are brought together effectively, they can paint a comprehensive picture of how shoppers move from inspired to buying. This is why it is vital that no data is lost in the transition between digital platforms.

Social media can present a challenge, as moments of inspiration that prompt shoppers to make purchases cannot always be tracked. Customers can’t always make purchases directly on social platforms, so the purchase journey is disconnected. To complicate matters further, data gleaned from in-store retail experiences is also an important touchpoint in many purchase journeys – all this data needs to be mapped for a holistic understanding of a customer’s retail experience.

The key enabler of more connected commerce is a customer data platform (CDP). CDPs can store and unify customer data from a range of sources beyond social – including apps, physical stores, and websites – to create cross-channel customer identities that are accessible to multiple business departments. CDPs drive real-time analytics and inform strategy by powering personalisation, identity resolution, and a range of other improvements to customer experiences. 

With data connectivity, from social engagement to digital and physical points of sale, social commerce can become a seamless, strategic success. Retail can become an exciting dialogue, both between brands and customers, and between customers and their peers. And, crucially, the data drawn from these interactions can inform ongoing optimisation and personalisation, creating the best possible social experiences for shoppers.

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