Social commerce increases the turnover of online stores

photo: pexels.com

The dynamic increase in the popularity of online shopping over the past two years has resulted in the development of technologies supporting this industry, ranging from new payment methods to increasingly precise marketing tools. This also applies to social media platforms, which play an important role in e-customer buying journeys.

Social media, aware of its role, is also aggressively developing products for business leaders. And that’s where the tech giants get most of their revenue. In the United States alone, Instagram generated $17.4 billion in revenue in 2020. By 2023, the Facebook-owned platform is expected to bring in nearly $40 billion.[1].

Social networks and sales

E-commerce, i.e. online commerce, is one of the most dynamically developing sectors, also in Poland. The Polish e-commerce startup scene employs more and more specialists every year, and this number is growing dynamically every year.

Social platforms are becoming more and more important in e-commerce. They gained their popularity through engaging features that consistently attract a growing number of users from all platforms – more than 400 million of them increased in one year (+9.9%). It is assumed that currently around 4.55 billion users use social networks. In practice, this means it is the most effective tool for reaching consumers. The average user spends more than two hours a day on apps such as Instagram or Facebook, and this number is steadily increasing month on month across all age groups.

Jakub Świerbiołek, Senior PR & Creative Consultant at Clue PR, adds that users of popular social media platforms haven’t used them for a long time to update their statuses like before. They are much more likely to look there for information, advice, opinions and inspiration. They also use it to kill boredom. In the tram, in a waiting room or in bed. Scientific research confirms that boredom is one of the reasons for impulse purchases, which makes social media users more susceptible to the influence of modern sales tools.

Social selling campaigns with the use of tools made available to entrepreneurs make it easy and precise to select the target groups with the highest conversion potential, to redirect traffic to the brand’s site and to monetize actions.

Acquiring customers through these channels has a real impact on brand results. According to the Social Selling Index (SSI), companies using social media are 51% more likely to achieve their sales goals. This applies not only to consumer products, but also to businesses. 39% of B2B experts said social commerce reduces the time spent generating leads and reaching potential customers.

But are consumers really interested in buying products on their social networks? According to a global study by Bazaarvoice, 76% of Internet users make their purchasing decisions based on what they see on social networks. 65% of respondents use them to gather shopping inspiration and 61% buy products after contacting advertising on these channels.

60% say they buy on the recommendation of influencers – the same percentage of respondents consider content posted on brand profiles to be inspiration for purchase. Interestingly, trust in brand-initiated product content on social media is higher than product recommendations made by family and friends, according to 55% of respondents.

Social platforms are the start of the buying journey

Although social media platforms have similar assumptions, they perform different functions. YouTube and Pinterest are platforms that provide inspiration for direct purchases, but most quick and spontaneous purchases take place on Instagram, Facebook, TikToku or Twitter. Different tools serve different purposes, however, keep in mind that grabbing customers’ attention and redirecting them to the brand page is only the start of the customer experience that ends with the platform. brand.

According to Michał Bogusławski, Commercial Director of ZEN.COM, customers are already accustomed to quick and intuitive purchases – with just a few clicks. They are more likely to buy from platforms that do not require user registration, have a transparent shopping cart, a quick transition to the summary and have integrated payment gateways with a wide choice of different payment methods – from BLIK to an electronic wallet such as Google Pay or Apple Pay or the increasingly popular BNPL.

Although consumer buying preferences are constantly changing. A good example is the changes imposed by the pandemic, which will remain with us permanently. We will not go back to the online shopping model that was popular before confinement. This state of affairs is reflected in the design of shopping platforms – it is easier to buy from stores offering products from the clothing and beauty industry.[2]who adapt the fastest to new requirements, implement the most effective UX and thus generate the highest sales. This is linked to all post-purchase services – easy and often free product logistics, free returns or even access to many means of payment and purchase financing in a few clicks.

New Instagram feature

Social commerce will become even more important with the latest update on Instagram. The platform will now allow all users – even private profiles – to tag products in their posts. Initially, the new feature will only be available in the United States. Karolina Sobieszek, Senior Content & Data Manager at Clue PRe points out that this feature has so far only been available for profiles marked as business and associated with a business account on Facebook. From now on, each user of the platform will be able to mark specific products directly in their entries. On the one hand, it is an opportunity to share your love for a certain brand with others, and on the other – a natural potential for the development of affiliate marketing on Instagram.

Extending the ability to label products by making features available to private individuals, including influencers, can significantly affect the revenue of brands – including those offering business services. Influencer marketing in the B2B sector is expected to generate $11.7 billion in revenue by the end of 2022. Although 38% of companies providing business services are already analyzing influencer marketing as a new way to generate leads.

Leave a Comment