Building a Social Commerce Game Plan
Social commerce, an intersection of e-commerce and social media, is a rapidly evolving domain that leverages social networks as a platform for buying and selling products and services. Throughout the years, this arena has witnessed a dramatic transformation, evolving from basic online marketplaces to sophisticated platforms enriched with features like live-streaming, shoppable posts, and augmented reality try-ons.
The spectrum of social commerce is wide, comprising various platforms each with its unique strengths. Facebook, for example, offers Facebook Shops, enabling businesses to create customized online stores. Instagram, another key player, captivates users with its shoppable posts and stories, integrating seamless purchasing within the visually driven environment.
TikTok, while relatively new, is quickly gaining traction in the social commerce sphere with features such as shoppable videos and brand partnerships. Together, these platforms offer an exciting array of opportunities for businesses to reach new audiences, enhance customer experience, and measure success in innovative ways.
In this article, we explore how retailers can build a social commerce game plan to tap into the latest opportunities in this arena.
Explore Technology Possibilities for Social Commerce
Social commerce depends on technology. Here are a few of the key platforms and technologies retailers should consider as they map out their social commerce plans.
Instagram - Shoppable Posts
Instagram is a fertile ground for retailers looking to leverage social commerce. The platform introduced the concept of 'shoppable posts', which allow businesses to tag their products directly in their posts or stories. Users can then click on these tags, learn more about the product, and make a purchase without ever leaving the app.
This seamless shopping experience significantly enhances customer engagement and conversion rates.
Facebook - Facebook Shops
Facebook Shops, another powerful tool, enables businesses to set up an online store that can be accessed from both Facebook and Instagram. Once a shop is set up, businesses can personalize their storefronts, feature products they want to highlight, and even customize collections to align with their brand image.
This provides a high level of personalization that can significantly enhance the customer shopping experience.
TikTok - Shoppable Videos
TikTok has taken social commerce to a new level with its shoppable videos. Businesses can now partner with influencers to create engaging videos featuring their products. Users can click on the product tags in these videos and be directed to the retailer's online store to complete the purchase.
This innovative strategy not only boosts product visibility but also leverages the power of influencer marketing.
Augmented Reality (AR) in Social Commerce
Innovative technologies like Augmented Reality (AR) are revolutionizing the social commerce space. AR enables users to virtually 'try on' products before making a purchase. For instance, beauty brands use AR for virtual makeup trials, and fashion brands allow customers to virtually try on clothes.
By providing an immersive, interactive shopping experience, AR can drastically reduce return rates and increase customer satisfaction. As technology continues to advance, we can expect more innovative AR applications to enhance the social commerce experience.
Virtual Reality (VR) in Social Commerce
Virtual Reality (VR) is another emerging technology reshaping the landscape of social commerce. Unlike Augmented Reality (AR), which overlays virtual elements onto the real world, VR completely immerses users in a fully digital environment. This difference allows for a whole new realm of shopping experiences that can be both engaging and transformative.
Retailers can create virtual stores that replicate the in-person shopping experience, allowing customers to browse virtual aisles, examine products from every angle, and even interact with virtual sales associates.
These immersive shopping experiences can not only enhance customer engagement but also provide a competitive edge for businesses in the increasingly crowded e-commerce landscape.
In the context of social commerce, VR holds the potential to take customer experience to a new level of personalization and interactivity. For instance, customers could potentially attend fashion shows virtually, try on clothes in a virtual fitting room, or explore a holiday resort in 360 degrees before booking.
The use of VR in social commerce also allows for unique social interactions, such as co-shopping with friends in a virtual mall or receiving real-time advice from a stylist in a virtual boutique.
The Metaverse in Social Commerce
The term "Metaverse" refers to a collective virtual shared space, created by the convergence of virtually enhanced physical and digital realities. In other words, it's an immersive virtual world, where users can interact with a computer-generated environment and other users.
In the context of social commerce, the Metaverse has the potential to exponentially expand the capabilities of current platforms. Imagine a shopping experience where instead of scrolling through product listings, customers can walk through virtual stores, interact with products as if they were physically there, and even virtually try before buying.
The Metaverse could even revolutionize the concept of a marketplace by creating virtual shopping streets or malls, where businesses can own their virtual storefronts. This would not only provide a more immersive customer experience but would also allow for a level of interaction and personalization that far exceeds that of existing platforms.
Personalize the Customer Experience
In the realm of social commerce, personalizing the customer experience is crucial for driving engagement and boosting conversions.
One strategy that retailers and eCommerce organizations can employ is leveraging data analytics to understand customer behavior, preferences, and purchasing patterns. This information can be used to tailor content, product recommendations, and marketing messages specific to each customer.
Additionally, organizations can use features like Instagram's Shopping Tags to highlight products that align with a customer's interest directly within their social media feed, reducing the pathway to purchase.
Interactive features, such as polls or quizzes on platforms like Instagram Stories, can also be used to engage customers and gather insights about their preferences, which can then be used to offer more personalized product suggestions.
In the context of AR and VR, organizations can provide personalized virtual shopping experiences. For instance, customers can virtually try on clothes tailored to their measurements and preferences, or decorate their space with virtual furniture pieces that match their style.
Moreover, businesses can utilize chatbots or AI assistants on their social commerce platforms to provide personalized shopping assistance. These bots can answer questions, provide product recommendations, and even guide customers through the purchasing process based on their specific needs and preferences.
Measure Your Social Commerce Success
Measuring the success of social commerce efforts is a critical component of any retailer's online strategy. Key Performance Indicators (KPIs) provide quantifiable measures to gauge performance over time and to assess the success of particular business goals.
In the context of social commerce, a few key KPIs include Conversion Rate, which is the percentage of social media users who purchase interacting with a retailer's post or ad. A high conversion rate is indicative of effective social commerce strategies that are successfully encouraging users to make a purchase.
Average Order Value (AOV) is another crucial KPI that measures the average total of every order placed with a retailer over a defined period. It provides insights into consumer behavior and the overall effectiveness of marketing strategies.
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including the cost of marketing and advertising efforts. A lower CAC indicates more effective marketing strategies.
Engagement metrics such as Likes, Shares, Comments, and Follower Growth can also serve as KPIs. These metrics indicate how well the retailer's content resonates with its audience, and they can provide insights into brand visibility and the effectiveness of social media strategies.
Finally, Return on Investment (ROI) is a vital KPI that measures the profitability of social commerce efforts. It's calculated by dividing the return (gains from investment - cost of investment) by the cost of investment.
By regularly tracking these KPIs, retailers can assess the performance of their social commerce strategies and make necessary adjustments to optimize results.
Ready to Embrace Social Commerce?
Social commerce isn't a new concept, but it is quickly evolving into one of the most exciting areas for online retail. As technologies like AI, AR, and VR continue to mature, social commerce experiences will also transform and become more accessible to more shoppers.
To learn more about the future of social commerce, don’t miss eTail Palm Springs, happening from February 26th to 29th at the JW Marriott Desert Springs, Palm Springs, CA.
Download the agenda and register for the event today.