According to the 2023 Retail Industry Outlook from Deloitte, 6 out of 10 executives see digital commerce as a top opportunity for growth. What’s even more surprising is that just as many people see opportunities for growth in social commerce: 60 percent of executives expect consumers to purchase products directly on social media platforms in 2023.
Given that many of us are social scrollers, being able to shop without disrupting our scroll is ideal. Now more than ever, social media is part of the buying journey, and retailers are investing in technologies that support social shopping and social commerce.
Retailers Should Embrace Social Shopping
Social shopping is more popular than you may think: nearly two-thirds of people use social media as part of their shopping strategy by searching for products on social media platforms, shopping for products recommended by influencers, connecting with favorite retailers on social platforms, and purchasing products directly on social platforms.
Social commerce doesn’t just help retailers connect with customers. Here are some additional reasons why retailers should consider social shopping.
- Opportunities for micro-segmentation. Connecting with customers on social media enables micro-segmentation through influencer alliances and endorsements. Social commerce allows consumers to cherry-pick brands and products they love right out of brand ambassadors’ lives. Retailers are taking notice of this targeted strategy: 7 out of 10 retail executives from Deloitte’s survey plan to collaborate with social media networks and influencers to convert influencer loyalty to brand loyalty.
- Opportunities to reach young consumers. Social media provides targeted access to younger consumers, and digitally-native generations are gaining more purchasing power and gravitating to social commerce. For example, 60 percent of Gen Z and 56 percent of Millennials used social media as part of their holiday shopping journey in 2022.
- Opportunities to decrease customer acquisition costs. Using social media for marketing can help retailers reach specific audiences and lower the cost of converting audiences into customers. Aligning with influencers or paying for social media search advertising — which is less expensive than traditional search engine marketing — can positively affect customer acquisition costs.
How Retailers Are Creating Seamless Social Shopping Experiences
To play in the social commerce arena, retailers need the right technology. Analysts at Deloitte advise investing in technologies that help provide a seamless purchasing experience on social channels and shoppable media to help nudge users toward purchases and create brand loyalty.
The 2023 Retail Industry Outlook identified several tactics, including:
- Creating shoppable tags with product information
- Embedding the brand website into the social media app
- Enabling in-app transactions
These tactics can help users quickly identify products they like and purchase products with a few simple clicks, reducing friction in the shopping journey.
A contact center platform with omnichannel capabilities can provide more efficient social interactions by centralizing all communications on one easily accessible platform. A contact center as a service (CCaaS) platform like GoContact makes engaging with customers on social channels like Facebook and WhatsApp easy, and if an interaction escalates to phone or webchat, it can be executed seamlessly on the same platform.
Contact Center Platforms Offer Omnichannel Capabilities
To fully leverage the rise in social commerce, retailers should consider investing in a contact center platform like GoContact that can centralize social media interactions and customer communications on the same platform. Omnichannel functionality is critical for competing in a social commerce landscape — without it, retailers will be left to cobble together essential parts of their sales strategy and the customer shopping journey.
Ready to discover how GoContact can influence sales on social media? Request a demo.