You already know the key players in social commerce. You're probably already advertising on them. But as the platforms push for more and more conversions to happen on their apps, you'll need to adjust your social commerce marketing strategy along with it.
What is Social Commerce?
Social commerce is the practice of buying and selling products directly through social media platforms. Imagine discovering a stylish pair of sneakers on Instagram, clicking a link, and purchasing them without ever leaving the app. That's social commerce in action.
eCommerce experts Andrew Faris and Jordan West discussed the surge of Social Commerce on The Andrew Faris Podcast. It's a good primer for starting to understand the foundations of the new player in eCommerce.
Statista predicts that the penetration rate of social shopping will reach nearly 25% in 2024. That's a massive opportunity for brands to connect with customers and drive sales.
It's more profitable for a brand to get conversions on their websites where they can avoid platform fees, improving eCommerce profit margins. But the market of potential buyers hangs out all day on social media apps, so you can't ignore them. How much time and budget should brands allocate toward a less profitable channel with huge audiences?
The answer is a difficult one and different for every brand. But knowing the landscape is the first thing you need to do.
So, are you ready to tap into the power of social commerce? Let's dive in and explore the strategies that can help you succeed in this exciting new era of eCommerce.
Key Social Commerce Platforms & Their Features
According to eMarketer, Facebook holds a commanding lead for social commerce when consumers are asked what platforms they've made a purchase on - 61% said Facebook. TikTok and Instagram are the closest at 35.5% each. But they have some ground to make up.
The key players and notable social commerce features:
- Shoppable Posts: Tag products directly in posts and stories, allowing users to click and purchase.
- Instagram Shopping: A dedicated shopping tab where users can browse and buy products from brands they follow.
- Reels: Short-form video content that can be used to showcase products and drive sales.
TikTok
- TikTok Shop: A built-in e-commerce platform that allows brands to sell products directly on the app.
- Live Shopping: Real-time shopping experiences where influencers and brands can showcase products and interact with viewers.
- Hashtag Challenges: Engaging challenges that can drive brand awareness and product sales.
- Shoppable Pins: Product Pins that link directly to retailers' websites.
- Idea Pins: A new format for longer-form video content that can be used to inspire and influence purchasing decisions.
- Lens: A visual search tool that allows users to search for products based on images.
- Facebook Shops: A dedicated online storefront for businesses on Facebook.
- Marketplace: A peer-to-peer marketplace where users can buy and sell products.
- Live Shopping: Real-time shopping experiences that allow brands to interact with viewers and answer questions.
Why These Platforms Matter
These platforms are more than just social media apps. They're powerful sales channels. Instagram Shopping has seen significant growth, with millions of people shopping through the platform each month. TikTok, with its younger demographic and high engagement rates, is emerging as a major player in social commerce.
By understanding the unique features and strengths of each platform, you can develop effective social commerce strategies that drive sales and build brand loyalty.
Read about how we helped Festive Lights, a decorative lights retailer, earn a 25X ROAS on Pinterest.
5 Strategies for Effective Social Commerce Campaigns
"Okay, I'm already running paid ads on those platforms, so I'm all set, right?" I hear you asking. Paid media is a good start while trying to boost social commerce conversions. But there are specific strategies we know work best for social commerce. Think about adding these to the mix:
1. Partner with the Right Influencers
Let's face it, influencer marketing isn't going away. If you're going to do it, do it right. Work with influencers who genuinely align with your brand's values and whose audience is a perfect match for your target market. Encourage them to create authentic content that resonates with their followers, not just a forced sales pitch. And remember to track the effectiveness of these partnerships with unique discount codes and/or affiliate links.
2. Harness the Power of Your Customers
Your customers are your brand's biggest advocates. Encourage them to share their experiences with your products on social media. Repost their content and reward their loyalty. Create branded hashtags to inspire user-generated content and track its reach.
3. Make Mobile Shopping Seamless
Make it easy for your customers to shop directly on social media. Use shoppable posts and stories with clear calls to action. Optimize your content for mobile devices - that's where most social media shopping happens. And don't be afraid to experiment with different product placements and CTAs to see what works best.
4. Bring Your Brand to Life with Live Shopping
Live shopping events are a fantastic way to connect with your audience in real-time. Showcase your products, answer questions, and offer exclusive deals. Partnering with influencers can help you reach a wider audience and create a more engaging experience.
5. Listen, Learn, and Engage
Social media isn't just a one-way street. Listen to your audience, respond to their comments and questions, and build a genuine connection. Run polls, ask for feedback, and address any negative comments promptly. By actively engaging with your community, you can build brand loyalty and foster a loyal customer base.
Okay great, Mike. A new list of things for me to work on. Thanks. But how do I know it's working?
Deep-Diving into Social Commerce ROI
Don't worry. You're probably already tracking the data you need to measure social commerce success. You just need to bring it together correctly - something we can help with in our data tool.
Key Metrics to Track
- Social Media Sales: Measure the revenue generated from sales made directly on social media platforms. Some platforms have reporting lag issues, which is why it's important to analyze through look-back windows and verify attribution.
- Social Media Click-Through Rate (CTR): Calculate the percentage of users who click on your social media links or ads. Use this to A/B test creative and weed out under-performers.
- Social Media Conversion Rate: Determine the percentage of social media users who complete a transaction via a social app. This is different from a conversion reported with the 'source' of 'social media.' That could mean someone clicked on an ad
- Social Media Customer Acquisition Cost (CAC): Calculate the cost of acquiring a new customer through social media marketing efforts.
- Social Media Customer Lifetime Value (CLTV): Estimate the total revenue a customer acquired through social media generates over their lifetime.
- Social Media Brand Sentiment: Monitor brand sentiment on social media to gauge customer perception and identify potential issues.
Advanced Analytics & Attribution
To gain even deeper insights, consider using advanced analytics tools and attribution models. These tools can help you track the customer journey across multiple channels and identify the specific social media touchpoints that influenced a purchase.
- Multi-Channel Attribution: Understand the impact of various social media channels on the customer journey.
- Social Media Return on Ad Spend (ROAS): Measure the return on investment for your paid social media advertising campaigns.
- Social Media Influencer ROI: Evaluate the effectiveness of influencer partnerships by tracking sales, website traffic, and brand mentions.
By tracking these metrics and leveraging advanced analytics, you can make data-driven decisions to optimize your social commerce strategies and maximize your ROI.
Following the tactics we talked about above and measuring the correct metrics for success is important. But in order to succeed at the highest levels of social commerce, you have to build and grow a brand community. A group of people who love your brand enough that they'll engage with it online and achieve the most powerful form of marketing: Word-of-mouth Marketing.
Building Strong Brand Communities
A strong brand community is jet fuel for social commerce. By fostering a sense of belonging and loyalty among your customers, you can create a dedicated following that is eager to share their experiences and promote your brand.
Here are some strategies for building a thriving brand community:
- Encourage Engagement: Create opportunities for your customers to interact with each other and with your brand. Host contests, ask questions, and respond to comments.
- Provide Exclusive Perks: Offer exclusive discounts, early access to new products, or personalized experiences to your community members.
- Listen and Respond: Actively monitor social media conversations and address customer feedback promptly.
- Collaborate with Influencers: Partner with influencers who share your brand's values to reach a wider audience and build credibility.
So, there you have it. Social commerce is no longer a trend; it's a full-blown shopping revolution. By understanding the key platforms, crafting engaging strategies, and measuring your impact, you can unlock the full potential of this powerful channel.
As social media continues to evolve, so too will the opportunities for social commerce. So, buckle up, get creative, and let's ride this wave of digital innovation together. The future of shopping is social, and it's looking pretty darn exciting!
