Let's #TalkTrends: Social Commerce Edition
- sara verman
- Nov 7, 2023
- 2 min read
1️⃣ Insight: Social commerce sales growth will come from increased spending among current buyers:
▶ Implications: To capitalize on this trend, social commerce platforms should continue to find ways to create a better buying experience to keep buyers happy and encourage more purchases:
🔎 Inspire your buyers to discover more products: analyze data to personalize the buyer’s experience and inspire them to discover more products with product recommendations at every stage along the path to purchase at search, browse, in-cart and post checkout
📣 Empowering creators to promote high performing products: Give creators tools to understand their sales performance, test, iterate, and promote in-app so they can double-down on high performing products. For instance, Amazon's in-app livestream feature for creators can help them to curate and promote high-performing products while remaining in-app.
2️⃣ Insight: Despite social commerce sales growth, it’s getting harder to convert non-buyer social users into buyers.
▶Implications: platforms can increase conversion of new buyers by reducing friction along the path to purchase and targeting users with the highest intent to purchase on social:
🛑 Reduce friction in the conversion funnel: analyzing where users drop off in the conversion process is crucial. By identifying pain points and addressing them, platforms can make it easier for shoppers to complete their purchases. For example, the recent introduction of in-app checkout by TIkTok Shop and LTK in September is a step in the right direction to reduce friction.
👭 Segment audiences to target users with greatest intent to purchase:Understanding your users and their preferences can significantly improve your ROI and drive more sales. Especially if you segment by demographic and your user base aligns with Gen Z who are more likely to make a social purchase compared to non-Gen Z users.
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