How to De-risk Social Commerce (and Stay True to Your Brand)

Table of Contents

  1. Introduction
  2. Optimize for Awareness, Not Impulse Buys
  3. Be Authentic
  4. Hedge Your Bets and Own Your Data
  5. Conclusion
  6. FAQ

Introduction

In today's dynamic retail landscape, the goal has pivoted from rapid expansion to achieving profitable growth. This shift emphasizes the need for forging deeper relationships with customers. A few years back, social commerce was primarily about customer acquisition. However, the escalating cost of acquiring customers, the phasing out of third-party cookies, and significant changes in social media platforms—such as the potential TikTok ban and Meta's imposition of its checkout process on retailers—have left many businesses uncertain about their social commerce strategies.

Despite these challenges, social commerce remains a vital component for digital commerce teams. This blog post will explore effective strategies to mitigate the risks in social commerce while maintaining brand integrity.

Optimize for Awareness, Not Impulse Buys

Understanding the Misconception

Many social commerce strategies focus heavily on prompting impulse buys. However, the effectiveness of this approach is limited. Research indicates that only a meagre 0.25% of first-time website visitors make an impulse purchase. Although 43% of social media users browse for goods and services, only 14% of them eventually complete a purchase through these platforms.

Embracing Awareness

Rather than pushing for immediate sales, businesses should leverage social media for driving awareness. Social platforms are excellent venues for implementing marketing’s Rule of 7—where a consumer must encounter your brand at least seven times before converting. By harnessing social media to build brand awareness, you can guide consumers back to your website where first-party data can be collected.

The Role of First-Party Data

With the looming discontinuation of third-party cookies, collecting first-party data is increasingly crucial. Utilizing tools like a Customer Data Platform (CDP), you can aggregate and analyze customer interaction data to create segmented, hyper-personalized marketing campaigns. This data is invaluable for enhancing loyalty programs through exclusive offers and tailored experiences, fostering deeper customer engagement and brand loyalty.

Be Authentic

The Importance of Authenticity

Social media shoppers predominantly belong to younger age groups. In the U.S., nearly 23.1% of social buyers are between 25 and 34, with over 66.5% under the age of 44. This demographic is particularly sensitive to inauthentic marketing efforts and may even develop aversion if they perceive your brand as disingenuous.

Leveraging Influencers

An authentic and well-timed influencer partnership can significantly boost your brand’s credibility and sales. While few brands achieve viral success, there’s a vast array of micro-influencers and even nano-influencers with loyal followings and various engagement rates. Aligning influencer campaigns with shoppable landing pages on your site can optimize conversion rates. Using first-party data, these campaigns can serve as the starting point for a long-lasting relationship with the customer.

Ongoing Engagement

Instead of viewing influencer collaborations as one-off events, consider them part of a larger strategy to build brand awareness and customer loyalty. Consistent, relevant engagement through influencers can keep your brand in the consumer's mind, fostering an ongoing relationship.

Hedge Your Bets and Own Your Data

Navigating the Unpredictability

The social media landscape is constantly evolving. What's trending today could be obsolete tomorrow. Hence, it is critical to diversify your distribution channels to mitigate risks such as sudden platform changes or bans.

Centralizing Commerce

Treat your eCommerce site as the central hub for all activities related to social commerce. When directing social media traffic to your site, experiment with various copy and creative elements to enhance conversions. Personalization based on first-party data can significantly improve visitor experience, increasing the likelihood of repeat purchases.

The Significance of First-Party Data

First-party data allows for more granular and relevant customer insights, which can drive the personal touch in marketing efforts. Making your brand experience as pertinent as possible to each customer can cultivate loyalty and repeat purchases, which are paramount in today's economy focused on profitable growth.

Conclusion

In conclusion, while social commerce presents unique challenges, it also offers significant opportunities for brands to connect meaningfully with their audience. By optimizing for awareness, embracing authenticity, leveraging influencers, and centralizing your commerce efforts while owning your data, you can de-risk your social commerce strategy and stay true to your brand.

FAQ

1. Why is optimizing for impulse buys on social media less effective?

Impulse buys are less effective because data shows that only a small percentage of first-time visitors make purchases on an impulse. Social media users mainly browse for products but rarely buy directly through these platforms.

2. How can first-party data improve my social commerce strategy?

First-party data allows for deeper insights and better segmentation, enabling more personalized marketing efforts. This data is invaluable for creating targeted campaigns and enhancing loyalty programs.

3. What makes influencer marketing effective in social commerce?

Influencer marketing is effective because it leverages the trust and loyalty that influencers have built with their followers. This authenticity can significantly boost your brand's credibility and drive conversions.

4. Why should I diversify my distribution channels?

Diversifying distribution channels mitigates risks such as platform bans or changes in social media policies. It ensures that your business isn't overly reliant on a single platform for traffic and sales.

5. How important is it to have a centralized eCommerce site?

A centralized eCommerce site serves as the main hub for your brand, where you can experiment with various marketing strategies and capture valuable first-party data. It helps in creating a cohesive customer experience and improving conversion rates.

By following these guidelines and strategies, you can create a resilient and effective social commerce strategy that aligns with your brand values and drives profitable growth.