Social Commerce Growth: A Matter of Trust

The early days of 2022 brought good tidings for the future of social commerce growth. A new Accenture study found that the $492 billion global social commerce industry is poised to grow three times as fast as traditional e-commerce, to a whopping $1.2 trillion in 2025. But social commerce success isn’t necessarily a slam-dunk for brands, whether they’re large global brands or small businesses. For example, the Accenture report found that half of surveyed social media users “are concerned that social commerce purchases will not be protected or refunded properly, making trust the biggest barrier to adoption, as it was for e-commerce at its beginning.” So if social commerce growth is, in many ways, a matter of trust, how can brands help customers of all generations – both new and returning – feel confident making purchases through social media platforms?

Like and buy: How to strike gold with social commerce

Social platforms provide brands with a unique window to meet shoppers where they are most engaged. Find out how brands can build a profitable social commerce strategy.

Social commerce in 2022

The Accenture report defines social commerce as an entire customer shopping experience that takes place on social media platforms.

For example, Facebook and Instagram have separate “Shop” tabs in their apps. Brands can establish their own virtual storefronts. In TikTok, brands can add a “Shopping” tab to their profiles. Brands and influencers can link to product pages in posts and livestreams.

However, at the moment only Facebook and Instagram offer the option to checkout seamlessly within the app.

Social customer experience management: Definition, benefits, examples

Companies today can’t afford to ignore social media in their customer experience. Here's how you can start socializing your CX today.

Gen Z, Millennials lead social commerce growth

Not surprisingly, social commerce growth is expected to be driven by Gen Z and Millennial social media users. These younger generations are predicted to account for nearly two-thirds of the global social commerce spend.

But even Gen Xers like myself are not immune to the social commerce trend. For example, last summer I took advantage of Facebook’s click-to-buy image carousels and quick checkouts. It made it easy to purchase three pairs of sandals from brands I like. And even my Boomer mother has pondered the possibility of ordering eco-friendly products through brand advertisements as she scrolls through her social media feeds.

Still, some experts offer more tempered enthusiasm when it comes to social commerce growth, particularly in the U.S.

According to eMarketer, nearly half of US social media users reported making a purchase via social media in the past year. However, to put that into perspective, their report forecast US sales of $36.62 billion in 2021. This is only a mere tenth the size of China’s social commerce market.

Social commerce examples: The power of social influence for online selling

Social commerce is a huge opportunity for any company that sells products online. See how you can harness the power of social influencers to sell more.

How to build trust and grow your social commerce

Here are three ways brands can boost consumer confidence in making purchases via social media platforms:

1. Focus on authentic messaging
2. Prioritize security and privacy
3. Provide consistently great customer service

1. Focus on authentic messaging

A survey conducted last summer found that 88% of respondents believe authenticity, or brands being “genuine” and “real,” is an important factor in deciding which brands to support.

A recent Influencer Marketing Factory report on social commerce quoted Chloe Cox, a social strategy and insight consultant at Wunderman Thompson Commerce: Social commerce is “all about the messaging, the authenticity and the trust,” she said. “It’s not just the brands that are the big players in social commerce, but influencers, or social creators, too.”

2. Prioritize security and privacy

Shopping online has always been fraught with issues related to customer payment security and privacy. An April 2021 report predicted e-commerce fraud would surpass $20 billion last year, an 18% jump over 2020. And a recent Better Business Bureau report blamed lax social commerce platforms for opening the door to online scammers in China to steal from online shoppers.

This is a huge challenge for brands who cannot control “walled garden” policies, but making security and transparency a business priority is certainly an important step.

Data compliance: An ultimate guide to consent, privacy, and best practices

Data compliance encompasses the standards and regulations in place to ensure data is secure, protected from data theft, misuse, and loss. Here's a primer on getting started.

3. Provide consistently great customer service

Social commerce is really no different than e-commerce and brick-and-mortar sales when it comes to building customer loyalty.

Brands that provide great customer service when selling on social platforms – with excellent product, top-notch communication, on-time delivery and clear return options – can boost trust and keep customers coming back.

Exceptional service has become more important than ever as customer expectations have continued to grow during the pandemic. A recent Forrester study, for instance, found that brands that responded to evolving customer needs through digital transformation, new shopping options, and different ways to interact with customers excelled.

There’s no doubt that social commerce will continue to grow and evolve, so no brand, large or small, can ignore this increasingly essential sales channel. But social commerce success will be elusive unless they make building trust a priority.

           

Source: https://www.the-future-of-commerce.com/2022/01/31/social-commerce-a-matter-of-trust/