Social Commerce: a radiant future for Consumer Goods

Posted in: FMCG, News by Johanna Toiviainen | Comments to this post

The era of social consumption is only just beginning. With more than 32 million registered users in France, social networks now offer unparalleled visibility for leading consumer brands. The challenge is a sizable one: how do we attract this enormous potential audience and then guide them all the way to an actual purchase?

While social media provides an ideal playing ground for enhancing customer relations, their influence on the sales process has become essential for today’s brands. The numbers bear this out:

• 74% of e-shoppers use social media to form an opinion of a product before adding it to their shopping cart*;

• 33% of them have started a purchase process after seeing a promotion on a social network**.

In addition, social commerce is expected to generate $30 billion in revenue by year-end 2015, accounting for 5% of total e-commerce sales***. This is a great incentive for brands to invest in this channel as quickly as possible.

However, ROI measurements have tempered advertisers enthusiasm. For want of tangible performance indicators, calculating commercial impact has proven to be a real headache. Although 87% of B2C marketers run media campaigns on social networks, only 17% of them are able to estimate the impact of their investments****.

Brands must also naturally inspire social web users to buy, although social networks are by no means the ideal point of sale, as can be seen in the recent failures of online shops on Facebook and Twitter. So they need to offer an enjoyable experience that fits perfectly with the conversational, playful dimension of social media.

How can you monetize your social audience while fulfilling the expectations of ultra-connected consumers who are impatient and inclined toward impulse buys? Social Tran from Swaven Active Insights was created to meet this challenge. Social web surfers are redirected to a sales landing page when they click on a post or a video. They can then immediately check the product’s availability at nearby distributors and add it to their shopping cart.

Every means of communication on social networks can be transformed into a direct sales channel for retail businesses. As a result, consumer goods brands are now able to:

• Offer a simplified shopping experience to consumers;

• Shorten the conversion funnel considerably;

• Reap the benefits of concrete performance indicators (traffic, leads, sales, etc.).

This innovation is a real boon for players in the sector. By making it easy to capitalize on a channel whose potential remains largely untapped, they can also get a decisive head start on the competition.

* Trueship

** http://siecledigital.fr/2015/01/social-commerce-quels-reseaux-sociaux-tirent-les-revenus/

*** Business Insider et Booz & Company

**** Webmarketing123

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