Pandemic lockdowns, supply-chain disruptions, inflation, and conflicts around the globe have put immense pressure on small businesses in recent years. Many have struggled or failed to adapt to such volatility.
Resilient businesses, however, have adapted to reach the growing number of people turning to social media to feel connected and informed about the world.
According to a Globe Newswire article, the United States Social Commerce Report 2024 projects that the social commerce industry will grow by 18.1% each year “to reach US$72.93 billion in 2024.” The report also predicts that the Gross Merchandise Value (GMV) of social commerce in the United States will increase to $144.60 billion by 2029.
Social commerce, it turns out, offers unique solutions to some of the challenges facing small to medium-sized businesses (SMBs) in 2024. Here’s what you need to know.
Social commerce makes it possible to bring customers through your marketing funnel more effectively, according to Shopify. With a social media plan that meets your ideal audience where they are, you can leverage social commerce to:
Build awareness,
Foster engagement,
Generate social proof, and
Streamline the checkout process.
Built-in analytics tools for shops and creators can provide crucial insights. These go beyond the data you’d get from other traditional marketing tools.
On video-oriented platforms like TikTok or Instagram, for example, you can see exactly where users lost interest, or how many times a video was replayed. This can help you improve your strategy for better results.
Shoppable ads can lower cart abandonment rates by reducing the steps required to collect information. Shoppers can make a purchase without ever leaving the app. Creating a seamless user experience is key, and the fewer barriers between your customers and what they need, the better.
Influencers have become an integral piece of the social commerce landscape, especially when it comes to reaching younger generations. By partnering intentionally with creators aligned with your target audience, you can speed up the process of fostering trust and brand loyalty in an authentic way.
Emarketer highlights the importance of user-generated content, citing a Deloitte survey from November 2022 showing that 46% of US buyers are more likely to trust a brand if it was reviewed by a content creator they follow.
According to the 2024 Influencer Marketing Benchmark Report, the Influencer Marketing Industry is set to grow to approximately $24 Billion by the end of 2024.”
Interestingly, the results showed that an influencer’s audience size may be inversely related to how likely a brand is to work with them. For example, 44% of the survey respondents stated a preference for nano influencers (those with between 1k and 10k followers), while only 12.9% reported planning to work with mega/celebrity influencers.
This is likely due, in part, to the relative cost-efficiency compared to working with bigger names catering to a broad audience. Despite fewer overall views, these smaller influencers may boast higher engagement rates within niche audiences. This can help them deliver a higher ROI.
Livestreaming provides a less formal avenue of communicating with your audience and boosting engagement. With this format, you can answer questions and demonstrate what makes your brand/product unique while engaging directly with customers in real time.
Facebook has a live shopping feature that allows users to make purchases from your stream while they watch.
While not everyone enjoys participating in livestreams, they can be very influential for those who do. Of US respondents to a Statista survey who watch livestreams often, 70% reported being more likely to buy from livestreamers they follow.