Ah, autumn is upon us, ushering in the cosy embrace of Q4. As the leaves fall and the air turns crisp, we find ourselves increasingly surrounded by 'pumpkin spice’ everything (Cheers for that one, America <3).
But this year more than ever, it’s time for evaluation. What does this quarter hold for business and consumer spending in 2024? More importantly, how's it shaping up as the build-up to the year's biggest shopping period – especially after a year of turmoil and drop in the markets?
The Silver Lining: Social Media as a Sales Powerhouse
Despite the gloomy economic outlook, there's a beacon of hope for businesses: Social Media.
Social media has evolved beyond its original purpose, becoming a powerful tool for brands to drive sales and expand their reach. More users are now turning to these platforms as makeshift search engines, discovering new brands and tracking current trends. This shift has paved the way for Social Commerce, simplifying the online shopping experience through familiar social media platforms.
Now, if you're thinking, 'Hang on, haven't I heard this social media search engine malarkey before?', you're not wrong. We've waxed lyrical about social media being used as search engines not once, but twice before. (We're nothing if not thorough, eh?) If you fancy a deeper dive into that rabbit hole, why not give these a gander:
Scrolling for Answers: How Gen Z is Transforming the Search Landscape
Social Media as the New Search Engine Frontier
Understanding Social Commerce
So let’s talk about this shift, and what “Social Commerce” actually is. Social commerce is the buying and selling of goods or services directly within a social media platform. Unlike traditional e-commerce, where users navigate to separate websites or apps for purchases, social commerce streamlines the entire process within the same platform.
Leading social media platforms now offer dedicated social commerce tools. These include the usual suspects:
- TikTok.
Retailers can create digital storefronts within these platforms, allowing users to discover and buy products seamlessly.
The Rise of Frictionless Shopping
Reducing barriers to purchase has become crucial for businesses looking to boost their conversions. As Bruce Lee once said, 'If you spend too much time thinking about a thing, you'll never get it done.’ Now, when he said that nugget of wisdom he wasn’t talking about frictionless shopping - but it still applies.
Customers often find themselves in an extended 'consideration phase', weighing options and potentially losing momentum. By simplifying the checkout process and bringing it directly to where customers are browsing, businesses can help bridge the gap between interest and action. It's not about rushing decisions, but rather about removing unnecessary hurdles and making the journey from 'I want this' to 'I bought this' as smooth as possible.
There’s an article from TrueInteractive that talks about this: "The growth of social commerce depends on a seamless and frictionless shopping experience. When users need to perform too many clicks and jump across multiple platforms to browse and shop, they are less likely to make a purchase. Social media platforms like Facebook, Instagram, TikTok, and YouTube have integrated shopping features that allow users to browse and purchase products directly within the apps. Facebook leads with an expected 64.6 million social commerce buyers in 2024, followed by Instagram with 46.8 million buyers."
A recent example of frictionless social commerce is the partnership between TikTok and Amazon. This collaboration marks a significant milestone and underlines the significance of social commerce for consumers as Amazon becomes the first brand to facilitate in-app purchases directly within TikTok.
As TikTok describes it: "This shopping experience is powered by Amazon through ads placed on TikTok and allows users to complete product purchases with Amazon in TikTok's native environment."
This integration is more than just a technical feat; it's a strategic move that demonstrates a deep understanding of social media user behaviour. TikTok is aiming to bridge the gap between content engagement and commerce, transforming casual scrollers into active shoppers. By allowing users to make Amazon purchases without leaving the app, they're reducing the friction that often leads to abandoned carts and lost sales.
This partnership reflects a keen awareness of what social media users truly value. It's not just about accumulating followers or likes anymore; it's about creating a seamless journey from discovery to purchase. Brands can now leverage TikTok's engaging content format to showcase products while providing an immediate path to purchase through Amazon's trusted platform.
Winning Hearts and Wallets: What Social Media Users Care About
But how can brands understand what social media users care about? A great example of a brand that has hit the nail on the head when it comes to generating a strong social media campaign is UGG.
Ugg's recent campaign could not be further removed from its beginnings as a surfers' comfy footwear of choice to the must-have 2000s-inspired footwear for fall 2024.
By tapping into the popular 2000s trend and featuring a diverse cast, they appealed to younger consumers. Most importantly, they created an authentic brand image - a quality that Gen Z consumers actively seek out when choosing which brands to follow and support.
Anne Spangenberg, President of Ugg & Koolaburra by Ugg at Deckers Brands said “That feeling is unique and welcomes you to be comfortable in your self-expression, building connection and community where you can be your most authentic self. At Ugg, we celebrate this connection and community, so self-expression is comfortable for all.”
Authenticity first approach
Authenticity is key to brands. A good way for brands to develop more authenticity is to create a sense of community through the use of social media platforms. Consumers are moving beyond traditional demographics, embracing diverse identities and dynamic communities on platforms such as TikTok. As these communities intersect, they create a new hybrid culture, blending and exchanging unique characteristics.
By tapping into and cultivating these strong communities on social media brands also have the ability to even make their business and products stronger by really understanding what customers need and want straight away through honest feedback from social platforms.
In a recent trend report, conducted by Tiktok, Brands that involve customers in the development process are forging stronger connections.
Strategic brands pay close attention to what their customers are saying. They use this feedback to improve their products and how they interact with people. A great example is the skincare brand The Ordinary. They actively respond to comments and concerns from users on TikTok. This input helps them create new products and come up with fresh ideas. By doing this, The Ordinary shows that they value their customers' opinions and are committed to meeting their needs.
Brands can also use social media lives (streaming) to connect with customers and boost sales. Live shopping events allow companies to interact with viewers in real time, answering questions and building relationships. These events are particularly effective at increasing customer engagement and sales, especially as we approach the festive season. TikTok's data shows that live shopping can be a powerful tool for businesses:
To wrap it all up
We've covered a lot of ground there, haven't we? Let's boil all this down to the essentials. As we roll into Q4, here's your handy TLDR with the key strategies to keep in mind:
1. Embrace Social Commerce: Set up shop on platforms where your audience spends their time.
2. Focus on Authenticity: Create content that reflects your brand's true values and resonates with your community.
3. Engage in Real-Time: Use features like live streams to connect directly with your audience.
4. Listen and Adapt: Pay attention to user comments and feedback, and be ready to adjust your offerings accordingly.
5. Create a Seamless Shopping Experience: Ensure that the journey from discovery to purchase is as frictionless as possible.
Create content that reflects your brand's true values and resonates with your community.
