Unveiling the Social Commerce Era: The Power of Community, Influence, and Engagement

Client HighlightsMay 21, 2024

Ali Bichko, 1R's Strategic Account Director, recently attended the Social Commerce Summit in NYC and shared her insights from the event.

In the ever-evolving landscape of digital marketing, the rise of social commerce has become an undeniable force reshaping how brands interact with consumers. Defined by an era influenced by people in social media, social commerce is not just a trend but a fundamental shift in the way businesses operate. By the end of this decade, a staggering 42% of all revenue is projected to be attributed to social commerce, highlighting its profound impact on the retail industry.

At the heart of social commerce lies the essence of connection and expression. Building a thriving community is no longer an option but a vital necessity for brands aiming to succeed in this era. It's not merely about what a brand posts on social media platforms; rather, it's about embodying values and principles that resonate with the community at large. This inclusivity extends beyond external communication to empowering employees and fostering a company culture aligned with the brand's identity. Today's consumers wield more power than ever before, dictating the direction of brands through their preferences and interactions. Brands must be conscious of crafting experiences that seamlessly translate into social media engagements that can effortlessly transition into free marketing.

To thrive in the social commerce landscape, brands need to break down silos and consolidate marketing, e-commerce, and social teams to create integrated strategies. Live shopping experiences have proven to yield significantly higher conversion rates compared to traditional in-store retail, emphasizing the importance of embracing innovative approaches to engage with consumers.

Influencers emerge as key players in the realm of social commerce, wielding the power of trust to sway consumer behavior. Building trust facilitates the creation of communities around brands, underscoring the significance of authenticity in influencer partnerships. Rather than focusing solely on sales, brands should prioritize building relationships with influencers and leveraging their reach to connect with diverse audiences. In a conversation moderated by Ayla Anaya, President of PIMS, and Matt Tepper, CMO of John Hardy, a prevalent topic discussed was the significance of "finding your tribe" for both luxury and non-luxury brands when engaging with influencers.

Gen-Z, the most price-conscious demographic, presents both opportunities and challenges for brands. Understanding and educating this generation are paramount, as evidenced by campaigns such as Kiehl's targeted skincare initiatives. Similarly, tapping into the preferences of Gen Alpha, who favor in-store shopping experiences, requires brands to adapt their strategies to accommodate evolving consumer behaviors.

User-generated content (UGC) emerges as a powerful tool for building trust and driving conversions. Brands that harness the creativity of their consumers witness higher levels of engagement and loyalty. With Gen-Z spending significant amounts of time on platforms like TikTok and YouTube, brands must embrace unconventional content strategies to capture their attention and foster brand advocacy.

Looking ahead, TikTok continues to dominate the social commerce landscape, serving as a billion-person focus group for brands to glean insights from. However, diversifying marketing efforts across platforms like YouTube, Pinterest, and Instagram remains crucial to reaching diverse audiences and maximizing brand exposure.

6-9x

Number of times a new customer may be exposed to a brand before converting

90

Minutes per day Gez Z spends on TikTok

69%

Users inspired by Social that make purchases on other channels

45+

The fastest-growing age range currently on TikTok

1/3

Shoppers that rely on user-generated content

In conclusion, the social commerce era heralds a new frontier in digital marketing, where community, influence, and engagement reign supreme. By embracing authenticity, leveraging the power of influencers, and prioritizing user-generated content, brands can navigate this evolving landscape and forge meaningful connections with consumers in the digital age.

To learn more about how 1r Agency can support your digital marketing needs, reach out to hello@1r.agency.