Social Commerce in 2020/2021 Today’S Brave New Retail Frontier for Strengthening Brand/Customer Relationships
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Social Commerce in 2020/2021 Today’s Brave New Retail Frontier for Strengthening Brand/Customer Relationships Natalie DiBlasi Co-Founder /Partner Managing Executive of Strategy, Marketing & Media LACED AGENCY | a Strategic Digital Agency www.lacedagency.com www.linkedin.com/in/nataliediblasi @lacedtweet / @NatDiBlasi LICENSING UNIVERSITY: CLS Program October 27, 20201 About Presenter / Speaker: Name: Natalie DiBlasi Title: CoFounder / Managing Partner Company: LACED Agency www.lacedagency.com Successful since 2002 Privately Owned WHAT I DO: I lead Strategy, Marketing & Media Competencies for all agency Client Campaigns & Initiatives. I also produce/direct of our video initiatives (when time allows) About me: ● 20+ years of digital experience working on media and marketing campaigns for B2C & B2B clients. ● Verticals include; entertainment, tech, health and wellness, manufacturing, food & beverage, apparel, trucking & logistics, education, travel, HEMP CBD and cannabis among others. ● Insights Sharer / Public Speaker - 9 yrs+ ● Member of Forbes Business Council, LA ● Write/Contribute Thought Leadership (as time allows) ● Consummate Student & Always Learning/Sharing Fun Fact: I saw Force Awakens 7 times opening weekend, between Thursday and Monday.. And I saw Rise of Skywalker 6 times opening weekend. I am kinda of a star wars fan... 2 What We Will Cover in this Seminar - AGENDA / SOCIAL COMMERCE ● 3 Factors Driving Social Commerce Surge ● The Landscape of Social Commerce - Is there still opportunity? ● Defining Social Commerce - literally ○ Types of social shopping/commerce ● Who Are the Players? ○ Pinterest - quick snapshot ○ TikTok - quick snapshot ○ Instagram (facebook) - deep dive ■ Case Studies - who is succeeding on Instagram with social commerce? ● How to Track & Measure your Shoppable Campaign ● Other Strategic Approaches to consider for Social Commerce Success ● Best Practices / Quick tips ● Wrap-Up & Final Thoughts 3 Social media platforms continue to be a leader in driving product discovery for brands. 30% of online shoppers say they would be likely to make a purchase from a social media network like Facebook, Pinterest, Instagram, Twitter, or Snapchat – either through organic or paid efforts. 4 However, we are witnessing a MASSIVE PIVOT happening in SOCIAL MEDIA right now. 5 From INFLUENCE to DIRECT PURCHASING - Social Media has emerged as a valuable resource & channel for driving sales. Brands can establish Social Commerce as a pivotal piece of their ecommerce strategy. How? By identifying and leveraging social platforms’ unique ad units - those that are geared for driving sales. 6 Okay…. So What’s DRIVING this change? 7 SOCIAL COMMERCE SURGE WHAT IS DRIVING THIS RAPID CHANGE IN RETAIL? 8 What is behind the Social Commerce Surge? 3 factors: 1. Innovation - Various Social Media Channels have been rapidly catering to social shoppers & rolling out user-friendly platforms & options for businesses over the last 1-2 years. 2. Mobile/Social Usage - The relationship between mobile and social engagement is creating more accessible shopping experiences than ever before. 3. The Global Pandemic - caused 5 years of tech evolution & change to happen within 1 summer. Basically, we sped up natural change to an exponentially faster adoption of new tech & DTC (Direct To Consumer) commerce. Factor #1 - INNOVATION ● Social commerce is still in relative infancy, but the early numbers from existing products are very promising... eMarketer reports: “According to Civic Science’s trend adoption tracker, the percentage of internet users who had bought a product directly through social media channels grew each quarter between Q4 2018 and Q3 2019, rising from 13% to 21%. The biggest jump came in Q2, shortly after the launch of Instagram Checkout.” Source: https://www.emarketer.com/content/the-wheels-on-the-social-shopping-cart-will-finally-start-moving 10 Social media platform on which adult social media users in the United States have purchased from as of June 2020 70% of consumers search for products on Instagram and Facebook. 11 Source: https://www.statista.com/statistics/250909/brand-engagement-of-us-online-shoppers-on-pinterest-and-facebook/ 12 Facebook The leader in the social commerce space to date, unsurprisingly, is Facebook. ● You can sell products directly to users by setting up a Facebook Shop that connects to your ecommerce platform or an uploaded product catalogue. ● You can tag products in the photos and videos of your organic posts as well as in paid ads. ● Facebook has pretty advanced ChatBots to help with Customer Service. ● Best of all? You can checkout within Facebook without ever leaving the site with Facebook Checkout. 13 CHANNEL: Facebook / ChatBot & Facebook Shopping BRAND: LEGO, Gift Bot ● LEGO uses a chatbot to help you find the perfect toy as a gift. ● You answer a few questions and automatically get options delivered. ● Plus, you can buy within the platform and ship it out as a gift without having to leave Facebook. ● LEGO and its bot maker say the chatbot has reduced cost per conversions by 71%. Source: https://learn.g2.com/types-of-social-commerce Source: https://chatfuel.com/?source=bot_landing_page&page_id=6665038402 14 Social Commerce Strategy KEY TAKEAWAY ● Ask yourself, How can you help fans with their gift lists & product choices for holidays and/or special events like birthdays? ● Make your product relevant by providing a utility with it that will help your followers daily lives. ● Gift Guides are a great idea for this! You can use Chatbots, Stories, Shoppable Posts, or Live Video with Shopping tags. 15 Instagram is leading innovation & reaching the widest market of users (50% of teenagers are here in addition to brands, businesses, Millennials & Gen X’s) - Instagram stands ahead of the pack for the Western US Market. (as of Oct 2020) 16 Factor #1 - INNOVATION ● Checkout first launched in March 2019 with just 26 brands (including Zara, Revolve, Warby Parker, and Nike) making up the original beta test group. ● And now, Instagram Checkout is mainstream - all eligible businesses and creators in the US can now use the checkout feature! Just about anyone that meets the basic eligibility requirements can utilize this amazing social commerce tool! 17 Factor #1 - INNOVATION ● Instagram LIVE Shopping is already here & it’s here to stay. ● Think Home Shopping Network - but cooler & socially connected Source: https://bq-magazine.com/how-to-use-instagram-live-for-e-commerce-sales/ 18 Factor #1 - INNOVATION 19 What is behind the Social Commerce Surge? 3 factors: 1. Innovation - Various Social Media Channels have been rapidly catering to social shoppers & rolling out user-friendly platforms & options for businesses over the last 1-2 years. 2. Mobile/Social Usage - The relationship between mobile and social engagement is creating more accessible shopping experiences than ever before. 3. The Global Pandemic - caused 5 years of tech evolution & change to happen within 1 summer. Basically, we sped up natural change to an exponentially faster adoption of new tech & DTC (Direct To Consumer) commerce. Factor #2 - MOBILE / SOCIAL USAGE 21 Factor #2 - MOBILE / SOCIAL USAGE ● Mobile devices are the most popular device for online shopping by a wide margin. ● 72% of consumers are using mobile devices to shop in stores according to the latest PYMNTS' 2020 Remote Payments Study. ● E-Commerce and online retailers' supply chains, order management, and fulfillment systems are all being tested by the triple-digit order and revenue growth going on today. ● We are seeing more energy and intensity is being put into improving customer experiences online that ever before! Source: eMarketer, Feb 2019 22 Source: https://www.pymnts.com/news/ecommerce/2020/remote-payments-retail-covid-19-social-distancing/ Factor #2 - MOBILE / SOCIAL USAGE There are a few key benefits for the implementation of social commerce for both the brand and shoppers. ● For buyers, browsing and purchasing via a commerce product within a social media platform cuts down on the amount of friction associated with the shopping process. ● These Social Media microsites are much more mobile-friendly which will generally lead to increased conversion rates & driving sales. 23 CONSUMER CONVENIENCE MATTERS. 24 What is behind the Social Commerce Surge? 3 factors: 1. Innovation - Various Social Media Channels have been rapidly catering to social shoppers & rolling out user-friendly platforms & options for businesses over the last 1-2 years. 2. Mobile/Social Usage - The relationship between mobile and social engagement is creating more accessible shopping experiences than ever before. 3. The Global Pandemic - caused 5 years of tech evolution & change to happen within 1 summer. Basically, we sped up natural change to an exponentially faster adoption of new tech & DTC (Direct To Consumer) commerce. Factor #3 - THE GLOBAL PANDEMIC By Q2 of 2020, physical retail stores across the country (and worldwide) had been temporarily shut down due to COVID-19. No one really knew how long, when the stores would open again, or even IF they would be able to. Nothing was certain... 26 Factor #3 - THE GLOBAL PANDEMIC ● Just over 306 million Americans are affected by stay-at-home orders, nearly 95% of the U.S. population. ● COVID-19 will forever change retailing, and its initial impact on e-Commerce is creating challenges to online selling & service no one imagined in January 2020. 27 The Pandemic to Prosperity... Direct-to-Consumer (DTC) Retail in a ‘Post Acquisition’ World 28 Factor #3 - THE GLOBAL PANDEMIC