Social commerce is revolutionising the way people shop, combining the discovery-driven nature of social media with the convenience of e-commerce. For small- and medium-sized enterprises (SMEs), it presents a significant opportunity to engage with customers, build brand loyalty and drive revenue. As social platforms evolve into highly effective storefronts, they have already generated billions for savvy brands and are expected to grow even further. Despite its current success, social commerce still has untapped potential, particularly in the UK, making this the perfect time for SMEs to embrace this innovative sales channel. Carli Buckley, Head of Social and Multimedia, Visualsoft, explains how SMEs can make the most of social commerce.
Recent figures underscore the rapid growth of social commerce – quickly going from a new trend to an essential part of any retail strategy. In 2023, the global market reached US$579 billion, an increase of 159% over four years. By 2028, it’s expected to surpass one trillion dollars. Generational shifts are fuelling this growth: 46% of Gen Z and 35% of Millennials have made purchases through social platforms, with many more discovering products on these channels. These groups are projected to account for 39% of all retail spending by 2030, making social commerce a crucial tool for any retailer looking to secure long-term growth. On our own platforms we’ve seen a rise in social shopping across TikTok with consumers spending more than 70 minutes daily on the platform and a 200% uplift in live commerce usage.
The benefits of social commerce extend beyond immediate sales. It offers somewhat unparalleled brand visibility at a fast pace, access to analytics to inform strategy, valuable customer insights, faster engagement and social proof that enhances credibility. But it’s no good just making a TikTok video and hoping it goes viral. To maximise these opportunities, businesses need to approach social commerce strategically. Here are some top tips for SMEs to excel in this new era of shopping.
Invest in strong video content
Video content is at the heart of social commerce. It’s an engaging, memorable way to showcase your products and brand personality. Creating impactful videos doesn’t have to involve high production costs. User-generated content (UGC), where customers create content featuring your products, can be one of the most impactful channels, offering a genuine endorsement of you and the brand.
Consistency and authenticity are key to success. Share videos that demonstrate your products in use, offer tutorials, provide behind-the-scenes glimpses or feature customer testimonials. Live streaming is another powerful tool, allowing you to engage directly with your audience in real-time and has become increasingly popular on TikTok and Instagram, creating a sense of urgency and personal connection that drives conversions.
Build a following and leverage data insights
Social commerce thrives on community. Building a loyal following should be a priority for SMEs, as engaged audiences are more likely to convert into customers and advocates. Regular posting, meaningful interaction with followers and collaborations with influencers can all help grow your audience.
As your presence grows, take advantage of the wealth of data available on social platforms. Analytics can provide insights into what types of content resonate most, when your audience is most active and which products generate the most interest. SMEs should prioritise actionable insights that enhance engagement, conversions and customer loyalty. Key metrics include engagement rates to refine content, click-through rates to optimise calls-to-action and conversion rates to identify what drives sales. Analysing demographics and time spent on content ensures campaigns resonate with the right audience and deliver impactful messages effectively. This information allows you to refine your strategy, creating more targeted campaigns that yield better results.
Integrate social commerce with broader marketing efforts
Social commerce shouldn’t exist in a vacuum but should complement and enhance other marketing channels. Ensure your social commerce efforts are aligned with email marketing, SEO and traditional advertising to create a cohesive brand message and seamless customer journey.
Retargeting is an especially valuable tactic. Social platforms often allow you to target users who have interacted with your posts or clicked on your links but didn’t complete a purchase. By re-engaging these users with tailored ads, you can significantly increase your conversion rates.
Optimise for mobile
The vast majority of social commerce interactions happen on mobile devices, making mobile optimisation a critical factor in success. Content should be easy to view and interact with on smaller screens, and product images should load quickly without sacrificing quality. If your website is the final point of sale, ensure it is responsive, easy to navigate and has a streamlined checkout process.
The shopping experience within social platforms also needs to be smooth. Facebook, Instagram, Pinterest and TikTok have built-in shopping tools that allow users to browse and buy products without leaving the apps, which remove barriers to buying and help boost conversion rates. SMEs should make the most of these features to create a frictionless experience for their customers.
Focus on frictionless experiences
One of social commerce’s biggest advantages is the ability to simplify the customer journey. By enabling users to discover, explore and purchase products without leaving the platform, you reduce the risk of losing customers along the way.
Ensure that product tags, links and descriptions are clear and accessible. Shorten the checkout process wherever possible and offer multiple payment options to accommodate a wide range of preferences. The smoother and more intuitive the journey, the more likely customers are to complete their purchases.
Showcase social proof
Social proof – reviews, testimonials and user-generated content – is a cornerstone of successful social commerce. Seeing others interact positively with your brand builds trust and credibility, especially for first-time customers. Of course you’re going to say your brand is great, but happy customers feel much more authentic. Encourage satisfied customers to share their experiences on social media and consider incentivising UGC through discounts or contests. Partnering with micro-influencers can also enhance your brand’s credibility, introducing your products to new customers in an authentic way.
The role of new technologies
Emerging technologies like Augmented Reality (AR) and Artificial Intelligence (AI) are poised to level the playing field for smaller businesses. AR can enhance the shopping experience by offering virtual product try-ons or previews, reducing return rates and increasing buyer confidence. AI enables personalisation through chatbots, tailored recommendations and predictive analytics, making smaller businesses more competitive in providing a seamless and tailored customer journey. When integrated, these technologies can empower SMEs to deliver cutting-edge experiences without requiring massive budgets or technical expertise.
Looking ahead
Social commerce has a dazzling future ahead. For SMEs, it’s not just about boosting sales but building deeper connections with customers who value convenience and personal interactions. By crafting engaging content, using data smartly and keeping ahead of trends, SMEs can carve out their success in this evolving space. Embrace social commerce strategically and you’ll thrive and stand out in a fiercely competitive market.