Have you seen a successful business without social media account in today’s world? Is it really playing a big impact in the success of the next billion-dollar companies? In this article, we will try to find out the answers to these questions.
These days, it is very difficult for one to find a company that does not have a presence in social media. We have all grown accustomed to using social media as an avenue for communicating with the different companies whose services we utilize.
Statistics reveal that the number of social media users worldwide in 2019 is 3.484 billion, up 9% year-on-year.
This is a hefty number!
For businesses social media provides an avenue through which we can easily reach out to the target customer, market our products or services and make sales. Business achieves this by employing social commerce/marketing which is the use of social media platform to create targeted and personalized in-app shopping experiences for their customers.
Here are some of the benefits of Social Commerce:
1. Sustained Customer Growth
Do you have a social media account? How many people do you interact with across your various social media accounts?
We all know at least one person who uses social media and it is very evident that thousands of new individuals join social media on a daily basis.
One of the key benefits of social commerce for businesses is that it provides for sustained customer growth. Almost all businesses are customer driven and their success is measured by the ability to consistently acquire new customers while at the same time retain the existing ones.
Through social selling, companies are able to reach a broad audience base that is continuously growing. This is important for the company as it helps it to steadily grow its customer base which in turn leads to increased profitability for the business. Based on this it is logical for one to argue that social media commerce allows for increased exposure for companies to a global customer base.
Another way through which social commerce facilitates sustained customer growth is by improving customer experience in the different app stores. Social commerce allows the businesses to widen their outreach and directly get in touch with their target customer base, which in turn serves to enhance customer experience.
2. High Ranking on Search Engines
As already indicated, social commerce provides for customizable audience experience. By improving audience experience, a business is able to increase the rate of interaction with the business. Increased rate of interaction implies increased engagement which not only leads to a rise in the number of direct transactions but also increases the level of traffic to a company’s website which in turn positively influences the websites ranking and search engine.
This is made possible by the fact that most of the things that go viral on search engines are usually made popular through sharing across different social media platforms. The more the number of people who engage on a particular subject on social media, the more popular that subject will be online and the higher it will rank on search engines.
For businesses, high search engine ranking is extremely important as it usually leads to an increase in sales. This is due to the fact that websites with a higher ranking tend to have more traffic and greater sales than those with lower ranking.
3. Enhanced Customer Retention Rates and Loyalty
By now you already know that one of the key uses of social commerce is to enhance the level of interaction that exists between the business and its consumers. Through sustained positive interaction, the company is able to facilitate good relations with its consumers. This is important as it helps enhance customer loyalty and retention.
And mind you, in some cases, customer retention can prove to be even more lucrative than customer acquisition.
Even statistics prove that it costs five times as much to attract a new customer than to retain an existing one.
And customer loyalty and retention are phenomenons that only happen when the customer is happy and satisfied with the services or products offered to him or her. Through social commerce, a company can be able to obtain information on the likes and preferences of its customers. This will enable it to craft their services or products in a manner that is appealing to the customer base thus improving the customer’s level of satisfaction with the product.
Another way through which social commerce facilitates customer loyalty and retention is by promoting interactions with consumers. Through constant positive communication between customer and a company, the customers experience with the business is enhanced. This results in improved customer loyalty levels.
4. Very Affordable Unlike Other Forms of Commerce
The opportunity to save on operation cost while increasing profit is very crucial for any business. Through social commerce companies are provided with this opportunity and their ability to effectively exploit it is the key for success. Over the years, social commerce has emerged as one of the most affordable forms of retail that is available.
The strategy has very minimal cost as it is only the labor that the company has to utilize in creating quality social media content and continuously updating the content. In some instances, the cost might also include the hosting fees or transaction costs that are charged by the social media platforms.
The strategy is made quite affordable by the fact that there are no storefront or overhead costs. As a result of this, it emerges as a form of commerce that provides a great Return on Investment. Due to this it is logical for one to argue that social commerce is very beneficial for businesses as it keeps costs low while maximizing profits.
5. Greater Variety of Statistical Data for the Company to Analyze
Data analysis is an essential part of any business as it allows it to make informed decisions which serve to make it profitable. Through Social commerce, companies have access to a lot of data which can be analyzed to provide valuable market and operational information. Social commerce can allow the company to analyze its marketing efforts so as to determine whether or not there is a positive ROI or not.
The ability to measure and evaluate different aspects of the company’s operation is crucial for success as it facilitates better operations. This is made possible by the fact that different social media platforms have systems through which one can measure the effectiveness of his or her social media engagements.
Social media is one of the most essential tools today to boost your sales, given that you leverage it properly and use it to its potential best.
It is one of the most inexpensive ways to reach your audience and the best part is that now you can have a glimpse into the life of your target audience. Being privy to such information allows you understand the requirements of your customer and as a result helps you enhance your sales pitch.
I’m Alice Herman and I’m a digital marketer and technical writer. I’m passionate about exploring and writing about innovation, technology, and digital marketing trends. Learn all about “5 Business Benefits of Social Commerce”. Twitter Handle: @AliceHerman_usa