Is social commerce the next big thing, and how brands can leverage it?
Authored by Siddhartha Vanvani, Founder & CEO, Digidarts
The terminology of Social Commerce is directly proportional to redefining old value chains in accordance with enhancing sales. In simple terms, it involves social interactions and customer contributions to assist and enhance online buying and selling of products and services across platforms. Social Commerce holds an indefinite customer base across locations that grow with proactive user targeting and utilization of large unattended markets. The key benefit Social Commerce upholds is the connectivity between customer demographics that are led by the shareability factors between different customer communities.
Many brands are yet to holistically tap the potential of Social Commerce in Tier 2+ cities. And, aspirational businesses must map out the hypergrowth approach that encircles this set of audience and invites big opportunities.
Let's Speak Data:
ï‚· Currently, the Social Commerce market is valued at $2 billion.
ï‚· By 2025, $1.2 trillion is the expected Global Social Commerce Market Value.
ï‚· The Indian Social Commerce Market is estimated at $100 billion by 2030.
ï‚· The Digital Customer Base will grow rapidly by the end of the year so that brands can encounter hyper-sales and Business Growth.
ï‚· India is a vastly populated nation where word-of-mouth and social connection are major benefactors in supporting brands' digital growth.
Some Crucial Parameters for Brands To Leverage The Full Potential Of Social Commerce
Social Commerce is a market of extensive possibilities, and its continued growth is the result of adaptations in audience behaviour. To productively leverage Social Commerce, brands can track unattended opportunities in tier 2/ tier 3 cities with redefined tactics.
How can Brands unravel High Capital Efficiency?
Brands Capture New Audience:
Tier 2+ cities have over 600 million smartphone users who are digitally connected, which is expected to increase rapidly. Hence, brands can reach out to a newer set of target audiences who are most likely to engage in a social commerce experience. The key point is to decode the customer psyche and present suitable and relevant services in terms of products and categories.
Engage in Bulk Buying/ Bulk Selling:
Social commerce holds a solid potential in terms of massive sales and purchases. Connected Communities make transactions together, and it directly boosts the revenue generation of a brand.
Word Of Mouth Does Miracles:
The social networks or the connected communities make purchases on the trust factor, and India’s retail market is evolving on this theory. Hence, to unleash the full potential of social commerce, digital brands can build a reliance factor with their users to enlarge their Business Growth horizons.
Social commerce is not just about elevating your social exposure but sustaining the commercial facets via effectively strengthening disruptive logistics and customer trust. Brands are yet to venture into the exclusivity social commerce has to offer, and gauging the growth metrics, brands can competently sustain their growth with the changing times. Plus, in terms of marketing, Social Commerce leads to Higher User Retention/ Engagement, Lower CAC; while users take valuable actions together, it leads to Higher AOV and improves other Business Growth verticals.
DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.