When social media first hit the scene, few would have expected the central role it would play in any company’s marketing strategy. What started as a hangout for angsty college kids, then angsty teens, then everyone else, has become a ubiquitous tool for connecting and sharing information. That tool is especially powerful for companies looking to reach and expand their audience.
Today, social media platforms are dynamic marketplaces where brands and consumers come together in real-time. Social media giants like Instagram, TikTok, Facebook, and X (formerly Twitter) have exploded in size and revenue, thanks to this transformation.
Social media dominates marketing because of the platform’s ability to target consumers based on their interests and behaviors, and by giving those consumers the ability to engage directly with the company. Advanced algorithms analyze user activity to deliver personalized content, including product recommendations and advertisements. This precision targeting increases the likelihood of capturing consumer interest and driving sales.
Sales Performance: The Numbers Don’t Lie
Businesses that embrace social media commerce benefit from increased brand awareness, higher engagement, and improved conversion rates. By targeting consumers with personalized content and leveraging the influence of trusted individuals, brands build stronger connections with a bigger audience.
Social media platforms provide valuable insights into consumer behavior and preferences. Businesses can analyze engagement metrics, track sales conversions, and refine their strategies based on real-time data. This data-driven approach allows for continuous optimization and better alignment with consumer needs. When it comes to the effectiveness of this strategy, the numbers just don’t lie.
Superior Sales Outcomes
According to LinkedIn, 78% of businesses that engage in “social selling” outperform those that do not. This advantage is largely due to the increased brand visibility and engagement that social media platforms facilitate. Companies with strong social media engagement also see an average 20% increase in revenue compared to those with low engagement levels.
Enhanced Lead Generation and Conversion
Social selling leaders, those who effectively leverage social media for sales, are 51% more likely to achieve their sales quotas, according to LinkedIn Business. Active, intentional use of social media not only boosts visibility but also enhances the quality and quantity of sales opportunities.
Customer Loyalty and Satisfaction
Businesses with a robust social media presence benefit from higher levels of customer satisfaction and loyalty. Engaging content, prompt responses to customer inquiries, and regular updates contribute significantly to building a loyal customer base. According to WebFX, businesses that prioritize social selling activities are significantly more likely to fill their sales pipeline and close deals.
Data-Driven Insights
Social media platforms provide valuable analytics that help businesses refine their marketing strategies. By analyzing metrics such as engagement rates, click-through rates, and conversion rates, companies can continuously improve their social media efforts. These insights are crucial for aligning marketing strategies with business goals and ensuring ongoing optimization.
Choosing A Strategy
There are many ways to approach social media marketing, which can make it intimidating for businesses who aren’t familiar with this channel. Three of the simplest, most effective ways to market on social media are to simply create a social media profile, sell directly on that profile, and hire “influencers” to endorse your products on their page.
Follow Us On…
Instagram, TikTok, Twitter, and Facebook are a few of the biggest platforms that your business could be using to build.
Instagram’s focus on visual content makes it an ideal platform for product discovery and sales. Features like shoppable posts, stories, and the recently introduced Instagram Shops have transformed the platform into a full-fledged marketplace.
TikTok’s explosive growth and short video-focused content have made it a formidable player in social media commerce. The short-form video format, as well as TikTok’s elite algorithm for driving relevant content to users, can lead to remarkable reach and engagement for companies. TikTok is great for companies that create engaging videos, and whose audience skews a bit younger.
Facebook and X offer a broad user base in terms of age, income, and interests, while Facebook boasts a deep suite of storefront features.
Shopping Through Social
Most social media companies will also enable users to purchase directly through the platform! TikTok and Facebook Shops are examples of social media storefronts, which can greatly reduce friction for the user by finding, browsing, and buying on the same trusted platform. Young people especially love the option, with two-thirds of “social buying” coming from people between the ages of 14 and 40.
Source: eMarketer
Setting up a social media shop is an easy way to expand your sales channels, especially if you cater to a younger market or your own website has struggled with conversion.
Influencer Marketing: A Game Changer
Another popular strategy is influencer marketing. This helps to skip a lot of the legwork and patience needed to develop a social media brand by finding someone who already has one.
“Influencers”, people with substantial social media followings, have the power to sway their audience’s purchasing decisions. By partnering with influencers, brands can reach a broader audience in a more authentic and relatable way.
An important thing to keep in mind is that you don’t have to hire a Kardashian to have a strong influencer pipeline. Local influencers, and even people who may not consider themselves influencers, can work wonders for your brand simply by talking about it!
More important than their fame, companies should prioritize combability and trust when partnering with an influencer. Look for those who have a compatible brand identity, such as healthy living, culinary tourism, or outdoor sports, and who have built a positive, trusting relationship with their audience.
Strategies for Success
Here are some keys to a winning social media strategy:
- Create Engaging Content: Develop visually appealing and interactive content that showcases your products in a compelling way. Use a mix of written posts, images, and live videos to keep your audience engaged.
- Utilize Shoppable Features: Take advantage of shoppable posts, in-app shopping, and other e-commerce features offered by Facebook, Instagram, and TikTok. Make the purchasing process as seamless as possible.
- Analyze and Optimize: Continuously monitor performance metrics and consumer feedback. Use this data to refine your strategies and improve your social media commerce efforts.
- Influencers: Consider partnering with influencers who align with your brand values and have a genuine connection with their followers.
The number one piece of advice: Get started! You don’t have to be a content guru or analytic genius to start benefiting from a social media presence. Simply create social media accounts, start posting content related to your business, and engage with interested people through messages and comments.
Conclusion
As more purchases start with social media, businesses that adapt to this trend are going to win. Those who ignore social media won’t always lose, but they’re certainly swimming against the tide.
By targeting specific interests and leveraging influencer partnerships, merchants can outperform their competitors and thrive in the ever-evolving digital marketplace. Embracing social media commerce is not just an option; it is a necessity for businesses looking to stay ahead in today’s competitive landscape.
At COCARD, we believe in leaning into what works, including social media to better reach our member-owners and merchants. Get in touch today to bring your marketing and payment suite into the 2020s!