SimplicityDX has published findings of its first quarterly 2022 State of Social Commerce impact study to provide baseline insight into solving the staggering disconnect between social shopping and brand eCommerce sites.
With the average person spending 2.5 hours on social media per day, it is not surprising that over 25 per cent of a marketer’s budget is forecast to be spent on social media marketing in 2022. However, as the State of Social Commerce study magnifies, the landscape is riddled with customer frustrations that impact revenue performance and brand reputation, costing brands significant revenue leaks.
“Many shopping journeys now start on the edge, especially on social,” said Gerry Widmer, CEO and director of SimplicityDX. “However, social commerce is in its infancy. While every aspect of the eCommerce buying experience has been optimised over the last 30 years, social commerce represents both the biggest problem and the biggest opportunity in revenue and customer satisfaction for eCommerce brands today.”
2022 State of Social Commerce Impact Study
The first quarterly 2022 State of Social Commerce impact study of 500-plus U.S. online shoppers by SimplicityDX reveals the following key baseline metrics for retail brands:
Social commerce is where many customers discover products. Meeting customers where they are spending the majority of their time online means enabling customers to discover and purchase products on any channel.
- 48 per cent of online shoppers think that using social media is a great way to learn about new products. Only 12 per cent think it is a great way to buy new products.
- 71 per cent of online shoppers prefer to purchase on brand websites.
Social commerce is broken. Landing experiences when moving from a social network to the brand website are frequently poor due to bad links, incorrect pages, and out-of-stock products. Product availability issues are exacerbated by social media promotions that heighten exposure and interest.
- 81 per cent claim poor website landing experiences when attempting to link from social networks, causing US$700 billion in lost annual revenue from the product detail page alone.
- 98 per cent of social shoppers claim out-of-stock and inventory issues, further exacerbated by social network promotions that heighten exposure, interest and traffic. Post-pandemic, this is the number one consumer complaint about online shopping experiences.
“As shopping at the edge has become mainstream, social commerce has become critical for customer acquisition,” said Charles Nicholls, chief strategy officer and director at SimplicityDX. “But optimiSing social shopping experiences is hard to do because customers are crossing channels to use the brand site for product purchases. SimplicityDX uniquely analyses these new edge shopping journeys end to end by tracking shoppers’ experiences, campaign and inventory data, and matching demand with supply, solving one of the oldest problems in retail.”
Share