New research from American Express has revealed a significant appetite from retailers to invest in social media marketing as a way of tackling the perennial challenge of attracting new customers and driving loyalty.
Customer attraction and retention was named as one of the top three challenges facing their businesses over the next 12 months by the 500 UK retailers surveyed, along with managing increased costs and mitigating the impact of cost-of-living pressures on consumer spending. A third (33 per cent) of retailers said they wanted to make the most of their social media channels to build a community among their customers and drive brand loyalty.
As a result, investment in marketing and branding was pinpointed as the top area for investment; over a half (53 per cent) of those surveyed who are planning to invest in this area said they would funnel funds into boosting social media activity.
TikTok has built a reputation for showcasing new and popular product trends however, the study reveals smaller retailers are about three times less likely to have a presence on TikTok than their larger counterparts (43 per cent large retailers vs 14 per cent SME retailers). However, almost one third (29 per cent) of small merchants surveyed said they would like to launch their presence on TikTok this year.
As part of its Shop Small Accelerator programme, American Express is supporting retail success in the UK by partnering with TikTok to help small merchants promote their business. Merchants can register for a free, in-person workshop this June to learn directly from experts at TikTok, as well as accessing on-demand webinars to discover top tips and the latest tools to help their business.
Dan Edelman, general manager, UK Merchant Services at American Express, said: “Social media is a key channel for retailers of all sizes, enabling them to reach new customers and build a community around their brand. That’s why, as part of our commitment to backing merchants, we’re helping them connect with more customers by tapping into the power of social.”
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