Before the pandemic it was mainly younger generations who were driving social shopping, but COVID-19 has pushed social media to all generations.
More than 50% of global shoppers are now likely to buy on social media. The
Social media is no longer just a marketing tool for retailers, it is now a transactional tool too. The old buy buttons, which are used to redirect the customer to the retailer’s website, are no longer what customers are looking for. They slow the shopping process down and they do not provide the best user experience.
Instead social media companies need in-app shoppable features which enable payments without leaving the experience.
Facebook Shops is an example of this, and it allows retailers to upload product catalogs and take payments from customers who do not leave the experience, meaning the process is seamless and frictionless. The next year will see more technology providers partnering with payments experts to expand the social media as a buying channel.
There has also been a huge rise in shoppers using buy now/pay later since the beginning of the pandemic. BNPL allows the shopper to buy a product and only pay when they receive the items or by paying in installments. Think of this like a miniature line of credit at the point of sale.
It is already the fastest-growing payment method globally, with over 70% of shoppers using or considering using it. Retailers are now noticing that BNPL helps increase the average customer spend, making it a critical opportunity to see increased revenue. Currently the most popular BNPL methods are Klarna, Affirm and Afterpay, and these platforms have prioritized the user experience, making it clean and simple for the shopper to pay and agree to terms without much added friction to make payment.
More and more businesses are enhancing their offering by embracing subscriptions. It’s no longer just about digital media and food, other areas of retail have pivoted to using subscriptions as the basis of their business model from fashion to cleaning products and coffee. This novel method of consuming goods has become increasingly popular during the global pandemic.
Subscriptions are convenient for consumers, enabling access and security, but they can act as a discovery channel as well, exposing customers to new items and products they may have otherwise never seen or experienced. Businesses who collaborate with other complementary products or services as part of a curated offering also benefit by being able to drive loyalty and expand their customer base. Some retailers are also now exploring ways to use smart speakers and the internet of things, or IOT, to replenish items automatically.
Another big trend we are expecting to take off is voice commerce. There are now more IOT devices in people’s homes than ever before and retailers can use these to interact and engage with their customers.
These devices are becoming more conversational, allowing them to ask a shopper about their skin tone before recommending a purchase for makeup, for example. They are acting as a personal assistant, making the customer feel at ease and comfortable, while offering them a user-friendly experience. Voice remains the most natural way to interact and engage with customers and retailers are starting to realize this and optimize their channels to take advantage. Shoppers can also shop using voice assistants while doing other activities making it a convenient way to purchase items.
The pandemic has rapidly changed the way retailers will operate forever. Businesses will now have to merge the physical aspects of the industry with the digital as the ways people shop become more and more entwined.
E-commerce has the ability to support, not replace, the retail store, and it is now the time for businesses to reimagine retail and bring the immersive shopping experiences of the future into the present.
