The current digital era stands on constantly evolving
marketing strategies and consumer behaviors, making it challenging for
businesses to keep up.
Take social media, for example. What once consisted of
platforms people used to connect has begun integrating e-commerce capabilities
to support businesses. Today, Facebook Marketplace, TikTok Shop, and many more
are starting to compete with actual online retail giants for a spot on
consumers' screens.
As social media platforms dominate the e-commerce market, influencers are becoming more vital to their success. As such, the relationship between influencer marketing and social commerce holds immense potential for businesses looking to improve online visibility and competitiveness. With that in mind, this article will delve into the convergence of these e-commerce basics and its implications on the dynamic digital marketing landscape.
What's Influencer Marketing?
Influencer marketing relies on the idea that consumers are
likelier to trust recommendations from influencers”people they admire or relate
to”than traditional advertising methods.
Influencers typically create and share ad content across
various online platforms like Instagram, YouTube, and TikTok. Some even utilize
online versions of traditional marketing channels, including articles and
podcasts.
Influencer marketing has evolved significantly, from simple
brand shoutouts to elaborate collaborations. In return, brands compensate
through monetary payments, freebies, networking opportunities, and other perks.
What's Social Commerce?
Social commerce merges social media and e-commerce to create
a seamless and engaging shopping experience. As a result, buyers can discover,
research, and purchase products without leaving the platform.
At its core, social commerce recognizes that people usually
turn to their social networks for purchasing advice. For example, if someone
sees their brother buy a smartphone and reviews it positively, they are 46% more likely to
purchase it than other brands. Ultimately, the fusion of social interaction and
online shopping creates new avenues for brands to connect with consumers and
facilitate transactions.
The vital components of social commerce include:
Shoppable posts
Businesses may create social media posts with links or tags
to featured products. Customers can click these links to view product details
and purchase without leaving the platform, creating a seamless online shopping
experience.
Live commerce
Live streaming has become a game-changing trend in social
commerce, with many influencers and brands hosting broadcasts to showcase
products, answer questions, and interact with their audience. At the same time,
viewers may also purchase directly during live streams.
User-Generated Content (UGC)
UGC, such as reviews, ratings, and customer photos, are
vital to effective social commerce. As mentioned, customers often trust their
peers' opinions and experiences with a brand, making UGC an asset for
businesses looking to build a following in the social space.
Chatbots and messaging platforms
Brands are beginning to leverage chatbots and messaging
apps, like WhatsApp and Facebook Messenger, to interact with customers, answer
their inquiries, provide personalized recommendations, and even process orders
directly within the platform.
Influencers as Key Drivers of Social Commerce
The present digital ecosystem is more interconnected than
ever. Influencers have become bridges connecting their audience to brands as
the line between socializing and shopping online blurs. Here is an overview of
how influencers are becoming indispensable in driving social commerce's
success.
Trust and relatability
A cornerstone of influencer marketing's prevalence is the
genuine relationship online personalities share with their followers, which is
a powerful tool in driving purchasing decisions. Their recommendations are
strong because followers perceive them as a personal endorsement from someone
they admire and trust.
Discoverability
Products easily get lost on the Internet. However,
influencers' carefully curated content and dedicated followers allow brands to
boost product visibility. A mention or feature by a famous influencer can
introduce a previously unknown product to thousands, if not millions, making
this strategy crucial to many businesses' successes.
Storytelling
Influencers are storytellers. Whether showcasing how a
particular dress fits a seasonal trend via lookbooks or how a skincare product clears facial acne,
these narratives make brands more relatable and appealing. In turn, the
businesses influencers endorse could experience higher engagement and
conversion rates from their followers.
Niche markets
Many influencers cater to specific niches or interests. For
example, beauty influencers typically attract people interested in skincare,
cosmetics, and other beauty-related products. Brands targeting this niche could
collaborate with these personalities to tap into their engaged and receptive
audience.
Feedback insights
Aside from increasing brand visibility and sales, influencer
partnerships allow brands to gather real-time feedback from prospective buyers.
Comments, likes, shares, and direct messages offer a wealth of information
about customer preferences, which businesses can leverage to inform future
marketing campaigns.
5 Challenges of Influencer Marketing in Social Commerce
While integrating influencer marketing
with social commerce is a highly effective marketing strategy, it is essential
to acknowledge its potential drawbacks.
1. Authenticity concerns
Some influencers advertise a product purely for financial
gain. However, this decision might lead to inauthentic endorsements, eroding
trust among their followers. Even worse, it could harm a brand's reputation for
paying someone to provide positive feedback instead of organic ones.
Moreover, overexposure to sponsored content might result in
audience fatigue. Suppose followers notice their admired influencer has been
constantly promoting various products. In that case, it reduces the impact of
genuine product recommendations, undermining the strategy's benefits.
2. Market oversaturation
More brands recognize influencer marketing's value, with its
global market size steadily increasing in recent years. While the trend proves
its effectiveness, it may become more saturated. This increased competition for
influencers raises costs and makes it more to stand out”counterproductive to
what influencer marketing aims for.
Meanwhile, consumers can follow multiple influencers
promoting different or competing products. This social environment creates a
cluttered and confusing experience, making it difficult for buyers to consider
or decide on their preferred online personalities' product suggestions.
3. Lack of control
Brands mostly relinquish control over the quality and tone
of influencer-generated content. While they could produce branding guidelines,
and many influencers maintain high standards, there is a risk that the
endorsement will not align with their image or values. It may result in low to
nonexistent returns, mistargeted messages, or, worst-case scenario, damaged
reputation.
Likewise, influencers may inadvertently misinterpret a
brand's message or product features. For instance, an endorser might claim a
regular set of headphones has Bluetooth capabilities when it does not, which
will disappoint and frustrate buyers and tarnish the influencer or the brand's
image.
4. ROI challenges
Accurately measuring an influencer marketing campaign's
return on investment (ROI) is challenging. How would a business determine
whether a spike in its monthly sales chart is due to a partnership, another
campaign, or a random occurrence?
This process is complex; while businesses can leverage
feedback forms requesting buyers to input what urged them to purchase, it might
ruin their shopping experience. It can also provide inaccurate results as not
all customers are willing to complete a form.
Furthermore, while some influencer campaigns yield short-term
gains in engagement and sales, maintaining long-term customer loyalty is
tricky, especially when the partnership sours due to conflicts or the
influencer decides to collaborate with a competing business.
5. Legal and ethical issues
Regulations surrounding influencer marketing and
endorsements vary by region, and non-compliance could lead to legal conflicts.
For example, new guidelines from the Federal Trade Commission (FTC) in 2023
began requiring endorsers to be clear and conspicuous when advertising a product,
whether they are doing it through audio, video, or photo.
Additionally, brands may face backlash when collaborating
with influencers involved in controversial or unethical activities, damaging
both parties' reputations.
3 Emerging Technologies in Influencer Marketing and Social Commerce
The convergence of these two strategies has paved the way
for innovative technologies that can enhance their effectiveness, including:
1. Artificial Intelligence (AI)
AI-driven tools, like
ChatGPT and Visla, assist influencers in creating content”from topic generation
and captioning to video production. These capabilities streamline the process
and help maintain a consistent brand message.
2. Augmented Reality (AR)
AR enables virtual try-on experiences for fashion and beauty
products, allowing influencers to showcase products in immersive ways.
Take the NFT fashion trend, which saw numerous brands create
clothing tied to non-fungible tokens (NFTs) that buyers may wear in real life and
AR. It also included beauty brand protection from
copyright infringement and theft, as it is nearly impossible to steal an NFT.
3. Chatbots
Businesses could integrate chatbots into social commerce
platforms for real-time customer support and engagement. Then, influencers can
leverage these tools to interact with their audience, improving user
experience.
For instance, luxury fashion brand Dior used WhatsApp to
allow customers to engage with a chatbot tailored after their brand ambassador,
Jisoo, along with exclusive shopping links.
Leverage Influencers and Social Media for Business Success
The intersection of influencer marketing and social commerce
has ushered in a new era of digital marketing where personal connections and
online shopping converge. However, it is not without challenges”from
authenticity concerns to legal considerations. As such, brands must navigate
this terrain diligently by keeping their audience at the center of every
marketing decision.
Ultimately, this relationship is transformative because it
presents many opportunities for businesses and influencers. It allows both
parties to forge stronger connections with their audience and thrive in a
constantly evolving digital landscape, securing their businesses' success for
the long term.
