3 MinsMar 14, 2023
The increasing use of social media for shopping is a vital factor driving the growth of social commerce. Social commerce expedites the customer decision journey from awareness to purchase.
Social media is a platform that entertains, enables networking and offers shopping. While e-commerce paved the way for online shopping, social commerce added more convenience. It is OK to navigate to any other website or take mental notes of the brand and its location. Marketers and brands sell where buyers spend most of their time - Social Media platforms.
With social commerce, small sellers can reach a wide audience, the kind of reach available to big brands with significant capital. While social media provides the reach, Axis Bank Cash Management Services offer better payment services to ensure the best interest rates and good liquidity, just the kind of support that every business needs.
Social commerce is expected to grow three times as fast as traditional commerce. A large chunk of participation is driven by millennials, followed by Gen Z, Gen X and baby boomers.
What has triggered this change?
There have been two major causes for this change:
1. The first obvious cause is the pandemic. The disruption brought about by the pandemic changed the way consumers bought products.
2. The second reason is the desire to buy local and support small businesses and see them grow.
What makes social commerce appealing?
Younger consumers are constantly influenced by social media and all it offers. Social media ads majorly rule their purchasing decisions, but they still seek recommendations from friends, family and people they trust, like influencers.
This need for human connection is met by social commerce as the consumer can interact and network with the seller and connect to the brand.
[Also Read: Complete guide to opening a Current Account]
How can brand owners leverage this?
For brand owners, whether big or small, sales depend on their reach and social commerce can help ensure that nothing curtails this reach. Today with technology and various tools available, sellers can run enhanced audience ad profiling and targeting, understand the customer better and delve into all kinds of analytics to target the right audience to maximise sales. Social commerce allows sellers to dream big and achieve their dreams without being disrupted by hurdles such as cash crunch.
Sellers expanding their businesses through social commerce, also need the right tools for their banking needs. Axis Bank’s Current account has a version for almost every business category; be it a sole proprietor, jeweller, startup, or global business, there are specific accounts to meet the unique requirements of every business. There are no geographical boundaries, as buyers on social media can be across the globe. Axis Bank offers Forex management services that can help sellers take their local brands global.
Social commerce is a win-win for everyone if done correctly. Like traditional eCommerce, brands must ensure that their strategies reflect ad data models with the right amount of genuineness, humanity and convenience. Sellers must ensure their products' loyalty by being open to experimentation and driving purpose-led campaigns. The goal is not just attracting the right audience but also retaining them.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.