We live in an age where online media and social interactions are everywhere. While this brings a lot of changes to individuals’ personal lives, it also changes the way businesses relate to their customers. This is what gave birth to social commerce, which is a subset of electronic commerce. So, what is social commerce? Well, social commerce is commerce that involves the use of social media, online media, and user contributions. In today’s article, we’re going to talk about the importance of social commerce in 2017.
Social Commerce and Its Importance in 2017
It Increases Traffic on Websites
The importance of social media is visible on the websites of different companies that engage in social commerce. For instance, the Facebook wall click-through rate is approximately 6.5 percent. To compare, banner ads, which are another form of online marketing, have a click-through rate of 2 percent, which is still considered extremely high in that context.
Plus, people who follow different companies on Facebook usually do so because they think social media is of great importance when sharing information with the people around you. What does this mean for your business? Well, it can mean that the people who follow you on social media are likely to expand your reach by sharing your content with other people. Ultimately, this will increase traffic on your website, even if not directly.
It Improves Visibility
Even if you can’t see quantifiable results the moment you start engaging in social commerce, there’s no denying that being on social media increases the chances of people coming across your brand. The average person who uses social media spends about 11 hours every day on the internet. This means that person is also following about 10 brands and companies at any given time.
While not everybody spends as much time on social media, the people who do can help you build your brand image. If you’re wondering how, think about the following thing: how do users research products? Yes, you guessed it, most social media users research the products they’re interested in on social media. This should come as no surprise, since they spend most of their time there. If you don’t use social commerce, you’re missing out on a lot of opportunities for visibility. In turn, these lead to sales and additional leads.
It Produces Value
According to a study conducted by Syncapse in 2013, the value of a Facebook fan for a company was of $174. This shows how quantifiable the importance of social commerce actually is. Moreover, if you were to calculate how much money a page with 5.000 fans would make, the result would be an impressive $870.000. However, keep in mind that this value varies from company to company. Even so, having people follow you on Facebook isn’t just going to make more people aware of your brand. It’s also going to actively win you money.
Social commerce is undeniably important, and we hope today’s guide managed to convince you of that. Moreover, we hope you’ll give social commerce a chance.
Image Source: Pixabay.