Drive retail growth Archives | Bazaarvoice Fri, 31 May 2024 10:39:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 How to create (or revitalize) your own private label brands https://www.bazaarvoice.com/blog/how-to-create-private-label-brands/ Tue, 12 Mar 2024 16:08:49 +0000 https://www.bazaarvoice.com/?p=32908 Once upon a time shoppers scoffed at “generic” or “off-brand” products. These more affordable, store-brand items had an inferior reputation that some perceived as low class or low quality. Well, now, the joke’s on them because these private label brands are increasingly sought after, especially as more shoppers seek better value for money. 

According to our recent survey of 1,000 U.S shoppers, asking their opinion(s) on private label brands, 43% of respondents say private label quality has significantly improved, offering comparable or even better quality than national brands in many categories. 

Some of the biggest names in retail like Target, Sephora, and Walmart all invest in the development and marketing of their private label products — and see massive success. 

The retailers that push the limits of their private label branding will be the ones that continue to elevate their status and change the generic stereotype. To do that, you’ll need to focus on branding, value, quality, and insights. Discover what your retail business stands to gain from offering store brands and how to develop a winning strategy.

Chapters:

  1. What are private label brands?
  2. The private label branding opportunity
  3. How to create a thriving private label brand in 6 steps
  4. Private label brand strategy examples
  5. Improve your private label branding with customer insights


What are private label brands?

Private label brands, also known as store brands, are products owned by retailers and sold along with other brands in their product catalog. The retailer is often the sole developer of the brand and its products, or it may come from a third-party wholesale partner.

Some of the most successful private label brands include 365 by Whole Foods Market, Amazon Basics, and a ton of Target brands

The private label branding opportunity

The newfound interest in private label brands directly correlates with a struggling economy, an influx of higher-quality store-owned products and options, and an increase in private label-based rewards programs.

Consider these stats from our private label research:

  • 40% of respondents say their perception of private labels is positive, they offer good value and they trust the store branding — another 42% haven’t noticed any significant differences in quality between private labels and national brands
  • 36% of respondents plan to purchase more private label products next year compared to previous years
  • Over half of respondents (56%) have switched their preferred brand for a private label product based on a loyalty program or reward

That’s to say, when it comes to the private label branding opportunity, it’s no longer a “nice to have.” The overall increase in positive sentiment, value, and quality, have made them difference makers for any retailers bottom line.

In terms of specific industries, the most popular categories for private label products are:

Food & beverage78%
Household cleaning product68%
Health & beauty products54%
Apparel & accessories53%
Home improvement products41%
Consumer electronics29%

Besides a thriving private label branding market, there’s other business benefits for retailers who offer store brands. Some top advantages include:

  • Product ownership: In addition to literally owning private label products, retailers also have control over the product design, materials or ingredients, and other manufacturing details
  • Higher profit margins: Because retailers own their private label brands, they don’t have extra supply chain fees or higher cost of products from a national brand. This makes their product costs lower, allowing a bigger profit margin — not to mention the added benefit of keeping customers happy with lower prices
  • Branding: Just as it owns the product design, the retailer also has creative control over the private label branding, from the aesthetics to the voice and promotion

Leading retailers are leaning into the private label apparel category specifically and partnering with luxury designers, like Walmart’s collaboration with Brandon Maxwell.

How to create a thriving private label brand in 6 steps

Now that you know the potential of private labels, find out how you can breathe new life into your owned brands, or successfully launch new ones, with the following tactics.

1. Build a strong retail brand identity

To have a thriving private label brand, first, you need to have a strong overall retail brand. 

When you earn brand loyalty and the positive public perception that comes with it, consumers will naturally trust and gravitate to your owned brands. 67% of the respondents to our private label research strongly or somewhat agree that the quality and range of a retailer’s private label products positively affect their overall perception of the retailer’s brand and reputation.

So, how do you build brand trust and loyalty to attract customers to your private label products? Some essential methods include:

  • Appealing to your target audience’s values and interests
  • Providing great customer service
  • Offering deals and discounts

But, of course, these community-building efforts will only work if your products are unique, valuable, and serve customers’ needs. Our own research validates this approach, given that the top two reasons shoppers gave for selecting private label products are that they love them and they are well-priced. 

With the right practices in place, your customers will come for your retail experience and stay for your private label brands, creating a sustainable cycle that propels your business forward.

2. Devise a smart product strategy 

Once you have a solid foundation for your retail brand, you can begin to develop your own private label products. Your products need to meet the essential criteria to hook shoppers from the beginning and keep them coming back for more. To make your store brand the preferred alternative to the national name brands, make sure its value proposition is unique.

a) Develop your concept(s)

The formula for creating your store brand concepts is simple. Find the gaps in your inventory selection — what missing products could fulfill a customer need, price point, or variety? That white space will determine what and how many private label products to develop. This will guide your entire product strategy. The process could look something like the following steps:

  1. Start by sorting your target customers into different segments and define the needs of each one
  2. Research the price points and product features that make sense for each industry category
  3. Research your competitors’ products in each category
  4. With those insights, analyze your current product catalog to find what’s missing
  5. Determine what alternative products your retail business can produce at a lower cost but that are equal to or better quality than the name-brand options

If your business is new to private label branding, you might want to start small with one to a few options within your bigger product categories to test the performance. Once you’ve decided which products to pursue, define the guidelines for your supplier and company stakeholders to follow.

This will ensure that your costs are accurate to fit your price point and profit margin — and that the materials used, functionality, and quality all meet expectations. 

b) Pricing and variety

Since value is the top consumer driver of store brand sales — lower price compared to national brands is the main purchasing influence for 72% of shoppers, according to our private label research — the key is to offer a price that is lower than your competition, while maintaining your target profit margin.

Identify the leading competitors in your store-brand product categories to base your pricing and quality criteria. 

In addition to pricing, variety is a key component of your product strategy. What flavors, pack sizes, format sizes, and other differentiators can you offer in each category? Use an internal system to keep track of your pricing and variety architecture so you can gradually fill in gaps with your store brand offerings.

c) Packaging

Early private label branding strived to mimic the presentation of its national brand rivals. But now, the industry leaders are aiming to stand out rather than blend in. Packaging plays a huge role in purchase decisions, so this is an important area to focus on. The design should ideally be distinct and include the unique and attractive features of the product, whether that’s easy functionality, sustainable ingredients, or something else. 

private label brands
Source: Shoprite

For example, the packaging for retailer ShopRite’s store brand, Bowl & Basket, stands on its own with a prominent font, clean design, striking product photography, and a pleasant and soft color palette. It has a simple and clear product description that draws the consumer in. 

d) Innovation

The best way to generate interest in your private label brands and be a progressive outlier in the space is to consistently innovate. To pull this off, you need to leverage your store brand as the solution to your customer’s wants and needs.

If you look at leading private label brand retailers, many of their owned products are “value-added lifestyle items.” This is a niche to focus on that will lead to innovation, like Trader Joe’s iconic Everything But the Bagel seasoning.

Sourcing is another point of leverage for innovation. For example, locally sourced ingredients that benefit underserved communities can help your products stand out and satisfy consumer preferences.

3. Collect authentic reviews of private label products 

Product reviews are one of the most effective ways to win consumers’ trust. According to the 2022 Bazaarvoice Summit, 94% of shoppers report needing at least 10 reviews to “consider the product credible.

The recency of reviews is also a top decision-making factor for most (85%) of shoppers. So, you need to actively source reviews to grow your volume and keep them up to date. Luckily, there’s a variety of different ways you can generate authentic reviews. Just ask your customers!

Ratings and reviews don’t just have a huge impact on e-commerce but on in-store sales, too, based on the 40% of shoppers who claim to read online reviews before buying offline. Helpful, descriptive, and substantial reviews are essential, but those featuring media can go even further. Customers’ photos and videos of product purchases make 62% of shoppers more likely to buy.

Reviews also have great search engine optimization (SEO) value because they contain a lot of the same descriptive keywords that shoppers are searching for. So, not only will reviews increase conversions when shoppers land on your e-commerce site, but they can also be the vehicle that gets them there. 

Reviews communicate the value that customers find in your products and the features that are important to them. They give your customers a platform to express their own opinions about your brand, which resonates with other shoppers.

4. Grow awareness and interest with targeted product sampling

Whether you’re launching a new private label brand or product or rebranding an old one, product sampling can help it take flight. We’re not just talking about a taste of kombucha in a paper cup or a cheese cube on a toothpick, but a custom product sampling package delivered to your target audience.

Renowned brand Petco recently rolled out a sampling campaign specifically to bolster review volume for its private label brands and increase SEO impact.

To date, the campaign has led to a 48% increase in revenue per visit (driven by a 28% increase in conversion rate and 15% increase in average order value) for sampled products and an 80% increase in clicks from organic search. Not to mention, that data that sampling provides.

We’ve really seen a positive impact on visits, conversions, and improving the discoverability of new products. From a results standpoint, it’s been a positive experience to see that we can get 10-15 reviews for new products quickly

Hannah Kredich, Category Specialist at Petco

First-party customer data also provides tons of useful information you can use to plan a product sampling campaign. Let’s say you notice customers buying a lot of the same national-brand products in one category, you could send them a sample of your store-brand alternative or a complementary product from your store brand. 

And if you’re starting from scratch with a brand-new product launch, sampling is a great upfront investment. In a survey of over 6,000 Influenster members who have been recipients of a product sampling campaign, 63% purchased the product they sampled. Many also reported buying additional products from the brand and recommending the product to family and friends.

Lastly, another huge benefit of product sampling is the user-generated content (UGC) it can produce in the form of product reviews, images, and videos. This is especially important for new product releases so you can be equipped with the customer reviews necessary to give other shoppers confidence right from the launch. 

5. Optimize your product pages for conversions

One common concern for retailers is the lack of rich content, including product reviews, across all of their product pages on their e-commerce websites. This can be particularly challenging for retailers with an extensive product catalog. This is why it’s crucial to encourage customers to write reviews so you can enhance your product pages with UGC. 

You can set up those reviews to post directly on the product pages they correspond to, which will make a huge difference in sales — nearly 40% of shoppers won’t make a purchase if UGC is absent from the product page. And that includes visual UGC too. As part of our recent Shopper Experience Index, we asked 7,000 shoppers:

Additionally, almost half of shoppers specifically look for customer photos on product pages when considering purchases. Encourage customers to upload their own photos and videos of their purchases to your product pages with a hashtag campaign.

To optimize your private label product pages to their full extent, include: 

  • Star ratings 
  • Review categories based on product features, positive reviews, and negative reviews
  • Detailed product descriptions that highlight your product’s best attributes
  • Professional product photos
  • Customer-submitted product photos and videos 

6. Attract more customers on social media

Whether it’s Gen Z on TikTok, millennials on Instagram, or older demographics on Facebook, social media is a critical marketing tool for your private label growth

Social media content supports a more modern, cutting-edge, approachable, and innovative perception of your store-brand products. Consumers come to social media to discover brands and be entertained, and there’s a ton of features and content types you can leverage to appeal to them. That includes short-form video like TikTok and Instagram Reels, quick and temporary content like Instagram Stories and Snapchat, and even livestream shopping on a number of different channels. 

Influencers have proven extremely successful for brand marketing, and social media is the perfect platform for an influencer partnership. Collaborating with influencers to promote your store brand is another way to drive demand through a public figure whom consumers trust. 

You can also use social media as a tool to generate more visual UGC that you can feed to your product pages. Encourage your followers to share their purchases on social media and tag your brand profile. This will supply you with more content and introduce your products to a wider audience.

Not only can you market your private label products on social media, but you can also sell them, too. With social commerce features such as Like2Buy and social media shops, you can upload your products and sell them directly on your social media channels. 

Private label brand strategy examples

As private label brands have evolved over the years, there’s plenty of retailer examples to draw inspiration from. Take notes from some of these trailblazers who are shaking up the store-brand category. 

Target’s Future Collective

Target might just be the pinnacle of store-brand potential, neck and neck with Amazon. Target has multiple private label brands, but as the retailer says, their Future Collective brand is the “first of its kind.” This fashion-forward apparel brand is “co-designed with a rotating roster of style and cultural influencers with diverse points of view in fashion.”

Source: Target

This innovative approach enables Target to leverage different guest designers and influencers to bring in different perspectives on fashion, while offering a continuous stream of fresh variety for customers. The brand is dedicated to inclusivity, offering something for everyone.

Thrive Market

Thrive Market is a successful e-commerce retailer that specializes in health-conscious products, including name brands and its own store brand. 

Not only is Thrive an excellent private label brands example, but also a great example of how to develop products that meet the needs of target customers. For example, one of its best-selling private label products is its coconut milk. What makes its particular coconut milk unique is that it leaves out a commonly used ingredient, guar gum, which isn’t Paleo diet friendly.

This solved a problem for its Paleo customers, who make up a big chunk of its clientele. 

Foxtrot

Foxtrot, a fast-growing specialty convenience store chain, is another example of a retailer going above and beyond with its owned products. Foxtrot’s goal for its store brands is to beat the well-known national brands in all categories, not just price. 

Just as Target partners with influencers for Future Collective, Foxtrot partners with industry leaders for its food and beverage products. As an example of this, the company has a hot chocolate mix developed by an acclaimed pastry chef and a bourbon made in collaboration with a beloved local Chicago cocktail bar. According to the Washington Post, Foxtrot’s profit margins for its private label products are 10 – 15% higher than those of its external brands.

Improve your private label branding with customer insights

One of the most important steps you can take as a retailer to grow your private label brands and business as a whole is to listen to your customers. Pay attention to the insights revealed in your product reviews, customer satisfaction surveys, customer support conversations, social media interactions, and anywhere else you can find them. 

What do your customers like and not like about your products? What are they saying they need that you don’t currently offer? This invaluable information can help you make store-brand product modifications and improvements that will provide more value for your customers. 

Once you’ve established your private label branding, it’s time to take it to the next level. Learn how to position your private label for continued market success with our new on-demand masterclass: How to leverage new customer insights for private label success.

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What is a lead magnet? 10 effective ideas and examples https://www.bazaarvoice.com/blog/what-is-a-lead-magnet-effective-ideas-and-examples/ Fri, 16 Feb 2024 14:46:54 +0000 https://www.bazaarvoice.com/?p=49960 In the world of e-commerce, competition is only one click away. Your ability to sweeten the deal can very well mean the difference between a browser that bounces and a customer who engages. This means you have to set effective honey traps — lead magnets — that attract shoppers, provide a pathway to nurturing them, and set the stage for lasting relationships.

Let’s channel your inner Don Corleone and learn how you can make consumers an offer they won’t refuse.

Chapters:

  1. What is a lead magnet?
  2. What makes a good lead magnet in e-commerce?
  3. 10 lead magnet ideas for your e-commerce website
  4. Optimize your e-commerce website for better lead magnet results


What is a lead magnet?

A lead magnet is simply a trade where you offer something valuable in exchange for contact information or another action. 

Let’s paint a picture for you: you’re browsing online, not quite ready to buy, just casually looking. Then, something catches your eye — a guide on how to choose the perfect pair of running shoes, offered for free. All it asks for in return is your email. That’s a lead magnet in action, a sweet little nudge designed to turn you from a casual browser into an engaged potential customer. 

And once you have that information, you’ll do something with it to further engage the leads and turn them into paying customers. So this interaction is also the first hello in what you hope will be a long conversation. It’s where you start to build trust and show your value to potential customers. 

What makes a good lead magnet in e-commerce?

For starters, your lead magnet should offer immediate value. People have to be able to use it right away so they can experience the benefits of engaging with your brand without delay. This immediate gratification will satisfy the desire for quick rewards (because who doesn’t love those?) and make a positive first impression.

Ideally, what you offer should also solve a problem that your audience is facing. A lead magnet that tackles a real issue provides value and also positions your brand as helpful and authoritative. For example, a “5-Minute Meals for Busy Parents” recipe book from an online food store hits right at the heart of time-crunched families.

Lead magnets should showcase your expertise or the quality of your products. It’s an opportunity to demonstrate why your brand is trustworthy and knowledgeable. Say, a lead magnet like “The Complete Guide to Sustainable Fashion” from an eco-conscious clothing brand can establish thought leadership in that space.

Finally, the best lead magnets encourage future engagement. It doesn’t just end with the download or the discount but rather marks the start of a relationship. 

10 lead magnet ideas for your e-commerce website

There’s a lot of room for creativity where lead magnets are concerned, but we have the top 10 ideas that are tried and tested to get people through your digital door.

1. Discount codes

It’s a classic for a reason. Discounts are simple, yet effective — a percentage off, a fixed amount discount, or exclusive deals in exchange for an email sign-up or another small action. Because of the instant value they provide, discounts make the decision to engage with a brand a no-brainer for most shoppers. 

lead magnet
Beauty and skincare subscription service Birchbox entices first-time shoppers with 20% off

Why they work:

  • Everyone loves to save money. A discount code taps into this universal appeal, offering immediate savings on future purchases
  • For those on the fence because they never bought from your brand before, a discount can be the incentive they need to make their first purchase

Best practices:

  • Make it exclusive. Your discount should feel special. If products on your website are always on sale, this type of offer could lose its appeal
  • Set a time limit. Create a sense of urgency and encourage quick action by making the discount available for a limited time

2. Personalized consultations

Personalization is a lead magnet necessity. Personalized consultations are a golden opportunity to connect with your audience on a deeper level. They allow you to demonstrate your expertise, understand your customers’ unique needs, and provide tailored advice that can make a real difference in their decision-making process.

Skincare brand The Inkey List offers personalized consultations about skin and scalp issues with experts.

Why they work:

  • Engaging directly with customers establishes brand trust, an essential ingredient for any successful relationship. 
  • By tailoring advice to each individual’s situation, you show a level of care and attention that generic information just can’t match
  • A consultation is an active, engaging process. It invites potential customers to interact with your brand, creating a memorable experience

Best practices:

  • Streamline scheduling: Use an easy-to-navigate booking system to minimize friction in setting up consultations. The simpler it is to book, the more likely people are to go for it 
  • Prepare and personalize: Before each consultation, gather information about the customer’s needs to offer the most relevant and helpful advice
  • Follow-up: After the consultation, send a personalized email summarizing the advice you gave and suggesting next steps. A follow-up keeps the conversation going and nudges consumers towards a purchase based on the problems you identified

3. Early or exclusive access

There’s plenty of ways to give your potential customers the VIP treatment — chief among them, access to early sales and product drops. This strategy plays on the human desire to be part of an elite group and enjoy privileges that aren’t available to the general public. 

Amazon offers its Prime service members early access to the most exciting sales of the year.

Why they work:

  • Knowing they have access to something others don’t elevates the customer’s perception of the value you’re offering 
  • The wait for early or exclusive access to products or sales can create buzz and excitement around your brand 
  • Customers who receive special treatment are more likely to feel a stronger connection to your brand, helping you build that oh-so-coveted brand loyalty

Best practices:

  • Clearly define the offer: Make sure your audience understands what they’re getting access to and why it’s valuable. Whether it’s a pre-sale, a limited edition product, or early access to content, the offer should be compelling 
  • Deliver on your promise: Don’t falter. The early or exclusive access experience should be smooth and rewarding. Any hiccups can damage trust and diminish the perceived value of your offer

4. Free shipping

The people have spoken — they want free shipping. So much so that 62% of consumers won’t buy from a retailer if they don’t provide that option. Offering potential buyers the chance to unlock free shipping removes one of the biggest hurdles to completing an online purchase (added costs) and appeals to virtually every shopper’s desire to get more value out of their purchase.

Shoe and apparel brand TOMS encourages consumes to leave their email addresses in exchange for free shipping

Why they work:

  • High shipping costs are the top reason for abandoning shopping carts. Eliminating this barrier can significantly increase your conversion rates
  • Shoppers perceive free shipping as an added value to their purchase, making the deal seem much sweeter (there’s that honey again) 
  • Often, free shipping is tied to a minimum purchase amount, which can encourage customers to add more items to their cart to qualify and increase average order value

Best practices:

  • Set clear thresholds: If your free shipping offer requires a minimum purchase, make sure this threshold is clearly communicated and easily achievable
  • Promote widely: Highlight your free shipping offer on your homepage, product pages, and during the checkout process. Also, mention it in your marketing emails and social media channels
  • Test and analyze: Experiment with different thresholds for free shipping to find the sweet spot that increases average order value without hurting your margins

5. Free samples

Who doesn’t love free stuff? Offering free samples as your lead magnet is a tried-and-true method to introduce potential customers to your products with no strings attached. This approach not only allows customers to test and fall in love with your products but also demonstrates your confidence in the quality of what you’re selling.

With a product sampling marketing campaign you can even ask consumers to provide user-generated content (reviews, images, or videos) in exchange for the samples. Using UGC to populate your social media feeds and product pages is the best way to generate consumer trust in your brand and lift conversions, so there’s a lot to gain here besides contact information. 

lead magnet
Breathe Right gives people the chance to try their nasal strips for free

Why they work:

  • Free samples allow customers to try before they buy, reducing the perceived risk associated with buying new products
  • By getting your products into the hands of potential customers, you’re increasing brand awareness and the likelihood of future purchases
  • Offering something for free can create a positive association with your brand, fostering goodwill and a sense of reciprocity

Best practices:

  • Easy redemption: The process to claim a free sample should be straightforward and require minimal effort from the customer
  • Collect feedback: Use the opportunity to gather feedback on the sampled products and get your hands on valuable insights for product development and marketing strategies. 
  • Follow-up: After sending out the samples, follow-up with an email offering a discount on the full-sized product to encourage a purchase

6. Contests and giveaways

The anticipation of possibly winning something cool is thrilling. That excitement is precisely what makes contests and giveaways such effective lead magnets. They speak to people’s natural love for competition and the allure of getting something for free. 

And you win too. By offering a prize that your target audience finds irresistible, you can significantly increase engagement, grow your email list, and boost social media followers, all while creating a fun experience for your audience.

lead magnet
Fentyverse Beauty often runs contests and giveaways on special occasions

Why they work:

  • The interactive nature of contests and giveaways encourages active participation from your audience
  • Participants often share contests with friends and family, which helps increase your brand’s visibility and reach 
  • You can make following you on social media a mandatory requirement to enter the contest, so you can grow your presence on these channels while generating leads

Best practices:

  • Leverage user-generated content: Encourage participants to share their own content related to the contest (e.g., photos using your product) to increase engagement and generate content for your brand
  • Reach out to every participant: After the contest, send a thank you email to all participants and offer them a consolation prize, such as a discount code, to encourage them to make a purchase

7. Interactive quizzes

Quizzes are the best of both worlds. These lead magnets combine entertainment with personalization, offering instant gratification in the form of results that feel tailor-made. They keep potential customers engaged in a unique way and provide valuable insights into their preferences and behaviors. What’s not to love?

Makeup brand Rare Beauty helps browsers find their perfect foundation shade with a quiz.

Why they work:

  • Quizzes keep users clicking, engaged, and interested from start to finish, significantly increasing the time spent interacting with your brand
  • With personalized results, quizzes make every participant feel seen and understood, enhancing their connection to your brand (and likelihood they’ll buy something based on the outcome of the quiz) 
  • Quizzes are an effective tool for collecting zero-party data on your audience’s preferences and needs, which can inform future marketing strategies. With the collapse of third-party cookies upon us, this is a welcomed benefit.

Best practices:

  • Shareable results: Make the results easily shareable on social media to increase the participant’s engagement and extend the quiz’s reach
  • Follow-up with personalized recommendations: Use the data collected from the quiz to follow up with personalized product recommendations or content, turning engagement into conversion
  • Optimize for all devices: Your quiz should be mobile-friendly to get users to engage with it on their smartphones (where they spend a lot of time. Seriously)

8. Exclusive members club

We already talked about the allure of exclusivity, but you know what’s better than early access to a product? Being part of an exclusive members club that continuously offers perks, special deals, and insider information. 

This type of lead magnet elevates the concept of exclusivity to a whole new level, as it creates a sense of belonging to a special community. It’s not just a one-time offer — it’s ongoing value.

Paula’s Choice Members receive discounts, gifts, rewards, and more when they sign up for the club.

Why they work:

  • Humans are complex creatures, but when it comes to belonging, they’re actually quite simple. People love feeling like they’re part of an exclusive group, and members-only clubs deliver on that innate desire for community and recognition
  • Contrary to a one-off download or discount, a members club offers continuous reasons for shoppers to engage with your brand
  • Members are more likely to become repeat, loyal customers, thanks to the ongoing perks and the emotional investment in the brand

Best practices:

  • Update, update, update. Regularly add new perks to keep the membership exciting and valuable. Stagnation is the enemy of engagement (Confucius didn’t say it, but he might as well have) 
  • Exclusive, but inclusive: While the club should feel exclusive, make joining achievable for your target audience – it’s a lead magnet, after all
  • Communicate regularly: Use email newsletters or a dedicated members area on your website to keep people informed about new perks and offers

9. Virtual events

Virtual events have surged in popularity, offering a unique way to connect with audiences from the comfort of their own homes. They entertain and inform, drawing in people with the promise of unique insights, valuable knowledge, and interactive experiences that they can’t get anywhere else.

Sephora offers a series of virtual events on all things makeup, skin, and beauty.

Why they work:

  • Virtual events allow for real-time interaction between the guests, moderators, and viewers, making the latter feel more connected to your brand
  • They can attract a broad audience by offering valuable insights, entertainment, or access to experts, depending on the event’s focus

Best practices:

  • Promote early and often: Use all your channels — email, social media, your website — to build anticipation and encourage sign-ups well in advance of the event 
  • Offer exclusive content: Make sure the event provides unique value that can’t be found elsewhere, such as live Q&A sessions, behind-the-scenes tours, or first looks at new products 
  • Make it accessible: Ensure the platform you choose is user-friendly and accessible to people with varying levels of tech-savviness
  • Interact post-event: After the event, send out an email to attendees with key takeaways, additional resources, and a CTA, such as a special offer or invitation to sign up for your newsletter
  • Record and repurpose: Not everyone who’s interested will be able to attend live. Plus, you’ve put a lot of effort into producing the event, so you should milk every drop of content out of it. Offer a recording to those who registered but couldn’t attend, and consider using parts of the event in future marketing materials

10. Free trials 

Subscription businesses might find it harder to send out samples of their products. Free trials solve this issue, as they allow potential customers to test your service in all its glory. Just like with samples, free trials are effective because they remove the risk from the customer’s decision-making process. People get to see firsthand if your service fits their needs and lifestyle before committing financially.

Food subscription business eMeals allows new users to try their service for free if they sign up

Why they work:

  • Customers can try out your service without any financial commitment, making them more likely to give it a go
  • Unlike a demo or a sneak peek, a free trial gives customers access to the entire service, allowing them to experience its full benefits
  • By offering a free trial, you’re expressing confidence in the value of your service, which in turn builds trust with potential subscribers

Best practices:

  • Clear communication: Make the terms of the free trial clear, including its duration and what happens when the trial ends. Transparency is key to trust
  • Engage during the trial: Use the trial period to engage with users, offering tips on getting the most out of the service and highlighting features they might not discover on their own
  • Seamless transition to paid: Make it easy for trial users to become paying subscribers, with a simple upgrade process and a compelling reason to continue beyond the trial

Optimize your e-commerce website for better lead magnet results

Your lead magnets are the hook that draws people in, but your website is where the magic really happens. It’s one of the places where initial interest turns into lasting relationships and, ultimately, sales. 

By focusing on both attracting customers with compelling lead magnets and providing an optimized online shopping experience, you lay the groundwork for e-commerce success. 

So, don’t let the momentum stop with the honey. Continue your journey to e-commerce excellence by ensuring your website is as optimized and as effective as your lead magnets

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15 ways to improve your e-commerce website performance https://www.bazaarvoice.com/blog/how-to-improve-your-e-commerce-website-performance/ Tue, 13 Feb 2024 12:15:11 +0000 https://www.bazaarvoice.com/?p=49829 Anyone who’s gone grocery shopping the day before a big holiday knows the pain of circling for a parking spot and fighting your way to items fifty other people are after. That’s not an experience anyone wants to replicate on their e-commerce store — but you just might if you don’t put in the work to improve your website performance.

Okay, okay, maybe we’re being a bit hyperbolic. Nothing’s as bad as trying to find a half-decent potato while your least favorite Christmas song blares over the store sound system. However, we do know customers love the convenience offered by online shopping. Nearly 70% of consumers factor site speed into their willingness to purchase from an online retailer. And a majority of online shoppers expect a page load time of 3 seconds or less.

If you haven’t given your website a performance checkup lately, it’s well past time. Here’s how to evaluate your current performance, plus some steps anyone can take to optimize an e-commerce site for a speedy shopping experience. 

Chapters:

  1. Why website performance matters
  2. The 7 main website performance metrics
  3. How to measure your website performance
  4. How to improve your e-commerce website performance
  5. Website performance is all about the need for speed


Why website performance matters

Does it really matter if you don’t hit that 3-second load mark? Yes, it does. Failing to prioritize website loading speed decreases the quality of your user experience, and that’s bad in multiple ways.

First and most obvious, higher load times mean an increased bounce rate. Even users who stick around through the first few slow page loads may give up on your site before making a purchase.

Lower initial conversion rates are likely to be matched by lower loyalty overall. Customers who remember their suboptimal shopping experience are less likely to return for another try — and they won’t want to follow links that direct them to your site. 

Bad website performance also affects your Google SERP rankings. Because the search engine’s algorithm prioritizes user experience, pages with a slow loading speed are pushed down in the search results. Smaller outlets competing for attention might lose out to their faster competitors. 

The 7 main website performance metrics

Page load time isn’t a standalone website performance metric. It’s an overarching assessment that rolls together multiple metrics. Four of these metrics are Google’s Core Web Vitals:

  • Largest Contentful Paint measures the loading speed of the largest page element users can see “above the fold” — that is, without scrolling down
  • Interaction to Next Paint measures a page’s responsiveness to interactions, such as clicking an “add to cart” button or typing information into a form
  • First Input Delay measures the time gap between when a user interacts with your website (say, clicking that “add to cart” button) and when their browser starts to process that request
  • Cumulative Layout Shift measures how often page content moves while a page is loading

Google considers these aspects most important because they have the biggest effect on user experience. However, there’s four other metrics that also capture important parts of the user experience: 

  • Time to First Byte measures the speed at which your DNS provider starts delivering your website content after receiving the request
  • Total Blocking Time measures how long it takes for a web page to load enough that a user can interact with it (as browsers that are in the middle of loading pages cannot process interactions)
  • First Contentful Paint measures how long it takes for the first of your website content to render

If you want to dive deep into any of these metrics, Google’s web.dev site explains more about why each one matters and how to measure them. Or, you can just keep reading as we discuss measuring your site’s performance. 

How to measure your website performance

Measuring your site’s performance is easy with Google’s free PageSpeed Insights. This tool assesses your site on the metrics listed above and ranks it as good, needs improvement, or poor. You’ll also get notes on your site’s performance, accessibility, use of best practices, and SEO. 

There’s an option to view how your site performs on mobile vs. desktop devices and tips to help you optimize your site. You get a lot of help for the low price of living in Google’s web ecosystem, and let’s face it — that’s already happening. 

When you’re looking at your report, you may notice Total Blocking Time is excluded from the “Core Web Vitals Assessment” box. Scroll down to the Performance box, then look at the Metrics table to see your results.

PageSpeed Insights makes it easy to understand why your site earned the rankings it did with color-coded graphics and personalized tips. Go ahead and run a test now — all it takes is a few seconds — so you can get a baseline of your site’s performance and see where you have room for improvement. 

How to improve your e-commerce website performance

If you’re still here, we’ll assume your Core Web Vitals Assessment showed you have some work to do. There’s no shame in that. Even Google’s web.dev site doesn’t pass the assessment! Here’s our best tips to help you improve the performance of your e-commerce website and the tools you need to make it happen. 

1. Cut down on HTTP requests

HTTP requests exist at the core of loading web pages. You don’t need to know the technical specifics here — only that a browser must make these requests to load CSS files, scripts, images, and other content on your page. Each request requires the browser to send a message to your web host, which then has to respond with the appropriate content.

The more HTTP requests you have, the longer it will take to complete them all. Imagine if you went to a restaurant and first asked for water and then, when your waiter returned, ordered a soda. When they brought the soda, you asked for an appetizer. And finally, after the appetizer arrived, you had decided on your entrees. It would take a long time for you to get and finish your meal, no matter how fast your server worked.

Give your (web) server a break by cutting out unnecessary HTTP requests. If you don’t need a script or CSS file, don’t reference it in your page’s header. You can also try to cut down on multimedia content to increase your page load speed. 

2. Use HTTP/2

Not all HTTP requests are made equal. HTTP/2, a standard that debuted in 2015, comes with capabilities that help your web pages load faster. For one, it allows developers to prioritize which elements load first, so you can tell browsers to request light resources before larger scripts. It can also serve multiple resources at once. To return to our restaurant metaphor, HTTP/2 allows you to give your whole order at once so the waiter can get your food to you more quickly.

KeyCDN has a free HTTP/2 test to determine whether your site supports the HTTP/2 protocol. Or, if you want a closer look, open your browser’s developer tools, navigate to the network tab, and look for the “Protocol” column. (You may have to right-click the list of columns and add Protocol.) 

HTTP/2 support is determined by your web host, so they’re the resource to turn to if you need to enable the protocol. The process is different for each provider. 

3. Eliminate unnecessary redirects

Many companies employ redirects to bypass link rot during website overhauls. However, each time you redirect a user to a new page, you’re forcing them to sit through another page load. Especially redirects that lead to another redirect — no thanks! By the time the user reaches the actual URL, they’ll already be ready to close out of your page.

Redirects have a habit of piling up over time. That means you need to audit them periodically; it’s especially important to do so after any redesign or re-architecting of your website.

Screaming Frog SEO Spider can help you check your entire site for redirects and even detect redirect chains and loops for you. You could also use the Ahrefs SEO Toolbar to check page-by-page, but we wouldn’t recommend this. Unless you have an obligation you really want to get out of.

4. Limit external scripts

Most developers use third-party scripts to add functionality they don’t have the resources to code in-house. Incorporating external scripts is always risky in terms of page speed, though. You don’t have control over the code, so you can’t do anything if the script is slow to load.

Slow-loading scripts make pages take longer to load and can cause problems like content jumping (measured by the Cumulative Layout Shift metric). 

Check each page to make sure no unnecessary scripts are loading. For instance, you may have a reviews feature enabled on your site as a whole, but you don’t need that script included on pages made for browsing. You may also ask yourself whether you really need that modal to collect customers’ emails or if it’s turning off more buyers than it’s bringing in.

More bells and whistles aren’t always better. A simple website with a good user experience can muscle out an overdesigned store.

5. Enable lazy (asynchronous) loading

When a browser renders a website, its default is to process each request in order, only moving on to the next command after finishing its current task. Large scripts slow up the entire process, as a browser must load the entire file before it can move on to rendering the rest of the content.

Avoid this delay by directing the browser to load your scripts asynchronously — that is, while continuing to render the webpage. Simply add the async attribute to your script tags (your code will look something like this: <script src=”my_script.js” async></script>).

Some experts recommend adding your <script> tags near the bottom of your body content as older browsers may not be able to read the async attribute, but there’s no need to do this. You’d be hard-pressed to find a browser in the wild that couldn’t handle the async tag. 

6. Use mobile-first designs

Website performance optimization needs to include mobile-first thinking. Smartphones are now the source of nearly four in five e-commerce website visits and two in three e-commerce purchases. Unfortunately, the mobile web is still a drag. Most sites have much longer load times on mobile devices. With over 50% of mobile visitors ready to jump ship if a site takes longer than 3 seconds to load, e-commerce retailers are likely losing out on a lot of business. 

Almost every website published these days is responsive, but designers who code for desktop and then later optimize for mobile may be going in the wrong order. Using mobile phone emulators to design for small screens puts the needs of this growing audience front and center. 

Plus, it’s easy — Google Chrome’s Dev Tools allow you to enter “device mode” to view what your site will look like on smaller screens. 

Designing for mobile phones also requires you to make the most of limited screen real estate, which may mean you opt for fewer decorative elements that can slow down a page. You’ll also want to simplify navigation and interactions rather than going for flashy or unique experiences that require external scripts and plugins. 

If you’re working with an existing site, you probably can’t implement this practice right now. Just keep it in mind for your next redesign. 

7. Compress text-based files with gzip

HTML and CSS files may not seem too onerous to load, but when you’re counting in milliseconds, every byte matters. Compression reduces the size of text-based files so they can make the trip from your server to a customer’s browser more quickly. Gzip is the most common compression framework, but Brotli and Deflate also work well to speed up your website. 

This is another feature that’s set up on the hosting side. Most hosts enable it by default, but it’s good to check yours using a free HTTP Compression test. If you find out your content isn’t compressed, it’s time to reach out to your hosting provider. 

8. Minify CSS, JavaScript, and HTML files

Compression frameworks like Gzip aren’t the only byte-savers. You can also minify your text files by removing anything that’s not a key part of the code — things like comments, formatting, or lengthy variable names. Many of these elements are helpful for human developers, but web browsers don’t need them to display your web page directly. 

There’s no need to go through and delete comments and extra spaces and tabs by yourself. Minifier.org offers a free tool that can handle CSS and JavaScript. Google’s web.dev recommends this free HTML minifier

If you’re looking for tools that can mass-minify, Google’s PageSpeed Module works with Apache or Nginx web servers and automatically minifies your files. However, installing tools like it or CSSNano may require you to call IT.

9. Optimize images and videos

Multimedia files often decrease website performance simply because they’re so large. E-commerce merchants, who rely heavily on images and videos, must be diligent about optimizing these files to reduce the burden on visitors’ internet connections. 

The easy part of optimizing images is resizing them. No file should exceed 20 megabytes (MB) — but really, only your hero images should be that big. Shopify recommends merchants keep images around 500 kilobytes (KB) if possible, though they allow that some sites need files up to 2 MB in size. You’ll likely have to compress your images to meet these goals. Thankfully, there’s plenty of free image compression tools out there you can use.

Once you’ve cut file sizes down, make sure you’re using responsive design principles to keep things speedy for users loading your site from smaller devices. MDN Web Docs, run by Mozilla, has a nice responsive images tutorial you can follow if you’re new to the subject. 

10. Take advantage of browser caching

Web browsers can store files locally on users’ machines, which speeds up loading times for repeat visitors. Instead of contacting your server for every file, browsers can pull cached assets from the machine’s local memory.

Caching is an excellent solution for most e-commerce merchants, as your assets remain fairly static. If you do a major site overhaul or replace product pictures, you’ll want to make sure browsers have instructions to re-download the new content and replace cached assets. However, this is a rare enough occurrence for most online retailers that setting up caching is the way to go.

Your web host is, once again, the party in charge of your caching settings. You’ll want to find its documentation and follow the instructions to enable local caches and set expiry dates (which instruct browsers how often they should refresh cached assets from your site). 

11. Use a content delivery network (CDN)

Browser caches only help audiences who have come to your website before. Content delivery networks, or CDNs, stash assets as close as possible to each visitor to cut down on load times. 

CDNs don’t rely on local machines to store assets. They simply distribute your assets to a network of servers in various locations. That means instead of having one server in Virginia that answers all requests, you may have a server in Virginia, one in California, one in Illinois, and so on. Companies that serve international audiences can work with international CDNs, so they have servers in multiple countries, regions, and continents. 

Whenever a browser sends a request to load your website, that request routes to the server that’s geographically closer to the user. It may not sound like a huge time-saver, but since page load speeds are measured on a very small scale, CDNs make a noticeable difference. 

12. Regularly audit your plugins

Plugins, add-ons, and extensions are a huge time-saver for most web developers. But, like external scripts, bloated plugins can drag your page speed down. Improve your website performance by revisiting your plugin library to see whether there are any hangers-on that you no longer use. 

Sometimes, you need all your plugins, but your pages are still loading way too slowly. In that case, it’s time to figure out the culprit. Copy your site into a staging environment, disable all your plugins, and test your site load speed. Then, enable plugins one at a time to determine whether a single plugin is tanking your performance metrics. (Make sure you enable, test, and then disable each plugin so you’re not accidentally measuring cumulative effects.)

Thankfully, with so many plugins out there, you’ll likely be able to find a replacement for any sluggish tools. 

One other option is to look for plugins that have been optimized for speed. For instance, our Ratings & Reviews display technology was designed to keep your website running quickly, and our developers shared the steps they took to fulfill that promise. Find tools built in this vein — ones that use best practices like minifying and reducing script files, caching, and lazy loading — to make your audits a breeze. 

13. Remove unnecessary pop-ups

Yes, we’ll say it. Pop-ups are super unpopular. They lead to a bad experience, especially on mobile devices. Even if you think your pop-ups are tastefully done and helpful, internet users are faced with a barrage of modals, overlays, and chat widgets all day long. Everyone has pop-up fatigue, and if you contribute, you’re eroding your consumers’ trust. 

Most pop-ups call outside scripts and reference assets like images and fonts, all of which a browser has to load. Modals that appear conditionally have to gather audience data before triggering, which also takes time. And if your Total Blocking Time is high, users may not be able to close out of these elements as the rest of your site renders. This delay would influence users’ perception of your site speed even if there was no actual slowdown. 

The slowdown is real, though, as is the nearly universal dislike for these tools. Removing them from your site is a win-win. 

14. Choose the fastest services

When a customer clicks a link or types in a URL, they’re telling their browser to query a DNS service to take them to their target site. That DNS service routes the browser to your site’s IP address. Then, their browser starts reading your HTML files and requesting assets from your server or CDN so it can render the website you’ve designed. 

That’s a lot of services coming together to make your site appear. If any one of them is slow, your page speed will be negatively affected. That’s why the cheapest option isn’t necessarily the best option for your technical infrastructure. 

For instance, many base website hosting plans are shared. This means other websites use the same server you do, so a spike of traffic from one of them might slow down your load times. VPS hosting (for growing sites) or dedicated website servers (for those who can afford them) will return better results.

You also want to make sure your domain registrar, which handles DNS hosting, is a high performer. DNSPerf keeps an ongoing log of DNS performance so you can see for yourself how various providers stack up.

Of course, speed doesn’t only matter at the top levels. We talked about finding lightweight and streamlined plugins. You’ll also want to think about services like your security software and other backend tools. Though customers don’t interact with them directly, they can still impact your e-commerce website’s performance. 

15. Monitor website operations

Checking your website performance every once in a while to see if there’s big problems is a smart idea. Constantly monitoring your site so you’re aware the second a problem pops up is even smarter. 

You can invest in tools that collect data on your users’ experience to show how your site performs in the real world. Since many shoppers will be visiting you from setups unlike your own, real user monitoring provides a fresh perspective. 

Other tools pretend to be human visitors, using a series of scripts to navigate your website and test its performance. Synthetic monitoring setups like these are more useful for teams looking to gather data from controlled tests. If you’re in the midst of optimizing your site, synthetic monitoring will help you spot changes that actually make a difference. These systems can also run scheduled tests with the goal of catching major problems before your customers run into them. 

There’s plenty of tools that perform both of these jobs (and more):

  • Site24x7 performs synthetic and real user monitoring for you
  • LogRocket monitors users and identifies errors and site interactions users typically struggle with
  • New Relic is an end-to-end synthetic monitoring system that integrates with just about every infrastructure there is 

Whichever tool you use, make sure you configure the alerts to tell you when something goes wrong. The quicker you can fix the problem, the fewer customers you’ll disappoint. 

Website performance is all about the need for speed

As internet and mobile connections become faster and even more ubiquitous, consumer standards will continue to rise. Providing a fast, convenient experience is a baseline expectation. Companies who can figure out how to excel on mobile and get those loading speeds down to a second or less will have a chance to capture more market share.

The customer experience you provide is directly connected to your conversion and retention rates, and your website’s performance is directly related to that customer experience. Website optimization isn’t a project that can wait for a rainy day. It’s an essential part of bringing customers to your site and making more sales.

Improving your site’s speed isn’t the only way to reach more customers. Check out these ways to increase organic traffic to keep your momentum on the SERP.

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Subscription commerce: Models, benefits, and strategies https://www.bazaarvoice.com/blog/subscription-commerce-definition-models-benefits/ https://www.bazaarvoice.com/blog/subscription-commerce-definition-models-benefits/#respond Fri, 09 Feb 2024 13:16:50 +0000 https://www.bazaarvoice.com/?p=13380 If you aren’t already thinking about starting a subscription business for your brand, you really should be. The subscription business model, or subscription commerce, has been booming for a few years now. With busy schedules and mindful budgets, more consumers are looking for convenient ways to save money. The subscription commerce market is growing so quickly, it’s expected to reach a market size of $2227.63 billion by 2026. That’s more than the GDP of Turkey.

Another shopping trend that really boomed is the uptake in subscription businesses. In 2022, the subscription commerce market is valued at $26.9 billion and is predicted to reach $74.2 billion by 2028, according to global research. So if you hadn’t been considering a subscription business for your brand, it might be time to start.

Chapters:

  1. What is subscription commerce?
  2. Benefits of subscription commerce
  3. Subscription commerce best practices
  4. Subscription commerce FAQs
  5. Personalize your subscription commerce experience


What is subscription commerce?

Subscription commerce is a business model where your customers pay a set recurring price to receive your products or services on a regular cadence. The three most common types of subscription commerce model:

  1. The curation model: This popular model provides subscribers with pre-selected items based on their personal needs and preferences. This option offers an element of surprise with each subscription box and is particularly good for helping your customers discover new products!
  2. The replenishment model: Commonly known as the “subscribe and save” model, this type of subscription allows customers to automate the purchase and delivery of everyday consumer products, such as vitamins, cosmetics, or hair products, for a discounted price
  3. The access model: With this model, customers pay a regular fee to attain desirable member-only perks, such as select discounts and early access to new products. Subscribers to this model are often attracted to the exclusivity that membership offers

For consumers, subscription commerce offers convenience, high-quality products, reliability, and great value, while brands and retailers benefit from locking in higher recurring revenue — more on that to follow.

Benefits of subscription commerce

Subscription commerce is riding a high right now. When done well, this service provides brands and retailers with some wonderful advantages.

  1. Recurring revenue: Subscriptions bring in consistent income that makes it easier to forecast sales and plan for the future — handy in a time when 77% of consumers have changed spending habits. And since you get paid upfront monthly, quarterly, or annually, you’ll be able to map out your fulfilment operations way easier
  2. Higher customer lifetime value: One of the best things about subscription services is that retention is built into the business model. By offering personalized discounts and membership perks, you have a better chance of attaining long-term customer loyalty, which increases the lifetime value of your customer base
  3. Lower customer acquisition costs: As we just mentioned, a higher CLV from subscription services means lower customer acquisition costs. All you have to do is keep your subscribers happy, and you’ll be able to significantly decrease your customer churn, lower your new customer acquisition costs, and watch your profit margins grow
  4. Easier Inventory Management: Unlike the pay-once model, a subscription commerce model removes the uncertainty about how often you’ll need to replenish your stock. This tells you how many customers are going to buy specific products in any given period of time, making it way easier to assess your stock levels properly
  5. Enhanced customer service: Shoppers love having control over their purchasing decisions. A subscription service offers this, plus the added benefit of discounted pricing. Toss in some personalization and incredible customer service, and you’ve got a recipe for an awesome subscriber experience.

Subscription commerce best practices

You can have the best products in the world as part of your subscription service but if it doesn’t come with the right criteria to wow your customers, it really won’t matter. To make a positive and lasting impression, you need a customer-first mindset.

1. Choose the right subscription model

An obvious starting point, but don’t trip up at the first hurdle. Depending on what you offer, select the subscription model that fits your e-commerce business best. It’s also worth testing two or more models with a select few of your shoppers so you can get a feel of what works and what doesn’t.

2. Figure out your USP

Any good subscription revolves around a very specific niche. Without a clear unique selling point, your brand won’t be well-positioned to spark curiosity around your subscription or deliver the tailored experiences consumers expect.

Ask yourself what makes your subscription different from your competitors. Next, ask what your customers stand to gain from your subscription instead of taking the more conventional course. Shoppers value specialized products and services. Being selective about what you choose for your subscription service will help you carve out your niche.

3. Make signing up easy

Once a customer decides to subscribe, signing up should be as simple as possible. Consider offering a streamlined registration process that asks for essential information only, like name, email address, and password.

Customers should also be able to sign up on your e-commerce website, app, or even through social media channels like Instagram, Facebook, or TikTok.

You’ll also want to make sure subscribers can choose the frequency of their subscription deliveries, as well as the ability to pause or skip any they may not want. Studies show that subscribers who can skip an order last 135% longer than those who can’t.

4. Optimize the subscriber journey

When a subscriber visits your website, they should be welcomed with a seamless experience that provides valuable information, effortless navigation, and easy checkout. Focus your efforts on:

  • Tailored subscription options. Provide different types of subscriptions for your different audiences so they can choose the service that fits them best. You could even include a quiz to help them uncover which option perfectly meets their needs! 
  • Intuitive navigation. Ensure subscribers can find what they’re looking for easily by including distinct menus, logical categories, and a search functionality. Have people in your organization test user journeys, too
  • Swift website speed. Maximize your website’s performance by minimizing page load times — nearly 70% of consumers say that page speed impacts their willingness to buy from an online retailer
  • Clear and compelling product information. Include detailed product descriptions and high-quality images. You’ll also want to feature any customer ratings and reviews — 88% of shoppers use them to evaluate products before making a purchase
  • Streamlined checkout process. Simplify the checkout process by removing unnecessary steps, offering guest checkout, and providing a clear snapshot of the purchase summary. Include secure payment gateways and flexible payment options as well

5. AI-Driven contextualization

Subscribers are more likely to engage with content when it’s personalized to their specific preferences and needs. Artificial Intelligence (AI) platforms help you deliver contextualized shopping experiences by leveraging customer data like browsing and purchase history to provide tailored product recommendations.

In turn, subscribers feel more valued and better connected with your brand.

6. Valuable incentives

Consumers love deals, discounts, or any other offer that saves them money. Who doesn’t? By offering this to your subscribers, you’ll strengthen their desire to save on their purchases.

Typically, subscription commerce incentives revolve around a monetary reduction, but don’t feel like you have to limit yourself to just that! Providing free products (or samples) or access to exclusive services or events are other great ways to increase subscriber loyalty.

7. Social proof

Social proof like customer reviews and other forms of user-generated content, can significantly impact purchasing decisions. To help build trust with your customers, encourage subscribers to leave reviews and share their positive experiences so you can highlight on your website, social channels and everywhere your shoppers are.

Influencers are another effective way to build loyalty with your subscribers — 71% of consumers are likely to buy products from an influencer they trust. Just make sure to find the right ones that fit your subscription niche.

8. Effective communication

Customer communication is a key element of a fantastic subscription commerce experience. Start by establishing a cohesive communication plan that helps you keep subscribers informed and excited about new products, special offers, and other related news. Just don’t overdo it!

Then make sure to correspond regularly and segment your subscriber audiences so you can tailor your messages according to specific preferences and interests.

9. Exceptional customer support

Subscription commerce goes far beyond selling products or services. It requires excellent customer service that addresses issues quickly and efficiently. 

91% of shoppers say they won’t willingly do business again with a company that left them unhappy. Avoid dissatisfied subscribers by prioritizing your customer support with these tactics:

  • Offer multiple channels such as live chat, email, or phone to ensure customers can reach out through their preferred method
  • Utilize chatbots for support during off-business hours or for commonly asked questions and pain points
  • Include self-service resources such as a thorough FAQ section that encourages customers to find answers on their own
  • Make every effort to reply quickly to customer queries by addressing their questions or concerns promptly
  • Respond to negative reviews and turn negative experiences into a positive that creates advocates for life

10. Retain subscribers through customer feedback

Listening to customer feedback is key to enhancing the subscription commerce experience and ensuring customer retention. Analyzing data, reviewing ratings and reviews, and sending out regular customer satisfaction surveys to subscribers are all useful ways to understand their needs and expectations better.

Another way to retain customers is to ensure you’re surprising and delighting them with every package you send. Don’t let your subscriptions go stale. Continue to find new ways to impress people, like providing new brands and products you know they’ll love. 

Subscription commerce FAQs

Thinking of starting a subscription business for your products? Ask yourself these questions to determine if the subscription commerce model is a good fit for your brand. 

1. Would my product lend itself to a subscription business?

Popular categories for subscription boxes include food, beverages, electronics, health and fitness, fashion, and beauty.

If your business falls into one of these categories or if you notice certain products you offer get repurchased over and over again, you’re probably a good candidate for a subscription model.

2. Would my shoppers want to subscribe?

You need to ensure consumers continue to find value for the long term. Insights from customer purchase data can help tailor and personalize your services from delivery to discounts.

Which products do customers frequently repurchase? How often do they repurchase them? The answers to these questions could help you set the right cadences.

3. What would costs look like for my subscription service?

Calculate how much it will cost to send the customer the most value possible. Include shipping costs, marketing costs, labor, and any other costs in this.

4. How should I price my subscription?

First, check out your competition. What do they charge? While you might not be able to match their prices, it’s important to know what your customers are comparing you against. Another way to figure out what customers would pay for a particular service is simply to ask them.

Subscription commerce models often use tiered pricing depending on what the customer signs up for. If the customer chooses an option with more value, they’ll pay more money per month. 

5. How do I build interest for my subscription business?

Tell your customers! Beta test your new model(s) to your most loyal shoppers and re-purchasers. Gather their feedback in the form of UGC — like reviews and social posts — for display on your product pages, subscription pages, social content, and other marketing collateral. 

Also, consider influencer marketing to drum up excitement. Tapping into an existing social community like the Influenster App will create authentic buzz amongst shoppers and provide opportunities to create positive word-of-mouth about your subscription.

Personalize your subscription commerce experience

The subscription commerce opportunity is ripe for brands and retailers to truly understand shopping habits, adapt to consumers’ new ways of buying, and instill trust to create long-lasting relationships. Not to mention, the recurring revenue stream it will provide.

As shopping behaviors continue to change, you might have to alter how you get your products in shoppers’ hands, and a subscription commerce offers a great way to do that. If you aren’t already thinking about starting a subscription service for your brand, you certainly should be.

But the difference between an okay service and one that delivers a wow factor is personalization. You need to know your audience better than you know yourself. Bazaarvoice AI tools can help you deliver personalized experiences that drive repeat business and higher customer satisfaction. Get in touch below to learn more.

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15 e-commerce growth hacks to implement now https://www.bazaarvoice.com/blog/15-e-commerce-growth-hacks-to-implement-now/ Mon, 09 Oct 2023 14:15:29 +0000 https://www.bazaarvoice.com/?p=46741 E-commerce growth hacking is valuable topic for marketing teams of all sizes and budgets. This guide will explain what growth hacking is, how it benefits e-commerce brands, and offer effective growth hacking strategies and tactics that e-commerce businesses can implement quickly, easily, and largely at a low cost.

Chapters:

  1. What is e-commerce growth hacking?
  2. Best e-commerce growth hacking strategies
  3. Hack e-commerce growth with Bazaarvoice


Growth hacking. It’s not just another buzzy term making its way across the internet — it’s the secret weapon that pushes brands into the spotlight. 

By 2027, worldwide e-commerce business sales are gearing up to cross the $8 trillion mark. How do you ensure your brand isn’t just a spectator but actively working to take a slice of the multi-trillion-dollar pie? Especially when you’re running on the horsepower of a lean marketing team, time is of the essence, and deep pockets might not be a luxury you have?

You unlock the potential of e-commerce growth hacks strategies.

What is e-commerce growth hacking?

Growth hacking is a subset of marketing that involves finding the most effective, innovative, and cost-efficient ways to rapidly grow your business. In the fast-paced and hyper-competitive world of e-commerce, it’s the difference between being a small fish in a massive pond and becoming a dominant force in the market

Let’s dive into effective, quick-to-implement hacks that are friendly on the wallet and perfect for brands that want to make an impactful mark. 

Best e-commerce growth hacking strategies

Here we have 15 of the best e-commerce growth hacks that are all relatively cost effective to implement, but will have a significant positive impact on your ROI.

1. Create a sense of urgency with limited-time offers

Fear of missing out — coined as FOMO — isn’t a new phenomenon, but social media has significantly magnified it. Creating urgency taps into that basic human emotion. When customers see an offer with a finite window of opportunity, it becomes a now-or-never decision. The consideration time shortens, and the push towards an immediate purchase strengthens.

e-commerce growth hacking
ColourPop celebrates National Brow Day with a limited-time 30% offer for all their eyebrow products

Limited-time offers aren’t just about slashing prices or throwing in a nice extra perk. They’re a psychological nudge urging shoppers to take action before time runs out. By strategically placing these time-sensitive offers on your site or sharing them via email, you’re providing a fleeting chance that many won’t want to let slip by. 

It’s also a remarkably low-lift strategy. With a few tweaks to your e-commerce store’s visuals and timely communication, you can set the stage for increased conversions without investing countless hours or resources.

2. Capture leaving visitors with exit-intent pop-ups

Step out of the digital environment for a second and picture someone leaving a physical store empty-handed. Before they go, a friendly staff member offers them an unexpected discount or asks for feedback. That’s the role an exit-intent pop-up plays in an online business setting. It creates one last opportunity for you to engage a visitor. 

e-commerce growth hacking
HidrateSpark offers a discount to nudge leaving visitors to make a purchase or come back later in exchange for their email address

Pop-up tools trigger exit-intent pop-ups when a user’s cursor movement indicates they’re about to close the tab or navigate away. They can serve many different purposes, too. Looking to grow your email list? Offer a subscription invitation. Do you want to clear stock? Flash a surprise discount. Keen on gathering insights? Prompt a quick feedback form.

This strategy works because it re-engages visitors who’ve already expressed interest by landing on your site, compelling them to stay or come back soon. Subtlety is key — no one wants to be bombarded with too much information. Make sure your pop-up provides value related to what the visitor was viewing, with a clear message and a straightforward call-to-action (CTA). 

Implemented wisely, exit-intent pop-ups become a valuable tool that can significantly reduce bounce rates and improve conversions.

3. Build authenticity into product pages with UGC

There’s something profoundly impactful about raw, real testimonials from everyday people. User-generated content (UGC) is precisely that — photos, videos, and customer reviews from actual users showcasing or discussing your products in their own unique ways. 

Social proof from genuine users offers transparency. It’s a window into how the product fits into everyday life without the gloss of professional setups. And that might just be the final push a visitor needs to buy from you. According to our Shopper Experience Index, 53% of shoppers say UGC makes them more confident in their purchase decision than professional photography.

Fresh saw a $1.8 Million revenue impact from user-generated content on their product pages

Reach out to your customers and encourage them to write product reviews and create content using your offerings — you can launch brand-specific hashtags or give them discounts in exchange for their contribution. Then, display that rich UGC on your product pages to foster trust and help customers feel more confident about their decisions.

UGC is a powerful and easy growth hack — your customers are already talking about you, you just need to utilize their content.

4. Lean into the engagement of quizzes

Quizzes have leaped from the pages of magazines and secured a spot in the e-commerce world. At the intersection of entertainment and personalization, quizzes offer both an engaging user experience and valuable insights into your customers.

In a digital environment, where shoppers are surrounded by choices, a quiz acts as an assistant, helping to filter options based on individual preferences. Whether it’s finding the perfect shade of lipstick, the ideal pair of running shoes, or a tailored skincare routine, quizzes guide users toward products that best suit their needs.

Perfect Locks’ quiz helps website visitors find the perfect products for their hair extension needs

The most obvious use for quizzes is offering tailored product recommendations, increasing the likelihood of a purchase. But they can also help you glean valuable insights about your target audience and inform future personalized digital marketing strategies

5. Turn social engagement into sales with social commerce

Social media channels aren’t just for sharing vacation pictures or fawning over celebrities anymore. They’ve turned into powerful marketplaces of their own accord, an invaluable stepping stone in the modern consumer buying journey

A study conducted by We Are Social, in partnership with Hootsuite, revealed that more than 4 in 10 working-age internet users visit social networks specifically to research brands and products they’re considering for purchase. This number jumps to half when we zero in on the 16 to 24 age bracket. The line between socializing and shopping has blurred. 

e-commerce growth hacks
MAM UK used social commerce to double traffic and conversion rates

With features like Instagram shoppable posts and Like2Buy, brands have the opportunity to remove friction from the customer experience and turn engagement into sales with just a few clicks. 

Social media is also the perfect stage to distribute user-generated content and amplify authentic voices, allowing potential customers to see real-life applications of products and build a genuine connection with your brand. By merging social interaction and commerce, you can foster a community of loyal customers while lifting sales.

6. Re-engage customers with abandoned cart emails

Online shopping is fraught with distractions. One minute, a visitor is adding products to their shopping cart, and the next, they’re sidetracked by an email, a phone call, or a sudden change of heart. While it might seem like a lost cause, these abandoned carts present a golden opportunity for re-engagement with a little help from email marketing. 

Abandoned cart emails serve as gentle nudges, reminding customers of what they left behind and encouraging them to complete the purchase. And the numbers back their efficacy. After analyzing millions of these emails, Klaviyo found they yield a 41.18% open rate, a 9.5% click rate, and $5.81 in revenue per recipient.

Chatters Salons nudges visitors to complete their purchases by using a sense of urgency

To maximize this strategy’s efficiency, strike while the iron’s hot, and offer incentives. Send the first reminder within a few hours of the cart being abandoned, and include discounts or free shipping to make the deal irresistible.

7. Clarify and inform with FAQs and Q&As

Information is the bridge that connects potential hesitations to confident purchases. More often than not, customers come to your online store armed with questions, and how efficiently you answer them can mean the difference between an abandoned cart and a closed sale. 

FAQs (frequently asked questions) and Q&As (questions & answers) sections are trust builders. They reassure visitors that you’ve anticipated their concerns and are ready with answers or took the time to answer similar queries from fellow shoppers.

e-commerce growth hacks
Rare Beauty answers frequently asked questions about shipping, account details, and product formulations

While a comprehensive FAQ can deflect a good portion of routine customer service inquiries, an open Q&A section shows transparency, suggesting that you’re not shying away from customer questions, no matter how tough. Both play a part in reducing barriers to purchase and driving website visitors towards conversion.

Regularly update your FAQ section based on questions people ask repeatedly and allow customers to answer each other’s questions (the latter has the added benefit of feeling more genuine). 

Also don’t bury these sections deep within your e-commerce site. Make them easily accessible, perhaps even built onto product pages, so visitors can quickly find what they need to assuage their concerns. 

8. Expand your customer base with referral programs

Word of mouth continues to be the most effective and powerful form of marketing. The essence of sharing a good thing with friends and family has taken a strategic turn with referral programs. It’s simple: if your customers love what you offer, why not incentivize them to spread the word? 

Referral programs operate on a win-win model. Existing customers get rewards — be it discounts, freebies, or exclusive access — for bringing in new customers, and in turn, your brand reaches fresh audiences, primed to trust you thanks to a recommendation from someone they know.

Casper’s referral program is enticing for both current and potential customers.

This strategy’s main selling point is cost-effective business growth. Because you’re only rewarding successful conversions, you’re likely to see a higher return on investment. You just have to execute a referral program that’s worthwhile — whatever rewards you offer, they should genuinely resonate with your customer base. And the easier you make it for customers to refer and claim rewards, the more likely they are to participate.

Once you settle on what your referral program will look like, don’t let it sit idly by. Promote it regularly through email campaigns or social media posts to keep it top of mind for customers.

9. Offer real-time guidance with chatbots

Scouring through dozens of product pages can sometimes overwhelm or frustrate visitors and lead them to give up on the shopping journey altogether. But what if every potential customer had their own personal shopper, ready to help at a moment’s notice?

Chatbots offer immediate assistance, answer questions, suggest products, and even guide users through the buying process. These digital helpers can significantly impact your bottom line — according to Intercom, 35% of business leaders said chatbots helped them close sales. The allure of chatbots isn’t just their 24/7 availability. It’s their ability to provide timely, accurate, and consistent responses when a visitor hits a wall and there’s no physical sales clerk to help them out.

American Eagle’s chatbot helps visitors find products and offers answers to pressing questions.

The modern shopper expects convenience, speed, and clarity. Integrating conversational commerce into your site helps you meet those expectations and even exceed them, paving the way for smoother customer journeys and, ultimately, more sales.

10. Facilitate speedy checkouts with one-click purchases

Growth hacking is so effective in e-commerce because it inspires revolution. For example, after braving through the process of selecting a product, few things are more frustrating than being bogged down by a lengthy checkout process. Baymard data reveals that 18% of visitors abandon their cart because the checkout process is too long or too complicated. This has led to a rapid rise of quick commerce.

Your checkout process should feel like a smooth transition, not an endurance test. One-click purchases streamline the payment process, allowing visitors to bypass repetitive form fillings and offering a near-instant path from cart to confirmation. 

Amazon revolutionized the checkout optimization process with one-click “Buy Now” purchases.

This strategy will only work for customers that have already bought from you once and given you their information. But once they do, store it safely and allow subsequent purchases to be seamless and painless with one simple click.

In e-commerce, friction is the enemy. While a comprehensive checkout might seem thorough, it often acts as a deterrent. By adopting one-click purchases, you’re telling your customers, “We value your time. Let’s make this quick.” 

11. Maximize value with upsells and cross-sells

Every customer interaction isn’t just a chance for a sale, but rather an opportunity to enhance the value of that sale. If someone’s buying a new laptop, it’s logical to suggest a complementary laptop bag or a higher-end model with better features. That’s the essence of upselling and cross-selling, two strategies that can amplify your average transaction value significantly. 

Upselling involves encouraging customers to buy a more expensive version of the item they’re considering. It’s about highlighting the benefits of the premium choice: better functionality, longevity, or overall experience. Cross-selling is about recommending complementary products. If they’re buying shoes, suggest a matching belt or a shoe care kit.

e-commerce growth hacks
AT&T cross-sells products related to the iPhone and throws in a discount to make the offer more tantalizing.

Upsells and cross-sells have the added benefit of enhancing the e-commerce shopping experience by suggesting products that align with a customer’s needs and, in some cases, simplifying their search. The key is to keep suggestions relevant to the product and not go overboard with the number of options you present to avoid decision fatigue. 

12. Re-capture attention with retargeting ads

It’s a familiar scenario in the world of e-commerce: a visitor lands on your website, browses a few products, maybe even adds something to the cart, but then — poof. They’re gone without completing the purchase. Thanks to the magic of data, these potential customers aren’t lost to the wind, and you can snare them again with retargeting ads.

These ads are all about re-engaging visitors who’ve shown interest in your brand, and gently pushing them back into the sales funnel. According to research from Ascend2 and Sharp Spring, retargeting ads are 70% more likely to convert compared to their standard counterparts. That’s a lot of potential for reclaiming lost sales.

RedBalloon retargets cart abandoners via Facebook ads with a discount.

You can set up retargeting campaigns directly on Facebook, using an ad platform or a Customer Data Platform (CDP). To tailor your ads, use these tools to segment your audience based on behavior, like browsing a specific product or abandoning a cart. You also need to set a frequency cap so the ads don’t become intrusive, and use catchy visuals, compelling CTAs, and personalized content to make sure you get that click.

13. Boost sales with attractive bundle deals

It’s hard to resist the allure of getting more for less. Bundle deals — a combination of products sold at a discounted rate when bought together — can be a game-changer for both customers and brands. For the former, it’s the excitement of snagging a bargain, and for the latter, it’s an opportunity to increase the average order value and move inventory.

AG1 by Athletic Greens clearly showcases the value of bundle deals in its marketing campaigns.

Successful bundling hinges on two factors: relevance and transparent pricing. The products you bundle should make sense, whether they’re used together, like a camera and a memory card, or complement each other, like a dress and matching accessories. 

To really drive home the point that customers are getting more bang for their buck, clearly showcase the savings they stand to make with the bundle deal. A side-by-side comparison of individual vs. bundled prices, for example, accomplishes this effectively. 

14. Entice bigger baskets with free shipping thresholds

The word “free” has a nice ring to it, but when it’s paired with “shipping,” e-commerce magic happens. A recent study by Inmar Intelligence revealed that 78% of consumers are willing to buy more just to get free shipping. Clearly, the desire to save on delivery can drive purchasing decisions in a big way.

By setting a purchase minimum for free shipping, you’re giving customers a tangible goal. More often than not, they’ll strive to meet or even exceed it. And even though you’re covering shipping, the additional purchases often make up for the cost. You maintain healthy profit margins and feed into customer goodwill that can lead to repeat business and retention.

Paula’s Choice EU offers free shipping for all orders above €150

A good rule of thumb to determine your free shipping threshold is to look at your average order value and set it just above that to encourage a slight increase in typical spending. If you do adopt this strategy, remember to showcase it prominently. Whether it’s a banner on your homepage or a reminder in the cart, make the offer hard to miss.

15. Personalize the shopping experience with product recommendations

McKinsey said it best: consumers don’t just want personalization, they demand it. The era of generic, one-size-fits-all shopping experiences is long past us. Today’s discerning consumers want a touch of familiarity that makes e-commerce shopping feel tailored just for them. 

Personalization takes many forms, chief among them new product recommendations. This dynamic strategy uses past behaviors, preferences, and data analytics to suggest products that a customer is likely to be interested in, and make it that much more probable that they’ll buy them. It’s yet another way to simplify the shopping journey and signal that your brand understands and caters to your customers’ unique preferences.

e-commerce growth hacking
Burga uses review request emails to suggest products the customer might be interested in based on their past purchases

You can weave these recommendations into several stages of the journey. For instance, while customers are exploring products on your site, showcase related or complementary items. Before they finalize their purchase, highlight a few products they might have missed or might want to add.

In review request emails or even as part of regular newsletters, personalized product suggestions can re-engage customers and prompt them to revisit your site.

Hack e-commerce growth with Bazaarvoice

Tapping into the potential of the e-commerce landscape requires more than passive participation, it needs active growth hacking. It’s all about innovating, iterating, and understanding the needs of your ever-evolving customers.

Bazaarvoice’s solutions are shaping the future of online retail. From leveraging the authentic voices of your customers to unleashing the power of social commerce, our products we’re designed to supercharge your e-commerce growth and carve a niche in a saturated market.

Not sure where to start? Experience the transformative power of Bazaarvoice for yourself

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How to compete with Amazon and other marketplaces https://www.bazaarvoice.com/blog/how-to-compete-with-amazon-other-marketplaces/ Fri, 22 Sep 2023 22:39:00 +0000 https://www.bazaarvoice.com/?p=46122 As an e-commerce pro or lean business with a tight budget, you probably find yourself competing with behemoths like Amazon and other dominant marketplaces vying for market share. Overcoming the challenges posed by these industry giants means coming up with innovative strategies that set your business apart and foster growth. 

If you’re wondering exactly how to compete with Amazon, look no further. In this article, we explore four powerful and effective ways for retailers and brands to compete head-to-head with large marketplaces.

4 ways to compete with Amazon

From embracing social commerce to removing shopping friction, these strategies can help your company build awareness and loyalty in the face of formidable competition.

1. Use social commerce to reach a wider audience 

To compete with giant marketplaces, it’s important to work on expanding your reach beyond your website or physical stores. Enter: social commerce

Social commerce allows brands to reach larger audiences, specifically within the social media environment and everywhere social media extends to. Social media platforms boast billions of active users worldwide, offering an enormous potential customer base for your brand. In our recent apparel-related survey, 21% of respondents said social media is one of their main channels for online apparel shopping. 

With advanced features like shoppable posts and integrated checkout processes, social media platforms are streamlining the path to purchase. Customers can seamlessly move from product discovery to checkout without having to leave the platform. These best practices will get you started:

  • Be intentional with the platforms you choose to sell on. Not all social media platforms are suitable for every brand. Research and identify the platforms where your target audience frequents the most and that align with your brand’s identity. For example, on TikTok, the largest user age group is 18-24-year-olds, whereas on Facebook, it’s 25-34-year-olds 
  • Promote your brand and products through UGC. User-generated content (UGC) includes social imagery, product reviews, and videos created by an individual rather than a brand. Partnering with influential personalities to promote your products can significantly increase visibility and credibility, attracting new customers to your brand. Consider creating an influencer marketing program by identifying influencers whose values align with your brand and reaching out to them about collaborating
  • Make your social profiles and product posts shoppable. Many social media platforms offer built-in shopping features. Use shoppable posts, product tags, and integrated checkout options to provide a seamless shopping experience. When you use these features, and someone sees your post, they can instantly explore and purchase your products without leaving the app

When you’re able to harness the power of social commerce, you’re better equipped to level the playing field and establish a competitive edge. Then you can more successfully compete with Amazon and other dominant marketplaces.

2. Leverage first-party data to deliver personalized content

Providing personalized content and experiences has become a crucial strategy for retail businesses to gain a competitive edge against Amazon and other marketplaces. 71% of consumers expect some personalization. Moreover, companies that excel at personalization often see higher revenue than those that don’t.

The key to personalization lies in first-party data, which can offer valuable customer insights into behavior, preferences, and interests. First-party data includes various customer touchpoints — such as purchase history, browsing behavior, and interactions with marketing campaigns — and demographics. Analyzing and understanding this data gives you a comprehensive view of your customers so you can deliver highly relevant and personalized content and experiences.

To leverage first-party data, start by adopting a tool to consolidate all your customer data, like a Customer Data Platform (CDP). A CDP is a centralized system that collects and unifies customer data from different sources to create comprehensive customer profiles for personalized experiences. From there, you can collect and track insights from sources like: 

  • UGC posts. UGC provides valuable insights into customer preferences and sentiments. Feedback and commentary left on UGC posts are generally authentic to real-life product experiences. Integrating UGC into marketing campaigns and product pages can significantly influence purchase decisions 
  • Website analytics. Analyzing website behavior and interactions provides valuable information on customer preferences, popular products, and areas of interest. This data can be used to optimize website design and content for a more personalized experience
  • Email marketing data. Email interactions and preferences offer insights into individual customer preferences. Segmented email campaigns based on these preferences can drive higher engagement and conversion rates

You can also incentivize customers to provide more data voluntarily through loyalty programs, surveys, and ratings or reviews.

3. Use loyalty programs and rewards to encourage repeat purchases

Loyalty programs are structured marketing strategies designed to incentivize and reward customers for their repeat business and loyalty. These programs typically offer various benefits, such as discounts, exclusive offers, early access to new products, or points accumulation for future purchases. 

Loyalty programs cultivate customer loyalty by rewarding repeat purchases. McKinsey found that top-performing loyalty programs see 15% to 25% more revenue annually from customers who redeem their points. Customers who feel appreciated and receive benefits for their loyalty are more likely to stick with a brand over time, reducing churn and boosting customer lifetime value and retention

These programs are also flexible for the brands who offer them. You can tailor the program depending on your profit and revenue. For example, Amazon offers a one-tiered paid loyalty program through its Prime Membership. Customers who buy this subscription get discounted two-day shipping on specific items plus limited free access to other perks. 

To compete with Amazon and other marketplaces, you can develop your own loyalty program to encourage customers to keep coming back and bring in a recurring revenue stream:

  1. Define clear objectives. Set specific goals for the loyalty program, such as increasing customer retention, average order value, or overall revenue 
  2. Design the program structure. Once you set the objective, you can structure the program to meet it. For example, if your objective is to increase overall revenue, consider using a points-based structure where the more customers spend, the more points they get. Or you can offer tiered paid subscriptions where one option is free and the others are paid  
  3. Choose the rewards. Determine the types of rewards that will appeal to your target audience. These could include discounts, free products, access to exclusive content, or early product releases
  4. Simplify the enrollment process. Make it easy for customers to enroll in your loyalty program, either while they’re checking out or through a simple registration process. If there are too many steps or you ask for too much information, they may be deterred from signing up 

Once you’ve established your loyalty program internally, create awareness about it across different platforms, including your website, email newsletters, social media, and on packaging. Then continuously monitor the program’s performance and gather feedback from customers to improve and optimize the program over time.

4. Remove friction to make shopping more convenient 

One of the reasons it’s so hard to compete with Amazon is because they’ve mastered the art of removing friction from their shopping experiences. With an intuitive app interface, one-click ordering and reordering, and quick delivery options, customers can shop at Amazon with ease. 

Friction points can occur at various stages. Think of a complicated checkout process, lengthy account creation, slow-loading pages, or unclear product information. Frictionless shopping removes these obstacles that can impede a customer’s journey from product discovery to purchase completion. 

Frictionless shopping can even result in less cart abandonment and a boost in overall purchase rates. One report shows that 17% of shoppers have abandoned their carts due to long or complicated checkout processes. But when people can shop with your brand easily and conveniently, they’re more apt to be satisfied with their experience. 

Removing friction from shopping starts with understanding your customers’ journeys. Evaluate the entire customer journey from product discovery to post-purchase support to find where customers are experiencing the most friction. These are points where customers drop off or contact customer service for help.  

Once you’ve identified these friction points, you can work to remove them. Here’s a few ways to remove shopping friction:

  • Shorten your checkout processes. Simplify the checkout process by cutting down the number of steps to complete a purchase. Offer guest checkout options for first-time buyers and enable one-click ordering for returning customers
  • Make account creation easy. If account creation is necessary, make it quick and straightforward. Offer social media or Google login options so they can quickly sign up with an existing account. If third-party sign-up isn’t an option, try to keep the information needed to a minimum (i.e., name, email address, and password) 
  • Optimize website and app performance. If people are dropping off before your web or app pages load, work with your web developers to ensure your website and app load quickly and are responsive across various devices and internet speeds 
  • Clear product information. Provide detailed and accurate product information to reduce uncertainty and answer potential customer questions. If people aren’t able to get the information they need from a product page, they may drop off. For example, if you’re an apparel company and your product pages don’t include sizing charts, it’s hard for people to know which size to buy, and they may just opt out

Once you’ve implemented changes, track and monitor their effectiveness. Ideally, fewer customers will drop off from the specific points on your app or website and go on to complete their purchase. 

If you can’t compete with Amazon, join them 

While implementing effective strategies is essential, there’s also wisdom in the adage, “If you can’t beat them, join them.” Rather than compete with Amazon, collaborate with them and other established marketplaces to harness their vast reach and engage a broader audience. 

By combining strategic competition and smart partnerships, businesses can find the winning formula to thrive in the dynamic e-commerce landscape. 

For example, Bazaarvoice Retail Syndication serves as a powerful ally in this endeavor, enabling you to showcase your best UGC at critical decision-making moments, reaching customers where they love to shop. With content syndication across Bazaarvoice’s extensive global retailer network, you can drive channel sales, expand your brand presence, and foster stronger connections with your target audience. 

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Content localization: A strategy for global brands https://www.bazaarvoice.com/blog/content-localization-a-strategy-for-global-brands/ Wed, 20 Sep 2023 10:34:41 +0000 https://www.bazaarvoice.com/?p=45904 What do Apple, Coca Cola, and Bounty all have in common? They’re all global brands. Meaning their reach extends further than just one continent and instead are recognized by people almost everywhere. And what’s the secret recipe to building a global brand? Understanding and utilizing content localization — local content creation that appeals to multiple audiences versus just one.

Nowadays, global brands are bigger than ever before, most likely due to social media and the boom in online shopping leading to increased demand for products worldwide. The international e-commerce market is expected to total $6.3 trillion in 2023.

By marketing their products on social media and pushing customers to their international sites, global brands can sell their goods to almost anyone, which might not have been as possible 20-30 years ago. But, how can you attract shoppers when you’re only appealing to one segment of people? It’s difficult.

It’s not easy to cater to 8 billion people in one fell swoop. 42% of consumers say they never purchase products and services in other languages. So just as “one-size-fits-most” clothing fits very few people, we know that content marketing is not “one-size-fits-all” across the globe. 

This is where local content can save the day. But, how do you localize your content for international audiences in today’s shopping ecosystem? 

What is content localization?

Content localization is the process of adapting content to be relevant for multiple, local audiences. This means understanding language and cultural differences, symbols, references, colloquiums, and more before going to market globally. Content localization matters because whether you’re already a global brand, or looking to expand internationally, it’s what consumers want to see:

Not only does a content localization strategy require your business to have a strong brand image, but it also demands a rich understanding of various groups and cultures, which you can achieve through education and research. 

If these audiences aren’t kept in mind when creating a marketing strategy, it will be increasingly difficult to show up a cohesive, all-inclusive brand.

Tips for successful content localization strategy 

Are you looking to become a global brand? Or Follow these five proven tips for appealing to multiple audiences with local content and becoming the brand people associate with your product or service.

1. Get social

The more your brand can show up on social media the better — especially when it comes to reaching people far and wide. Shoppers, more than ever, are spending time discovering products, doing their research, and reading reviews on social, so take advantage of this and focus your efforts on your socials.

One way to successfully build a worldwide presence is by spreading out your content across multiple channels and even handles. For example, using different Instagram handles for various locales enables your content to last longer and live in more places. If your business has large communities in the US, Europe, and Australia, consider building separate social accounts for each segment. This way, you can get more specific and tailored with your content depending on the region.

Take Sephora for example – they manage multiple Instagram handles successfully by understanding the intricacies of their global communities. Sephora’s main account, for their U.S. market, mentions U.S. based sales, products, and services. However, their handle dedicated to Australia includes solely Australian based user-generated content (UGC), events, products, and more. By profiling Australian Fashion Week, an event that’s otherwise not very relevant in other countries, Sephora established themselves as a brand that knows how to tap into current events and appeal to their patrons in Australia. 

local content

content localization

So, before committing to multiple handles, take time to understand your audiences. How do they shop? What content performs best? What social platforms are they showing up on? Dive deeper into your social analytics and take a good look at the data – it never lies. In doing so, you can develop your specific KPIs and objectives for each audience. 

Your followers will provide you with free market research, as long as you spend the time reading their comments, understanding where their knowledge gaps may be, looking at what gets the most likes, and more. Each region will have different priorities when it comes to shopping – brand trust, convenience of product, price, and more. 

Spend time both surveying and sharing content on your social media platforms. This is how you go from good to great when building a global brand.

2. Get real translations

It sounds like an obvious strategy, but content localization needs to start with translating your content. Translate it, then localize it.

Obviously, translation isn’t the only thing that companies must do to reach a global customer base, but it’s certainly one of the fastest, easiest, and most frequently overlooked.

Nataly Kelly, VP of Localization, Hubspot

Most of us aren’t experts on multiple languages — that’s just how it is. But, language, as we all know, can say a lot, and you want to make sure it’s saying the right thing. 

When it comes to creating local content or translating from one language to another, it’s important to find real people who can translate rather than relying on AI or other online tools. One mishap could cost you a lot or completely misdirect your audience. This is a simple mistake that can be avoided with quality translation. 

KFC went through a bit of a translation fail when their famous “finger-lickin good” slogan got translated into Chinese. If they were to have consulted a native Chinese speaker, this likely wouldn’t have happened and would’ve caused less of a ruckus when a passerby sees this sign. 

Although incorrect translations can sometimes be harmless, it does show you put little care in accommodating to that specific place. Why would someone want to buy from a brand that doesn’t think to even fit into their culture or language?

A good way to collect local content and talk like your customers (wherever they are) is through product reviews. Specifically, transcending borders by translating your product reviews. Your customers are already talking in their own language so they’ll be there ready for new customers in a new location to find.

Brother International, for example, used translated reviews to expand into seven new markets and found that customers who interact with these reviews are 2x more likely to click a call-to-action.

3. Learn social norms

The key part of content localization is, obviously, making your content local. Once you’ve spent the time doing your due diligence on social media, you’ll discover there’s social norms that are quite specific to a region.

Just think about simple phrases that are wildly different in New York versus London — tired vs knackered, elevator vs lift, trash vs rubbish, etc. Or the fact that red is generally a negative color but in Chinese culture is considered lucky. Even time and date formats differ the world over. Specific content localization items to think about include:

When brands are hoping to show up globally, it’s crucial to acknowledge that some content may work in some places and not others. Businesses must carefully consider the visuals of your UGC and promoted posts before going ahead and posting them. 

For example, McDonald’s, arguably the world’s most recognizable fast-food chain, doesn’t reuse ads or marketing assets for all their audiences because, for example, promoting Big Macs with cheese to people in Israel isn’t necessarily appropriate or fitting.

If you go to any McDonald’s around the world, you’ll find region-specific food in each one, and this is something they’re proud of. This is why you’ll see, across their social media, ads, promotional videos, and more, they acknowledge the intricacies of the community.

However, it’s important to educate yourself first before jumping on what you may assume is a social norm. In reality, that social norm could actually be a stereotype that’s dated or inappropriate nowadays. It’s better to loop in a regional source when building your global marketing strategy than just simply guessing. 

4. Tailor UGC on regional sites and marketing campaigns

If it’s winter in Australia, Australians don’t want to see swimsuits and flip-flops, which makes total sense. For this reason, make sure to be tailoring your content accordingly. 

If your e-commerce site is full of UGC and brand-owned content, you’re most likely already seeing incredible lifts in average order value, time on site, and conversion. But, if you’re using the same content over and over across your regional sites, you may be missing out on lots of revenue. 

You can easily distribute and display specific content on some sites and not others with Galleries Localization. Peloton is a fantastic example of this:

content localization

Their German website caters to their German audience with unique UGC across their site, including a full page dedicated to their community’s images and videos not found on the American site. 

Galleries Localization can easily be accomplished through the Bazaarvoice Social Commerce platform, and it’s something that will save you time and money. It will help those sales skyrocket because your audience will feel seen and heard wherever they are.

5. Analyze success by region

Monitoring your marketing strategy’s performance enables you to uncover what’s working and what’s not working. When you look at metrics regarding social content, such as engagement, likes, followers, and more, you can determine what’s successful in each region. This goes for content performance and the number of reviews on site, as well. These are all performance metrics that will help you analyze your audiences better.

One thing to note is that different regional strategies can be aimed at achieving different things. It’s all about meeting your customers where they are, and that’s not going to be the same place for all communities. Don’t just evaluate total engagement rate for each localized IG account and call it a day; remember your KPIs for each locale when determining success and return to those KPI’s when you go astray. 

Get global success with content localization

Working across the globe is no small feat, especially as it means understanding more places than just your home or culture. But, showing up globally as a brand can take your business to the next level – it’s all about just knowing how to do so. 

Knowing when to enter into a new region and how to successfully pull that off will pay off in the end. Remember, 72% of consumers said they would be more likely to buy a product with information in their own language. All you need to do is learn how to localize your content. We know — the biggest global brands work with us

If you’re looking to expand globally, the best way to get started is with UGC. Learn more ways you can use it engage global shoppers with local content on our dedicated content localization page.

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How to build a retail social media strategy https://www.bazaarvoice.com/blog/how-to-build-a-social-media-strategy-for-retail/ https://www.bazaarvoice.com/blog/how-to-build-a-social-media-strategy-for-retail/#respond Fri, 15 Sep 2023 11:04:00 +0000 https://www.bazaarvoice.com/?p=13997 People spend nearly 2 and a half hours on social media every day. While they’re scrolling through Instagram, watching TikTok videos, and liking their friends’ Facebook posts, they’re coming in contact with the latest fashion and beauty trends, holiday decor, and all kinds of other products. 

This inspires them to shop. A whopping 97% of shoppers have purchased something from social media — and 69% have been inspired by social media to make a purchase via another channel. 

Where a third of shoppers spend $200 or more a month, active social media users spend almost 3x more, or $580 a month. That’s why you need a retail social media strategy — the relationship between social media and shopping is tighter than ever. 

Consumers want to discover new things and purchase them on the spot — 54% of shoppers say they’re willing to buy products on social media if they can get product info directly there. When we asked shoppers where they shop, we discovered:

Social commerce, which is the buying and selling of products on social media — and everywhere social reaches — through shoppable content, is here to stay, and more and more shoppers are jumping into it. With all that in mind, creating a retail social media strategy for your brand is a necessary move. 

Retailers who fully embrace social commerce can increase engagement, conversion, and revenue.

Your retail social media strategy 5-step guide

We have tips for defining your goals, implementing best practices on social platforms, building relationships on social media, driving sales, and using metrics to assess ROI. This five-step guide will help you launch your retail social media strategy. 

Step 1: Define your goals

Before you can hit the ground running, it’s crucial to define your retail social media strategy’s goals. Goals guide your brand’s focus on desirable outcomes and set a foundation for your marketing strategy — which you’ll continue to adjust and build upon as you discover what works and what doesn’t. 

Communicating your product’s benefits and connecting with your target audience can help you generate sales, grow your customer base, and increase brand loyalty. All of these are strong marketing objectives. Therefore, selecting the objective that coincides with your brand’s mission is the best place to start.  

Defining clear, realistic, and quantifiable goals will give direction to your retail social media marketing efforts. 

Build brand loyalty 

Transform your brand enthusiasts into your greatest advocates by building stronger relationships with your shoppers. That means answering their questions, breaking down buyer barriers, and sharing insights with shoppers. When your advocates feel heard and valued, your brand wins. 

Generate sales

Boost conversion rates by optimizing user-generated content (UGC) on social media channels, focusing on shopper experience to pique interest, and syndicating reviews across a vast network of retailers to increase buyer confidence. 

Stand out on social 

Get noticed by selecting the social media platforms that match your brand, collect feedback about your content and products, use your customers’ voices to connect with a broader audience, and be authentically true to your identity. 

Drive traffic and generate leads

Featuring UGC resonates with shoppers, since the content shows everyday people using your product. Consumers equate this to a recommendation from a friend or family member. When you display UGC on social media, it’ll help you drive traffic and generate leads, which ultimately helps boost sales.   

Step 2: Understand retail social media best practices

While most consumers prefer to engage with brands by following them on social media, others prefer interacting with influencer content and taking their recommendations. Consumers also appreciate being able to easily access brand or product information directly from social media, according to Bazaarvoice data

Above all, consumers seek out high-quality visual UGC on social media. Using a blend of robust visuals, videos, influencer content, and shopper reviews can increase buyer confidence while helping you achieve your strategic goals. 

Although quality content is a must on all social platforms, it’s crucial to have a solid grasp of each platform’s best practices. Here’s some platform-specific guidelines to get you started. 

a) Instagram

From trend discovery to product research, brand-created content on Instagram is a major player in a shopper’s buying journey. In fact, 83% of users say Instagram helps them discover new products, and 81% use it to research products and services. 

To capitalize on user activity, you must first complete the Instagram Shopping approval process to begin tagging products to make posts shoppable and drive sales. 

Consumers find your brand through discoveries

Instagram’s Explore Tab bridges the gap between aimless browsing and active shopping. With this feature, brands can enhance shopping experiences by immersing in your products and creating an in-store shopping feel. 

Brands like Iconic London have integrated a gallery of inspiring social content to create feed-like experiences on their home pages and product pages, which further reinforces its position and increases engagement. 

Not only that but the brand has seen an 11% lift in average order value for those who engaged with these galleries versus those who didn’t.

Shoppers can have a personalized shopping experience

Instagram’s algorithm gathers visually similar items, allowing users to scroll through content based on their interests and what they want to see. This helps users continually discover new products.

When you use Instagram, you can give your customers a personalized shopping experience. Lifestyle retailer Oliver Bonas, for example, uses Bazaarvoice Like2Buy to turn their Instagram visuals into shoppable posts to improve customer experience. They make their Instagram photos and videos shoppable and improve their shopper experience.

The tool has helped the brand drive more engagement and increase conversions by 188%. They can also collect new UGC assets to feature on Instagram later on. 

Instagram shopping is seamless 

Instagram’s checkout feature allows users to purchase products without leaving the app. Shoppers just have to enter their information, and it’s saved for future transactions — streamlining the shopping process. 

Although content will help users discover products, the checkout experience needs to be as easy as possible to ensure they complete their purchase and keep coming back. You should test your checkout process regularly to make sure it’s as seamless as possible and identify and fix any obstacles. 

retail social media
Source: Driving sales in beauty, beverages, and everything in between

You can use Instagram’s insights to track the success of your content on the platform, so you’ll know how well your retail social media strategy is working. 

b) Facebook

Facebook posts can help you make a splash, connect with consumers, and achieve your desired ROI. 

Simple, high-quality creative posts resonate most

High-quality, creative posts inspire Facebook users to interact with your brand. Each post should include images, videos, or GIFs that accurately echo your brand’s message. It’s also a great place to feature visual UGC. 

Posts inspire action 

Capture your Facebook followers’ attention via different types of actionable content. From sharing articles and blogs from your website to posting links to asking the audience to leave a review, there are various ways to inspire engagement. 

Understanding your audience builds a connection 

Connecting with your audience is about understanding how they tick and what inspires them. The better you understand your audience’s needs, the easier it will be to develop posts that connect with them. Facebook’s Page Insights can help you gather information about audience demographics and past posts they interacted with.

c) TikTok

TikTok content should be short (just about 15 seconds), visually compelling, and authentic. Here’s how it can be an influential part of your retail social media strategy. 

TikTok content follows trends, which are the ongoing conversations users have on the platform. You should jump on these trends. Complete the latest TikTok challenge or give your take on a popular trend — this will make you seem relatable and cool. It also helps you build momentum on the platform.  

Authenticity is the only way to be

TikTok is where people go to have fun and be themselves. Brands contributing to the platform should strive to be a part of the community and its light-hearted spirit, instead of pushing sales or other hidden initiatives. Being authentic is everything. 

TikTok Analytics enables you to track key metrics, like views, likes, comments, shares, and engagement rates. 

d) Pinterest

Pinterest is an amazing and underrated platform for retailers. It’s highly visual and made for discovering and saving (or pinning) your favorite things. 

The highest-performing pins are the ones that tell a story, are visually captivating, and entice the audience to want to learn more. Pins that will compel your audience to engage with your brand

  • Standard pins. Vertical, high-resolution images are eye-catching. Putting your brand’s products front and center helps you showcase them. Utilizing specific titles and descriptions boosts pin discovery
  • Video pins. Videos with an immediate visual hook will capture your target audience. This is important because some pinners browse the platform on mute. Also, video pins must have a strong cover image that conveys exactly what the video is about before the user scrolls past 
  • Story pins. Like a video pin, a compelling cover image tells users what the story is about before clicking on it. Use multiple pages to tell your story and let your personality shine through with images, videos, colors, and fonts that suit your brand 

Like other social media platforms, Pinterest offers analytics that allow you to track pins, views, and more, so you can keep tabs on the effectiveness of your retail social media strategy. 

Step 3: Build relationships with customers and community connections

Consumers love following their favorite brands on social media to learn about new products, keep up with sales and promotions, and like and share their content. 70% of consumers discover products on social media — and, they’re more likely to buy from brands they follow on the platforms. 

Taking steps to build community connections and direct relationships with your customers will drive engagement and sales. Here’s how: 

Respond to comments and questions 

Shoppers want access to detailed, quality information about products while they’re shopping. They also want to feel like their needs are being met. So, when they comment on your post, send a question via a DM, or leave a review, respond to it. Consumers actually expect it. 

MeUndies has found value in Bazaarvoice Questions and Answers. When it answers customer questions, shoppers learn more about products and feel confident purchasing. This has increased conversions for the brand and reduced the number of customer service messages employees have to respond to. 

Provide top-notch customer service 

Most consumers say a brand’s customer service factors into their choice of whether to become a customer, according to a Microsoft report. Additionally, 58% say they’d end a relationship with a brand after poor customer service. Make shopping experiences seamless, respond to customer questions and feedback, and resolve problems immediately, and you’ll have a loyal customer for life. 

Bazaarvoice recently announced a partnership with customer service platform Zendesk to help brands build efficient, effective UGC programs that deliver quality customer experiences and improve customer service across a shopper’s journey.

Host contests and giveaways

Who wouldn’t want to show their love for their favorite brands and win a prize in the process? Social media contests and giveaways do just that. They also help brands engage followers, collect UGC, and increase sales. Instagram accounts that host contests grow 70% faster than those that don’t. 

Successful social media contests use brand-, product-, or campaign-specific hashtags. Samsonite ran a travel-gear giveaway using the hashtag #takewhatsyours to gather UGC and influencer content.

The campaign generated over 27,000 posts, which it uses on product pages, social media, and in its marketing to connect with customers.

Use social listening 

Through social listening, you can monitor topics, keywords, and hashtags related to mentions of your brand or products. You can also keep tabs on your competitors and what’s happening in your industry overall. Knowing what’s happening lets you capitalize on trends, resolve problems, and provide the content that you know audiences want to see. 

Create communities 

Focusing on your audience and building relationships with a brand community of supporters is always a great way to understand what your customers need and want — and respond accordingly. 

The rise of community commerce lets you leverage social creators to post real-life, authentic content that informs, entertains, and inspires. Just make sure it’s shoppable so people can easily buy what they see! 

Step 4: Drive sales with social media

With billions of social media users all over the world, social platforms are the place to connect with consumers and inspire them to buy your products. Social media is where people go to find out about the latest things. 

When you feature UGC on your social platforms, it helps build an authentic connection. Brands can see double the engagement when UGC is incorporated into retail social media strategies. There’s a number of ways to drive sales with social media.

Use social media to promote products 

Social platforms are a great place to showcase new products and post refreshers about your tried-and-true items. Another way to promote products on social media is with the help of influencers. 

Everyday social media users, like your real customers, are the influencers that resonate the most with shoppers. These influencers are considered authentic, and our research shows that 82% of consumers are purchasing more or the same number of products from everyday social media user recommendations this year. 

Run social media ads with UGC 

Consumers trust the advice of their peers over highly produced ads with professional photography and taglines that sound too sales-like. Running social media ads that feature UGC gives your paid ad campaigns an extra boost by driving higher conversions. 

For instance, bedding e-commerce brand Parachute increased its click-through rate by 35% and lowered its cost-per-click rate by 60% with UGC advertising. 

Use social media to drive traffic to your website 

Social media is the preferred spot for product inspiration and discovery. Tag your posts and make social content shoppable to drive traffic to your website and help shoppers complete their purchases. 

Use UGC collected from social media on your e-commerce website, on product pages, home pages, and anywhere else. Bazaarvoice Galleries can help by feeding social content to all of these places. Brands see 140% higher conversion rates when users interact with Galleries content on product pages. 

Step 5: Measure ROI to determine your retail social media strategy’s success 

Now that you know what it takes to create a solid retail social media strategy, how do you know it’s working and meeting your goals? The only way you can know is to measure your ROI.

This involves tracking metrics such as engagement, traffic, conversions, and revenue generation. Your goals and objectives will determine the type of social media metrics you track. 

Individual social media platforms offer their own analytics tools. Take, for example, if you want to build awareness on Instagram, you may want to closely examine Instagram Reels and Story views or engagement rates.

Engagement rate to aim for. Source: 10 key Instagram metrics for 2022

If you advertise on Facebook, you may want to measure the cost-per-click rate. But manually tracking and gathering metrics from each platform can be time-consuming and make your head spin if you’re unsure how to find meaningful data. Bazaarvoice offers several tools to help. 

The Social Commerce Platform provides brands with social analysis, UGC performance tracking, and competitor insights all on a single dashboard.

Let’s say you’re on TikTok and want to measure performance. You can do so from one singular dashboard. It can tell you what content to post, what’s engaging your audience, and what strategy works. 

Using tools like Premium Network Insights take the guesswork out of ROI assessments of your brand strategy. Our Social Analytics tool helps brands understand what their shoppers find most engaging, such as certain types of images or content. This can help inspire future marketing campaigns. 

Having a repertoire of analytics tools makes it much easier to pinpoint a successful retail social media strategy for your brand.

Retail social media strategy key takeaways 

Social media is the preferred source for product information and inspiration. Consumers follow their favorite brands on social platforms and expect to see compelling, authentic content that they can engage with. That’s why you need a robust retail social media strategy. 

Your retail social media strategy should focus on: 

  • Defining your retail social media goals
  • Deciding which types of content work best on different platforms (the answer is mostly always UGC!)
  • Building authentic relationships with consumers 
  • Driving sales with social content 
  • Measuring your ROI to know what’s working and what needs work

This five-step guide can you get started. Learn more about how we can help you with social commerce here.

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BFCM: 15 Black Friday marketing strategies https://www.bazaarvoice.com/blog/black-friday-and-cyber-monday-strategy-guide/ https://www.bazaarvoice.com/blog/black-friday-and-cyber-monday-strategy-guide/#respond Wed, 13 Sep 2023 08:23:19 +0000 https://www.bazaarvoice.com/?p=19202 BFCM is right around the corner, as it always seems to be. But is your brand BFCM ready? Using new Bazaarvoice consumer research and the latest insights, this checklist will ensure your Black Friday marketing strategy is up to scratch so you can win over new shoppers, as well as keeping your existing base.

Chapters:

  1. What is BFCM?
  2. Black Friday marketing statistics
  3. Best Black Friday Marketing strategies
  4. Make this Black Friday marketing campaign your merriest one yet


Fall is finally here. People are starting to sip on pumpkin spice lattes, watch football, and pull out their sweaters and boots. But BFCM are literally just around the corner, and soon consumers will start their holiday shopping — if they haven’t already. But first…

What is BFCM?

BFCM means Black Friday and Cyber Monday, just in case you had to Google the acronym like I did. There’s no doubt that BFCM weekend is huge for shoppers, retailers, and brands alike. Shoppers can snag giant TVs, the hottest toys, and just about anything else on their holiday wish lists at reduced prices.

Last year, nearly 196.7 million consumers shopped in-store and online during the Thanksgiving holiday weekend, and Winter holiday retail sales grew 5.3% over 2021, reaching $936.6 billion.

No doubt, consumers have started making their holiday shopping lists and planning to buy gifts, holiday decor, and the trimmings for big feasts. But, many may tighten their belts a bit this year. According to Numerator, more than half of consumers expect inflation and a possible economic slowdown to affect their holiday shopping. Two-thirds of shoppers say they plan to buy items on sale, and about half will buy fewer things or use coupons. 

Now’s the time to get your Black Friday marketing strategies in motion — it gives shoppers plenty of time to plan and purchase. 

Black Friday marketing statistics

To help you get your Black Friday marketing campaigns right, we surveyed over 1,000 U.S. consumers to learn more about their plans and expectations for this holiday season.

For example, did you know holiday shopping starts as early as July? 11% of shoppers are already starting their holiday shopping in July, and by October that’s up to 35% so you need to make sure your Black Friday campaigns start in Summer to meet this demand.

Knowing when shoppers shop is important, but so is the where. In terms of product discovery, our research revealed the preferred channels shoppers want to hear from brands to discover Black Friday deals are ads (64%) and email (46%). But social media is increasingly becoming a place of product discovery with 46% of shoppers using it — rising to 59% for millennials!

On BFCM weekend specifically, social media has even more impact. 45% of shoppers are more likely to discover a product via social media than any other channel over Black Friday and 49% of shoppers follow favorite brands on social media to discover Black Friday offers.

But social media isn’t just for discovery. A quarter of shoppers (25%) prefer to shop via social media over BFCM. The reason social media is becoming a top shopping channel, aside from convenience, is because it’s where shoppers find user-generated content (UGC), aka photos and reviews from real people.

UGC is the content that impacts sales most and it’s not just limited to social media:

  • 73% of shoppers agree that reviews impact their purchasing decisions in-store over BFCM
  • 74% of shoppers agree that reviews impact their purchasing decisions online over BFCM
  • 59% of shoppers agree that reviews impact their purchasing decisions on social media over BFCM

Now let’s take a detailed look at what the rest of our research revealed and the strategies you can use to guide your Black Friday marketing campaign(s). 

Black Friday marketing strategies

Using our research and other industry insights, these are the top 15 strategies to follow to prepare for a successful BFCM weekend.

1. Start your Black Friday marketing early 

Consumers are already making their holiday shopping lists — and checking them twice. Many have actually started checking items off that list. 

Our research found that 11% of consumers start holiday shopping in July. By August, 13% have started and 19% are already shopping in September. 

black friday marketing

But October is when things really get going, with over a third of shoppers already hitting the shops (or e-commerce stores). So, that’s the time to optimize your product pages for your top-selling products, but you need to keep the momentum going right up until Christmas Day.

Early shopping helps shoppers spread out their budgets (more on that later), avoid last-minute shopping stress and crowds, compare prices, look for deals, and not miss out on the most-coveted items. 

Holiday shopping peaks in November, especially between Black Friday and Cyber Monday, which is when 59% of consumers start their shopping. Millennials are more likely than other generations to start holiday shopping in November. 

You should follow suit. The earlier you tease sales, the more likely you can get consumers to sign up for your newsletter, text alerts, or loyalty programs. This will help expand your base of loyal followers, who are eagerly awaiting the sale to kick off. 

Creating countdowns, hosting flash sales, and offering time-sensitive discounts and perks will inspire a sense of urgency and encourage quick purchases. For example, offer an extra 20% off during certain hours on Black Friday, early morning specials, or a one-time discount code sent by text as a Cyber Monday marketing event. 

Create a sense of FOMO (fear of missing out) by including a note on product pages showing how many shoppers just purchased the item or are looking at it. Also, tap into visual UGC to show products in use and share consumers’ social media posts about their Black Friday and Cyber Monday shopping experiences, including what they bought. 

2. Consumers look to social media to discover deals 

We all know social media influences shopping habits all year, but that’s especially true for the holidays. It’s where consumers discover new brands and products and find inspiration for gifts — for themselves and others. Our survey found that social media is one of consumers’ favorite channels for discovering Bfcm deals. 

We found that social media is becoming just as important as paid channels and owned channels, like email. It’s a good time to get shared media working for you leading up to the holidays. 

Nearly 70% of consumers have been inspired to make a purchase thanks to the rise of social commerce. Shoppers enjoy buying on social media because they like how products look in a brand’s posts and brands tagging products makes it easy to click and buy.

Shoppers want the ability to buy on social platforms. Consumers, especially younger demographics, are drawn to visual user-generated content on social media. Our research shows that 53% of consumers say visual UGC on social media makes them feel more confident making a purchase. 40% say UGC makes them more likely to buy a product from an ad. 

Shoppers also want fresh, new UGC posted all the time. That’s one of the many reasons you should be constantly collecting it. 

3. Increase review volume ahead of the holidays with sampling

When shoppers are looking for the perfect holiday gift, they have so many options. 

If you want to stand out, you’ll need to pack your product pages with authentic UGC, like reviews and shopper photos. It’ll inspire consumers and help them make quicker, more informed decisions. 

For Black Friday and Cyber Monday shopping, 86% of millennials feel more confident buying things when they use UGC, such as reviews, photos, and social posts, our new survey found. 71% of millennials trust shopper content more on product pages, than brand-provided content, like product descriptions and professional photos. 

Creating a review-collection strategy will help you lure these shoppers. Reviews are viewed as the most trustworthy content for helping people decide what to buy. Even just a handful of reviews can drive up conversion rates and build trust.

Increasing review volume for new products, or existing ones with few reviews, and popular holiday products—like toys, electronics, and clothing—will boost sales of these items. 

Product sampling is one of the best ways to drum up consumer reviews to use in your Black Friday marketing campaign. A sampling campaign — where product samples are provided in exchange for a review — is an effective way to increase reviews for new and well-loved products. Who doesn’t love getting freebies? And, customers will be thrilled to tell you what they think. 

When Petco rolled out a sampling program with the help of Bazaarvoice, the retailer saw a 48% increase in revenue per visit for the sampled products and a 28% conversion rate increase. They also increased review volume by a whopping 405% — and, organic search rankings and traffic surged dramatically. 

4. Display visual UGC to drive holiday purchases

Photos and videos from real consumers showing off or trying out your products resonate most with consumers. It helps them quickly decide whether an item will meet their needs — or be the perfect gift. How cozy is that sweater for your sister who’s always cold? Or, is that toy that your kid asked for so noisy that you need to buy earplugs, too? 

Almost 75% of shoppers would rather see visual UGC from real customers than professional images, according to Bazaarvoice research. More than 60% of consumers are more likely to purchase something if they can see photos and videos from others who’ve bought the same thing. 

Shoppers view visual UGC as evidence of a product’s quality and that the product description is accurate. It’s especially influential for consumers shopping for higher-value products and top holiday gifts, like jewelry and electronics, as well as beauty and apparel.

Visual UGC helps prevent shopping cart abandonment. It keeps shoppers on your website longer and makes them feel confident shopping. Our research shows that when shoppers interact with visual UGC, conversation rates grow by up to 150%. 

So, as you’re collecting reviews, encourage consumers to submit photos and videos of how they’re using your products. Another option: cull visual content that customers post on social media. 

Travel brand Samsonite wanted to showcase its suitcases and other travel merchandise in an authentic way and heighten product discovery, so it leveraged Bazaarvoice Galleries. The tool helped the brand tap into the busy summer travel season to grow its trove of visual UGC from influencers and real customers on social media, ahead of the holidays. 

Using Bazaarvoice Galleries to showcase these visuals, Samsonite discovered that customers spent 5x more time on product pages and experienced a 245% jump in conversion rates

5. Respond to customer questions and feedback 

Holiday shopping usually happens under a time crunch. Consumers need quick answers to their questions so they make purchases and have their gifts ready to give on the big holiday. 

A key part of your Black Friday marketing strategy should be responding to any customer questions or feedback (positive and negative) if you aren’t already. Your responsiveness will keep your relationship with existing consumers going strong and convert new shoppers into loyal customers. 

Consumers appreciate authentic interactions with brands. They feel most connected to you when they believe you understand their needs and are striving to meet them — 57% are willing to spend more with a brand when they feel such a connection.

For example, clothing brand MeUndies responds to customer questions on their product pages as well as reviews.

This helped consumers easily learn about MeUndies products and get in touch with customer service, which increased conversions and reduced customer service calls

6. Feature UGC across all channels 

UGC, including ratings and reviews, shouldn’t just be featured on product pages. It should be incorporated throughout your Black Friday marketing mix — display it across ad campaigns, social media, online search platforms, and in-store marketing, and basically everywhere your shoppers are. 

Instead of relying on professional photos, lifestyle brand Oliver Bonas empowers shoppers with shoppable visual and social UGC — which they feature on their homepage, product pages, social media, and in their marketing. This strategy has resulted in a 176% increase in time on site, a 188% jump in conversions, and a 26% boost in average order value.

Distributing and displaying UGC on each and every channel will help you stand out with holiday shoppers. Your shoppers are seeking it out! 

Most shoppers view UGC as more authentic and influential than traditional advertising, and UGC offers a higher conversion rate than other marketing content, as Oliver Bonas demonstrated. One reason is that it’s closely linked to social proof, the concept of making decisions based on the decisions of others. UGC is also more likely to turn one-time purchasers into loyal shoppers.

7. Use paid search and display ads for more exposure 

Brands typically invest more in marketing for Black Friday and Cyber Monday than other times of the year, and for good reason. But, shoppers can get overwhelmed with constant messages from retailers and brands.

That’s why fresh reviews and visual UGC are so important. It’ll boost your search ranking and guide customers to your products.  

To amplify your products and brand, invest in paid search and display advertising (that features UGC) ahead of the big shopping days. This tactic lets you market directly to consumers who have been searching for your products and deals, making it more likely that they’ll actually purchase. 

With customers typically spending more on Black Friday and Cyber Monday, the increased advertising spend will likely pay off.  

To get ideas for your Black Friday marketing campaigns, examine shopping data from past holiday seasons and the current year so far for intel on how consumers are discovering products and what they’re buying. This will guide where and when to run ads to boost traffic. 

Launch your holiday shopping campaigns early. Remember, that consumers are already browsing for holiday merchandise in July, and by October, they’re already buying. 

8. Personalize experiences with email marketing

Directly messaging consumers with holiday-themed sales and promotions lets you connect with them one-on-one, which is a big deal. This tactic can bring an ROI of over 100%. Personalized messaging aids both customer retention and acquisition because you can reach shoppers at different points in their shopping journey. 

To make your Black Friday marketing campaigns successful, use email marketing to tease holiday sales and encourage consumers to sign up for your newsletter to get a sneak peek or special pre-sale deals, like free shipping, 20% off, or a free gift. Then, send them relevant content based on their shopping preferences, purchase history, and other factors. 

Send follow-up emails counting down to BFCM weekend and a message on the day of. Featuring UGC in your email campaigns to heighten authenticity and build a connection with shoppers. 

Once someone purchases something, send a  review request email asking them to leave a review for what they bought. These emails can increase review content by up to 9x and increase review volume by 50%, according to our research. 

9. Have an omnichannel Black Friday strategy

On BFCM, some shoppers line up outside their favorite stores before dawn. Others wake up in the wee hours to log onto their favorite e-commerce sites. This hybrid approach to holiday shopping is still a go-to for many. 

Increasingly, though, social media shopping is becoming the preferred mode for shopping and discovering products and deals. Our survey found that 25% prefer to shop on social media on Black Friday and Cyber Monday. 

black friday marketing

We also found that 45% are more likely to discover products through social media. Almost half (49%) follow their favorite brands on social media to discover Black Friday deals. Still, 81% plan to shop in stores on Black Friday and Cyber Monday this year, and 72% will shop online, our survey showed.

These data show just how much shoppers want an omnichannel experience. So, look for ways to blend innovative in-store offerings with online and social shopping. 

To lure people into your brick-and-mortar store, offer exceptional customer experiences to keep them there longer, possibly buying more. Think about ways to engage consumers with holiday-themed pop-ups or limited-edition activities or merchandise.  

In-store shoppers may enjoy touching and feeling products before they buy. But, UGC is just as important for enticing them to head to the checkout line. We’ve found that 85% of consumers look at product reviews on their phones while shopping in stores. 

Of course, we’ve already discussed the valuable role that UGC plays in encouraging online shoppers to complete their purchases. 

Be sure to make your social media content shoppable. 70% of shoppers discover products on Facebook and Instagram, and 54% are more likely to buy something from a social platform if they can click the post and get product info there and then according to separate Bazaarvoice research

10. E-commerce sites have to keep up with shopper demand

Holiday shopping can be hectic. Online shoppers flocking to brand and retailer websites expect to find what they’re looking for and check out with ease. With the massive increase in traffic on BFCM weekend, you must keep up with the demand and provide top-notch experiences.

Slow websites and complicated checkout processes turn off shoppers, and they may not return. 

Over 50% of shoppers say slow retail sites frustrate them, and 90% have left a slow-loading website, according to Retail Systems Research. When a website is too sluggish, 57% of consumers start shopping with another similar retailer, and 41% turn to Amazon. Another 21% never return to the retailer with a slow site. 

Your website should also be optimized so shoppers can find it via search engines, too. Most shoppers begin their shopping journey on Google and other search engines. At that point, consumers haven’t yet settled on a brand or retailer website to shop from, so it’s an opportunity to get in front of shoppers and encourage them to visit your e-commerce site. 

11. Optimize your site for mobile 

People spend nearly five hours a day on their phones. That’s 35 hours a week!  

A lot of that time includes browsing e-commerce sites and scrolling through social media. So, mobile shopping is a highly valuable opportunity for retailers and brands. 

During Cyber Week 2022, 51% of sales were on mobile, 5% more than the year before, according to Adobe. Christmas Day broke a mobile shopping record, making up 61% of online sales. 

Along with actually browsing and buying on their phones, shoppers check their phones while shopping in-store to compare prices and read reviews. With mobile being such an important shopping tool, it’s more important than ever to streamline your mobile shopping experiences. 

Slow-to-load mobile sites are frustrating for consumers and costly for brands. When page load times increase from one second to 10 seconds, bounce rates among mobile visitors increase by 123%.

Over a third of shoppers will purchase from a retailer’s mobile site once they start shopping on their phones because the process is easy.

12. Start a customer loyalty program

BFCM is a great time to invest in lead generation. Everyone’s in the holiday spirit, feeling generous, and excited about giving and getting gifts. Set up a pop-up on your website encouraging consumers to sign up for your emails in exchange for a special holiday discount. Maybe even free shipping or a gift. 

Growing your email list will enable you to segment customers based on shopping habits and favorite products so you can engage with them on a deeper level all year long.  

The holiday shopping season (or the lead-up to it) is a great time to increase loyalty program sign-ups, too. Incentivize signing up by offering early access to new products, free upgraded shipping, and special discounts. 

People love earning rewards — 80% of shoppers have spent more money with a brand to unlock a reward. Loyalty programs create lifelong customers and generate referrals, as shoppers will tell their friends and family to try out your products and join your loyalty program. 

black friday marketing
The customer loyalty program cycle. Image source

Retaining loyal shoppers costs much less than acquiring new ones, after all. Another plus: Loyalty programs give you access to a wealth of customer data, helping you get to know customers and offer experiences that are relevant and personalized. You can also use the programs to collect customer reviews and UGC and use the feedback to improve products and customer experiences. 

13. Stand up for your cause(s)

It’s the season of giving. While shoppers are engaging with you on BFCM weekend, let them know about your mission, the causes and charities that you support, and your plans for Giving Tuesday. Consumers are increasingly expecting brands to support causes they care about and express their same values so make sure to live your brand promise.

72% of consumers want brands to contribute to society in a positive way, and 64% want brands to use their power to help people, according to Sprout Social. Shoppers connect on a deeper level with the brands they trust. 

About half of Gen Z and millennial consumers are willing to spend more and support retailers and brands that give back to the community and donate to charity, according to an Edelman survey.

To show shoppers that causes are important to your mission, create campaigns to donate a certain percentage of sales to a charity, offer buy-one-give-one promotions, and provide discounts to essential workers. These mission-driven marketing tactics will help you stand out while building a loyal following. 

14. Leverage the busy shopping season to collect UGC

Shoppers may really ramp up their holiday shopping on BFCM weekend, but there’s plenty of procrastinators out there shopping right up until Christmas Day.

Take advantage of the increased sales during these few weeks to increase the number of reviews and UGC on your product pages. Reviews don’t just validate purchases, they drive product discovery, too. Shoppers want to see UGC. It provides them with relevant, authentic information from their peers, and it’s just fun content to engage with!

One tried-and-tested method is a customer satisfaction survey. Not only will it bring in reviews to showcase across your social channels and website, but it will also provide insights into how you can improve for next year’s Black Friday campaign. After all, leveraging customer feedback is the best way to improve products and customer experiences.

This will also ensure you have fresh review content coming in, which is beneficial no matter the season. Nearly all shoppers look at how recently a review was written to inform their purchasing decisions, our research shows.

To keep reviews fresh and relevant, switch on Bazaarvoice ReviewSource and activate the Influenster community. Shoppers are already writing about your products — you just need to harness it. We see over a million new reviews each month, in fact. They’re just sitting there, waiting for you to utilize them. 

15. Get festive in your marketing! 

It’s the merriest season, after all! Show how you’re getting into the holiday spirit by getting festive in your Black Friday marketing campaigns. It’ll grab shoppers’ attention and entice them to shop with you during the entire holiday season.

Boost the festive mood that shoppers are already in — or help the grinches out there get in the holiday spirit. Many people shop over Thanksgiving weekend to get into the holiday spirit or because it’s a family tradition. Shoppers enjoy a festive ambiance and holiday-themed activities, like visiting Santa. 

Look for ways to tap into holiday nostalgia and shoppers’ festive feelings both online and in-store. Decorate with tinsel and twinkle lights in-store and offer holiday- and brand-themed Instagrammable backdrops. Curate gift guides, set up holiday-themed playlists, or create opportunities for shoppers to donate to charity when they check out.

Make this year’s Black Friday marketing campaign your merriest one yet

The holiday shopping season is the busiest time of the year. It can be daunting, we know. But, we can help you make it a success. 

Start your Black Friday marketing strategy early — product pages should be in tip-top shape by October. Embrace social media — collect and display UGC there to heighten product discovery and make posts shoppable for easy purchasing. Inspire confidence by incorporating UGC everywhere you can — on product pages, social media, ads, and in-store. 

Want to know more ways to have the happiest of holidays for your brand? Check out our dedicated holiday headquarters page on ways to supercharge your holiday campaigns.

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Social commerce: A guide for brands and retailers https://www.bazaarvoice.com/blog/social-commerce-a-shopping-renaissance/ https://www.bazaarvoice.com/blog/social-commerce-a-shopping-renaissance/#respond Fri, 08 Sep 2023 09:54:00 +0000 https://www.bazaarvoice.com/?p=17432 The social commerce renaissance continues. Global daily time spent on social networking continues to tick up: the endless scrolling, constantly hitting refresh, living vicariously through all of our friends as we wonder how they can afford to travel so much, etc. 

One nice side effect to this, though — aside from the constant influx of quality memes — is the sustained rise of social commerce. You saw your friend wearing that dress in Italy and now you want to wear that same dress so you can pretend you’re in Italy instead of just at brunch. 

Given that social commerce sales in the U.S. alone are expected to reach $145 billion by 2028, it’s time to start your social commerce strategy or risk being left behind in the middle ages of brand strategy.

Using the latest research and our unique insights, we’ve put together everything you need to know about the state of social commerce today.

Chapters:

  1. What is social commerce
  2. Why social commerce works
  3. How to leverage social commerce
  4. Social commerce brand examples
  5. Getting started with social commerce


A lot of things in life get planned around shopping: weekends, vacations, back-to-school prep, and holidays, to name a few. We wander around shopping districts, malls, and neighborhood markets to window shop and find our next favorite thing. 

While shopping can be a chore, it can also be an adventure — one that has a strong social component. We ask salespeople and our shopping companions for their opinions on a daring pair of sunglasses, the right shade of paint for the living room, or a gift for someone who’s difficult to shop for. Those aren’t the only places we discover products anymore, however. 

70% of shoppers discover products on Facebook and Instagram

According to our research

“Pandemic-inspired shopping behaviors are sticking around”, according to our Shopper Experience Index. In response, brands continue to turn to social commerce to bring the fun of shopping onto digital platforms. Scrolling is the new window shopping, and it gives brands a new place to experiment to surprise and delight their customers. 

For the right strategy, you need to tap into the best available data. Bazaarvoice is fortunate to have a mix of behavioral data, research, and consumer insights sourced from the more than 7.5 million-strong community of shoppers on the Influenster App. What do they have to say about the state of things? 

Of those surveyed most recently, “50% agree or strongly agree that social media plays an active role in influencing the products that they choose to buy (only 24% disagree!)”, and “one in two shoppers have bought via social media in the past year”.

social commerce

As social commerce increases, brands are experimenting with new ways to present content across social and expanding to new channels. Certain categories of shopping continue to shift from in-store to online.

But before we delve any deeper, what actually is social commerce? 

What is social commerce?

Social commerce is the buying and selling of products and services through shoppable content on social media and everywhere social media reaches.

With social commerce, users can shop directly through images and videos that showcase products without ever leaving the source. Let’s say you’re scrolling through Instagram, and you see an ad in which a model or influencer is wearing a new dress and accessories. You can tap on any of the displayed items for sale and be sent directly to the checkout page without ever leaving the app. The experience looks like this:

social commerce

But social commerce doesn’t just influencers shoppers in-app. Or even on social media at all. Social commerce now influencers shoppers everywhere it’s displayed, at any touchpoint on the buying journey — on product pages, in emails, and even in-store.

The goal of social commerce is for brands to reach new audiences and let them make purchases with minimal friction. This, in turn, increases add-to-cart rate, sales, and engagement on social platforms and wherever social content lives.

Eight out of 10 respondents to our Shopper Experience Index have increased their time on social over the last year — and that has affected their shopping habits. “Three in four say their shopping behavior has been very influenced by social media”. 

Discovery is still the main drive: “65% use it for inspiration, 61% shop when they stumble across something mid-feed, and 60% shop directly from recommendations or links from influencers”. 

Why social commerce works 

Two words: social proof. Social proof is the concept of using the decisions our peers have already made to make our own decisions. 

For example, if you’re walking downtown in a city and see a busy restaurant, you’re likely to believe they serve great food. It wouldn’t be full otherwise, right? Or maybe you’re mindlessly scrolling through Instagram, and you see someone wearing a nice shirt. They look great. You decide you want to look great in this shirt, too. You buy it.

And there’s the primary benefit of social commerce: it exposes brands to new customers and customers to new brands in a casual, engaging setting (that digital window shopping). Shoppers can explore products without even intending to shop in the first place.

Social commerce reaches consumers on the platforms they already use instead of waiting for consumers to seek them out, enhancing the customer experience. It’s particularly effective on Instagram because, “you don’t begin your journey with a search, you begin with a scroll,” says Curalate co-founder Apu Gupta.

This is the kind of online shopping experience consumers crave — one out of two shoppers are buying on social networks regularly, and it doesn’t show any signs of slowing down. Statista estimates that 2023 sales via social media platforms globally will add up to nearly $1.3 billion. 

Extending the reach of social commerce

While social commerce starts on social media platforms, it doesn’t have to end there. Brands can take the concept a step further by syndicating shoppable social media posts to other channels, including product pages, blogs, and email newsletters. This offers more opportunities for customers to discover the engaging content that’s shared and created within brands’ social communities. Bringing social content to e-commerce has resulted in:

The key is making everything as frictionless as possible. 54% of shoppers say they’d be more likely to buy a product on social media if they could click the post and get product info directly there. 

Bazaarvoice’s social commerce tools are what make it possible for brands to distribute their shoppable social content on other sales channels, lowering friction across the brand experience. These tools can convert any image or video into one or multiple product pages. 

With this function, shoppers can hover over any of the products featured in a social post to learn more about them and click through to purchase. Brands can then use this media to post on various different channels.

Case study: River Island

International apparel brand River Island used the Bazaarvoice Galleries tool to share user-generated content (UGC) from social channels on its website, resulting in a 184% conversion lift and a 45% average order value increase. 

River Island was able to accumulate a ton of quality UGC by encouraging its customers to post their purchases using branded hashtags and tagging River Island on social media. Then, it turned that UGC into shoppable images to display on its website, including its homepage, product pages, and a full-page gallery.

River Island then took its social commerce campaign a step further, integrating a wish list feature that enabled shoppers to save items without interrupting their browsing.

How to leverage social commerce

Boost your own brand’s social commerce strategy with these tactics to simultaneously attract customers and drive social conversions.

Make social shoppable

The first step in social commerce is to convert social content that features your brand’s products into shoppable images and videos. The top social commerce platforms are Instagram, Facebook, Pinterest, and TikTok. The newest platform in the space, TikTok, “will gain 9.6 million social buyers in 2023, more than the net increase of Facebook, Instagram, and Pinterest combined”, per eMarketer’s recent report

Here’s a quick overview of how social shopping works on each platform. 

  • Facebook: Facebook Shops uses the same process as Instagram to set up an online storefront — by uploading products individually or importing an entire catalog of multiple items. Facebook Shops encourages shoppers to interact with sellers if they have questions using Facebook Messenger, WhatsApp, or Instagram Direct. This makes it even more like an in-person shopping experience
  • Instagram: Instagram Shopping allows brands to upload their product catalogs to link with Instagram photos and videos featuring catalog items. They can then be grouped in collections using the Instagram Commerce Manager. Followers can tap on images to purchase within the app. (The Instagram Shop tab was removed as of February 2023) 
  • TikTok: TikTok Shop launched in the fall of 2022 and allows merchants and creators to showcase and sell their products to the community within the app via live shopping, shoppable videos, or a product showcase 
  • Pinterest: Similar to Instagram, Pinterest Shopping allows brands to upload their product catalogs and then converts each item into shoppable Pins. Brands on Pinterest can also enable a Shop tab on their profile, consolidating all of their shoppable images and video Pins 

According to Pinterest, shoppers are willing to spend “80% more per month” on their platform compared to other social commerce platforms.

And while these four might be the top platforms shoppers turn to, they aren’t the only ones! Snapchat and YouTube both have their own place in the realm of social shopping.

Snapchat partnered with IPG MAGNA to conduct their own research on The Future of Social Commerce, surveying around 8,000 consumers across four different markets (the UK, Germany, the US, and Saudi Arabia). Their findings bolster other social commerce research – social media is key for product discovery, shoppers turn to their networks to aid in discovery, and social makes shopping easier and more convenient. 

What Snapchat adds to the discussion is the potential around augmented reality (AR) in shopping. According to their research, “2 out of 3 consumers said they would be even less likely to shop in-store if they got to virtually experience the product before purchasing it.” Regular Snapchatters were especially enthusiastic about this option. 

  • Snapchat: This year Snapchat launched AR Enterprise Services (ARES) to help brands take advantage of AR and AI shopping options. This is in addition to their Shopping Suite, which allows consumers to virtually try-on products in real time and offers tools like a Fit Finder 
  • YouTube: YouTube refocused its efforts on creators this year, discontinuing its beta program for creators to earn money by tagging products from third-party brands in videos with shoppable links, instead rolling out its affiliate program to all creators 

The focus on creator-curated products is significant, since eMarketer’s Insider Intelligence reported that, “a quarter of US consumers start their search on YouTube when shopping online, more than on Instagram or TikTok, per Jungle Scout.” 

Engage with shoppers

The point of social commerce is to facilitate a shopping experience in a space where people are already connecting and interacting. It’s not enough just to upload your product catalog and post shoppable content. You should work to enhance the digital shopping experience by engaging your current and potential audience in fun, dynamic ways. 

Social media users love new app features and the brands that know how to use them in interesting ways. Brands can easily engage with fans by playing with Instagram Polls, Reels, Stories, and Questions in their content strategy to captivate and entice followers. These are fun ways to get followers to interact with content while simultaneously getting feedback about products. Livestream shopping is another exciting new addition to social commerce platforms, including Instagram, Facebook, Pinterest, and TikTok.

With Bazaarvoice’s Like2Buy feature, brands can contact shoppers who clicked the “link in bio” button but didn’t convert. This way, you can engage them after they’ve browsed your Instagram Shop with a thoughtful retargeting strategy. With this tool, brands can go a step further and create a lookalike audience based on their most engaged followers. That’s a surefire way to grow your customer base!

Focus on social content, not just platforms

Social commerce isn’t just limited to social media, contrary to its most common definition. Sales from social media only account for 4.4% of all e-commerce sales in the U.S., but its influence reaches beyond the confines of our feeds.

Brands can and should use the content created within their social media networks on their other sales channels, like e-commerce websites, emails, blog posts, and third-party retail sites. Tools like Bazaarvoice Galleries feed social content in beautiful displays on home pages, product pages, dedicated gallery pages, or anywhere else on a brand’s website.

By bringing photos and videos from social to website visitors and email subscribers, brands can share the social commerce experience with a wider audience and reduce friction across the brand experience. As a bonus, this repurposed content lets your team work smarter — saving the time and resources required to create fresh content for multiple channels. 

Let users create your content

What’s the secret to social commerce success? User-generated content, or UGC. Leverage UGC to attract shoppers with realistic, inspiring representations of your brand and products. While social commerce doesn’t always have to include UGC, it’s a powerful approach.

UGC is what makes social commerce more social, interactive, and authentic than traditional advertising. It also lends the authority of social proof: your real-life customers become the face of the brand and provide free marketing material out of genuine enthusiasm for your products. 

UGC creates organic engagement when the user tags a brand, uses a branded hashtag, posts comments, engages with a poll, etc. Then the brand can reciprocate with a repost, which it can use to sell products and syndicate on its website.

You don’t have to wait around for customers to post glowing content about your brand on Instagram either — you can proactively work with social media influencers. According to our recent Influenster survey, 60% of respondents said they shop from influencer recommendations. How often? 

  • 69% sometimes 
  • 18% all the time
  • Only 13% rarely 

And if you’re wondering what kind of influencers those surveyed say they shop from, the breakdown is pretty fascinating: 

  • 35% from people they consider “subject-matter experts”
  • 25% from family and friends’ recommendations 
  • 23% from social media stars
  • 13% from none of them
  • And only 5% from celebrities 

There’s a reason more and more brands are leveraging influencer marketing and even increasing their budgets for it. Influencer Marketing Hub found that 67% of those respondents that budget for influencer marketing intend to increase their influencer marketing budget over 2023 in its benchmark report

Tapping into the reach of the right influencer or influencers and their highly engaged communities can bring a good return on investment, especially compared to what it might cost to reach the same audience via traditional advertising on the same platform. 

Pro tip: Calculate the impact UGC can have on your ROI right here.

Which platforms should your brand concentrate on? Based on Influencer Marketing Hub’s 2023 Benchmark Report, TikTok is now the most popular platform for influencer marketing (56%), with Instagram right on its heels (51%) and Facebook (42%) and YouTube (38%) following. 

Find success with sampling

While influencers are more often paid directly now than through product samples, around a third of brands still do the latter. This works in favor of brands since the smaller influencers require less compensation but have higher engagement rates. 

Sampling programs streamlines the process of getting brand products into the hands of eager influencers. They then return the favor by producing valuable content.

Beyond visual media, reviews are another powerful form of UGC to implement in social commerce strategies. The likelihood of a shopper purchasing a product with five reviews increases by 270% than one without any reviews. Post reviews alongside social commerce content to boost your impact even further on your social media, emails, or website or by tagging or linking the corresponding products so followers can purchase instantly.

Boost social commerce marketing with ads

Promoting UGC with some advertising dollars can catapult your social commerce efforts. Paid ads that incorporate UGC get high conversions, and based on Instagram and Facebook’s algorithm, ads with high engagement like UGC get more exposure. Parachute, a bedding e-commerce company, increased its click-through rate by 35% and lowered its cost-per-click rate by 60% with UGC advertising.

Instagram lets you turn any post into an ad and choose your target audience by promoting it. The more advanced Ads Manager enables you to create ads across platforms and apps, including Facebook, Instagram, and Messenger, for mobile or desktop. 

Pinterest has robust advertising capabilities, so you can promote image, product, and video Pins with direct links to checkout pages. TikTok offers a variety of advertising options, starting with the more standard in-feed ads and video shopping ads common on other platforms. TikTok also offers more tailored options, like the Creator Marketplace, which can match brands with the right creator to collaborate with, or the Creative Exchange, which provides end-to-end professional creative support. 

You can handily monitor your return on investment, too, since each ad platform also includes analytics for thorough performance tracking.

Use customer behavior insights

Conducting regular reporting using customer insights gives companies and brands a competitive advantage. Be sure you’re routinely analyzing engagement metrics, feedback, and reviews from shoppers to optimize the social commerce experience you’re providing. 

For those wanting to go even further, Social Analytics allows brands to to understand what their shoppers find most engaging, from visual themes to specific content types.

Discovering what consumers are saying and how they feel about products can inform and improve product descriptions and messaging for social commerce content. Digging into the popularity of products based on views, conversions, and reviews can determine which products to focus on for your social commerce strategy.

From a top-level standpoint, these insights can also help brands tweak the products themselves and develop new ones.

Social commerce brand examples

See it in action: these social commerce brand examples show how to combine UGC with social commerce to make shoppable posts that drive conversions.

MAM

During the pandemic, MAM UK found themselves with the same challenge facing many brands: creating an integrated shopping experience for their customers that brought everything brick-and-mortar online. Then as the pandemic wore on, translating back to a more intertwined dual experience. Today, many customers do their research online before buying offline (ROBO) giving UGC increased power in the shopping experience.  

Source: MAM case study

MAM implemented Bazaarvoice Social Commerce with Galleries and Like2Buy — and that social proof ultimately doubled their traffic and conversion rates. In hard numbers, that turned out to be a 108% increase in conversion rate and a 58% increase in average order value. Using Like2Buy alone drove site visits up by 157% and generated an extra £96k in yearly revenue.

All of this proved the power of UGC in the social shopping experience for these premium baby products. 

Villeroy & Boch

A lot of lifestyle brands share the challenge of wanting to show off how their products will actually look inside of consumer homes and how they will realistically be used. UGC is an impactful, authentic way to do this that audiences connect with more than polished campaigns. 

Source: Villeroy & Boch case study

With an abundance of UGC shared by consumers across social that they were already capturing, Villeroy & Boch moved to integrate it into their online store. Bazaarvoice Galleries allowed them to highlight this content across newsletters and hompages in a way that showcased how consumers were using and styling their ceramic goods. 

This ultimately led to a 275% increase in conversion rate among users who engaged with UGC!

Rael 

Personal-care and beauty brand Rael galvanized its target audience to spread UGC far and wide across social media with sample products from a new skincare line. It sent product samples to Bazaarvoice’s Influenster community to generate reviews and social content to support new product launches. The campaign resulted in 3,000 customer reviews and 9.8 million impressions from thousands of social posts, shares, likes, and comments.

The responses from the sample recipients also gave Rael instrumental insight into its marketing strategy. It identified a product it previously underestimated, which generated lots of positive reviews, and on that basis, it made it a focus of its future marketing.

Rael is now also equipped with a bank of UGC from a sampling campaign to repurpose across its marketing channels.

DSW 

One challenge major shoe retailer DSW faces is showing how its products look in the real world when customers can’t physically try them on — a common problem in e-commerce. The solution is where UGC comes in.

To procure a large volume of quality UGC, DSW launched a hashtag campaign prompting its audience to tag how they wear their DSW fashions with #MyDSW. Showcasing this content on its website and social media resulted in a 2x conversion lift.

Getting started with social commerce

What traditional e-commerce lacks in the shopping experience, social commerce makes up for in spades. Shoppers are the stars of social commerce marketing and inspire other real people to make enthusiastic, confident purchases.

Here’s our best advice for getting started with social commerce:  

  • Turn social media channels into virtual storefronts. Upload product catalogs to Instagram, Facebook, Pinterest — and have some fun experimenting with how you present your products on TikTok! 
  • Leverage UGC to get the most mileage from social commerce content. Create shoppable media using content from followers and influencers
  • Social commerce extends beyond social media. Spread shoppable social content to as many marketing channels as possible, including your website pages and email campaigns
  • Listen to how consumers are responding to social commerce. Insights from social interactions and reviews can help you develop strategies and products
  • Put the social in social commerce. Use shoppable social media content to engage with followers by reposting their content, encouraging questions and comments, using interactive app features, and retargeting potential customers 
  • Don’t forget TikTok. If your brand isn’t already on TikTok, now’s the time! It’s quickly grown to be the most popular channel for influencer marketing and is outpacing its predecessors for social commerce, too

Before all of that though, the first step is finding the right social commerce provider to work with. You don’t have to go it alone. The right provider will save you time, stress, and money. Below are some example questions to help you vet providers:

These are just a select view of the questions we recommend asking but you can find more here. Or if you’ve already started with social commerce and want to streamline your efforts, Bazaarvoice’s social publishing tools make social commerce easy. Brands and retailers can schedule and track content all in one place for efficient, streamlined execution that gives you everything you need to win on social.

Get started ]]>
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