FEATURE


Beyond the ‘Buy Now’ button: How brands can prepare for social commerce success


By Joe Farrell, Vice President of International Operations at PFS.


In today’s increasingly digital world, consumer expectations are growing. Technological and social advances have transformed the way customers interact with brands, and customers now expect access to goods instantaneously. Whilst eCommerce has previously led the way, consumers are now turning to social media in their search for the latest products, faster than ever before. According to research by SmartInsights the average web user spends approximately two hours and fifteen minutes on social media each day – so it’s no wonder that emerging retailers are turning to these platforms to reach their audiences. In fact, research from loyalty analytics company Aimia found that nearly a third of online shoppers (31 per cent) are using these channels to browse for new items to buy. There is no doubt that social platforms are becoming the new


online marketplace – the introduction of the ‘Buy Now’ button on the likes of Instagram, Pinterest and Snapchat have meant that purchasing products is now as easy as liking a friend’s status. In fact, social commerce presents retailers with the opportunity to significantly reduce their customers’ path-to-purchase. Established brands are not the only businesses to benefit from


this growing trend. New and upcoming brands are launching their businesses solely on social media, using platforms such as Instagram as a replacement for a physical store or eCommerce website. With the average cost of getting a clothing line off the ground estimated at between £1.5 million and £2.3 million, social commerce is acting as a key enabler for new start-ups who don’t necessarily have the financial backing required for such an investment.


Scaling up


Whilst the benefits of social commerce are many, to be successful on this platform brands must look beyond the point of purchase. The real test is the journey that follows – how quickly the item is delivered, how easy it is to return, and the level of customer service along the way. For example, what happens when your new business venture takes off and it is no longer feasible to operate from the comfort of your own home? Where will you store your products? How will you get the product to the customer? Having a fulfilment process in place is essential to scaling up efficiently. The distribution, delivery and after-sales service can make a lasting impression on customers and will be the key to social commerce success. Partnering with distribution providers is often a cost-efficient


way of keeping up with the latest customer delivery expectations. Pop-up distribution centres are one trend being used by start-ups to keep up with growing consumer demand. These temporary facilities can be rapidly deployed and de-leverage fixed costs of a year-round distribution centre, meaning brands can rapidly respond to increased sales, or quickly serve a specific geography when needed.


A lasting impression Whilst speed is important, the condition of the product and the 12 www.isopps.com Joe Farrell, Vice President of International Operations at PFS.


quality of the delivery experience will leave a lasting impression. There is nothing worse than eagerly awaiting an online order, only to receive a product that has been damaged at some point during the distribution channel. According to research, 70 per cent of shoppers are unlikely


to return to a brand after a poor shipping experience. Further to this, KPMG states that it can cost a retailer double the amount for a product to be returned into the supply chain as it does to deliver it. Ensuring the quality of products upon arrival is crucial to encouraging brand loyalty. To get this right, e-tailers must continually reassess their product packaging across all eCommerce operations. New packaging initiatives such as ‘right size packaging’ are being increasingly adopted and work by reducing air and void fill through the correct sized packaging. E-tailers are therefore able to better protect products, while minimising shipping costs and waste. By significantly reducing damages to products when going through the distribution chain businesses can vastly reduce overheads, increase sustainability, and create an overall positive customer experience.


Delivering a seamless shopping experience


Whilst a positive shopping experience is vital in building a brand’s reputation, equally, a negative experience can be extremely damaging. In today’s hyper-connected world – those who receive an unsatisfactory experience will often turn to social media to air their frustrations and what began as a single negative experience, can be shared with thousands in a matter of seconds. It will be the complete end-to-end experience that will shape


a customer’s perception of a brand and be key to success in today’s social commerce revolution. From the initial tap of the ‘Buy now’ button, to delivery and beyond, those who provide the optimum customer experience can expect to see a retention of customers, a reduction of end-to-end service costs, and overall customer satisfaction.


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