In the digital age, influencer marketing is having a significant impact on e-commerce. Their extensive online following helps brands garner visibility and customer engagement. Businesses are recognizing this and are increasingly leveraging the power of influencers and social media for better sales conversions.
Studies involving 13,000 retailers from various countries revealed that 73% find social media engagement critical for maintaining customer relationships. It was also found that 67% increased their investment in social media advertising this year, signaling a strategic marketing shift. They are not only using these platforms for outreach activities but also for garnering customer feedback and understanding consumer behavior.
Social media engagement is considered a primary strategy for customer loyalty by 73% of American merchants according to the same study. Tactics like exclusive offers, promotions, personalized email promotions, and customer loyalty schemes play a crucial role.
Boosting e-commerce sales with influencer marketing
Notably, having an active social media presence provides businesses an opportunity to foster customer engagement, and 39% of retailers are utilizing social media platforms to provide customer service.
Social media platforms, particularly those that work with influencers such as YouTube, TikTok, and Instagram, are crucial for acquiring new customers. Over 52% of US merchants acknowledged organic social media content as their most successful source of new customers in the past year. Though traditional marketing channels like email and search engine marketing still retain relevance, their impact has diminished when compared to social media marketing.
Platforms like YouTube, TikTok, and Instagram are now pivotal to the e-commerce industry. Their partnerships with eligible US Plus and advanced merchants have greatly improved the customer shopping experience and allowed businesses to tap into innovative marketing strategies. Integrating these platforms into their business model has redefined their marketing outreach and customer engagement.
Going forward, 41% of US merchants foresee influencer marketing as the most dominant marketing trend next year, followed by using customer data for targeted and personalized marketing messages. Other trends encompass AI, automation, and specially curated experiential events.
Finally, Antonia Wade, PwC’s global Chief Marketing Officer, highlights the importance of understanding the needs and wants of customers when formulating marketing strategies. Wade asserts that in the digital age, the key to successful marketing is understanding and capitalizing on customer perspectives, leveraging the power of digital platforms and influencers.
