In the 21st century, with US e-commerce sales as a percent of retail sales reaching as high as 8.5%, it is vital for companies to reconsider the efficiency of traditional channel strategies. The rise of smartphones, tablets and social networks has molded the buying habits of a savvy millennial generation whose share of society’s purchasing power continues to multiply.
Integrating a word-of-mouth driven social commerce channel is an excellent complement to modern omnichannel strategies, especially for recognized brands and health & wellness companies. The WOM channel is distinct and comprises loyalty and trust factors that can’t be replicated in retail or traditional ecommerce channels.
The peer-to-peer nature of the social commerce channel enables new transactions rooted in trust, all occurring within the vast expanses of your sellers’ physical and virtual networks. In this respect, even companies at peak market penetration can find previously unknown, uncharted territory to conduct business.
“Imagine a penny-pinching college student who’d rather not call a cab to the nearby strip mall or pay a shipping fee for a purchase online, but would be willing to buy your product directly from his friend across the hall. Recording a new transaction that couldn’t have happened otherwise—there lies the power of our social commerce model.”
Traditional distribution channels target individual buyers, but Social Commerce channels target networks of your customers and of your brand ambassadors. Not only does this generate significant sales, it helps you establish closer relationships with your customers, increases revenue velocity and provides you a rich medium to collect invaluable consumer data.
Perhaps the greatest power of WOM strategy lies in its harmony with the evolving attitudes and behaviors of today’s shoppers, especially young adults whose true economic impact is still to be felt. Aligning your product with initiatives favored by the millennial generation, whether environmental, social or something else, can magnify the ability of the WOM channel to yield trust-induced transactions for your brand.