What’s trending?
The products that consumers are purchasing online may not be what they set out to buy. It’s called discovery commerce and it’s similar to impulse buying in the world of traditional commerce, where consumers go shopping and stumble upon something they weren’t looking for but now desire. Online, retailers are proactive: they anticipate the buyers’ needs by recommending a product, rather than waiting for them to search for it. So increasingly, consumers are discovering products on their Instagram or Facebook feeds for example that they can purchase in a few easy steps. The products that appear are the result of a deliberate strategy on the part of the retailer and sophisticated digital tools. “Discovery commerce gives companies a chance to make a true connection with consumers. The brands that are differentiating themselves in this space are creating content that feels authentic to individual consumers,” says Janelle Estes, chief insights officer of UserTesting.
Why is it important?
A survey conducted by Bankrate found that 49% of all U.S. adults have made an impulse buy because of a post they saw on social media. E-commerce has been booming since the pandemic and discovery commerce is a retail strategy that is gaining momentum. For consumers, it gives them the opportunity to come across products that they wouldn’t otherwise have found. For brands, it’s an opportunity to target audiences they wouldn’t otherwise have been able to reach and to increase sales. Aside from increased sales for the retailer, this process brings an element of novelty and enjoyment to consumers.
What can businesses do about it?
You can incorporate discovery commerce into your e-commerce strategy by displaying your products on the appropriate social networks. For example, export your product catalogues to Facebook, Instagram or Pinterest and then create your own personalised ads. Understanding the people that typically impulse buy through market research and data analytics can help narrow down the most suitable social platform on which to focus your efforts. Prose, a Brooklyn-based hair care company, partnered with Meta to create video ads built for specific audiences on Facebook and Instagram. The campaign featured unique messages that would resonate with customers of differing needs and backgrounds. After only a couple of weeks, they saw their costs to acquire new customers fall by 23% while completed views of videos tripled.
By Faeeza Khan
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Image credit: Bruno Gomiero
