This story was delivered to BI Intelligence “E-Commerce Briefing” subscribers. To learn more and subscribe, please click here.
American luxury brand Michael Kors is relaunching #InstaKors on Instagram to create a more seamless shopping experience for its 8.2 million followers, according to Luxury Daily.
The brand will place #InstaKors within the caption of its Instagram posts when showing off products to its Instagram followers. These followers will be able to click on a hyperlink located on the company’s Instagram profile, which automatically directs them to the #InstaKors website. The #InstaKors website will mirror the Instagram feed and allow online shoppers to click and purchase products depicted in its Instagram pictures. The #InstaKors feature is currently only available to US consumers.
Michael Kors is planning on turning the #InstaKors feature into a social loyalty program. The company will use the program to offer its Instagram followers unique deals on products, as well as the opportunity to shop certain looks before they are made available in retail stores to the general public.
At the beginning of each season, the fashion brand will post an item from its new collection on Instagram using the #InstaKors function, which will let its followers shop the product weeks before it is available in a physical retail location. This will help the brand build up loyal followers as more shoppers return to Instagram to access these exclusive deals.
The rise of social media and the use of mobile devices have made social commerce a strategic opportunity for retailers. In fact, 63% of retailers have plans to make investments in areas of social media marketing and advertising in 2016, according to a survey conducted by TimeTrade. Brands are looking to capitalize on the increasing number of users on various social media platforms in order to create a seamless shopping experience in which users can easily purchase items posted on their social media pages.
Cooper Smith, senior research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on social media’s role in online retail.
The report analyzes whether social media is driving direct sales with the use of embedded “Buy” buttons on social media posts, or referring traffic to retailers’ websites and apps. It measures the impact social media has on e-commerce by looking at metrics such as conversion rates, average order value, and revenue generated by shares, likes, and tweets. It also outlines the latest commerce efforts by leading social networks.
Here are some of the key points from the report:
- Social is driving much bigger increases in retail traffic than any other online channel. Social media increased its share of e-commerce referrals nearly 200% between the first quarters of 2014 and 2015.
- For retailers to maintain these social gains, they will need to pay special attention to mobile, where social engagement with retail content is still limited. Social media users are 35% less likely to share a brand’s or retailer’s social post on mobile than they are on desktop computers.
- Facebook continues to grow its lead as the dominant social commerce platform. Facebook accounts for 50% of total social referrals and 64% of total social revenue. The site’s changing demographics could make older consumers a strong target for retailers leveraging the platform.
- Pinterest is a major social commerce player despite a relatively small user base. The pinning platform drives 16% of social revenue despite an audience 6.5 times smaller than Twitter. New buy and action buttons on retailer posts should make Pinterest an even stronger referral and revenue engine for brands.
- Twitter is losing its influence for mass-market merchants, but it could still have a role to play among sporting and events marketers, especially for location-based promotions. Recently, NFL and NBA teams have used Twitter to sell game tickets and merchandise.
- Instagram doesn’t drive significant sales activity for retailers but high-end companies have been leveraging the platform for branding purposes. New Buy buttons on paid posts, as well as increased targeting capabilities, could make the app a more important direct-response driver.
In full, the report:
- Sizes social media’s role for retailers compared to other referral sources such as search and email.
- Examines how social media’s transition to mobile is impacting the role of different social platforms.
- Looks at how the different social networks stack up in terms of conversion rates, share of social-generated retail sales, and average order value.
- Highlights up-and-coming social commerce players such as Snapchat and Instagram, and how brands are using them for influencer marketing.
- Outlines the latest major commerce moves by Facebook and Twitter, which could help drive up conversion rates from social.
To get your copy of this invaluable guide, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
- Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of social commerce.
[Source:- Business Insider]
