Making the most of the CPG omnichannel world: Part 3 – CPG strategies for social commerce

Omnichannel touch points: Let’s get social

As we’ve discussed in our previous installments of Making the most of the CPG omnichannel world, it is important for CPG brands to stay ahead of the curve and remain connected to their consumers. Social media platforms are consistently changing to meet user needs, and new platforms are emerging, creating new opportunities for CPG brands to interact with consumers. To capitalize on these emerging opportunities and the evolving social commerce channel, CPG brands can invest in social commerce capabilities.

Figure 1. Setting the foundation for omnichannel

Omnichannel touch points: Social commerce strategies

The average time a person spends on social media per day is 147 minutes, providing ample opportunity for brands to interact with their consumers.¹ CPG brands can take a strategic approach when incorporating social commerce into their omnichannel strategy by doing the following:

1. Identify the social commerce platform that aligns with strategic goals: CPG brands can benefit from the commerce functionalities of social media platforms, including direct buying. CPG brands can best leverage social commerce by selecting a platform that combines the e-commerce capabilities needed with the CPG brand’s target demographic. Social commerce platform selection is best done when it has a positive relationship with the CPG brand and the CPG brand’s target consumers.
2. Leverage emerging social commerce platforms: Although there are already well-established social media platforms, newer social platforms allow brands to think outside the box and engage with consumers in fresh ways—such as sharing behind-the-scenes videos for a limited time, providing a tour of the company’s office, or offering sneak peeks of new products. As CPG brands look to increase their social commerce footprint, nontraditional channels can be continuously explored to understand potential viability as an influencer channel.
3. Enable social accounts to be shoppable: Social commerce is rapidly growing and projected to be valued around $80 billion by 2025, much of it driven by the seamless integration with shoppers’ daily social media.² Opportunities and strategies for CPG optimization include:
   • Shortening time to purchase: CPG brands can increase conversion by minimizing and streamlining the purchasing process, with one click to view products (whether users find the product via the brand’s page or it comes up as an ad) and one click to purchase.
   • Using trustworthy sources: Consumers are more likely to buy through sources they are familiar with and trust. By creating shoppable accounts on platforms trusted by consumers, companies create more opportunities for sales. That, combined with social media’s likes and comments features, builds security for the user.³
   • Leveraging digital selling: CPG brands can take advantage of social media features such as livestreams. Livestream shopping gives brands the opportunity to engage with their specific communities to give a more meaningful demonstration of their products. Other new technologies, such as augmented reality and virtual reality, help bridge digital shopping with an “in-person” experience.⁴
4. Strategically organize your teams: To fully unlock opportunities in social commerce, there should be a focus on rallying the organization around digital channels. A centralized digital team structure may be beneficial to quickly build up social commerce capabilities within the organization. A decentralized team can help infuse social media capabilities and resources within current teams and create strong connections across channels such as retailer.com or DTC.

Omnichannel touch points: What comes next?

As social commerce becomes a more regular touch point in the consumer journey, CPG brands can prepare to meet consumer needs in the channels that already occupy so much of their time. To successfully leverage social commerce, this channel will require a strategic approach and foundational capabilities, including digital commerce expertise, technology platforms, and visibility to consumer data.

If you are interested in further discussing the opportunities in omnichannel for CPG brands, please reach out to Katie Dye and Katelyn Kinker and check out our first and second installments of Making the most of the CPG omnichannel world.

Endnotes

¹ Statista, “Daily time spent on social networking by internet users worldwide from 2012 to 2022,” January 2023.
² Sara Lebow, “US retail social commerce will reach nearly $80 billion by 2025,” Insider Intelligence, August 17, 2021.
³ Vered Levy-Ron, “Why forward-thinking brands are pursuing ‘inverse’ social commerce,” Venture Beat, May 23, 2022.
⁴ Rory Cutaia, “Virtual shopping: Lessons from the pandemic and how brands can use them moving forward,” Forbes, July 28, 2022.