Online shopping boomed during the COVID-19 outbreak. This will not change after the crisis. Research done by Facebook shows that 49% of people want to continue to buy online after the COVID-19 crisis. But consumers used to come across something surprising in a physical shop window, but online that can be more difficult. Until now, because now there is Discovery Commerce.
Discovery Commerce is an online sales method that is based on the use of machine learning and data to find new customers online. The customer is not looking for a specific product, but is open to being pleasantly surprised. It’s the equivalent of running into clothing items in town by accident. While the main effort of a typical e-commerce strategy is to efficiently meet specific consumer needs, Discovery Commerce is based on the habit of strolling through a store, roaming the shelves with no intention of buying. Until the perfect product attracts attention.
From inspiration to transaction
Social media in particular plays a major role in Discovery Commerce. The sales of products via social media will take off. Social media has always focused on inspiration and social contact. Discovery Commerce converts the inspiration into a transaction within a social shell. Where customers previously sent unclear photos from a fitting room to friends for advice. Now they can consult directly on social media and complete the transaction within the medium. Ultimately, they can share it again with your friends and followers.
Encountering products while shopping
The rise of Discovery Commerce has to do with how people make their purchasing decisions. As soon as customers are purposefully looking for a product, they tend to look for the cheapest offer. However, when customers are shopping, inspiration and the social component play an important role. Consumers do not necessarily buy something from a particular brand or manufacturer. They buy it because like-minded people are enthusiastic about it. Traditionally, marketers are used to achieving a lot of reach and being easily found online. However, now they need to start thinking about how they can create demand. This requires to be more tech-savvy, to understand how algorithms work and how they can use them in their favor.
Convenience is also an important aspect. As soon as someone places an order online, it gets delivered at home and they no longer have to go out. Especially during the last months online shopping turned out to be a great alternative. On average, 85% of internet users buy online. This shift has consequences for the traditional retailer. Social media platforms are moving closer and closer to rogue retailers’ activities. This gives brands a great opportunity to present themselves directly to the consumer, because they are less dependent on a wholesaler or retailer. At first glance, this promotes existing brands, but you also see new brands emerging at the same time. Namely influencer brands. These are influencers who create collections under their own name and promote them online.
Possibilities of algorithms
Furthermore, getting to know the possibilities of algorithms is also important. This allows an organization to continuously adapt the content that the public must find. Currently, the feedback from the algorithms can help retailers use different angles and adjust their content accordingly. Finally, it is important for organizations to value KPIs. Retailers should not get stuck in the number of clicks or the amount of traffics. They need to measure what a campaign ultimately delivers.
E-commerce offers many opportunities for many companies. Therefore, Discovery Commerce is accessible to any organization. Companies of all sizes can open a shop on Facebook where customers can pay directly. The fact that every entrepreneur immediately has a shop window online where millions of people come, offers unprecedented opportunities to have products discovered by a target group that you had not thought about yourself.