SimplicityDX 2022 State of Social Commerce Impact Study Reveals Staggering Disconnect Between Social Shopping and Brand E-commerce Sites
- 71% of online shoppers prefer to check out on the brand website versus social networks.
- 81% report poor website landing experiences, causing $700B in lost annual revenue.
- 98% of social shoppers report out-of-stock issues for products promoted on social.
SimplicityDX, the edge experience company, today published findings of its first quarterly 2022 State of Social Commerce impact study to provide baseline insight into solving the staggering disconnect between social shopping and brand e-commerce sites.
With the average person spending 2.5 hours on social media per day, it is not surprising that over 25% of a marketer’s budget is forecast to be spent on social media marketing in 2022. However, as the State of Social Commerce study magnifies, the landscape is riddled with customer frustrations that impact revenue performance and brand reputation, costing brands significant revenue leaks.
“Many shopping journeys now start on the edge, especially on social,” said Gerry Widmer, CEO and director of SimplicityDX. “However, social commerce is in its infancy. While every aspect of the e-commerce buying experience has been optimized over the last 30 years, social commerce represents both the biggest problem and the biggest opportunity in revenue and customer satisfaction for e-commerce brands today.”
2022 State of Social Commerce Impact Study
The first quarterly 2022 State of Social Commerce impact study of 500-plus U.S. online shoppers by SimplicityDX reveals the following key baseline metrics for retail brands:
- Social commerce is where many customers discover products. Meeting customers where they are spending the majority of their time online means enabling customers to discover and purchase products on any channel.
- 48% of online shoppers think that using social media is a great way to learn about new products. Only 12% think it is a great way to buy new products.
- 71% of online shoppers prefer to purchase on brand websites.
- Social commerce is broken. Landing experiences when moving from a social network to the brand website are frequently poor due to bad links, incorrect pages, and out-of-stock products. Product availability issues are exacerbated by social media promotions that heighten exposure and interest.
- 81% claim poor website landing experiences when attempting to link from social networks, causing $700 billion in lost annual revenue from the product detail page alone.
- 98% of social shoppers claim out-of-stock and inventory issues, further exacerbated by social network promotions that heighten exposure, interest and traffic. Post-pandemic, this is the number one consumer complaint about online shopping experiences.
The complete 2022 State of Social Commerce study can be downloaded at www.simplicitydx.com/state-of-social-commerce (registration required), and a brief video summary of the results can be viewed at www.simplicitydx.com/video/State-Of-Social-Commerce_2022.
A complimentary 20-minute webinar, “Social Commerce Is Broken: Learn How to Fix It,” will be offered on Tuesday, May 17, 2022, at 10 a.m. PDT/6 p.m. BST to review the findings of the 2022 State of Social Commerce impact study and provide pragmatic advice on how to improve social commerce performance. Register for the webinar at www.simplicitydx.com/webinar/Social-Commerce-Is-Fundamentally-Broken.
SimplicityDX Edge Experience Platform
“As shopping at the edge has become mainstream, social commerce has become critical for customer acquisition,” saidCharles Nicholls, chief strategy officer and director at SimplicityDX. “But optimizing social shopping experiences is hard to do because customers are crossing channels to use the brand site for product purchases. SimplicityDX uniquely analyzes these new edge shopping journeys end to end by tracking shoppers’ experiences, campaign and inventory data, and matching demand with supply, solving one of the oldest problems in retail.”
The SimplicityDX Edge Experience Platform is software as a service (SaaS) that enables e-commerce, digital and marketing managers to proactively manage shoppers’ experiences for campaigns and promotions at the edge. SimplicityDX uniquely prioritizes campaign and promotion performance by combining user experience, campaign and product availability data for the first time, enabling brands to fix poor experiences immediately and increase their return on advertising spend (ROAS).
By combining AI-powered digital experience analytics with campaign, product and inventory data, the SimplicityDX platform continuously delivers an automated system of alerts to problems affecting revenue performance. Automated actions then pause social and promotional campaigns in-flight to prevent performance being impacted and enable brands to redirect advertising budgets to products that are in stock.
SimplicityDX solves the biggest social commerce headaches for retail brands by:
- Automatically monitoring customers’ experience signals to detect frustration points, errors, and out-of-stock experiences.
- Tracking edge shopping experiences end to end.
- Helping brands address out-of-stock challenges by providing real-time detection of changes in stock levels and automatically pausing in-flight promotional campaigns.
Brands benefit from redirecting traffic to their e-commerce store with full control of the customer experience and ownership of customer data.
The SimplicityDX Edge Experience Platform bridges the experience gap between all sources of traffic across paid, owned and earned media channels and all e-commerce platforms.
For more product detail about the SimplicityDX Edge Experience Platform, please visit www.SimplicityDX.com/product.
SimplicityDX makes social commerce work. Its SimplicityDX Edge Experience Platform enables brands to optimize social commerce experiences by simplifying the buying process between journeys started at the edge and the brand’s e-commerce site. Combining AI-powered digital experience analytics with user experience, social campaign, and product inventory data, SimplicityDX alerts brands to problems on-the-fly and automates actions to optimize revenue performance. Founded by a team of industry veterans in May 2021 and privately funded, SimplicityDX operates in the U.S. and U.K. markets. For more information, visit www.SimplicityDX.com or connect on LinkedIn.