Discounts a Key Purchasing Trigger for Social Shoppers This Holiday Season

Shoppers are using various channels to purchase gifts and products this holiday season. One such emerging channel is social commerce. But how do shoppers, especially Gen Z, look at this channel? SimplicityDX is conducting a study to understand shoppers’ attitudes and challenges regarding social commerce. Check out the findings here.

The holiday season is on, and people are looking to purchase products and gifts. Since we are in an era of ecommerce, shoppers use various channels, such as search, social media, and referrals, to look for products and purchase them. One channel that is gaining prominence is social commerce. According to StatistaOpens a new window , the value of social commerce sales is expected to reach $2.9 trillion by 2026. 

To understand the attitude of consumers, especially Gen Z, toward social shopping this holiday season, SimplicityDX conducted a study. The following are a few findings from the study in detail.

The following are a few more findings from the study in detail.

For Gen Z, Social Shopping Is the Norm

The study found that Gen Z is undoubtedly leading the way with the adoption of social commerce this shopping season. About 41% of respondents said they planned to do the majority or all their shopping on social media. An additional 38% intend to do some of their shopping on social media. This finding matches with findings from other studies. According to Prabhakar RaghavanOpens a new window , SVP, Google, “In our studies, something like almost 40% of young people, when they’re looking for a place for lunch, don’t go to Google Maps or Search. They go to TikTok or Instagram.”

See more: Here’s What’s Next for Personalization, Social Selling, and Commerce in 2022

Offers and Shopping Experience Are Key Purchase Triggers on Social Media

Regarding the major purchase triggers in social shopping this holiday season, 28% of Gen Z shoppers said it was getting a great bargain with a discount code or a promotional offer. For 26%, it was the shopping experience, and for 15%, it is the social reviews or likes that are the top reason they buy.

Key purchase trigger on social media for Gen Z shoppers this holiday season

Source: Gen Z Shopping 2022, State of Social CommerceOpens a new window

Gen Z Will Spend More on Social Commerce This Year Compared to Others

Gen Z shoppers stand alone with their predicted increase in social media spending during this holiday season. About 31% predicted they would purchase more gifts with social media, and 31% predicted they would use social media for gifts on the same level as the last year. Shoppers from other demographics indicated that their purchases using social media would remain similar to the previous year. Only about 15% of other generations indicated they would purchase more gifts using social media this year than last year.

All generations, however, agree on the major purchasing trigger. About 35% of other generations felt that getting a bargain is the key purchase trigger this holiday shopping season. This means brands will have to offer attractive discounts to entice shoppers of all age groups.

Gen Z Is Invested in Live Shopping and Influencers

StudiesOpens a new window have shown that the live shopping aspect of social commerce is increasingly becoming popular, and the sales may make up about 20% of ecommerce sales by 2026. Further, the livestream ecommerce market is expected to touch $35 billion by 2024. Given this growth, how invested is Gen Z in it?

The study showed that 43% of the shoppers from this generation had already been to a live shopping event, and a further 25% would consider attending. About 56% of those who attended such an event also made a purchase, which indicates live shoppers find the content relevant, engaging, and compelling. This further indicates that brands targeting Gen Z shoppers may want to consider live shopping events this season, especially around discounts and promotions. 

Influencers are also a powerful tool for brands, as about 64% of Gen Z shoppers find influencers most useful when finding new products. About 48% also think influencers are most helpful in recommending new products. But when buying products, only 36% said they find influencer marketing useful in choosing products. 

Other generations are still exploring live shopping and influencers compared to this generation. For example, 31% of other generations had attended a live shopping event. Further, 39% said influencers are useful when finding new products.

All Is Not Rosy When It Comes to Social Shopping

The idea of buying products directly on a social media platform is appealing, and it should improve the shopping experience. However, this is not the truth. The study showed that most people prefer to check out a product on a brand’s site. For Gen Z, while 64% used social media to discover new products, 74% wanted to check out products from a brand’s site. The preferences are similar to streaming events, with 59% wanting to buy from the brand’s site or directly from the brand during the event and not from the influencer. These preferences are similar for other generations.

There are a few reasons for these preferences: trust in the brand is crucial; product availability and assortment keep changing on social; most importantly, offers on brand sites during the holiday season do not reflect on social media. Further, only 17% of shoppers who bought the product on social media and returned it would be willing to shop on social again due to poor return experiences.

It Is About Trust for All Shoppers

Gen Z is leading the way in social shopping, with 80% planning to use it for social shopping. Hence, social platforms and brands should take note of their shopping experience and ensure they feel valued, as it indicates how future consumer behavior will evolve. 

Brands and social networks should particularly focus on building trust among shoppers. The study showed that 61% of Gen Z and 68% of other generations say they either don’t trust the network or it somewhat abuses personal data. For Gen Z, the brand trust levels are also low, with 49% saying they either don’t trust the brand or it somewhat abuses personal data. About 44% of shoppers from other generations had similar feelings.

For Gen Z, distrust exists even at a product level. According to another study by SimplicityDX, 62% of Gen Z and Gen X shoppers said that scams and product quality concerns were the major things they would change. To build loyalty, brands should produce quality products and be clear about what they stand for. Going forward, they should also provide opportunities for shoppers to co-create as Gen Z shoppers look for higher-level experiences.

See more: 5 Social Commerce Best Practices To Win Consumers’ Hearts and Wallets

Customers Have Poor Handover Experiences

As seen, most consumers use social platforms to discover new products and then the brand site to purchase them. However, according to the study, the handover from a social platform to a brand website doesn’t necessarily offer good experiences. This challenge was revealed by an earlier SimplicityDX study as well, where 81% of respondents had a bad experience landing on brand websites from social platforms. And this is an area that needs to be monitored and optimized. Some challenges people face are products being out of stock or unavailable, links not working, the size/variant that is advertised not being available, and more. And these are the challenges usually faced by all age groups. 

Regarding customer experience, one trend that showed up is the reducing importance of customer experience as a key trigger for purchase with growing age.

Customer experience as a key purchase trigger with increasing shoppers’ age

Source: Gen Z Shopping 2022, State of Social CommerceOpens a new window

The Immediate Future of Social Commerce

There is no doubt that Gen Z is leading the way in adopting social shopping this holiday shopping season and for the foreseeable future. The pace at which Gen Z speed through social networks may make it tricky to target. It is essential that once they discover the brand, that experience lives up to high expectations, considering these shoppers can be ruthless in their feedback. While Gen Z may not be the primary buyers today, they are set to become a key demographic. Further, they are also powerful influencers. Investing in making their shopping experience seamless and building trust with them is key to capturing their hearts and minds and improving revenues.

How do you think brands and platforms can improve the social shopping experience? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

Image source: Shutterstock

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