Social platforms key for brands to drive growth, says Circana

Circana has released its latest report, titled "The Connected Consumer," which provides insights into contemporary shopper behaviour and future opportunities for brands.

The report underscores the potential for brand growth by leveraging social e-commerce to heighten consumer desire and increase demand.

The report explains how social platforms such as YouTube, Instagram, and TikTok expedite the consumer decision-making process, transitioning from awareness to purchase quickly with the aid of embedded in-platform e-commerce links.

With an estimated one-third of global consumers constantly connected to their devices, these platforms present a significant opportunity for brands to harness social currency. Companies can build genuine communities and experiences through both owned and user-generated content to captivate their audiences.

"In an era where digital connectivity is at its peak, brands have a unique opportunity to thrive by leveraging this and deeply engaging with their audience in new and creative ways," said Alistair Leathwood, Head of Insights, Analytics, and Media for the Asia-Pacific region at Circana. "By combining community, shopping, and entertainment, brands can capture their audiences and provide them with a unique experience that urges them to take immediate action, even if they weren’t actively seeking to purchase prior to engaging."

The report also delves into current shopper behaviour shaped by the economic climate, indicating that consumers are becoming more budget-conscious while still seeking quality and memorable experiences. The concept of 'little treat culture' continues to resonate with today's shoppers, even in economic downturns, presenting brands with prime opportunities to offer affordable yet pleasurable products.

Leathwood further commented on the importance of data in understanding consumer needs. "Brands can strengthen their approach by harnessing the power of data to understand their ideal shopper, tailoring campaigns to meet those dynamic needs and increase marketing success. Marketers and brand professionals need to go beyond vanity metrics like clicks and engagement; they must understand how online behaviour converts into sales. Utilising e-commerce transactions and first-party data will provide greater visibility into the purchasing journey," he explained.

Aside from understanding audience needs, the report stresses the necessity for brands to know where their consumers are and how best to engage with them. The Metaverse is mentioned as an emerging frontier for omni-channel retail, blending physical and virtual environments. The Metaverse is seen as an avenue for gathering extensive data insights, which coupled with innovative technology, can transform brand-consumer interactions. Potential features include 3D digital stores, virtual sales assistants, personalised shopping experiences, and inventive loyalty programmes.

To foster growth by creating desire and increasing demand, the report suggests that brands need to curate highly personalised shopping experiences that resonate with busy, hyper-connected consumers. This approach hinges on a profound understanding of consumer behaviour, granting brands the tools necessary to cultivate and sustain engagement effectively.