New research from SOTI has found that as retailer's
tech considerations become increasingly complex with the rise of social
commerce and advances in AI, data security remains a significant barrier to
progress.
The report, The Rise
of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers, surveyed
12,000 global consumers, including 2,000 in the UK. It revealed that social
commerce is becoming a critical channel for retail growth, driven by consumer
demand for improved and more personalised shopping experiences. However, data
suggests there is still a lack of robust security for purchases online and with
in-store devices, emphasising the need for a security-first approach across all
retail channels: in-store, online and social.
The Rising
Importance of Social Commerce
As brands
continue to invest time and money into social media apps, this is changing how
consumers shop, blending personalisation to meet consumers evolving
preferences. In the UK specifically, 71% of consumers say that phones are the
most convenient way to make an online purchase, above the global average of 65%.
Some (50%) shoppers also say social media offers a quick and effortless way to keep
up with trends, making it an essential channel for retail growth.
However,
SOTI's research suggests that the rise in social commerce has brought new
challenges to retailers that they need to address. Of those respondents that
had made a purchase through social media in the past six months:
- 34% report items take a long
time to be delivered
- 24% receive products that
look very different from what was ordered
- 22% receive little or no
communication about where their item is
AI has
also had a big impact on how consumers want to shop, according to SOTI's study.
It found that in the UK, 51% of consumers stated they prefer shopping with
retailers that provide a personalised experience, and almost half (44%) believe these companies should use
AI to improve recommendations. This highlights a growing demand for more
personalised and targeted offerings and the need for brands to provide more
interesting shopping experiences.
Protecting
Consumer Data & Instilling Trust: Navigating Security Concerns
When shopping,
consumers need confidence that their chosen retailer is being cautious with
their data. But this survey shows that over 82% of UK consumers are concerned about
sharing personal details and that two thirds (61%) feel particularly
apprehensive when shopping with smaller businesses. SOTI's report also reveals
that just under a third (27%) of consumers fear online
fraud when following purchase links from social media.
"It's
clear from our research that there is an expectation from consumers for brands
to offer bespoke offerings whether they are purchasing via social commerce from
a TikTok shop or in-store," said Stefan Spendrup, VP of Sales, Northern and
Western Europe at SOTI. "However, it's crucial we don't lose sight of a
security first approach as retail adapts. We're continuing to see
cybercriminals target all businesses and retailers are not immune. Now is the
time for organisations to use secure mobile device technology and protect
consumer data, to ensure hard earned brand loyalty and trust is not lost along
the way," he added.
Download SOTI's
latest report, The Rise of Social Commerce: Turning Tech-Driven Browsers
into Influenced Buyers, here.