Unlocking Social Commerce Success with Smart Market Research

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Curious how social commerce can elevate your brand through personalized experiences? Uncover transformative insights with Suzy.

By: Jingmei An, Director, Market Research

Social commerce is rapidly gaining momentum as a shopping channel in the US, with major platforms like Pinterest, Instagram, YouTube, and TikTok integrating shopping features to streamline the discovery-to-purchase journey for their users. While still in its early stages of development, the social commerce market in the US is projected to grow significantly in the near future. According to McKinsey, the US social commerce revenue is expected to hit $80 billion by 2025, up from $37 billion in 2021.

So, what is social commerce and why does it matter?

Social commerce marries social media with ecommerce, enabling purchases to be made directly within a social platform.

While a wide range of industries can benefit from social commerce, brands in fashion, beauty and personal care, health and wellness, food and beverage, home décor, and electronics and gadgets are particularly well positioned to reap the benefits of growing social commerce. Some key advantages include:

• Allowing brands to tap into a massive, highly engaged audience to increase their reach and drive sales

• Streamlining the path to purchase by allowing customers to make purchases directly on social platforms, leading to higher conversion rates

• Building trust through user-generated reviews and recommendations to help establish credibility

• Fostering stronger customer relationships and loyalty by creating highly personalized content 

Consumers, in turn, benefit from a seamless, convenient shopping experience. They can discover, browse, and purchase products without leaving their favorite social media apps. The ability to see products used in real-life scenarios by friends or influencers also adds a layer of credibility and trust. 

As a respondent commented in a Suzy survey about social commerce “… I get to see new products in people's real-life experiences … and how they feel about the new product. I think it's an excellent way to get new products put out there on the market.”

The Role of Market Research in Social Commerce Success

To effectively capitalize on the exciting growth potential of social commerce, brands must develop a well-thought-out go-to-market strategy that is tailored to the unique characteristics of the social commerce channel. Conducting robust market research and gaining deep consumer understanding is essential to navigating the highly competitive and dynamic landscape and ensuring brand strategies align with consumer behaviors, platform trends, and business objectives. 

The following four types of research are critical for brands to focus on at the start of the social commerce engagement.  

1. Consumer Behavior and Audience Segmentation Research

Understanding the social commerce shoppers is fundamental. Foundational research such as attitude and usage and consumer profiling help brands identify who their customers are, how they interact with social platforms, and what motivates them to buy. Furthermore, detailed customer segmentation enables brands to personalize content and messaging, ensuring they are reaching the right consumers with the right message at the right time. 

Both quantitative and qualitative methodologies can be employed for foundational research. In fact, integrating both approaches, e.g. surveys coupled with IDIs or focus groups, will help brands gain not only a big picture of trends and patterns in consumer preferences and behaviors but also the depth of insights around the why behind the behaviors. Brands that tailor their strategies based on comprehensive consumer insights will see higher engagement and conversion rates.

2. Product Discovery and Purchase Journey Research

Mapping the customer journey from discovery to purchase allows brands to identify any friction points and optimize the shopping experience. This research is highly relevant for the current stage of the social commerce evolution as learnings can reveal the distinct pathways that consumers go through to discover products in this new shopping channel. Learnings around how consumers respond to organic social media posts, influencer recommendations, or paid ads will inform brands how to effectively integrate social proof and influencer marketing. 

A recent Suzy survey reveals that product reviews, brand reputation and recommendations are the top 3 factors influencing buying decisions on social media. A clear understanding of how various social media influences impact consumer choice throughout the purchase journey would help brands more effectively implement their marketing and promotion plans.

3. Content Effectiveness and Format Testing

Content drives social commerce. Evaluating how well the brand content resonates with consumers on various platforms helps brands determine which types of content, e.g., videos, images, live streams, would work well. Applying A/B testing and iterative testing in content development and refinement can reveal what drives the most engagement and sales, allowing brands to optimize their social media strategy. With so many content options available, knowing what works for the target audience can help brands allocate resources efficiently and create impactful campaigns that boost engagement and sales.

4. Influencer and Social Proof Impact Analysis

Influencers play a critical role in social commerce by driving product awareness and credibility. Research can help brands identify the right influencers to partner with, measure the effectiveness of influencer campaigns, and assess how social proof—reviews, ratings, testimonials—impacts consumer trust and purchase decisions. Knowing how to leverage influencers and social proof effectively can boost sales, improve marketing ROI, as well as strengthen consumer loyalty.

Conclusion: Tapping Into Social Commerce's Full Potential

The opportunities in social commerce are vast and exciting, offering brands a direct access to a broad and engaged consumer base. Brands that want to thrive in this space must embrace the opportunities it brings now and quickly. However, success in social commerce requires more than just a presence on popular platforms. Comprehensive market research is essential to understanding the target audience, optimize content, streamline the purchase journey, and leverage influencers.